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Retail media networks, once dominated by conversion-focused tactics, now require a full-funnel approach. Hanesbrands sees significant returns from upper-funnel video content (OLV/CTV) to build awareness, which in turn feeds the lower-funnel conversion pipeline on platforms like Amazon.
Rippling doesn't measure brand campaigns on direct-response metrics. Instead, creative top-of-funnel ads are designed to "implant a seed" of brand awareness. Success is measured by how these campaigns increase the efficiency and conversion rate of subsequent mid- and bottom-funnel ads shown to the same audience.
The brand's media strategy prioritizes top-of-funnel entertainment to build massive, broad awareness. This continually fills the pipeline with new audiences, which makes lower-funnel, conversion-focused tactics like retargeting cheaper and more effective than chasing a limited pool of in-market buyers.
While often seen as an upper-funnel tool, CTV is a powerful engine for new customer acquisition. It reaches untapped audiences that are saturated on social platforms. For example, hair care brand Lola V saw a 53% increase in new customers year-over-year from their Roku campaign.
The "How Italian Are You" series focused on community engagement, not immediate conversion. This top-of-funnel content created a brand-aware audience that was later retargeted with conversion-driven ads, proving brand-building can be more effective than constant sales pitches.
Hanes finds online video and CTV highly effective in retail media networks, traditionally seen as performance channels. This highlights the need to cover the full purchase journey, using brand-building video to feed the conversion funnel and make all media work harder.
Early TV tests for DTC brands often focus on a strict Cost Per Acquisition (CAC). As a business scales into omnichannel, the definition of "performance" must expand. Success metrics should include the halo effect on other channels, like branded search lift and increased sales on Amazon.
Brands growing to the $50-100M range often get stuck over-investing in the same digital channels, leading to diminishing returns. Escaping this "doom loop" requires expanding into upper-funnel, brand-building channels like TV to create new, sustainable demand.
In a world demanding short-term results, brand marketing isn't a separate luxury. It is a critical investment that builds top-of-funnel awareness, ensuring that lower-funnel performance tactics have a sufficient audience to convert and ultimately work harder.
In a volatile market, pressure mounts to focus only on short-term performance marketing. However, brands can't neglect brand building because strong brand awareness and relevance are what make lower-funnel tactics like retail media more efficient and effective in the first place.
Instead of inefficient, broad-reach brand campaigns like TV ads, D2C brands can achieve better results by mirroring B2B's focused approach. Using measurable channels like creator whitelisting and publisher advertorials allows for targeted storytelling to ideal customer profiles.