Home Advertizing services From full funnel to martech, why advertising is all about ROI

From full funnel to martech, why advertising is all about ROI

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There was a time when marketers could get away with running a 30-second commercial on TV and claiming wide reach. No more. The effectiveness of a marketing campaign in the digital age is measured on the basis of data collected from various sources. As a result, marketers have started looking at each stage of the funnel with the goal of creating impact at all levels. “Brands have always approached digital in three distinct ways, namely brand building, performance optimization and customer relationship management (CRM). True value can only be unlocked by tearing them apart, but integrating and optimizing them for the whole. So the new approach has to be performance branding, performance marketing and performance education,” Preetham Venkky, president of 22feet Tribal Worldwide and chief digital officer, DDB Mudra Group, told BrandWagon Online.

The need to rely more on first-party data in the future, coupled with the goal of collecting user behavior data, is driving the shift to full-funnel marketing. For the uninitiated, full funnel marketing is a combination of brand building and performance marketing. There are three main stages of full funnel marketing, namely awareness, consideration, and conversion.

For Ajit Devraj, managing partner at Dentsu Impact, the buying process is no longer a linear journey. “There are multiple points where the customer engages with a brand and each of them represents a unique opportunity for brands and marketers. All of these touchpoints collectively influence the customer’s decision, so brands need to consider each customer at different touchpoints throughout the funnel. As such, the customer expects communications to be highly personalized at every touchpoint and expects brands to have a real-time view of their interactions and also expects the next communication message acknowledges the previous interaction – this makes full-funnel marketing inevitable and a necessity,” he explained.

Additionally, with an emphasis on ROI-driven marketing tactics, brands such as Nykaa, BigBasket, Myntra, among others, are now focusing on sales tools such as social and live commerce. According to Rahul Nanwani, Co-Founder and CEO of ImageKit in terms of return on investment (RoI), there is multiple evidence that there was a 15-20% increase in revenue after adopting the funnel strategy complete.

Although DDB Mudra Group’s Venkky echoed Nanwani’s view that the full funnel approach can generate better ROI, he pointed out that most brands make the mistake of not establishing the right parameters of return on investment. “It can create a dissonance between efforts, expenditures and results. Having clarity on SMART (specific, measurable, achievable, relevant, time-bound) goals and setting them based on growth and progress against last efforts will help justify investments in full funnel marketing” , commented Venkky.

Interestingly, observers point out that the full funnel strategy is not a new concept and has not been superseded by martech. It essentially allows brands to integrate the five pillars of full funnel marketing: conversion, customer journey planning, content, media, data or analytics, and technology. “Martech solutions help analyze the impact created by a product to hold customer attention. Such solutions will also help brands create personalized campaigns or assets that would help build customer loyalty,” Nanwani said.

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