In the ever-evolving landscape of eCommerce, staying ahead requires constant adaptation and strategic insights. The Fospha State of eCommerce Report for Q1 2024 brings valuable data to the forefront, guiding marketers, advertisers, business owners, and agencies in the eCommerce industry on where to channel their efforts for maximum return.  

The report reveals a significant underinvestment in paid social channels, with advertisers reaching only 59% of their potential, suggesting an opportunity to nearly double spend for profitable returns.  

Here are some key takeaways from the report: 

Meta and TikTok emerge as leaders in paid social success, with Meta boasting the highest relative Return On Ad Spend (ROAS). Notably, TikTok stands out for new customer acquisition, outpacing other channels in driving new conversions.  
Snapchat’s major update has catapulted it as a growth channel worth watching, with a remarkable 504% increase in ROAS year-over-year.  
The report highlights a widespread issue in the industry: the underrepresentation of impressions-led channels by Google Analytics and ad platforms’ own attribution models. This discrepancy emphasizes the need for standardized measurement methods to accurately report performance.  

Now is the time to reassess your investment in paid social, explore the potential of emerging channels like Snapchat, and adopt reliable measurement methods to navigate the complex digital marketing landscape effectively. 

For a deep dive into these insights and to leverage them for your digital strategy, download the full Fospha State of eCommerce Report Q1 2024. Embrace the data-driven insights to refine your approach, optimize spend across platforms, and drive your eCommerce brand towards profitable growth.  

If you’re looking to turbocharge your brand’s growth, you’re in the right place. Fospha, a leader in marketing measurement and analytics, has just released a game-changing report: “Elevating eCommerce: Secrets of Scaling Brands.” This isn’t just another report—it’s your playbook for smashing those growth goals. Let’s dive in.

Key Strategies for Different Growth Stages

Fospha analysed 71 eCommerce brands to uncover the secret sauce behind the top performers at each growth stage. Whether you’re a startup, scaleup, mature, or majority offline, there’s gold in these insights.By diving into real-world case studies and expert opinions, Fospha unveils the significant impact of full-funnel marketing and upper-funnel investments on sustainable growth.

Upper Funnel Advertising: The best brands aren’t just throwing money at ads—they’re strategically investing. On average, they’re dedicating over 18% of their Meta budget and 22% of their TikTok spend to awareness and consideration. Why? Because brand visibility is king.

Lifecycle-Specific Strategies:

Startups: It’s all about building that brand awareness with Paid Social. Think big, get seen.
Scaleups: Now’s the time to double down on conversion activities and impressions-led media. Make those clicks count.
Mature Brands: Diversify the marketing mix, increase upper-funnel spending, and explore international markets.
Majority Offline Brands: Time to dive into Paid Social, despite traditionally relying on click-based channels like Performance Max.

Real-World Success Stories

Fospha’s report is packed with real-world case studies that show these strategies in action. Check out these brand wins:

Pooch & Mutt: By ramping up their TikTok spend, they improved customer acquisition costs (CAC) and saw revenue soar.
The Essence Vault: They kept their CAC steady while boosting their Meta spend, demonstrating efficient budget management.
Represent: They took efficiency to the next level and expanded their presence in the US market, thanks to their savvy TikTok investments.

Insights from the Experts

Fospha teamed up with Meta Marketing Science team to enrich the report with expert perspectives on effective growth strategies. Alfonso, Marketing Science Partner at Meta, highlights the importance of accurate and actionable measurement systems for smart marketing investments and driving growth.

Download the Report for In-Depth Insights

Want to take your eCommerce game to the next level? Get your hands on Fospha’s latest report. It’s packed with the data-driven insights you need to navigate different growth stages and make your marketing dollars work harder.

Click here to download “Elevating eCommerce: Secrets of Scaling Brands” report.

About Fospha

Fospha is a new type of marketing measurement. Using machine learning to combine multi-touch attribution and marketing mix modelling in one view, provides clear, actionable insights on where to spend to maximise your growth. With a cutting-edge approach Fospha shows you the impact of all clicks and impressions, restoring visibility you lost with iOS14 & 17 and future-proofing you against further privacy changes

Snapchat driving spend growth at higher efficiency

Nutrimuscle is a fast-growing sports supplement brand that started using Fospha in June 2023. Their goal was to grow by increasing conversions and effectively allocating spend, but like many businesses, one of the primary challenges they faced was the inability to track key metrics (i.e. Cost of Acquiring Customers) and lack of transparency into campaign performance.

Nutrimuscle wanted to understand where to allocate spend, and which channels would be most effective for increasing reach and conversions. Last click and ad platform measurement wasn’t enough- this is where they turned to Fospha.

Brand-building, brand messaging, and brand-resilience

When defining brand messaging and personality, it’s crucial to establish what your brand is and, more importantly, what it isn’t. Ruchika Kalra, brand director at Lastminute, highlighted GymShark’s clear message: “We do gym.” This simple statement conveys the company’s focus and helps potential customers understand when the brand’s offering can be valuable to them.

Once the brand voice and proposition are defined, consistent messaging across all touchpoints and channels is key to customer recognition. Be self-aware when communicating with customers and consider their perspective on the brand after encountering your messages. Social listening is a crucial skill for marketers to develop in this regard.

Consistency in messaging doesn’t mean uniform communication across all customer segments. It’s important to “speak your customer’s language” and tailor messages while maintaining the same brand tone.

With the emergence of AI-powered tools, it’s crucial to understand their impact on brand expression. Don’t simply change your website’s strapline when introducing a new AI-fueled tool.

Izabela Misiorny, CMO at Siteimprove, points out that marketers should consider whether altering your brand expression aligns with your overall vision for brand-building. Ask yourself: Is it just a pointless novelty? What value can the “AI-powered…” expression bring to the brand?

Taylor Swift’s approach to building brand evangelists is another powerful strategy to consider. No marketing campaign speaks louder than personal recommendations. Creating a community of advocates can help your brand reach a wider target audience. For B2B marketers, this means finding allies and forming partnerships with brands that share a similar vision for making an impact.

Misiorny also emphasized community building, self-awareness, and empathy in marketing as key components of brand resilience. In the face of economic downturns, industry disruptions like AI, and pressure to follow trends, a resilient brand will survive and thrive in this fast-changing world. Marketers should also cultivate a discerning attitude, periodically sense-checking their direction while maintaining a consistent brand proposition.

Customer loyalty and customer-centric experience

Customer-centric branding and communication across all channels are essential in today’s market. With the cost of acquiring customers through advertising increasing by 222% in recent years, customer loyalty has become not just a marketing goal but part of a comprehensive business strategy. Marketers should leverage existing customer relationships for growth.

Jim Rudall, GM of EMEA at MailChimp, emphasizes that the key to success is creating a positive and memorable customer experience by integrating scientific insights and personalization to enhance engagement and loyalty. To achieve this, businesses need to understand the deeper psychological factors influencing customer behaviors.

Rudall mentions the Fogg Behaviour Model: Behavior = Motivation * Ability * Prompts. Understanding why customers support your brand, their readiness to do so, and when to engage them on this journey can help you better comprehend their motivations.

Rather than focusing solely on rational factors like price and quality in loyalty strategies, consider the cognitive factors that influence how people perceive value. Rudall introduces a loyalty wheel comprising four neurobiological principles: rewards, memory, emotion, and social interaction. These pillars help marketers understand the scientific underpinnings of loyal actions. Remember, repeat purchases alone don’t define loyalty.

Content marketing and content reach

There’s an ongoing debate about the importance of being entertaining versus educational in content creation. While brands can create significant momentum through clever use of trends and entertaining content, it’s crucial to align your approach with your brand proposition.

When creating content, it’s important to tailor it to each platform. Resources may be limited, but content that performs well on one platform doesn’t necessarily translate to others. For example, polished product videos might be more appropriate for Instagram, while behind-the-scenes content could be better suited for TikTok.

Jenna Rak, Senior Director of Audience Development, Social Media and Analytics at Vogue, shared an example of discovering unexpected engagement on Reddit around their political covers. This highlights the importance of exploring where discussions about your brand are already taking place on less considered platforms.

Audience feedback is crucial to the content creation process. Strategies for incorporating feedback include using social listening tools, reviewing comments on platforms like TikTok (where 92% of consumers are actively engaged in the comments section), and considering call center data to identify customer pain points.

Robb Miller, VP of Sales at Issuu, points out that as we enter the visual economy, dynamic digital solutions are becoming necessary for content marketing. Having versatile tools that enable easy content transformation and distribution across multiple platforms can significantly speed up marketers’ content distribution tasks.

Marketing efforts measurement and cookie-less world

The impending deprecation of third-party cookies is driven by legislative changes, company preferences, and consumer sentiment against tracking. Businesses heavily reliant on cookies should prepare for changes, such as Google Chrome’s phase-out of cookies, and adopt new technologies offering cookie-less solutions.

Contextual first-party data is becoming more prominent as cookies are phased out. First-party data provides clearer indicators of user actions and can be used to target advertising more effectively. Miranda Glover, CMO at UNRIVLD, suggests that when marketers put performance metrics into context, they unlock the power of data.

Paul Wright, Head of Advertising International at Uber, shares that marketers should focus on standing out and getting engagement from consumers in an ad-saturated world. For instance, Uber is shifting away from search-based KPIs to focus more on attention-based evaluation of ad performance.

Data is crucial for understanding customer behavior and optimizing the customer experience. Effective data management leads to better personalization and, consequently, more successful marketing efforts. However, as Rak points out, data should inform rather than drive creative decisions, reinforcing the need for a balance between analytics and creative intuition.

There’s an ongoing tension between creativity and measurable performance in marketing. While it’s necessary to justify marketing expenditure with performance metrics, it’s also important not to stifle creativity, which is fundamental for brand differentiation and engaging customer experiences.

Ian Gibbs, Insight & Planning Director at DMA, highlights a misalignment between measurement metrics and business objectives. With average marketing budgets falling to 7.7% of overall company revenue in 2024, it’s crucial for marketers to demonstrate which efforts generate positive effects.

Gibbs emphasizes a shift from performance marketing to brand marketing. Despite budgets still favoring performance marketing, investments in brand measurement are yielding better results, including shareholder value and profit growth.

To improve marketing effectiveness and measurement, marketers should focus on meaningful metrics that resonate in the boardroom, rather than campaign delivery metrics like video plays or social media engagement. Building a unified measurement framework for alignment across the business is also crucial.

The role of a modern CMO

The role of CMO is evolving and multifaceted in the digital age. Key traits for modern CMOs include:

Being experimental: Always allocate budget and time to test new approaches for delivering messages to customers.
Balancing AI and human creativity: While AI can aid in content creation and basic tasks, explore its use for data analytics and operational tasks to free up time for creativity and strategy. CMOs should champion originality in content and enable their teams to perform better.
Enabling business growth: Marisa Thomas, CMO at Good-Loop, argues that CMOs should define their role based on the company’s growth stage and be proponents for change.
Cultivating an innovative culture: As leaders, CMOs should foster a non-restrictive mindset, show vulnerability with team members, and create a culture of trust and innovation within their teams.

Conclusion

The insights from DMWF Global 2024 underscore the importance of adaptability, creativity, and strategic thinking. Marketers must balance data-driven decisions with brand authenticity, prioritize customer-centricity, and embrace new technologies while remaining true to their core values.

In today’s fast-paced digital landscape, scaling a brand effectively requires more than just an innovative product or service. For D2C and e-commerce marketers, understanding the intricacies of growth strategies across different stages of business development is crucial.  

A recent analysis of 71 brands offers valuable insights into the optimal strategies for startups, scaleups, mature brands, and majority offline businesses. Here’s what we learned. 

Startup Stage: Building the Foundation 

Key Strategy: Startups focus on impressions-driven channels like Paid Social to establish their audience base. This approach is essential for gaining visibility and creating a strong initial footprint in the market. 

Case Study: Pooch & Mutt exemplified this strategy by leveraging Paid Social to achieve significant year-on-year revenue gains while also improving acquisition costs. This foundational step is crucial for setting the stage for future growth and stability. 

Scaleup Stage: Accelerating Conversion 

Key Strategy: For scaleups, having already established an audience, the focus shifts to conversion activities. Increasing spend in impressions-led media helps continue generating demand while maintaining a balance with acquisition costs. 

Case Study: The Essence Vault successfully applied this approach, scaling their Meta presence while minimizing cost increases. This stage emphasizes the importance of efficient spending to maximize conversion rates and sustain growth momentum. 

Mature Stage: Expanding Horizons 

Key Strategy: Mature brands invest in higher funnel activities to avoid market saturation and explore international expansion opportunities. This strategic pivot ensures sustained growth and market diversification. 

Case Study: Represent scaled their efforts on TikTok, enhancing growth and improving Meta efficiency. By expanding their presence in the US, they exemplified how mature brands can navigate saturation and seek new markets for continued success. 

Majority Offline Brands: Embracing Digital Channels 

Key Strategy: Majority offline brands primarily invest in click-based channels like Performance Max. However, the analysis reveals significant opportunities in Paid Social, suggesting a balanced approach for optimal results.