30-second summary:
- Capturing an impressive 47% of total spend, Meta delivers a remarkable ROI and remains the only channel for brands that is capable of delivering at scale
- Marketers must look beyond a ROAS that may seem marginally below the blended average across their channels, and recognise the power of Meta for delivering cost-effective eCommerce performance at scale
- ClickZ thought leader, Jamie Bolton, discusses Meta’s performance as one of the most effective top-of-the-funnel marketing channels
In the world of ecommerce, cost-effective performance at a massive scale is the ultimate goal. Meta has emerged as the only viable option for this. In this second installment of our series on the best channels, platforms, and strategies for success in ecommerce for 2023, we take a closer look at Meta’s impressive performance in digital advertising. We’ve combed through the findings from Fospha’s marketing ecommerce report to uncover why Meta has become such a dominant force in the industry. I also discuss what makes it great for top-of-the-funnel brand awareness. Let’s find out how marketers can capitalize on Meta’s reach to help build their brand identity.
Taking a closer look at Meta’s ROAS, it may seem slightly below the average for the brands we examined, but it’s crucial to consider the broader context before getting overly concerned. Meta is the largest channel in Fospha’s analysis, making up an impressive 47% of the total spending. Despite this massive investment, Meta continues to provide a remarkable ROI. Moreover, for most brands, Meta remains the sole channel capable of delivering the necessary scale.
But it’s not just about choosing Meta. It’s about understanding how it works and where it can be most effective. Let’s take a closer look at Meta’s performance at different funnel stages, and how it delivers a strong top-of-funnel relative ROAS.
Meta’s powerful performance at the top of the funnel
Meta is a very strong contributor at the top of the funnel, where awareness media drives high performance. This is despite the fact that it only represents a very low percentage of total spend. In fact, data from Fospha partner Nest Commerce shows that CPMs are substantially lower for Brand activity. This builds the case for investment in this area, as it can yield great results for your brand.
By focusing on the top of the funnel, brands can maximize their investment in Meta. With low costs and high effectiveness, it’s a smart choice for marketers looking to drive brand awareness and reach new audiences.
However, it’s important to note that a successful Meta strategy requires more than just throwing money at it. Marketers need to create compelling and engaging content that resonates with their target audience. They also need to have a deep understanding of their audience’s behavior and preferences on the platform.
By crafting a thoughtful and data-driven strategy, brands can leverage Meta to drive not only awareness but also engagement and conversion. Ultimately, a well-executed Meta strategy can be a powerful tool in a brand’s marketing arsenal, driving both short-term results and long-term brand equity.
Meta’s performance at the bottom of the funnel and post-purchase
Meta’s contributions don’t stop at the top of the funnel. Bottom of the funnel and post-purchase activity are also big contributors, delivering ROAS significantly higher than average for every brand. Targeting warm leads and existing customers is always likely to deliver a higher ROAS than cold acquisition spends. Remarketing, in particular, is a crucial investment area that is currently underinvested in.
In addition, the use of data and analytics is crucial for optimizing Meta campaigns and driving better results. With the wealth of data available on the platform, marketers can analyze metrics such as engagement rates, click-through rates, and conversion rates to gain insights into what’s working and what’s not.
By using these insights to inform their strategy, brands can continuously improve their Meta campaigns and drive even better results over time. As the platform continues to evolve and expand, it’s important for marketers to stay up-to-date with the latest trends and best practices in order to maximize their ROI and stay ahead of the competition.
Prospecting/Conversion campaigns continue to give good returns at every funnel stage
Prospecting/Conversion campaigns on Meta, while performing below the average when compared to other platforms like Pinterest and TikTok, remain a very good investment. In fact, they make up a massive percentage of Meta spend. Few, if any, channels can match Meta’s ability to reach new audiences at scale – making the case for keeping on spending is clear.
However, it’s important to remember that brands who focus solely on Conversion-focused campaigns in Meta are missing out on a big trick at the top of the funnel. By diversifying your investment in Meta, you can take advantage of its strengths at all funnel stages.
If you’re advertising on Meta, don’t just settle for traditional ad placements. Specifically, Meta’s interactive ads and video formats are perfect for top-of-funnel campaigns and building brand awareness. Healthcare solutions company, LetsGetChecked, which is one of Fospha’s clients, saw a 300% increase in paid social performance from Q1 to Q3 in 2022, and was able to allocate budget in the right areas to grow revenue profitably, with the help of Fospha’s fully-attributed media plan, maximizing revenue and efficiency by informing bidding decisions across all channels. The company did amazingly well by getting more clarity on how much activity Meta was driving at top-of-funnel.
Conclusion
In conclusion, Meta delivers a strong top-of-funnel relative ROAS that should be a significant consideration for senior marketers. By understanding its strengths and where it performs best, brands can make the most of their investment in Meta. With low costs and high effectiveness, Meta is a smart choice for marketers looking to create a well-rounded funnel that delivers results.
Investing in bottom-of-funnel and post-purchase marketing activity is important for brands to create a strong foundation for long-term success. At the same time, investing in the top of the funnel marketing with awareness media and brand activity is just as important for brands to expand their brand awareness and reach new audiences.
Jamie Bolton is a ClickZ Advisory Board Member and head of Growth at Fospha, a leading marketing measurement platform for ecommerce.
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