In a digital advertising world dominated by fast turnaround and flexibility, it is often difficult to advocate for continuous investment in digital advertising. However, analytical data contradicts this notion. Brands that continue to invest at the top of the sales funnel over several months achieve better performance and ROI compared to those that stop after just three months.
According to FOSHP data published by WARC, advertisers engaged in top-of-funnel advertising for a continuous 10-month period achieve a 27% higher ROAS than brands that limit advertising to 3 months.
The importance of sustaining top-of-funnel advertising
Short-term performance indicators may distort the true impact of advertising efforts. Thus, the transparency in the overall strategy and a multi-channel approach to advertising are needed, focusing on the entire user purchase journey. A multi-channel approach allows advertisers, especially at the top of the funnel, to create optimal connections with the customer by integrating various digital media. According to research by iPROM and Valicon, these have become key customer touchpoints, supporting online and in-store sales.
The analysis of campaign effectiveness shows that sustained, long-term in advertising at the top of the funnel is a key factor for brand success. It is important to understand that if results are not immediate, withdrawing investments prematurely may be a missed opportunity for future rewards.
Better ROAS and lower cost of acquiring new customers
Running digital advertising at the top of the funnel for a longer period (at least 10 to 12 months, according to FOSHP, as cited by WARC) offers advertisers noticeable advantages compared to brands that do not. Similarly to what WARC writes, our data shows that continuous advertising results in an increase in return on advertising investment (ROAS) of around 20% and a reduction in customer acquisition costs (CAC) by 20% to 30% for brands that invest in long-term brand awareness.
It is important to understand that the positive effects on metrics such as CAC and ROAS are not necessarily immediate. While digital advertising has a more positive impact on conversion results in the initial three months, a positive correlation with ROAS only becomes apparent after more than three months of continuous advertising, underlining the importance of patience and long-term planning when investing at the top of the sales funnel.
Strong visibility is the essence of a successful brand
General awareness and building visibility happen at the top of our sales funnel, where the goal is to attract attention and generate interest from a broad audience. iPROM uses sophisticated advertising strategies using first-party data and advertising technology to reach potential customers from this early stage. By leveraging first-party data and placing ads in relevant editorial media and content categories, iPROM ensures that your brand is noticed and remembered, while also upholding the highest standards of brand protection.
At iPROM, we integrate this knowledge into our approach to continuous data-driven advertising using the iPROM Programmatic Platform. We believe that sticking to top-of-funnel activities is the foundation for building strong and recognizable brands. That is why it is strategically important.
A primary objective of ad campaigns based on this approach is to foster long-term relationships between brands and consumers, resulting in more effective campaigns and better performance in the market – a fact demonstrated by numerous practical examples.
Successful brands build continuous strategies around first-party data
A practical example of the success of continuous advertising is BKS Leasing. The company used iPROM’s independent advertising technology and first-party data to target and buy ad space in digital media. BKS Leasing not only achieved a short-term increase in car leasing sales by 5% compared to the previous year but also experienced a sustained enhancement in visibility and brand recall among both customers and contract partners/car dealers in the long term. This example further confirms that branding campaigns have an impact on both conversion and branding objectives.
Similarly, by implementing continuous advertising using first-party data and the Ljubljana Airport Fly platform, Fraport Slovenia has reduced the media buying cost per air ticket sold from €2.06 at the beginning of 2022 to an enviable €1.2 in the second half of 2023, while also improving conversion rates by more than 33% over the last year.
Long-term and well-thought-out planning pave the way to lasting success
Patience is key when investing in the top-of-funnel advertising. iPROM understands and applies this mindset to enable brands to maximize their potential, optimize their digital advertising investments and ensure long-term growth. iPROM’s Ad-Tech solutions are designed to support both the short and long-term goals of our clients, ensuring efficiency and maintaining a competitive advantage in the dynamically evolving digital space.
To learn more about how your brand can craft powerful continuous advertising strategies to improve visibility and sales, contact our team of media specialists or email me at email@example.com. Together, we’ll build the foundation for your success today that will bring abundance tomorrow.