Understanding media performance in digital marketing is like navigating a maze that constantly changes. The emergence of platforms like TikTok has revolutionized how brands connect with their audience, adding layers of complexity and opportunity. However, with regulatory changes such as GDPR and iOS 14.5 updates, eCommerce brands are now facing a growing challenge: gaining clear visibility into the performance of their media mix channels.
Top of Funnel Marketing
Top-of-funnel marketing is about more than just creating buzz; it’s about laying a sustainable foundation for growth. Imagine it as the first chapter of an engaging novel, where the story begins, intrigue is created, and the relationship with the reader—or in this case, the customer—starts to form.
Historically, due to the difficulty in tracking and measuring the impact of these top-of-funnel activities, brands have gravitated towards bottom-of-funnel advertising, where results are more tangible, like direct sales and conversions. However, this approach often overlooks a critical aspect of customer acquisition and brand building.
According to a Fospha report, brands that consistently invest in top-of-funnel activities for a minimum of 10 months are likely to see reduced customer acquisition costs and a more robust Return on Ad Spend (ROAS). Specifically, the report reveals that brands prioritizing long-term brand awareness strategies can improve their ROAS by 42% and decrease acquisition costs by 35%, in comparison to brands that concentrate exclusively on conversion-focused activities.
The Challenges of Current Measurement Practices
The digital advertising landscape has evolved significantly over the past five years, growing more complex and demanding advanced measurement techniques.
Traditional pixel- and cookie-based methods, which have been the mainstay of most brands, are losing their effectiveness due to regulatory changes like GDPR, CCPA, and iOS 14.5, which prioritise consumer privacy over technological efficacy. This has led to a significant reduction in visibility, especially in the early stages of the customer journey. Consequently, marketing attribution models that do not account for top-of-funnel activities may overestimate the effectiveness of lower-funnel activities.
On Monday 8 Jan 2024, TikTok introduced Fospha as one of the measurement partners. This partnership represents a significant development in the intricate world of digital marketing, highlighting the importance of not solely relying on bottom-of-funnel metrics for brands aiming to achieve sustainable growth and broad market reach.
Fospha’s solution empowers brands to measure their paid media spend across platforms like TikTok in a data-driven way that aligns with profitability. This means that brands can now gain insights into the impact of their top-of-funnel activities, optimize their strategies accordingly, and scale their efforts without sacrificing their bottom line.
Case Study
Let’s take a closer look at The Essence Vault, a fragrance brand that faced the common dilemma of digital expansion. By embracing TikTok’s dynamic platform and partnering with Fospha, they saw a 20% increase in revenue and a 7% improvement in ROAS, illustrating the power of a data-driven, top-of-funnel approach.
Resources
Conclusion
TikTok has exploded in popularity, emerging as a significant alternative ad channel. The platform has shown strong returns, outperforming other growing platforms like YouTube. Top-of-funnel marketing is more than just an initial handshake with potential customers; it’s an indispensable part of a brand’s growth strategy in today’s complex advertising ecosystem. With strategic tools and partnerships like Fospha and TikTok, brands can confidently navigate this landscape, ensuring that every stage of the marketing funnel is optimised for success. As we look towards the future of digital advertising, it’s clear that understanding and leveraging top-of-funnel marketing is not just a strategy, but a necessity for sustainable growth and success.
For further information on this partnership, visit Fospha’s blog and TikTok for Business Blog.
