2 min. reading

Brand Marketing Is Rising in Popularity

The traditional performance-only approach to marketing is giving way to more sophisticated branding, according to analysis from Nest Commerce.

Brand Marketing Is Rising in Popularity
Source: Depositphotos

The ‘full funnel performance’ approach focuses on building awareness and customer acquisition through video-based platforms such as Meta, TikTok and Google. The report is based on data from more than 40 e-commerce brands.

It is worth to bet on the brand

Brands that ran awareness or traffic campaigns alongside performance campaigns saw up to a 31% annual increase in return on advertising investment (ROAS). Conversely, brands that rely solely on performance campaigns experienced a 32% annual decline in ROAS.

Source: Nest Commerce

Brands should keep this in mind, especially ahead of busy sales periods such as Christmas and Black Friday. Building brand awareness before the expected peak periods can pay off.

Video content is king

Video-based platforms such as TikTok and Instagram Reels play a key role in branding and building awareness, especially when targeting younger audiences. TikTok, in particular, improved significantly in the first quarter with a 37% increase in conversion rate compared to the previous period, reinforcing its position as a strong platform.

For example, Performance Max campaigns perform better than most metrics with an 80% year-over-year increase in conversion rates and a 20% increase in click-through rates.

Source: Nest Commerce

“Your audience is multichannel. Your brand should be too. The days of meta having a monopoly on paid social are coming to an end. Audiences are increasingly splitting their time and attention across multiple channels,” the report says.

The report advises companies to consider the importance of community building and the overall marketing approach when developing marketing strategies. Brands that have invested little in brand building in the past may now find themselves struggling in the marketplace.

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