Nest Webinar: Intro to full-funnel performance

You’ve seen it chronicled in popular TV series like ThirtysomethingBewitched and ultimately Mad Men. The 1960s through the late 1980s have been characterised as the “Golden Age of Advertising.” It was the era of big ideas.

Creative was king. Brand was king.

The advent of the internet eventually led to a seismic shift towards performance marketing in the 1990s, with ecommerce emerging as a new point of sale. 

Fast forward to the 2010s, and performance marketing had become a much more sophisticated operation. So much so, that senior marketers at that time often scoffed at the idea of investing in brand – with unprecedented access to information and continually advancing algorithms, why wouldn’t you fixate on data? 

In more recent times, however, that approach alone hasn’t been quite so fruitful. Since Apple introduced its iOS 14 update In 2021, huge amounts of data have been pulled out of the bottom of the funnel. Marketers can no longer rely on their fixation on counting. Not only has data analysis and optimisation become much more difficult, but performance marketing has also become more competitive, driving up prices.

Enter a new era of full-funnel performance marketing

This brings us to the present day, where the question for many companies remains: How can I get the most out of my paid media activity?

It’s not been easy sussing this out. Nest has worked for years with some of the world’s leading retailers to find the optimal strategy. Enter full-funnel performance marketing.

We’ve outlined this strategy in our webinar on getting to full-funnel performance:

Watch on demand

Of late, many brands have fallen into a similar trap. In tough economic conditions, the temptation is to focus spend on marketing activities with measurable metrics. 

Often, this means moving budgets away from the top- and middle-of-the-funnel activities to bottom-of-funnel platforms such as Google where companies have traditionally been able to account on efficiency. 

However, there are a few problems with this approach.

Not only are economic headwinds such as inflation both affecting consumer demand and driving up costs. Equally, with so many enterprises sacrificing brand spend in favour of performance marketing, platforms have become more competitive and in turn more expensive.

In the case of Google, we can see how the cost per click (CPC) rose significantly during 2022 and 2023:

However, it is intriguing to see the inverse relationship between Google and Meta, the latter having experienced a significant decline in the cost per mille (CPM) over the same period:

Combining brand and performance marketing to capitalise on recessionary behaviour

It is in this recessionary behaviour that the potential of full-funnel performance strategy has emerged. 

Through our webinar, we’ve explored exactly why this crossover between brand creative and performance marketing that FFP presents makes perfect sense within the context of current market conditions.

Where data has been lost with the advent of iOS 14, enterprises can use brand activity to increase their creative output with a more cost-effective inventory, enabling them to push greater volumes of data across the rest of the funnel. 

In turn, that performance activity can be leveraged to capture greater demand intent and drive performance efficiency.

The benefits of this approach become particularly clear when comparing media campaigns investing in brand versus those that are not. Throughout our network, we’ve calculated that brands in the former camp are performing 104% better when it comes to return on ad spend (ROAS)

Is full-funnel performance right for my business?

The overarching message is clear: by shifting to a full-funnel performance strategy, brands can unlock greater volumes of data and improve efficiency across their portfolio.

However, this of course isn’t a plug and play situation. Indeed, every brand is different, and there are several nuances to consider when evaluating whether FFP is a good fit for your business.

Not only do they highlight some of the key company characteristics and additional factors looking at everything from market penetration and market share to seasonal demand and budget suitability to help firms determine if FFP is right for them.

Equally, they also highlight the building blocks needed for an effective full-funnel performance plan, looking at creative development, measurement frameworks, media strategy and more. 

Nest’s data is clear: full-funnel performance is the optimal combination that’s enabling brands to get the most out of every penny put towards their paid media spend.

To understand exactly what full-funnel performance entails and determine whether it’s right for your business, watch the full webinar here:

Watch on demand

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