When it comes to preparing businesses for growth in 2023, they may be better off looking inwards, rather than outwards, for solutions. Henry Kelly, Industry Head Digital Disrupters AUNZ at Meta, outlines the levers brands can pull to generate new growth in an uncertain time.
We all know the saying, “Good things come to those who wait.” There has never been a time where that has rung so true - but thankfully, it appears the waiting is over.
After years of precarious pandemic life, with economic uncertainty bubbling away in the background, 2023 looks to be the year where businesses can begin taking advantage of the opportunities that await.
That’s not to say that there aren’t some very real problems that businesses will have to grapple with this year, with inflation and competition being top of mind. But, the difference is that businesses are now equipped with the tools they need to not only overcome these challenges, but to transform them into valuable opportunities for growth.
Meta’s recently published whitepaper, Turning Headwinds into Tailwinds: Levers for Growth, details strategies marketers can use to thrive, not just survive, in this new environment. The paper features exclusive insights from some of Australia’s top marketing minds, who participated in Meta’s Growth Summit and accompanying roundtables.
These experts reveal how they frame tougher times as opportunities in disguise. In many cases, marketers are already armed with the tools they need to guarantee growth, and can set themselves up for long-term success by tapping into them. Here I will look at a couple of the topics discussed in greater detail in the whitepaper.
From rejigging machine learning techniques to rethinking the complexities of brand and performance marketing, there are lessons businesses can employ to best prepare for an uncertain future.
Unlocking incremental growth through first party data
Machine learning and first party data have become increasingly popular tools, particularly as businesses grapple with the loss of signals in certain areas and the impending deprecation of third party cookies. When combined, the two are more powerful than ever.
“First party data has the power to make people trust you enough that they want to consider you and convert,” says Kate Clark, Senior Brand Marketing Manager at Felix Mobile. “That’s ultimately the hardest part, and the holy grail everyone is looking for.”
While most businesses likely employ first party data in EDM messaging and loyalty programs, this is just the tip of the iceberg of what can be achieved. In fact, the effectiveness of first party data can plateau if not supported with additional activities.
Combining first party data with smart, auction-based platforms can boost incremental return on investment (ROI). These platforms allow media buyers to manage costs through a multitude of factors, such as targeting, frequency, and the quality of the data.
Meta Advantage+’s ‘Detailed Targeting Expansion’ tool is another example of how first party data and machine learning can create efficiencies by doing work people can’t. It can improve campaign performance by using data to expand the targeting beyond the group of people defined in the brief - based on indicators to show they would also be likely customers. When used, marketers can see 37% lower median cost per incremental conversion than when not used1.
These are just a few examples of how first party data and machine learning can help businesses find the most efficient strategies - by keeping costs down, and feeding the machine, so to speak, with the best quality data.
“The more you put into machine learning, the better,” says Tom Dobson, Executive, Operations, Planning & Partnerships at NAB. “It may take some time to optimise it - two years or 12 months - but then you can let it run itself.”
Brand building has never been more of a priority
“It's so important to maintain genuine brand strategies in times of trouble,” says Hugh Munro, Head of Planning at The Monkeys. “A really good brand strategy should endure in good and bad times, and have within the opportunity to emphasise things that are relevant to people in those times.”
In a time of economic uncertainty, the instinct for businesses may be to prioritise short-term revenue over long term gains. In other words, focusing on performance marketing activity rather than brand.
But in an increasingly digital world, there needs to be a bigger focus on brand-building online. This is doubly important as the purchasing journey continues to evolve, with consumers moving more fluidly between different stages of purchase. As such, businesses need to focus on both brand and performance marketing, and no longer treat the two as disparate strategies.
A full-funnel approach is also not just important when it comes to increasing revenue, but can help improve campaign efficiency. For example, when you remove any one of the funnel’s primary objectives - awareness, consideration or conversion - from a campaign, you risk decreasing return on advertising spend (ROAS) by at least 11%2.
“This period is about showing Aussies that businesses can help you do the things you enjoy after the pandemic,” says Emily Taylor, Chief Strategy Officer at M&C Saatchi. “We’re seeing funds from the top of the funnel moving into the middle and the bottom, so we’re getting smart about customer experience holistically.”
This shift isn’t about pouring all money from performance into the brand bucket, but rather finding a balance that can drive the greatest investment from both areas.
Finally, before pursuing either a revamped first party data or brand building approach, it is crucial to have a test and learn culture in place. Experimentation, patience, and a willingness to adapt will ensure your company lands on the approach that is best capable of driving true incremental value.
“A test and learn mentality can achieve innovation, which in turn is the enabler of market competition,” said Mandy Eyles, Regional Vice President (Partnerships) at Tealium. “By adopting this methodology, marketers can improve efficiency and performance by eliminating unproductive investments.”
Over the next few months tough decisions need to be made across businesses. It can be daunting for people doing it for the first time as well as those more seasoned. So it’s crucial to understand that there are tools already built that can overcome many of your challenges.
With a little readjustment, businesses can position themselves for growth, not just throughout 2023, but far beyond. The need to evolve our marketing has never been greater - fortunately there’s never been a better time to do it.
To read more on these conversations and to learn about how businesses can build for success, download the full whitepaper “Turning Headwinds into Tailwinds: Levers for Growth.”
Sources:
- Based on 10 conversion lift studies in NA, LATAM, and EMEA from May-July 2021, testing whether Detailed Targeting Expansion (DTE) was more cost effective on conversion campaigns compared to those not utilising DTE. Results show the DTE strategy winning with 81% profitability.
- ‘The Synergistic Impact of Multi-Objective Buying; Examining the Effect of Simultaneous Ad Strategies on Facebook’, Meta, September 2022
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