In a dynamic digital media landscape, where the number of advertising platforms is constantly increasing, ad prices are steadily rising, competition is intensifying and technological shifts present new demands, brands must adapt their strategies to overcome these challenges. In this blog post, I’ll explore the importance of top-of-funnel advertising for brands aiming for long-term growth and how these strategies help them achieve business goals effectively.
The importance of top-of-funnel advertising
Investing in top-of-funnel advertising is extremely important for brands looking to boost their market visibility and maintain their presence. By focusing on visibility and increasing brand awareness, companies can attract new audiences and prepare consumers for the next stages of the purchase journey. At iPROM, we develop integrated advertising strategies that effectively reach a wide audience and enable brands to effectively extend their reach and amplify their impact.
Research shows that brands lacking a full-funnel strategy often struggle with limited demand and increased customer acquisition costs (CAC). Therefore, understanding and implementing a top-of-funnel advertising strategy is essential for sustainable growth and performance in a competitive market environment.
A holistic approach that balances awareness, consideration and conversion activities is crucial for long-term success. Our advanced advertising strategies optimise every segment of the sales funnel, not just the bottom. This enables advertisers to adapt to current market demands and actively shape and anticipate the consumer’s purchase journey from initial awareness to the final purchase decision.
Advanced measurement tools for improved insight into advertising campaign effectiveness
To maximise top-of-funnel ad effectiveness, brands need advanced measurement tools that provide clear insights into how campaigns are performing before users even reach the website. Traditional last touch attribution models overlook the impact of top-of-funnel efforts. Using modern methods such as integrating marketing and analytics data and employing data-driven attribution, we can more accurately understand how different touchpoints influence consumers’ final decisions.
Top-of-funnel investments can significantly impact the return on advertising spend (ROAS). While these ads may not yield immediate sales results, they build awareness and lay a strong foundation for future sales, improving the effectiveness of activities lower down the funnel. Brands that maintain a consistent presence at the top of the funnel tend to achieve better long-term results.
Diversity of channels extends your reach
An important advantage of top-of-funnel ads is the ability to use a variety of channels – such as display and video ads and social media – to reach a broader audience. Brands that rely solely on bottom-of-funnel activities, like search ads and retargeting, risk reducing profitability. By combining different channels, brands increase customer interactions and touchpoints, leading to greater brand awareness and a strong consumer base. Brands that coordinate these channels are better positioned to build long-term customer relationships and reduce their customer acquisition costs.
Research also shows that mature brands allocate a larger share of their budgets to awareness and consideration, while reducing the share devoted to conversion activities. This shift reflects the need to continuously generate demand at the top of the funnel to sustain the middle and bottom stages. Brands that do not adopt this holistic approach risk falling into a “valley of death”, where customer acquisition costs (CAC) become unsustainable due to a lack of new demand.
Long-term strategy and data flexibility
We recognise that it is not enough to invest in the top-of-funnel advertising; these investments must be a part of a broader, flexible strategy that can quickly respond to market changes. This involves constantly analysing market trends, consumer behaviours and technological innovations to ensure our campaigns remain relevant and effective. One significant challenge in recent years has been the decline in third-party cookie adoption. While 80% of users used to accept third-person cookies, today, this number has dropped to just 38% due to stricter regulations and the rise of consent marketing, which requires explicit user consent.
iPROM’s analysis on the effectiveness of targeting using first-party data, conducted in October 2023, revealed that campaigns using first-party data achieve a significantly higher click-through rate (CTR) compared to those that do not. In addition, combining first- and third-party data offers additional benefits. Specifically, third-party data helps expand existing audiences and personalise creative solutions, further increasing advertising relevance for individual consumers.
Increase reach by targeting based on first- and third-party data
At iPROM, we aim to improve the effectiveness of advertising campaigns by integrating first- and third-party data. Not only is this combined approach more cost-effective, it also significantly improves brand perception. The cost per person to improve brand perception is much lower when using an approach that combines both sets of data. This is particularly important in a competitive market environment where brands are vying for recognition and consumer loyalty.
Maintaining a consistent presence at the top of the sales funnel is not just a strategy to boost visibility; it is essential for long-term growth and success. By deeply understanding the market ecosystem and adapting strategies based on collected data, brands not only keep their market share, but also expand their influence and visibility. This secures sustained growth and a competitive edge in a dynamic digital environment.