In Elevating eCommerce: The Unseen Power of Upper Funnel Spending, measurement platform Fospha analysed the impact of mid and upper-funnel activity on brands’ performance over time, paying particular attention to Meta, whose platforms have the biggest proportion of spend in higher-funnel objectives.
Why upper-funnel spending matters
A focus on short-term metrics can distort the true impact of marketing and advertising efforts, which requires visibility over the performance of higher-funnel strategies and channels.
The analysis indicates that the longevity of upper-funnel spend is a huge driver of how much success a brand ultimately finds with this objective. Prematurely halting spend if results aren’t immediate may be a missed opportunity for future reward.
Takeaways
In the short term, brands spending in Brand/Awareness ads were worse off than competitors who stuck to just Conversion: after 3 months, CAC was up 33% and ROAS had dipped.
But after ten months, ROAS was 27% stronger for brands that maintained awareness spending than those that stopped after three.
It also became cheaper to acquire a new customer, with CAC 41% lower.
Key quote
“Patience is key when it comes to spending in upper funnel – while it might seem a long time to wait, the long-term improvements are a compelling pay-off”
says Jamie Bolton, VP Growth at Fospha (via LinkedIn).
Source: warc.com
