Everything you need to know about leveraging shoppable ads in 2025

Ever scrolled through social media, spotted a product you loved, and wished you could buy it instantly without leaving the app? That’s the convenience shoppable ads offer. These interactive ads are thriving, revolutionising how businesses connect with consumers, and making the buying journey smoother and faster. Research shows that consumers are 15% more likely to purchase after viewing a shoppable ad compared to standard ads.

If you want a better understanding of how shoppable ads work,  we’ve broken down everything you need to know below.

What are shoppable ads?

Shoppable ads are interactive paid advertisements that allow customers to buy products directly from the ad. They bridge the gap between product discovery and purchase, making the process seamless and convenient.

Picture this: you’re scrolling through Instagram, see a pair of trainers you like, and with just a few taps, you’ve purchased them—all without leaving the app. These ads collapse the traditional shopping funnel, cutting out unnecessary steps and reducing the chances of drop-off.

For businesses, this means capturing and retaining the consumers’ attention when they’re most engaged, creating opportunities for higher conversion rates and enhanced customer experiences.

Which platforms support shoppable ads and how to make the most of them

A variety of digital ad platforms support shoppable ads, each offering unique features for social commerce.

  • Meta shoppable ads

Instagram: Transforming scrolling into shopping, Instagram’s shoppable ads allow users to purchase directly from tagged posts, Stories, and Reels for a seamless experience.

Facebook: Facebook’s shoppable ads use dynamic product features to personalise the user journey, guiding audiences from discovery to checkout within their feed.

  • YouTube: YouTube’s TrueView for Shopping integrates with Google Merchant Centre, enabling clickable product links beneath videos to engage viewers while they watch.
  • TikTok: TikTok shoppable ads combine engaging short-form content with shoppable links, letting users explore and purchase products without leaving their entertainment hub.
  • Pinterest: These ads inspire with “Shop the look” pins and creative product collections, allowing users to buy directly from their favourite boards.
  • Google: Google shoppable Ads appear in search results and Google Images, connecting visually driven consumers with purchase-ready products in just a few clicks.

Selecting the right platform depends on your target audience and where they spend the most time.

The benefits 

These ads provide several key advantages for businesses and consumers

  • Increased conversions: By eliminating steps in the buying process, these ads make it easier for users to purchase, leading to higher conversion rates.
  • Improved customer experience: Consumers enjoy a streamlined transition from discovery to purchase, creating a hassle-free shopping journey.
  • Direct social sales: With shoppers already active on platforms like Instagram and TikTok, shoppable ads meet customers where they are, thus converting their interest into action.

How to run a successful shoppable ad campaign

Running an effective shoppable ad campaign requires strategic planning and execution

  • Choose the right platform: Identify the platform that aligns with your audience’s behaviour and preferences. For visually driven products, Instagram and Pinterest are ideal, while TikTok excels for trend-driven items.
  • Create high-quality visuals: Use sharp, engaging images and videos that showcase your product in action or in use to grab attention and paint a picture.
  • Integrate product catalogues: Ensure your product catalogue is up-to-date and easy to navigate, providing a seamless shopping experience.
  • Set up tracking: Monitor key creative metrics such as click-through rates (CTR) and conversion rates to evaluate performance.
  • A/B test for optimisation: Experiment and iterate with different headlines, visuals, and call-to-action buttons to determine what resonates most with your audience.

Best practices for maximising ROI with shoppable ads

To make the most of these ads, follow our proven strategies

  • Target the right audience: Use demographic and behavioural targeting to reach users most likely to convert.
  • Use authentic content: Incorporate user-generated content to show the product in use and to use customer testimonials to build trust and engagement.
  • Optimise for mobile: With the majority of social commerce happening on mobile, ensure your ads are mobile-responsive and easy to navigate.
  • Monitor and adjust: Use analytics tools to track performance and refine your approach for better results.

Measuring the success of shoppable ads

To evaluate your shoppable ad campaigns, focus on these key metrics:

  • Click-through rate (CTR): A high CTR indicates that your ad is capturing the audience’s attention effectively.
  • Conversion rate: Measures the percentage of users who complete a purchase after clicking the ad.
  • Return on ad spend (ROAS): Tracks the revenue generated for every dollar spent, helping you gauge profitability.

These insights can guide your strategy, ensuring future campaigns are more effective.

Final thoughts

Shoppable ads are transforming the way brands connect with consumers. By streamlining the customer journey, they enable faster, more seamless shopping experiences that drive conversions and enhance customer satisfaction.

Whether you’re looking to improve social commerce or optimise your paid advertising strategy, these ads are a powerful tool to have in your arsenal. With the right platform, a compelling creative ad strategy, and continuous optimisation, these ads can deliver exceptional results to boost your business to the next level.

Start leveraging shoppable ads today and see the impact they can have on your brand’s growth.

Beyond peak season: sustaining growth in Q1 as an e-commerce brand

The holiday season, marked by intense shopping events like Black Friday, Cyber Monday, and Christmas, is a high-stakes period for e-commerce brands. With around 90% of the year’s top sales days clustered within this peak trading period, brands can witness remarkable growth. However, maintaining this momentum once the peak season fades can be challenging.

As consumer habits evolve and certain holidays lose their previous impact, there’s a growing opportunity to drive consistent engagement and revenue beyond peak seasons. Here, we explore data-driven strategies to help e-commerce brands sustain their success and build steady growth all year round.

Engage customers at an optimal time

A successful online experience should replicate in-store customer service, where sales advisors know just the right moment to assist. In the digital world, the same principle applies; reaching out at the right time can mean the difference between a conversion and a lost sale.

Identify customer behaviours to trigger well-timed, personalised support, avoiding interruptions for those unlikely to benefit. By analysing data from a visitor’s first moment on the site, you can craft an engagement strategy that aligns with each customer’s goals. This approach builds trust and makes online shopping experiences feel as seamless as in-store interactions.

Simplify choices to enhance decision-making

Offering too many options can overwhelm customers, slowing down their decision-making or leading them to abandon their basket entirely. Known as the “paradox of choice,” too many options can reduce customer satisfaction and prevent conversions.

To counteract this, use choice architecture to curate a streamlined selection tailored to each customer’s preferences. Analyse customer data to narrow down options and make the decision-making process easier. By using targeted recommendations, you can present a simplified range of products, which can ultimately increase confidence and lead to quicker purchasing decisions.

Personalised retargeting for re-engagement

After the peak season, focus on reconnecting with customers who abandoned their baskets or hesitated to make a purchase. This personalised retargeting approach can keep your brand top-of-mind and increase the likelihood of conversion.

To do this effectively, create tailored deals and offers based on past customer interactions and activity. Highlight the unique value of your products and services, demonstrating how they meet specific customer needs. It’s not about heavy discounting but about aligning the offer with what matters to your audience. In one recent case, we saw a 20% increase in conversions for a client by using personalisation to retarget hesitant customers with relevant recommendations.

Strategic upselling to boost revenue

The post-peak period is an ideal time to maximise revenue by introducing new products or add-ons. This strategic upselling tactic can help leverage existing customer loyalty and increase Average Revenue Per User (ARPU).

Just as in-store advisors make personalised suggestions to increase basket size, e-commerce brands can replicate this by displaying relevant upsell offers at the right moment. By limiting these to a few targeted, data-driven choices, customers are more likely to embrace additional purchases. For example, during a recent campaign for a retail client, a tailored and seasonal upselling strategy achieved a 59% increase in add-on sales compared to non-targeted offers.

Review past performance to refine future strategies

After the holiday rush, it’s essential to analyse what worked well and what could be improved. Reflecting on peak season performance helps identify winning ads, trends, popular products, and effective marketing approaches, all of which can help you plan for the coming year.

Use historical data to pinpoint shifts in consumer preferences, compared to last year and tailor your value propositions accordingly. As we move into the new year, consider the impact of economic shifts, such as the cost-of-living crisis, and the change in inflation, on purchasing habits. Insights from past performance enable more realistic and impactful goal-setting, helping you to build campaigns that align with both market trends and consumer needs.

Leveraging data for continuous success

As we head into a new year, ongoing economic changes highlight the importance of strategic planning for e-commerce brands. The intelligent use of data allows brands to engage customers at the right moments, simplify decision-making, and ensure ongoing relevance in a competitive market.

By harnessing the power of first-party data, e-commerce brands can personalise the online shopping experience, build trust, and sustain momentum beyond peak trading periods. In today’s digital landscape, where every interaction matters, mastering data-driven techniques will not only help businesses stay resilient but also fuel their long-term growth and success.

Take an omnichannel approach 

For ongoing e-commerce success, strong alignment between teams and partners is essential. Start by creating an omnichannel calendar that highlights important sales periods, new product launches, and peak trading events. This planning will allow your team to work toward shared goals, ensuring everyone is aligned and ready for quick adjustments. Omnichannel calendars also help mitigate miscommunication and streamline cross-platform and cross-team efforts, making it easier to manage both long-term goals and short-term plans without disruptions.

“As we approach the end of peak season, it’s essential to think beyond the immediate sales boost and focus on sustaining that growth well into the coming months. We know that maintaining momentum requires more than just a good Q4. Engaging customers at the right time, simplifying choices, re-engaging with personalised retargeting, and applying targeted upsells drive consistent sales year-round.

Reflecting on past results and aligning teams around a strong omnichannel approach keeps brands resilient and ready for every season. In today’s digital landscape, data-driven insights are no longer optional—they’re the foundation for building customer loyalty, increasing repeat purchases, and securing ongoing growth. If your brand is ready to carry that peak season energy forward, let’s discuss how we can help ensure you’re set up to thrive year-round.”

— Arham Khan, Founder and CEO, Pixated

 

International localisation: cracking the code of UGC for luxury brands

One of the biggest challenges for premium and luxury brands when leveraging user-generated content ads is maintaining a balance between authenticity and brand messaging. Although UGC thrives on its authentic and relatable tone, balancing strict brand guidelines with the content creators’ creative freedom can be a challenging task. For luxury brands especially, this complexity is heightened by the exacting standards associated with luxury content and imagery.

The challenge

Luxury brands face a unique challenge—maintaining the exclusivity, the aspiration value and sophistication that defines their brand image, when using ad content created outside their direct control.

The solution

We’ve developed a Creator Collective program to tackle this very challenge head-on. 

The Pixated Creator Collective

After years of creating UGC content for brands across the spectrum; we realised we needed a different approach to creating UGC for luxury brands. 

Enter—the Pixated Creator Collective, a program designed to meet the specific UGC needs of premium and luxury clients. Unlike standard UGC processes, the Creator Collective ensures a categorically different approach, tailored to maintain the sophistication, exclusivity, and aspirational quality expected from the ad content of high-end brands. Our program prioritises stringent quality control and creative alignment. An approval cycle and a creative workflow where brand managers from the client side approve ad concepts, scripts and creative briefs at every stage of the creative process.

We maintain two detailed UGC briefing templates. One briefing template is a closed brief for the creator to follow the exact script and scene breakdown. So the brand’s tone of voice, aesthetic, and values are closely followed. 

Whilst the second briefing template is for an open brief; where the creator has more creative freedom with the script and the filming while still staying true to the brand guidelines. This ensures that the content produced reflects both the brand’s identity and the creators’ unique authenticity.

The creative workflow

The Pixated Creator Collective operates on a carefully designed workflow that ensures every stage—from content planning and creator selection to final approvals—is client-approved and aligned with the brand’s goals. This process focuses on maintaining creative consistency, enabling luxury brands to scale their UGC production without compromising on quality or exclusivity.

By combining strategic creative development with creator collaboration, this program bridges the gap between authentic content and luxury marketing expectations. This process also seamlessly integrates international localisation, connecting brands with culturally relevant creators in key markets worldwide. In a matter of weeks, we can connect a brand with local and international creators who produce authentic, culturally relevant content that resonates with global audiences.

This ensures that luxury brands produce the best UGC ads that are not just high in quality, but are also on-brand, luxurious and resonate with the audience whilst maintaining a premium aesthetic. 

Why UGC is essential for luxury brands

User-generated content has become an indispensable part of creative marketing strategies. For luxury brands, it provides a unique opportunity to balance exclusivity with relatability which in turn helps build a community for the brand. 

User generated content ads allow premium brands to:

  • Enhance authenticity: Customers trust content created by real users more than traditional ads. Seeing a product in a real-world context adds credibility and relatability.
  • Build a community: Featuring content from loyal customers fosters a sense of belonging, connection and community, strengthening long-term brand loyalty. 
  • Reduce content production costs: UGC eliminates the need for large-scale in-house content creation, saving both time and resources while delivering diverse, aesthetic and luxury content. And that, without compromising on the aspirational angle of luxury marketing.
  • Drive engagement and conversions: Authentic UGC ads often generates higher engagement rates and encourages potential customers to act, leading to increased ROI.

How luxury brands can leverage UGC

  • A streamlined briefing process for scalable UGC production
    Brands can ensure their brand guidelines are followed and that their brand messaging reflects across their UGC by maintaining a stringent briefing and approval cycle. However, apart from approvals, the onus of the creative production should be with one stakeholder—so they can handle production and optimisation of content at scale. 
  • Data-driven optimisation
    Growth Strategists and Paid Social managers have complete visibility on campaign performance and ad accounts. They can share insights with the creative team, affording them the opportunity to refine their UGC briefs, optimise the creative process and creator collaborations to maximise impact. This approach ensures that every piece of UGC meets the highest quality standards and delivers results.
  • Seamless international localisation
    Luxury brands have an opportunity to establish a global presence by leveraging local content creators anywhere in the world. In as little as a few weeks, creators can generate the most authentic-looking, best UGC ads that are also culturally relevant in key international markets. This localised approach is especially valuable for luxury brands looking to connect with diverse audiences while maintaining their brand identity.
  • Enhancing global ad performance
    UGC campaigns featuring local creators have managed to deliver exceptional results for us in the last quarter. In Q3 2024, our Meta UGC ad spend increased by 164% YoY; demonstrating the effectiveness of this strategy in driving growth and engagement.

Final thoughts 

Using UGC ads as part of the paid ad strategy is no longer going to be optional for luxury brands. In the AI-powered future, these strategies are going to be essential for building trust, driving engagement, and expanding global reach. 

By leveraging user generated content ads; premium and luxury brands can balance authenticity and sophistication to unlock the full potential of their paid ad campaigns while still maintaining their premium identity.

 

Top CRM software solutions for B2B companies

Managing client relationships effectively is the cornerstone of sustained growth for B2B companies. Customer relationship management software has become essential for streamlining operations, improving client engagement, and boosting retention.

However, with the vast range of CRMs available today, choosing the right solution can feel overwhelming. To simplify this process, we’ve curated a list of the top CRM software options for B2B companies, highlighting their features, benefits, and ideal use cases to help you make an informed decision.

Monday CRM: a versatile and customisable platform

Monday CRM is a highly flexible tool that allows teams to manage sales, marketing, and operational workflows within an intuitive platform.

Key features

  • Customisable dashboards for tracking leads, sales, and team performance.
  • Seamless integration with productivity tools like Slack and Microsoft Teams.
  • Automated notifications and task reminders for consistent client engagement.

Why Monday CRM
It is ideal for B2B companies that need a user-friendly CRM management software solution capable of adapting to unique workflows while offering robust customisation options.

Zoho CRM: an affordable solution packed with features

Zoho CRM provides an all-in-one platform for managing client relationships, lead generation, and automation, making it particularly suitable for small to medium-sized B2B companies.

Key features

  • AI-powered analytics to predict sales trends and client behaviour.
  • Multi-channel communication tools, including email, chat, and social media.
  • Integration with the broader Zoho suite, such as Zoho Campaigns and Zoho Desk.

Why Zoho CRM
It is an excellent option for businesses seeking free CRM software with affordable upgrade plans, offering a balance of functionality and cost-effectiveness.

Salesforce CRM: the gold standard in scalability

Salesforce CRM is a market leader in customer relationship management software, providing advanced features and scalability to meet the needs of rapidly growing B2B businesses.

Key features

  • Salesforce Einstein, an AI-powered tool for actionable insights and advanced analytics.
  • Comprehensive automation for email marketing, lead nurturing, and sales pipeline management.
  • Integration with third-party business tools and applications for greater flexibility.

Why choose Salesforce CRM
Salesforce is one of the best CRMs for large enterprises, offering unmatched scalability and cutting-edge tools for B2B companies with ambitious growth plans.

Pipedrive: simplifying the sales pipeline

Pipedrive is a sales-focused CRM designed to help B2B companies optimise sales pipelines and track leads with ease.

Key features

  • Visual sales pipelines for tracking deals and opportunities.
  • Automation of repetitive tasks like follow-ups and email scheduling.
  • Customisable reporting for actionable sales insights.

Why pick Pipedrive
Pipedrive is one of the best CRMs for small businesses as it prioritises simplicity without compromising functionality.

HubSpot CRM: comprehensive and easy to use

HubSpot CRM is widely known for its robust free plan, intuitive interface, and seamless integration with HubSpot’s suite of tools.

Key features

  • Real-time email tracking and pre-built templates for consistent communication.
  • Detailed analytics dashboards for tracking performance and client behaviours.
  • Integration with tools like LinkedIn Sales Navigator for enhanced client insights.

Why choose HubSpot CRM
It stands out as a free CRM software that combines powerful marketing automation features with ease of use, making it suitable for businesses of all sizes.

Freshworks (Freshsales): an AI-powered sales tool

It provides a CRM platform tailored for B2B companies looking to prioritise leads and streamline client engagement through AI-driven tools.

Key features

  • AI-powered lead scoring for identifying high-value opportunities.
  • Integrated communication tools, including email, phone, and chat.
  • Visual pipelines for tracking deals and sales progress.

Why pick Freshworks
A great option for businesses looking for CRM management software with advanced AI capabilities to improve lead prioritisation and sales efficiency.

GoHighLevel: the all-in-one solution

GoHighLevel combines CRM, marketing, and customer service features into a single platform, offering comprehensive tools for managing client relationships.

Key features

  • Automation for SMS, email, and social media campaigns.
  • Funnel and landing page creation for targeted marketing efforts.
  • Integration with payment gateways and lead generation tools.

Why GoHighLevel
Ideal for B2B companies looking for a single platform to handle marketing, sales, and customer service whilst leveraging automation.

Capsule CRM: simple and lightweight

Capsule CRM is a streamlined and easy-to-use solution designed for small to medium-sized B2B businesses.

Key features

  • Simple contact management with detailed interaction histories.
  • Customisable sales pipelines for tracking deals effectively.
  • Task management tools for follow-ups and deadlines.
  • Integrations with tools like Xero, Mailchimp, and Google Workspace.

Why go for Capsule CRM
Capsule CRM is one of the best CRMs for small businesses, offering simplicity and affordability while covering essential functionality for managing client relationships.

Zendesk Sell: merging sales and support

Zendesk Sell is a sales-focused CRM solution designed to integrate customer support and sales pipeline management seamlessly.

Key features

  • Lead and deal tracking for optimising sales processes.
  • Email templates and tracking for effective client communication.
  • Real-time analytics and customisable reports to monitor performance.
  • Mobile-friendly tools for on-the-go sales management.

Why Zendesk Sell
A practical choice for businesses using Zendesk Support, Zendesk Sell is easily one of the best CRM software solutions for aligning sales and customer support operations.

Copper CRM: native to the Google Workspace

Copper CRM is specifically built for businesses that rely heavily on Google Workspace, thus providing a seamless and intuitive user experience.

Key features

  • Native Gmail integration for managing leads and contacts directly from your inbox.
  • Automated data entry to minimise manual tasks.
  • Collaboration tools for sharing contacts and communication histories.
  • Task management features to assign and monitor responsibilities.

Why choose Copper CRM
Copper is a leading choice for businesses that rely on Google Workspace, making it one of the best CRMs for organisations seeking a fully integrated solution.

Choosing the right CRM for your B2B company

When selecting a CRM, consider these essential questions

  • Are you focused on automating sales pipelines, lead tracking, or client communication?
  • Do you need integrations with tools like Google Workspace, accounting software, or marketing platforms?
  • How scalable does your CRM need to be to accommodate future growth?
  • Are AI tools and advanced analytics important for your business decisions?

By evaluating these aspects, you can choose the CRM software that best aligns with your company’s objectives.

Final thoughts

A well-chosen CRM is more than just software—it’s a foundation for building stronger client relationships, driving sales, and staying competitive. Whether you prefer Salesforce CRM or HubSpot CRM, the solutions we’ve listed provide tailored options for businesses of all sizes. Take the time to assess your needs, explore these platforms, and invest in the CRM that best suits your business needs.

 

The state of the DTC nation report 2024: unpacking key insights and takeaways

Every year, we conduct an extensive DTC brand survey inviting over 1,000 decision-makers and marketers from across the UK and USA to share their two cents about e-commerce advertising. 

We use the survey’s insights to curate an annual report, which guides and informs our direct-to-consumer strategies throughout the year. The 2024 report presents an in-depth look at the current state of the DTC market, focusing on primary challenges, revenue dynamics, and growth marketing strategies. 

This year’s survey drew responses from various industries, including skincare, beauty, health, fitness, fashion, food, beverage, and more. The findings reveal how brands are navigating increased competition, rising costs, new e-commerce trends and shifting consumer behaviours.

Here is an overview of the key insights, takeaways and DTC marketing trends from this year’s survey…

Marketing budgets on the rise

As global advertising and marketing spend continues to grow, brands are increasing their investment in marketing to stay competitive. With a projected 7.7% rise in global marketing spend in 2024, businesses are recognising the need to allocate more resources toward their marketing efforts.

Our survey reveals that brands are following this trend, with a notable increase in marketing budgets. They are not only allocating a significant portion of their revenue to marketing but also prioritising channels that deliver measurable ROI.

The importance of ROI in marketing decisions

Strategic allocation of marketing budget is essential for driving growth and maintaining a competitive edge in the increasingly crowded e-commerce landscape.

The participating brands unanimously agreed that the emphasis on ROI is more critical than ever. Businesses are no longer just spending on marketing because it’s a necessary expense; they are investing in marketing as a core driver of growth. This shift in mindset is reflected in the strategic allocation of budgets toward channels that are not only cost-effective but also capable of delivering tangible results.

Our survey found that businesses are increasingly prioritising channels that allow for clear measurement and optimisation. This trend is particularly evident in the growing investment in data-driven marketing strategies. By leveraging data analytics, businesses are tracking the performance of their campaigns in real-time, making adjustments as needed to enhance effectiveness. This level of insight and adaptability is what sets successful DTC brands apart in today’s competitive landscape.

 

Rising competition and costs

The competitive e-commerce marketing landscape is driving costs up, particularly in paid media. Meta’s CPM has fluctuated but remains high overall. 

Paid search continues to be a top-performing channel for fashion retailers but presents challenges for the food, beverage, health and fitness sectors due to escalating costs. To navigate this high-cost environment, diversifying the marketing mix and exploring lower CPM platforms is recommended.

Navigating platform changes

Email marketing faces new challenges with updates from Google and Yahoo, including stricter spam filters and enhanced privacy features. However, marketers can navigate these changes by focusing on compliance, list management, and authentication to ensure effective email deliverability

Overview of top and underperforming marketing channels

According to our survey, some marketing channels emerged as clear winners, while others struggled to deliver results. 

  • Email marketing stood out as one of the most effective strategies for DTC businesses, offering high personalisation, cost-efficiency, and strong direct communication with customers. A powerful tool that brands are leveraging to maximise engagement and conversions in 2024.
  • Organic social, on the other hand, proved to be less effective, often hindered by low reach and engagement challenges.
  • Paid social offered mixed results, performing well for some sectors but underdelivering for others. Businesses are finding success by focusing on detailed audience segmentation and innovative content strategies.

Reasons to be hopeful

Despite some challenges, there are several reasons to be optimistic 

  • The global e-commerce market is expected to surpass $5.8 trillion in 2024, indicating robust growth potential. 
  • According to the OECD Economic Outlook 2024 report, signs of economic recovery are evident, with consumer confidence and spending rebounding.
  • Consumer spending on brands is expected to rise by 15% in 2024 as digital shopping habits become more entrenched and the economy stabilises.
  • Social commerce platforms like TikTok Shop are revolutionising consumer shopping behaviours by integrating entertainment and e-commerce, which is expected to grow by 20% in 2024.

Boost your Meta dynamic product ads with these customisation tips

Are your Meta dynamic product ads getting lost in the crowded ad ecosystem? Want to make sure your ads stand out from your competitor’s ads and drive better revenue? 

Read on, as our creative strategists reveal hacks and tips to make your dynamic product ads stand out and boost revenue.

“Your dynamic product ads need a creative differentiating strategy that follows the rules to get results but also ensures your ads don’t end up looking like everyone else’s! This is a tricky balance to strike but one that can get you results. Your dynamic product ads, if customised to represent the brand and its unique identity, can reap substantial results.” – Nazanin Faghihi, Performance Marketing Manager.  

By customising your dynamic product ads to represent your brand, you create brand awareness and recall and can significantly enhance ad performance and boost revenue. To optimise your DPAs, try these simple hacks and tricks that have helped us scale countless brands and generate millions in revenue.  

But first, how do DPAs work?

Dynamic Product Ads (DPAs) automatically showcase the most relevant products to each customer, leveraging Meta’s algorithm and data. All you need to do is connect your product catalogue to the platform and create a dynamic product ad campaign. Then you can let the platform handle targeted advertising by showing the most relevant product(s) to each customer—making this ad type one of the most favourable ones for e-commerce brands.  

Here are ten hacks for DPA customisation with examples…

1. Change the background

 

 

Switch the plain white background to an engaging colour that captures attention and aligns with your brand identity. You can choose the colours and fonts to incorporate your branding into your ad creatives. This Clarins ad makes good use of its brand colours and product texture in the ad.

2. Include sale information

 

Displaying the product price might help, but highlighting the original and discounted price together to make the savings prominent and attractive works wonders. It plays with the customer’s psychology by tempting them to shop for the offer price while it lasts.  

For instance, during Christmas, this cookware brand ran Christmas-themed holiday deals, urging customers to buy gifts with a strikethrough price alongside the discounted price, emphasising the value customers are getting.

3. Use multi-dimensional product shots

 

 

Showing multiple angles of your products helps provide a better view, which in turn helps increase engagement. A furniture store, for example, can showcase a sofa from different angles to display its many features, comfort, storage etc. or show it in various room settings, helping customers visualise it in their own space. A cookware brand on the other hand can also use multi-dimensional product shots to showcase product features like this ad by Magic Kitchen does for its utensils and it’s material.

 

4. Customise design to match your brand

 

For DPA customisation, you must make sure the ad creative is in sync with your brand’s design language. You can achieve this by adding the logo and branding assets within the creative. This practice helps build trust and leverages brand recognition. For example, Happy Mammoth, a supplement brand uses its logo within the creative to hold the various product and natural elements of the ad together, reinforcing its identity as a natural product for women.

 

5. Create campaign-specific and seasonal ads

 

You can tailor your ads for specific events, seasons or campaigns to increase relevance and urgency. A good example of seasonal and relevant ads is this one by Gymshark, where the ad copy reads ‘gym girl summer’ with the ad creative featuring Gymshark products on a model sitting in the sun making it a summer campaign.

 

6. Highlight urgency and scarcity

 

 

Apart from seasonality and relevance, your dynamic product ads can also have ad copy that establishes scarcity to trigger action. Just the way this ad copy says ‘this crazy deal is ending soon’ to encourage quick purchases. You can run deals and sales for national holidays to prompt immediate action as this skincare brand has done for the 4th of July.

7. Emphasise unique selling points

 

Differentiate your products by highlighting unique features or benefits. For instance, this beauty brand showcases multiple complementary products that help attain glass skin, appealing to shoppers looking for particular results, which also happens to be a huge skin trend.

8. Use social proof

 

Incorporating customer reviews or testimonials to build trust and credibility is another great way of DPA customisation. This cosmetics brand has displayed 5-star reviews from 250,000+ satisfied customers, boosting confidence in the product’s quality and popularity.

9. Add frames to highlight products

 

Use frames to highlight the product and have fun with your ads to stand out in a sea of plain backgrounds and bland designs. This furniture brand uses a sleek, modern frame to highlight its chic products and designs, aligning with its brand image and aesthetic.

10. Highlight product features

 

 

Another way to improve CTR is by making products prominent and providing essential product features and information. An ad where the product has its features, battery life etc. labelled clearly will help customers make quick decisions.

Is your e-commerce brand ready for TOF marketing?

“Top-of-funnel marketing is a powerful strategy for building brand awareness and attracting new audiences. However, it’s crucial for e-commerce brands to ensure they’ve maximised their direct response efforts, tested new platforms, and built a strong presence before diving in. By focusing on these foundational elements, brands can create a robust framework for successful TOF marketing campaigns.” 

– Arham Khan, Founder & CEO, Pixated

 

Top-of-funnel (TOF) marketing focuses on building brand awareness among a broad audience to remain top of mind for potential customers whilst also onboarding newer audiences. While appealing, it may not be suitable for all stages in the life cycle of a DTC brand.

Let’s find out when is an optimal time for an e-commerce brand to run upper-funnel marketing campaigns and what it is that DTC brands need to ensure before they start TOF marketing. 

When is the right time for TOF marketing?

The right timing to implement Top-Of-Funnel marketing campaigns is crucial for its success. 

When brands should consider TOF

  1. They have a stable customer acquisition cost (CAC) and positive ROI on bottom-of-funnel efforts.
  2. Their conversion rates from middle and bottom-of-funnel campaigns are consistently strong.
  3. They have a solid understanding of their target audience and buyer personas.
  4. They have reached audience fatigue (a saturation point with their in-market audience) or are experiencing reduced campaign effectiveness over time.
  5. There’s a need to expand their customer base beyond their current reach.
  6. They have the resources (both financial and human) to sustain a long-term TOF strategy.

Benefits and challenges of TOF marketing

Benefits

  1. Increased brand awareness and recognition
  2. Broader reach to potential customers
  3. Establishment of thought leadership in the industry
  4. Potential for viral content and organic growth
  5. Building a pipeline for future conversions

Challenges

  1. Longer time to see tangible ROI
  2. Difficulty in attributing sales directly to TOF efforts
  3. Requires consistent, high-quality content creation
  4. Risk of attracting unqualified leads
  5. Balancing broad appeal with targeted messaging

Real-world examples of TOF success for DTC brands

Dollar Shave Club: Their viral video “Our Blades Are F***ing Great” is a prime example of successful TOF marketing, garnering millions of views and significantly boosting brand awareness.

Casper: The mattress company uses several functions of content marketing, including a sleep-focused publication called “Woolly,” to provide value, educate and engage potential customers at the top of the funnel.

Gymshark: Leveraged influencer marketing and user-generated content to build a strong community and brand awareness among fitness enthusiasts.

Metrics to track when running TOF campaigns

When engaging in TOF marketing, brands should monitor

  1. Brand awareness metrics (e.g., brand recall, recognition)
  2. Engagement rates (likes, shares, comments)
  3. Website traffic and new visitor rates
  4. Time spent on site and pages per session
  5. Email newsletter sign-ups
  6. Social media follower growth
  7. Share of voice in the industry
  8. Long-term customer value

Content strategies for TOF marketing

  1. How-to guides and tutorials related to your product or industry
  2. Informative blog posts and articles
  3. Engaging social media content (e.g., Instagram Reels, TikTok videos)
  4. Podcasts or webinars featuring industry experts
  5. Interactive tools or calculators relevant to your audience
  6. Infographics summarising industry trends or statistics
  7. User-generated content campaigns
  8. Virtual events or workshops

Integration with the overall marketing strategy

TOF marketing should seamlessly integrate with your overall marketing funnel

  1. Ensure consistent messaging across all funnel stages
  2. Use TOF content to nurture leads into middle and bottom-of-funnel campaigns
  3. Retarget TOF audience with more targeted messaging as they move down the funnel
  4. Use insights from bottom-of-funnel conversions to refine TOF targeting
  5. Align TOF goals with overall business objectives

Budget considerations for upper-funnel campaigns 

  1. Start with a small, experimental budget to test TOF strategies
  2. Gradually increase the budget as you see positive results
  3. Consider reallocating some bottom-of-funnel budget if those efforts have plateaued
  4. Invest in content creation and distribution channels
  5. Factor in long-term ROI rather than immediate conversions

Technology and tools for upper-funnel marketing

  1. Social media management and listening tools (e.g., Brandwatch, Sprout Social)
  2. Analytics platforms (e.g., Google Analytics, Mixpanel)
  3. Marketing automation tools (e.g., HubSpot, Mailchimp)
  4. SEO tools (e.g., SEMrush, Ahrefs)
  5. Video creation and editing tools (e.g., Canva, Adobe Premiere)

Future trends in Top-Of-Funnel marketing

  1. AI-powered personalisation of TOF content
  2. Augmented reality experiences for product visualisation
  3. Voice search optimisation for smart speaker users
  4. Interactive and immersive content (e.g., 360-degree videos)
  5. Increased use of micro-influencers for niche audiences
  6. Sustainability and social responsibility messaging
  7. Hyper-local targeting for brick-and-mortar tie-ins

Implementing a robust TOF marketing strategy requires a shift in perspective and approach. While immediate results are tempting, overemphasis on short-term metrics can distort the true impact of marketing efforts. 

Success in TOF marketing demands a holistic view, with regular reassessment of attribution models and close monitoring of upper-funnel strategies. This comprehensive approach provides a clearer picture of marketing effectiveness, enabling brands to build lasting customer relationships and brand affinity. By balancing immediate success with a long-term vision, e-commerce brands can create a sustainable upper funnel strategy that complements their overall marketing ecosystem and drives significant return over time.

 

Creativity vs. Data: the art and science of e-commerce marketing

Creativity vs. data! Art vs. science! We settle the debate between following hard data and trusting creative instincts.

While the e-commerce landscape is evolving at breakneck speed, one debate remains stubbornly constant: which is more important, the analytical data-led approach, or human intuition and creativity? Which of the two is a tactical necessity for creating impactful growth marketing strategies?

DTC Twitter is rife with hot takes on the subject, and there are strong arguments from both sides. However, as a digital marketing agency committed to growth, we see value in both. The answer lies in the subtle interplay between the science and the art of marketing.

A modern marketer needs to function as both an artist and a scientist. The key to succeeding in e-commerce marketing is finding a balance that leverages the strengths of both data and creativity.

Let’s unpack how these two seemingly opposing functions can work together to drive e-commerce success.

Understanding the left and right brain dynamic

Traditionally, marketing teams have framed the creativity vs. data debate in terms of “right brain” vs. “left brain” thinking. However, recent neuroscience research shows that this oversimplified view of brain function is not entirely accurate.

While the brain’s left hemisphere is often associated with logical and analytical tasks, and the right hemisphere with creative and intuitive thinking, modern neuroscience reveals that brain function is far more complex and interconnected. Both hemispheres work together in most cognitive tasks, including those involving logic, creativity, language, and spatial reasoning.

This insight shifts our understanding of the creativity vs. data debate. Rather than viewing it as a conflict between two distinct modes of thinking, we can see it as a synergy between complementary approaches: the art and science of marketing.

E-commerce: where does art fit in?

In today’s digital marketplace, simply having a store, an online presence and a well-organised inventory isn’t enough. That may have been the approach to e-commerce marketing a few years ago but today’s informed consumer demands more. That is where the art of brand storytelling comes into play.

The modern consumer seeks more than just products; they crave personalised experiences and connections.

Crafting a unique narrative for your brand

Humans are naturally drawn to stories and narratives that resonate with them. These narratives shape brand perceptions and influence the consumer’s decisions in countless ways. For e-commerce businesses, weaving a compelling narrative around a brand can be the key differentiator in a crowded market. The goal should be to use consumer psychology to craft compelling ad copy and stories to forge an emotional bond with the customers that can endure beyond the point of purchase.

Creating a lasting impression requires more than just a functional website or clever marketing. It’s about guiding your visitors through a journey that reflects your brand’s unique personality and values. This journey begins the moment they first come across your ad and continues all the way to the purchase and beyond.

The visual impact

Research indicates that the visual elements of an online store play a crucial role in purchase decisions. A well-designed, visually appealing website or ad can significantly increase the likelihood of a conversion. This underscores the importance of investing in industry-specific visuals and an intuitive user interface.

As a result, success in e-commerce isn’t just about what you sell, but how you sell it. By embracing creativity and the art of storytelling through copywriting and design, brands can create impactful digital shopping experiences that convert.

The objectivity of data and science

Data serves as the backbone of modern e-commerce, offering objective insights that drive decision-making. Its power lies in its ability to reveal patterns, predict trends, and inform strategies with factual precision. E-commerce platforms and brands leverage data insights to optimise everything from inventory management to customer segmentation and ad strategies.

However, data alone isn’t enough. While it can enable hyper-targeting and personalisation of ad content, it may fall short in capturing the nuances of human experience. For example, an algorithm might suggest Father’s Day promotions to all customers who’ve previously bought men’s products, potentially causing distress to anyone who may have recently lost their father.

This is why successful e-commerce advertising requires a synergy between data-driven insights and human empathy. Data provides the ‘what’ and ‘when’ of customer behaviour, while human intuition adds the crucial ‘why’ and ‘how’ to create truly impactful campaigns.

The science of marketing

Data-driven analysis and decision-making

The scientific, analytical approach is all about leveraging data to make informed decisions. In e-commerce marketing, this includes:

  1. Media buying: Using data to precisely target customers and optimise ad spend.
  2. Growth strategy/Performance analysis: Tracking KPIs and ROI to refine marketing strategies.
  3. A/B testing: Continuously improving based on quantifiable results.

Analytical thinking is driven by logic, therefore, in digital advertising, it is characterised by a focus on metrics, data analysis, and growth strategies. It’s about understanding consumer behaviour and using that information to create targeted campaigns.

The importance of this approach is highlighted in a study from McKinsey that found that companies using data analytics extensively are 23 times more likely to outperform their competitors in new customer acquisition.

The art of marketing

Creative storytelling and psychological narratives

The creative and artsy aspects of e-commerce marketing involve understanding consumer psychology and establishing an emotional connection with them using human expression:

  1. Creative strategy/Brand storytelling: Crafting compelling narratives via copywriting and content creation that resonate with customers.
  2. Visual design: Creating eye-catching visuals that stand out in crowded marketplaces.
  3. User experience: Designing intuitive, enjoyable shopping journeys.

Right-brain thinkers excel in creative problem-solving, generating innovative ideas, and thinking outside the box. This creative approach is crucial, as evidenced by a Forrester report which found that emotion-driven brands enjoy a 41% higher market share.

Science (data) X Art (creativity)

Here’s how they work together across different stages of e-commerce marketing:

  1. Growth strategy:
    • Data: Market analysis, competitor benchmarking
    • Creativity: Innovative growth hacks, unique value propositions
  2. Media buying:
    • Data: Data-driven audience targeting, budget allocation
    • Creativity: Creative ad placements, innovative channel selection
  3. Creative strategy:
    • Data: Evaluate performance data from previous and competitor campaigns
    • Creativity: New creative concepts, psychological and emotional storytelling
  4. Ad production:
    • Data: A/B testing different elements
    • Creativity: Crafting visually appealing, resonant and industry-specific ad content. Also creative testing winning ads.

This balanced approach is supported by research. A study by Google and CEB found that B2B customers who perceived value in both business and personal aspects were 60% more likely to make a high-value purchase. While this study focused on B2B, the principle applies equally to e-commerce, where both rational decision-making and psychological connection drive purchases.

A strategic balancing act

Data-informed creativity: Use analytics to identify trends and customer preferences, then use these insights to fuel creative ideation.

Creative data visualisation: Present complex data in visually appealing and easy-to-understand formats to make it more accessible and actionable.

Emotionally intelligent automation: Implement AI and automation tools that can analyse customer behaviour to decode and analyse sentiments while also understanding the consumer psyche.

Storytelling powered by stats: Build compelling narratives in your ads, informed by hard data to create marketing messages that appeal to both logic and emotion.

Intuitive UX design backed by user data: Create user experiences that feel intuitive and emotionally satisfying, but are grounded in solid user behaviour data.

The art and science of marketing are NOT mutually exclusive

Data will always remain a precious commodity in e-commerce. However, as artificial intelligence tools create numerous innovative marketing opportunities in the rapidly changing marketing environment, brands that effectively combine human intuition, creativity and data insights will maintain a competitive advantage.

While data and AI are powerful tools, the human element remains crucial in developing marketing campaigns that truly resonate with audiences. The most successful marketers therefore will be those who can leverage both logical analysis and creative imagination to craft effective strategies in an increasingly complex and technologically advanced marketplace to create compelling ad campaigns and narratives that resonate strongly with the audiences.

Labour’s victory and what it means for digital advertising

Labour’s landslide victory under Sir Keir Starmer marks a potential turning point for the UK’s digital advertising landscape. While Labour’s manifesto didn’t explicitly target our industry, the ripple effects of their broader policies could reshape how we operate.

Let’s unpack what this election result might mean for digital marketers.

Google search: balancing AI and human touch

Labour’s stance on AI regulation could shake up the search advertising world. Their focus on “safe development and regulation” might impact automated bidding and smart campaigns.

What it could mean

  • A potential shift back to manual optimisation
  • More level playing field for smaller marketing teams and agencies without access to expensive AI tools
  • Increased emphasis on human creativity in campaign management

Industry impact

According to a recent study by Deloitte, 73% of organisations are already using AI in their marketing efforts. Labour’s policies could slow this adoption rate, potentially affecting campaign efficiency in the short term.

Social media: new rules of engagement

Labour’s commitment to strengthening equality could lead to stricter regulations on ad targeting, especially regarding protected characteristics like gender and age.

Potential changes

  • More limited demographic targeting options
  • Greater focus on interest-based and behavioural targeting
  • Increased scrutiny of ad content for bias or discrimination

Pro tip: Start developing more nuanced, content-driven targeting strategies now. They’ll likely become invaluable in the near future.

The bigger picture: adapting to a changing landscape

Labour’s victory is part of a global trend towards increased tech regulation and data privacy protection. The UK’s approach under Labour could set precedents influencing digital advertising worldwide.

Key trends to watch

Sustainability focus: With Labour emphasising sustainable growth, expect increased demand for eco-friendly products and services. According to Nielsen, 73% of millennials are willing to pay more for sustainable offerings.

Education reform: Labour’s plans to revamp creative education could reshape our talent pool long-term. Prepare for a workforce with potentially different skill sets and perspectives.

Economic shifts: Labour’s economic policies could affect consumer spending patterns. Stay agile and ready to pivot your strategies accordingly.

Strategies for success

Diversify skills: Invest in both traditional and cutting-edge marketing techniques.

Embrace ethical advertising: Develop targeting strategies that don’t rely on potentially problematic demographic data.

Content is king (again): With potential targeting limitations, compelling content becomes even more crucial.

Stay informed: Keep a close eye on policy developments and be ready to adapt quickly.

Engage in dialogue: Participate in industry discussions to ensure our voice is heard in policy-making processes.

The road ahead

The Labour victory doesn’t spell doom for digital advertising. Instead, it presents an opportunity to innovate and create more responsible, effective marketing strategies.

As the rules of the game change, the marketing teams that thrive will be those that can balance compliance with creativity, and ethics with effectiveness. It’s a challenge, but hopefully a fun one.

10 Influencer marketing trends for 2024

Trends that are redefining an already booming creators’ economy…

Despite the economic challenges of the post-COVID world, influencer marketing and creators’ economy is worth $250 billion and is anticipated to leap to an impressive $480 billion by 2027, according to Goldman Sachs estimates.

As the popularity and demand for creators continue to grow; marketers are expected to increase their spend and double down on their strategies. Whilst the trends this year draw heavily from the practices of last year; campaigns are certainly about to become more granular and focused on refined strategies.

In this report, we take you through what’s trending in the creator realms and look at what is expected to shape up the influencer marketing industry in the coming months. From popular platforms to inventive content strategies, we unravel trends that will reign supreme in this world where influence is currency.

1. Harnessing sub-cultures and niche communities

As the industry grows, creators who are immersed in cultural conversations and can speak directly to relevant consumer groups in a meaningful way will be preferred. Brands now see value in targeting specific communities that resonate and build loyal, engaged audiences. To truly resonate with customers in more nuanced spaces, marketers are now looking to explore the subcultures and niche conversations most likely to connect with their audience and truly drive action.

Creators who are proactive within cultural spaces will be key to navigating this effectively. Specificity will now be key. Influencer intelligence will help brands harness subcultures by identifying the right talent that can help them lead relevant conversations through detailed data analysis.

For example; Supreme leverages its roots in the skateboarding subculture by collaborating with skaters and artists. Their limited edition drops and influencer partnerships create hype and exclusivity.

Tool suggestions:

AspireIQ: Helps brands identify and manage relationships with creators in specific niches.

HYPR: Provides detailed data and analytics to find influencers who resonate with the brand and its audience.

2. Micro, nano influencers and content creators

It is important to note that the terms aren’t mutually exclusive, and many individuals may identify as both content creators and influencers based on their activities and goals in the digital space. These terms are fluid, and individuals prioritise different aspects of content creation and influence depending on their niche, approach, and the evolving digital landscape.

Influencers and creators who value authenticity over aesthetics enhance the resonance and relatability aspect of branded content. Content creators like these give brands unique access to niche audiences and intimate communities. They are known to have the most committed communities, providing access to authentic product recommendations. These people cultivate spaces where shared interests and authentic dialogue thrive.

This trend has effectively redefined the essence of being a social media influencer, focusing on resonance within communities rather than reach, thus democratising the space and reshaping the archetype.

Example: Bite Toothpaste Bits works with nano-creators to promote their eco-friendly toothpaste, emphasising authenticity and sustainability.

Tool suggestion: Use platforms like AspireIQ or Traackr to find and manage influencers and content creators, ensuring effective and efficient collaborations.

3. Niche gets nicher

As influencer marketing matures, brands are increasingly focused on hyper-targeted niches to reach high-intent, engaged audiences. This approach allows for more personalised and effective marketing campaigns. In order to drive brand engagement and awareness amongst specific niches, brands are also beginning to recognise the value and importance of choosing the right creators as messengers for the right brands.

For example, the beauty tech brand, Foreo, leverages AI to streamline its creator selection and campaign management, resulting in highly targeted and successful marketing efforts.

Tool suggestion: HypeAuditor uses AI to provide in-depth analytics and insights on influencers, helping you identify the best partners for your brand within specific niches. It ensures you collaborate with authentic creators by detecting fraudulent activity.

4. The rise and rise of livestream shopping

Live shopping events, where influencers showcase products in real-time, are becoming an increasingly popular way to drive engagement and sales. This format combines entertainment with a seamless shopping experience. Amazon or Instagram Lives, where creators host live product demonstrations and answer questions from viewers, have significantly boosted real-time shopping engagement whilst also leveraging their reach and credibility.

Statistics on live shopping reveal a clear preference shift, with a growing number of people favouring live streams for social media purchases. Gen Z (another trend this year) led this survey with approximately half (47%) of consumers having made a livestream purchase in both the US and UK.

Tool suggestion: Obviously then, as a response to these statistics, major platforms like Amazon, Facebook, TikTok, and Instagram have invested in livestream shopping tools and collaborations. Instagram’s Live Shopping feature, for instance, enables users to make direct purchases during a live session, offering an immersive way for shoppers to explore and acquire products

5. Fewer filters, less curation, more authenticity

Consumers are more likely to trust and engage with brands that are genuine and transparent in their communications. Consumer attitudes toward influencer marketing are certainly focused on authenticity, unpolished content, raw cuts, and long-term collaborations. Behind-the-scene content, upper-funnel content with brand values and mission helps consumers resonate with the brand, which in turn helps build trust.

Example: Warby Parker, an eyewear brand, has effectively utilised authenticity in its influencer marketing strategy through its Home Try-On program. This program allows customers to select five frames to try at home for free, sharing their honest opinions and experiences on social media. The brand also encourages customers to share photos and videos of themselves trying on different frames at home. This content is often shared on social media, showcasing real people in their everyday environments. A great example of authenticity and transparency in creator marketing.

6. Diversity and inclusivity will be critical

Diversity and inclusion are critical components of modern marketing strategies and the same is true for influencer marketing. Brands that prioritise representation in their campaigns resonate better with a broader audience.

Fenty Beauty for instance has an inclusive makeup range and runs diverse marketing campaigns that have set a new standard for representation in the beauty industry.

Another brand that is big on diverse model representation is Glossier. They frequently collaborate with influencers from diverse backgrounds to promote their products, ensuring representation across different ethnicities, skin types, and personal styles.

7. B2B influencers will have a moment

B2B influencer marketing is growing in popularity as businesses recognise the value of partnering with industry experts and thought leaders. Business professionals, powered by their expertise and experience, provide credibility and reach within niche professional communities.

Example: HubSpot collaborates with marketing experts and influencers to share insights and promote their software solutions, establishing themselves as thought leaders. Mailchimp and Motion App also run collaboration campaigns through webinars and podcasts where professionals share the resources, systems and solutions they’ve built.

Tool suggestion: Apart from lead gen and inbound content marketing campaigns; businesses can also use tools like LinkedIn Sales Navigator to connect with B2B influencers, fostering professional relationships.

8. Gen alpha is here

As Gen Alpha (born in 2010 and onwards) begins to influence purchasing decisions, brands are now starting to tailor their social media marketing strategies to this young demographic. Influencer partnerships that appeal to both children and their parents are becoming increasingly important.

Reports by Influencer Intelligence and Digital Voices suggest that 49% of Gen Alpha trust influencers as much as they do family and friends for product recommendations. While 55% are influenced to purchase products their favourite YouTube or Instagram stars use. In a report by Ofcom it was cited that among 3-17 year olds, YouTube was the most popular amongst 88%, followed by TikTok (53%), Snapchat (46%), Instagram (41%) and Facebook (34%).

All of these reports are conclusive proof that there are already significant volumes of Gen Alpha consuming content on key platforms that work with creator marketing, presenting brands with a substantial opportunity within this demographic which is likely to become an important generational cohort by 2025.

Example: Ryan’s World, a popular YouTube channel featuring young creators, partners with brands like Colgate and Walmart to create engaging content for kids.

9. AI integration in influencer marketing

Unless you are choosing to live under a rock; we are all aware of the impact that generative AI has had on marketing and the same is true for Email marketing.

AI now plays an increasingly important role in the influencer marketing technology landscape. From recruitment to content generation and the use of virtual influencers; AI has revolutionised the creator economy in more ways than one. AI tools like HypeAuditor, and Traackr amongst others allow brands to identify, analyse, connect and collaborate with creators more effectively. These AI-driven platforms offer advanced data analytics, predictive modelling, and automation capabilities, making it easier for brands to execute precise and impactful influencer campaigns.

Example: The DTC brand Warby Parker utilises AI tools to identify and partner with micro-influencers who have highly engaged followers within the eyewear and fashion niche. This approach resulted in more targeted and authentic collaborations, driving significant engagement and sales.

10. Marketers are about to double up their investment in TikTok

Given its significant appeal to the younger users; 2024 projections indicate a continued surge in TikTok’s popularity among both influencers and brands.

Reports by TheB2BHouse suggest; that marketers are set to nearly double their spending on TikTok influencer marketing in just two years. What was estimated at nearly $800 million in 2022, the figure is predicted to surpass $1.3 billion by 2024, almost tenfold higher than the expenditure in 2020.

TikTok has managed to establish itself with over 1 billion users globally, a milestone surpassed only by Facebook, YouTube, WhatsApp, Instagram, and WeChat. It has been reported that an average global user spends an impressive 31 hours and 14 minutes on TikTok each month, surpassing other social platforms such as Instagram (13 hours and 49 minutes) and even YouTube (27 hours and 21 minutes). Obviously then, brands are keen on harnessing the power of UGC on TikTok to engage the new social-savvy consumers.

TikTok’s features like the TikTok Creative Exchange and Creator Marketplace, streamline connections between creators and brands, making it just the platform for influencer marketing.

Navigating the creators’ economy through these trends

This report highlights some innovative strategies that will help brands navigate the exciting influencer marketing space in the coming months.

Trends like harnessing cultures, niche content and live shopping events are about to cause a creative stir in the creator space and we can’t wait to see how brands will embrace and leverage these trends.

This report also underscores the importance of authenticity, diversity, and AI integration in influencer campaigns going forward. All of these will be key content strategies for brands to form authentic connections with their target audiences.

Marketing in its Marketing Efficiency Ratio (MER) era

ROAS is not the North Star metric you thought it was!

Return on Ad Spend (ROAS) just isn’t good enough as a measure of your marketing efforts—even if you are brand advertising on one platform. In-platform reported ROAS is inherently flawed, misleading and at best only 70% accurate.

ROAS is a marketing performance metric that calculates revenue generated by your ad campaigns. However, it has shortcomings.

  • It is channel-specific: ROAS is simply too focused on individual channel reporting, failing to account for the entire customer journey across multiple touchpoints.
  • Vanity metrics: ROAS often leads to misleading conclusions if not considered within the broader context of overall marketing performance.

Instead, your brand needs a metric that is able to measure your marketing’s overall impact on real business outcomes; across platforms.

That overall impact is your Marketing Efficiency Ratio (MER)

Simply put, MER is total revenue (for your business) divided by total ad spend for all channels (Facebook, Google, etc.) Essentially, it is the average ROI across all channels.

In this article, we dive deep into why MER is the metric you need to be tracking over ROAS, how to measure and optimise it, and how to use it to win the war of attention in your market.

But first, what is the difference between the two metrics and where and when should they be used?

MER vs. ROAS

ROAS (Return on Ad Spend)

  • Purpose: Measures the revenue generated per dollar spent on individual ad campaigns.
  • Usage: Best for analysing the performance of specific marketing campaigns or comparing the profitability of different ad initiatives.

MER (Marketing Efficiency Ratio)

  • Purpose: Assesses the overall efficiency of all marketing efforts combined across various platforms.
  • Usage: Ideal for evaluating the comprehensive efficiency of your entire marketing strategy.

Comparison

Both MER and ROAS are crucial for assessing marketing effectiveness and can be utilised to inform your marketing strategy, evaluate campaigns, and track ROI.

  • ROAS: Offers an in-depth understanding of the performance of specific campaigns and creatives.
  • MER: Provides a holistic view of overall marketing performance, capturing the efficiency of all combined marketing campaigns.

While ROAS focuses on individual campaign effectiveness, MER delivers a broader perspective on the collective impact of your marketing activities.

In the war for attention, your approach is key!

Whatever the size and shape of your advertising campaigns, it’s important to analyse and measure them well to maximise your ROI.

Whilst there is value in taking a detailed approach to analysing the performance of each creative in your ad campaigns there is greater value in being able to view your ad campaigns as more than standalone creatives.

For instance, there have been cases where we assessed the performance dashboards of multi-channel campaigns and stressed over the 15% week-on-week drop in ROAS for one channel, only to find out that conversions had increased by 45% on another channel and that the overall revenue had grown by 20%. All of which in totality are great results.

ROAS therefore does not facilitate the multi-channel approach that is required to stay ahead of the curve in the marketing paradigm of 2024. While ROAS can tell you how much revenue any specific ad spend is driving, it does not take into account the user journey across all touchpoints that contribute to the final conversions.

Customer journeys are unpredictable and can follow various paths

In no particular order, your customers might…

  • See your Meta ad in the wild
  • Google your brand
  • Google your product
  • Compare prices on Amazon
  • Visit your website
  • Check your socials… then get distracted
  • See your ad… AGAIN, with a lot more interest this time
  • Visit your website again and add to the cart
  • May or may not abandon the cart
  • See your ad yet again
  • Revisit the website and cart
  • Finally, convert

If we look at the customer journey mapped above; we know that customers typically interact with more than one ad campaign and more than one channel before buying into a brand. MER is a metric that takes into account the total value generated by your marketing strategy across all platforms.

The relationship between MER and your attribution model

ROAS can only credit sales to the very last touchpoint, discrediting all the crucial steps that came before. This is especially true now that GA4 only offers two attribution models: last click and data-driven.

This is precisely why e-commerce brands need MER as their main metric, to eliminate the attribution problem by looking at the marketing efforts holistically and not just at standalone platforms.

All marketing teams; SEO, search and social want to claim a sale or lead as their achievement. However, the fact is, that no customer journey is straight or limited to one channel. (see the customer journey map above)

MER eliminates this conflict by focusing on overall efficiency instead of individual attributions. Now it won’t matter which channel or campaign generated a conversion. This way you can attribute the success and/or failure of your marketing campaigns to the overall effectiveness and efficiency of your ads across platforms in driving revenue growth.

By looking at your total marketing spend across ad spend on various channels vs. your total revenue irrespective of your marketing platform; MER cuts through the noise of vanity metrics and channel-specific KPIs to answer the only question that really matters.

How to calculate MER

To calculate your marketing efficiency ratio you need to calculate your cumulative marketing expenses and overall revenue from all your marketing platforms. Some of the most common expense metrics include your total spend on marketing including the cost of services and resources. Revenue metrics can include website traffic and conversions, sales and/or leads generated from your marketing campaigns.

Once you have this data, you can use it to calculate your marketing efficiency ratio as follows:

So for instance, if you spent $10,000 on marketing activities over a given period and generated $25,000 in revenue during that same time period, your marketing efficiency ratio would be 0.4 ($10,000 / $25,000).

Or, if you generated $1,000,000 in revenue on $200,000 in marketing spend last quarter, your MER would be 5.

$1,000,000 / $200,000 = 5

So, how do you use MER to inform your marketing decisions? The key is benchmarking.

Current metrics against your benchmarks

Start by recording your key metrics—MER, nCAC, nMER—during a period when your business is performing well. These metrics will serve as your benchmarks.

As you track performance over time, compare your current metrics against these benchmarks. The goal is to maintain or exceed your benchmarked MER, rather than focusing solely on an arbitrary ROAS figure.

The litmus test to check if your MER is working

Assuming your benchmark MER is 3.5 and your Meta ROAS is 1.23. If your Meta ROAS decreases to 1.1 but your MER remains at 3.5, that’s acceptable!

It likely indicates that your Meta marketing is effectively driving upper-funnel activities, with sales being captured through other channels.

On the other hand, if your Meta ROAS increases to 2.0 but your MER drops to 3.0, it may signal an issue. This could suggest over-investment in lower-funnel activities at the expense of upper-funnel channels that were initially driving your pipeline. Therefore, your MER benchmarks should be aligned with your specific growth goals and unit economics.

To ensure you meet your goals and targets, work backwards from your revenue objectives to set your MER benchmarks accordingly.

Advantages of using MER to inform your marketing strategy

Holistic view: MER takes into account all marketing channels, thus providing a comprehensive picture of marketing and advertising efficiency.

Cost efficiency and resource allocation: MER helps brands optimise their marketing expenses by identifying underperforming marketing channels. This allows a thorough analysis of all marketing costs, helping businesses eliminate unnecessary spending and make informed decisions on resource distribution. These insights provide a direction to where marketing investments should be directed to enhance overall efficiency.

Sustained performance monitoring: MER facilitates long-term evaluation of marketing impact and effectiveness. By tracking this ratio over time, marketers can identify trends, recognise patterns, and make strategic decisions to ensure sustainable growth.

The benefits of using MER as your North Star metric will reflect in the way it informs your marketing strategies, allowing you to make data-driven decisions and improve your ROI.

Strategies you can implement to optimise MER

To enhance your brand’s marketing efficiency ratio and maximise ROI for your e-commerce brand, consider the following strategies:

  1. Dynamic creative optimisation (DCO)
    • Use Dynamic Creative Optimisation to automate the testing of various ad elements such as images, headlines, and CTAs. This allows you to identify the most effective combinations in real time. Tools like Google Ads’ responsive search ads or Meta’s dynamic creative ads can help you implement DCO effectively.
    • Example: Regularly update and rotate ad creatives based on performance data to keep your campaigns fresh and engaging. This can lead to higher engagement rates and conversion metrics.
  2. Advanced segmentation and personalisation
    • Implement advanced segmentation strategies to target different customer segments with personalised marketing messages. Use customer data to create detailed buyer personas and tailor your ads accordingly.
    • Example: Segment your email list based on purchase history, browsing behaviour, and demographic information. Send personalised product recommendations and special offers to each segment to increase relevance and engagement.
  3. Conversion rate optimisation (CRO) techniques
    • Focus on CRO techniques to improve the performance of your landing pages. Conduct A/B testing on headlines, images, CTAs, and form lengths to determine what converts best. Use heatmaps and user session recordings to identify pain points and areas for improvement.
    • Example: Test different value propositions and CTAs on your product pages. Use tools like Hotjar or Microsoft Clarity to gather insights and make data-driven decisions to enhance user experience and increase conversion rates.
  4. Implementing retargeting campaigns
    • Use retargeting campaigns to re-engage users who have interacted with your brand but haven’t converted. Tailor your retargeting ads based on user behaviour and stage in the buying journey.
    • Example: Create a series of retargeting ads that show different product benefits or customer testimonials to users who abandoned their shopping carts. This can help nudge them towards completing their purchase.

In the new era of e-commerce marketing, it is important to identify the right time and opportunity to focus on the right metric and understand when it is optimal to focus on each to ensure long-term success.

How is AI changing the course of paid search? We investigate…

There is no denying that Artificial intelligence (AI) is now well past being just a trend. It is no longer a buzzword but has become a phenomenon that is now an integral part of most industries, including digital marketing. It has significantly reshaped most marketing disciplines, and paid search is not immune to this change.

It is time for marketing professionals and businesses to get to grips with the abundant world of AI tools, its fast-evolving capabilities, and features to stay ahead in this competitive industry. AI-powered algorithms have transformed the realms of paid search, and there is more to come.

In this article, we explore how AI is currently reshaping paid search and anticipate future developments that are expected to drastically alter the landscape.

Let’s dive right in…

How has AI changed paid search?

AI has managed to revolutionise paid search by introducing unprecedented levels of automation and optimisations. With functions like smart bidding, marketers can now manage extensive advertising campaigns more efficiently than ever before.

For example, Google’s case study on FishingBooker, an online platform for booking fishing trips, revealed a 49% increase in return on ad spend (ROAS) and a 57% increase in conversions through smart bidding​.

While these tech advancements offer substantial benefits, it is possible that these automatons might render traditional advertising methods obsolete.

Let’s look at how AI has already impacted paid search…

Enhanced automation via smart bidding

AI has revolutionised the automation of bidding strategies in paid search. Features like Google Ads’ smart bidding allow bids to be calculated automatically using machine learning, ensuring ads are shown to the right audience at the right time.

Google offers several bid strategies to choose from:

  • Enhanced Cost Per Click (ECPC)
  • Maximise clicks
  • Maximise conversions
  • Maximise conversion value
  • Target Cost Per Action (tCPA)
  • Target Return on Ad Spend (tROAS)
  • Viewable CPM (vCPM)
  • Cost Per View (CPV)

This reduces the need for manual intervention while enhancing campaign efficiency. Smart bidding therefore makes it possible for marketers to manage hundreds of paid search campaigns with ease at a lower cost and higher CTR.

Better ad relevance and targeting via query-matching

Through Artificial Intelligence, ad relevance has seen a substantial boost. AI-powered algorithms deploy advanced query-matching and targeting to analyse vast amounts of data, including demographics, search history, online user behaviour, and search patterns, to deliver precisely targeted ads. This helps advertisers create highly personalised ad campaigns that resonate with specific audience segments, leading to better engagement, conversion rates, and improved ROI.

Dynamic Search Ads

Based on the product information, the content of the website and the user’s search query—AI can dynamically generate ad copy and headline variations. This creates multiple versions of dynamic ads which allows Google to optimise them in real-time, saving hours’ worth of manual labour.

AI-generated responsive ads

AI can generate responsive ads based on combinations of provided headlines and descriptions. AI tests different combinations of headlines and descriptions to find the most effective ones, allowing advertisers to upload multiple ad versions while Google optimises them in real time. This automation also saves hours of manual labour to keep ads relevant and increases conversions and ROI.

AI ad content generation

While there are several AI content generation tools available to help create marketing assets through templates, Google Ads now offers an integrated tool—the Gemini Model—which helps create optimised search campaigns through a conversational experience. It generates relevant ad assets for responsive search ads, including creatives and keywords, based on the advertiser’s website and inputs.

This means AI can not only optimise the combinations of ad assets that the advertiser has provided, but it can also create new versions. Early adopters claim to have seen increased conversions when using this technique.

Predictive analytics

Google’s AI-driven predictive analytics tools can now forecast the click-through rate (CTR) of an advert for a specific keyword, providing predictions in three statuses: above average, average, or below average. If an advert receives a below-average status, the tool suggests that the ad copy may need to be better aligned with the target keyword, or that the keyword’s relevance might need re-evaluation.

Google can now actually predict the impact on the Quality Score, a metric that indicates how your advert’s quality compares to that of the competitors. Ad quality is essentially a measure of user experience with the ad. Key factors influencing the quality score include the expected CTR, ad relevance, and the landing page experience, which assesses the relevance and usefulness of the landing page content.

How is AI expected to evolve the search landscape further?

AI-generated SERPs, user behaviour, and the changing discourse of paid search

As AI-generated content increasingly dominates search engine results pages (SERPs), user behaviour is also expected to evolve. With detailed, highly relevant, and more personalised information readily available in search results, users are likely to interact with search engines more conversationally, akin to engaging with ChatGPT and chatbots. This shift will significantly change how marketers approach keyword targeting and content creation.

Traditional strategies focused on targeting specific keywords are becoming increasingly less effective. Instead, marketers will now need to consider how users phrase their queries more conversationally. This transformation will challenge marketers to refine their strategies, ensuring their content aligns with the nuances of user queries.

As AI continues to shape search interactions into a chatbot-like dialogue, creating content that comprehensively answers users’ questions becomes crucial. Marketers will need to rethink their approaches, moving away from keyword-centric tactics to developing content that addresses the full scope of user inquiries.

The rise of AI chatbots

AI chatbots have already revolutionised NLP (Natural Language Processing) and fundamentally changed how people interact with search engines. These intelligent bots gather information from diverse sources to provide comprehensive and precise answers to search queries, moving beyond the brief snippets typical of traditional search results. As a result, users now receive more in-depth and engaging responses from AI, making the search experience richer and more interactive.

The era of quickly scanning short summaries on SERPs is being replaced by AI chatbots that engage in meaningful conversations with users. This shift creates a more conversational and interactive search experience, which users are increasingly embracing. Consequently, marketers need to evolve their strategies to keep up with these advancements, ensuring their content meets the demands of this new conversational search environment.

Voice search optimisation

As voice search becomes more prevalent, AI will also play a crucial role in optimising ads for voice queries. This will involve understanding natural language patterns and providing relevant responses that match the conversational tone of voice searches.

Advanced fraud detection

AI will enhance the detection and prevention of ad fraud. By continuously analysing patterns and behaviours, it can identify fraudulent activities such as click fraud or impression fraud, ensuring that advertising budgets are spent more efficiently and effectively.

Integration with augmented reality (AR)

In the near future, AI will likely integrate with AR to create immersive ad experiences. This could involve interactive ads that users can engage with in a more meaningful way, blending digital and physical worlds to capture attention and drive engagement.

AI’s influence on search is profound and continually evolving. As technology advances, it will bring even more innovative solutions to enhance ad targeting, creation, and optimisation, making paid search more effective and efficient than ever before.