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In times of economic uncertainty, brands can either sit still and try and ride it out, or they adapt.
Throw a changing digital landscape into the mix, and the signs are pointing firmly to adapt or get left behind. As is often the case in turbulent times, the marketing rules are changing.
While performance marketing has traditionally been focused on audiences with higher intent as the most efficient way to power growth, a series of studies by Meta show that the times are a’changing. There is a new strategy in town for efficiently reaching new convertible audiences: broadening your reach.
We explain why adding reach to performance will yield results, and the steps you need to take to ensure you’re part of the next era of growth.
Why you should reach for growth
Performance marketing campaigns tend to reach only a small proportion of the total audience. Not only that but, often, they reach the same people. This puts a handbrake on growth: after all, you can only convert the people you reach.
Meta’s studies show that adding reach to performance campaigns can find new customers and convert them cost-efficiently. So how does reaching more people lead to greater sales?
Let’s start with scale. Meta analysis shows that campaigns that use reach and performance saw 100% more reach than campaigns that used performance only, for 36% more spend (1). That is a significant transformation of the scale available to brands.
Of course, that would count for nothing if that increased reach was worth nothing. Fortunately, there’s good news there, too. An in-depth Meta study shows that combining reach and performance drove 84% greater organic search volumes, as well as more paid search (2). Critically, adding reach to campaigns powered 18% more incremental sales (3). In uncertain times, that’s a huge win.
It’s not all about sales, though. Broadening reach can build brand awareness and increase signals for retargeting. Working with Meta, jewellery brand Pandora increased its retargeting audiences four-fold by adding in reach, as well as doubling its brand awareness.
There’s also a final piece of good news. By planning effectively, adding reach can significantly lower costs. Meta studies show that 36% of campaigns that combined reach and performance had a lower incremental cost per conversion than performance-only campaigns (1).
How to reach for growth
There is no such thing as a silver bullet, so it’s important to note that the right planning, with the correct tools, is needed if adding reach is going to deliver growth.
There are four key steps to planning for the next era of growth, aligned with Meta’s discovery commerce system.
Let’s start with data integration. Adopting conversions API allows for more sophisticated and reliable data, which in turn provides stronger retargeting, and improved measurement capabilities.
Once you have the data, it is key to make a good first impression to help you sell more. How do you make a good first impression? You build diverse creative. Meta has found a hattrick of creative ways-in that work for products: visually emphasise the feature of a product, use smart creative to demonstrate the product in action, and start a conversation with recommendations, such as a collection of reviews, a personal testimonial, or a special endorsement.
When the creative is nailed, is it crucial to get the advertising mix right. Meta’s studies show that driving greater conversion lift requires a maximum of 10-30% of the budget should go into reach. The 90-70% should be dedicated to performance.
Finally, to identify the value reach offers you need to scientifically measure, measure, measure. Why is this needed? Well, Meta compared the accuracy of attribution results from 32 brands against scientific tests, and, rather staggeringly, found that 78% were inaccurate. Going down the scientific route gives a far more accurate means of measuring incremental sales.
Case study: Naked Wines
Online retailer Naked Wines partnered with Meta to reach new audiences and raise awareness of its work with independent winemakers.
Naked Wines had previously had success running direct response campaigns but wanted to add reach and video views to its new brand-led campaign, using video and in-stream ads.
Running between June and August this year, it was a big success. Comparing its brand-led campaign with its usual direct response-only campaigns, Naked Wines enjoyed 48% lower cost per incremental user reached, 87% lower cost per incremental user influenced, and 29% lower cost per incremental conversation with ads. Tying direct response performance to Meta’s ability to change customer perception was a huge win for Naked Wines.
Learn more about the next era of growth
In partnership with IAB, Meta will be running a special online event covering the next era of growth. On October 20, the Meta team will be sharing practical advice and exploring how marketers can unlock growth during these uncertain times. You can register for IAB Digital Upfronts: Meta for free here.
Sources:
1. Meta Internal Meta-analysis of 11 campaigns, August 2022
2. Search Lift Meta-analysis APAC | 454 studies across all countries and verticals, 2021
3. 'The Full-Funnel Impact: Examining the Effect of Simultaneous Ad Strategies on Facebook' by Mindshare