When entrepreneurs want to obtain aggressive short-term objectives, they have a tendency to deal with lower-funnel Fb methods, corresponding to direct response (DR) campaigns, reasonably than upper-funnel methods, corresponding to model campaigns. This is smart, as model constructing is often seen as not vital at serving to, and doubtlessly even undermining, instant gross sales targets.
Is that the correct strategy? Is model advertising on Fb really at odds with DR? Or can the 2 work in tandem to assist advertisers obtain each short- and long-term objectives?
To search out out, we teamed up with Analytic Companions and GroupM to look at the Marketing Mix Model (MMM) outcomes of greater than 500 Fb model and DR campaigns run by 21 companies over a three-year interval.
Right here we briefly discover key learnings from the analysis. Within the full report, The Effectiveness of Model Messaging in Driving Gross sales Incrementality, we delve into outcomes in-depth, have a look at extra vertical-specific findings and supply MMM recommendation for these trying to conduct their very own analyses.
The position of brand name advertising in driving gross sales
Opposite to the idea that solely lower-funnel approaches assist to realize short-term objectives, the MMM evaluation discovered that each model and DR promoting campaigns on Fb are constantly efficient in driving gross sales.
General, DR campaigns do are likely to drive extra incremental gross sales than model campaigns, which isn’t shocking on condition that upper-funnel advertising is aimed toward customers who’re additional away from conversion and lower-funnel advertising is aimed toward those that are nearer to buy.
Nonetheless, model campaigns are sometimes cheaper per impression than DR campaigns as a result of upper-funnel advertising campaigns are typically aimed toward broader audiences, whereas lower-funnel advertising campaigns have a tendency to make use of extra exact, and due to this fact extra expensive, concentrating on.
As soon as the price of media is taken under consideration, the efficiency of upper-funnel advertising in driving gross sales is extra similar to that of lower-funnel advertising.
The influence of things corresponding to trade
The evaluation additionally in contrast outcomes amongst verticals to discover how components corresponding to trade influence effectiveness and effectivity.
The trade findings confirmed the general studying: lower-funnel advertising generally is a highly effective strategy for serving to to realize short-term objectives. Furthermore, they confirmed that in sure cases, model campaigns will be more practical than DR campaigns in driving gross sales.
For instance, the well being care outcomes revealed that model messaging was more practical in driving short-term gross sales with adults ages 35—54, whereas DR was more practical in driving short-term gross sales with teenagers.
The ability of a full-funnel strategy
The analysis signifies that whereas Fb lower-funnel advertising is usually more practical than upper-funnel in driving conversions, it may be much less environment friendly given the sometimes increased price of exact concentrating on. Moreover, the relative effectiveness of brand name versus DR campaigns typically varies relying on components corresponding to vertical and audience.
Given these findings, entrepreneurs ought to think about each lower-funnel and upper-funnel methods when trying to drive gross sales and will look to judge efficiency relative to the broader media combine. In the end, a full-funnel strategy with each media planning and measurement will allow entrepreneurs to raised obtain each short-term and long-term objectives.
What it means for entrepreneurs
Higher-funnel advertising can drive incremental gross sales
Though model campaigns are sometimes dismissed when trying to obtain short-term objectives, they’re typically a beneficial device for driving gross sales. Entrepreneurs could possibly obtain higher success by taking a full-funnel strategy.
Model campaigns generally is a cheaper strategy
Whereas DR campaigns are typically more practical in spurring instant outcomes, in addition they are typically costlier. Due to this fact, incorporating upper-funnel methods may help improve advertising effectivity when trying to increase gross sales.
The relative effectiveness and effectivity of brand name versus DR campaigns typically varies based mostly on components corresponding to trade and audience. A test-and-learn strategy may help entrepreneurs decide the optimum technique.
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