Some marketers are changing how they view ads on Meta-owned Facebook, Instagram and Snapchat, with a focus on brand awareness and not immediate sales.
Marketers have sought to diversify their social media advertising budgets in recent years to reduce dependence on Facebook and Instagram due to privacy shifts and performance problems, misinformation, hate-based content, and other issues. This diversification often came from direct-to consumer brands that relied too heavily upon performance marketing and direct response advertising to reach their sales goals.
While these marketers continue to diversify their social media advertising spending, they are also rethinking the potential uses of their Instagram and Facebook ad dollars.
While marketers are still diversifying their social media ad spending, they’re also rethinking what their ad dollars on Instagram and Facebook can do. Last week, COO Sheryl Sandersberg announced her intention to leave the company later in the year .) Some marketers don’t want to be solely focused on sales, though that is still their goal. They also plan to make more aggressive brand awareness investments through the platforms.
“There is a significant shift in dollars to [brand awareness plays on Facebook and Instagram],”, Katya Constantine (founder of performance marketing shop Digishop Girl) explained via email. She added that “dollars that were used to be seen in traditional TV or [streaming] purchases” are now being shifted. Agency executives say that they advise clients to concentrate on creative execution and give consumers a feeling of the brand, rather than focusing on product sales.
Constantine said: “With Facebook dropping some functionalities from performance efficacy perspective for [direct response] campaign, we still see very strong investments in brand awareness discovery components and brands. Recognizing that you can still get an affordable CPM on Facebook than what you’ll get in , you still have the ability to get a lower CPM than what you get in
E-commerce brands are also investing more in Google ads. They are scaling down their Facebook positions as they reevaluate their messaging and advertising strategy. Constantine says that Facebook is “just not so much with [direct response] channels as it used to”.
Startups and DTC brands that rely on Instagram and Facebook exclusively to acquire customers are most affected by these changes. This doesn’t mean that brand awareness efforts don’t aim to acquire new customers. However, the acquisition strategy has changed. Instead of trying to get someone to buy from a Facebook ad directly, brands want to spread the word about their brand and get people’s email addresses to retarget and possibly acquire that customer somewhere else.
” The goal isn’t that vanity metric that measures brand awareness. It’s something that’s difficult to measure,” Duane Brown, founder and CEO of Take Some Risk, a performance marketing agency, said.
Within the last year, 25-40% percent of Brown’s clients have been open to changing how they use Facebook, opting to leverage it as an email acquisition channel versus a one-dimensional conversion channel.
Agency execs state that instead of stepping back from Instagram and Facebook advertising, marketers, especially those who are behind DTC brands, have begun to reevaluate what Instagram and Facebook ads can do.
Facebook still has huge user bases. Sprout Social Reports Facebook have 2. 91 billion monthly active users, slightly more than Instagram’s 2 billion. TikTok reports 1 billion monthly active users, while the rest of the platforms report numbers in the millions.
From this perspective, it makes sense for IMGN Media to have a presence on Facebook, Instagram and Twitter, rather than to convert customers into paying customers.
” I don’t believe Facebook will ever be in the same dominant position they once were,” stated Mallin. He said that Facebook still has a large share of dollars so it doesn’t necessarily mean that there will be a decline to Friendster status .”
3 Questions with Lucie Buisson, chief product officer at Contentsquare
For a software company, what does it mean to make the digital experience more human?
We want to [digitize] understand what makes human relationships so special. It takes a lot more empathy between brands and users, understanding their feelings, needs, and goals, in order to make them smarter. Our focus is on contextual and behavioral data, how you browse a website. Online, we place too much emphasis upon the demographic data and not enough on the behavioral and contextual information. While I do not want to deny the value of demographics, they aren’t helpful in understanding what people want.
How does GDPR, the cookieless future and iOS 14 impact digital marketing?
These conversations were accelerated by two factors. The first is the increased awareness about how data can be used. The second is the pandemic. In one night everyone had to go online to purchase groceries and other necessities. This created many new customers and increased the number of online interactions. But 80% of them complain that they’re not getting the right experience. It can have negative consequences for brands.
How are you talking to your customers about the changes?
Now, a consumer brand is like, “How can I improve my experience in the context of more privacy?” iOS 14 is one that is very important. Our customer is also concerned about the loss of third-party cookies. They see this as a red flag. It is great to have a history with your customer. You don’t know their history when they visit your store. It is rare for you to know the history of someone who comes into your store. You can still help them by looking at their body language, their current behavior, and what they are looking for. This is what we want to convey to brands. — Kimeko McCoy
By the Numbers
The rapid rise in digital shopping caused by the pandemic seems to have no signs of slowing down. As shopping habits change, so do consumer expectations. As people jump from website to website for the best deals, products and customer experience, brand loyalty has taken a back seat, according to new research from software company Sitecore. Below is a breakdown of the numbers:
- An estimated 33% of Americans or fewer describe themselves as very loyal to their favorite brand.
- 66% of those surveyed have vowed to never shop with a brand again following one poor experience.
- 70% of Americans report that they crave more personal connections with brands. — Kimeko McCoy
Quote for the Week
” When you claim that you are focused on people first, you actually mean it. And you will put your actions into action. It’s not enough to say it. Many companies are now trying to get their employees back in the office when they don’t want them to. Listen to your employees if you truly care about them.
— Tinuiti’s chief people officer Jeff Batuhan on the need to change presentee culture at agencies and why the company now gives employees 70 days off annually.
What We’ve Covered