🚀 Performance Max is over-invested. Here’s why the opportunity lies in Paid Social 👇

Of the ad platforms’ automated campaigns, Performance Max is by far the most popular. On average, brands spend 21% in PMAX, while ASC/Advantage+ is just 10% of budget.

Brands who are generate most of their revenue through physical stores spend even more in PMAX – an average of 46% of budget 😳

Why? Is PMAX good? Short answer is not compared to ASC:

So why is PMAX still a top choice for these brands?

There’s no clear-cut answer, but a likely combination of factors:

👉 Strong Brand Awareness: Large brands already have strong recognition. They aim to capture demand through click-based channels like PMAX – whether or not the data supports this.

👉 Last Click Attribution: PMAX shows better results in last-click models. GA data is roughly accurate for PMAX, but undervalues Meta by 5.8X.

👉 Attribution Variability: Ad platform attribution varies widely. Meta over-values conversions by 14% and under-values awareness by 687%, making justifying scaling challenging.

With proper measurement, brands can understand where the growth opportunities actually lie.

For more of these insights, download our report here

📱 Social Media Ads Overtake TV and Search Engines For Consumer Discovery

Performance Marketing World have featured research conducted by GWI, uncovering exciting findings:

👉 Social Media For Discovery: 38% of consumers discover brands on social media, outpacing search engines (37%) and TV ads (35%).

👉 Gen Z: 42% of Gen Z use social media for shopping research. TikTok Shop converts 2/5 of its buyers through in-app discovery.

👉 Platform Preferences: While Instagram and YouTube dominate Gen Z's preferences, Pinterest is also popular for "inspiration-driven search."

👉 Influencer Impact: Influencers significantly sway younger generations, with 20% of women aged 18-24 buying skincare products due to endorsements. Brands should offer discount codes to track ROI effectively.

👉 Reddit's Role: Reddit's community-driven recommendations are highly trusted, with 93% user satisfaction.

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🚀 In case you missed it 🚀

(last week’s most popular article)

📊 What 6.5bn Data Points Revealed About How Brands Grow

Kantar identifies 3 critical ‘Growth Accelerators’ for brand success. Brands can grow by:

Predisposing more people to purchase through strong brand perception, leading to higher volume share and pricing power.

Being more present by optimizing marketing investments to convert predispositions into actual purchases, boosting growth rate.

Finding new spaces through innovative products and expanded distribution, doubling growth chances.

🗞️ HEADLINES YOU CAN'T MISS 🗞️

📈 Finding Incremental Growth In The Age Of The Irrational Shopper
As the third-party cookie era ends, shoppers have become harder to pinpoint. What’s more, their behaviors are becoming more unpredictable and unconventional. Marketers need to focus on incremental growth, customer-centricity and real-time analytics for effective engagement. Standardizing measurement is key to sustainable growth.

📺 What Happened To Our Ad-Free TV?
Streaming services, once ad-free havens, now embrace commercials - with Amazon & Netflix introducing ads for lower-priced subscriptions. As streaming's advertising potential becomes evident, marketers have to adapt. For now, ads still remain less intrusive than on traditional TV, and viewers have ad-free options in exchange for $$$.

🤖 Amazon: AI-Powered ‘Performance+’ Ads Offer 30-90% Lower CPAs
Amazon's new Performance+ ads, powered by AI, promise 30-90% lower CPAs. This challenges Google and Meta, offering advertisers control and efficiency in campaign management, diversifying options beyond the tech giants. Unlike traditional approaches, Performance+ utilizes sophisticated machine learning algorithms to optimize campaigns based on predicted conversion rates.

🛍️ Brands Rethink Their Marketing As Customer Acquisition Costs Soar & Shoppers Get Pickier
DTC brands face escalating acquisition costs and decreased engagement. As a response, marketers are strategically realigning their customer acquisition strategies. Some are pivoting towards traditional brand marketing, while others are innovating with unconventional approaches to capture consumer attention.

👏🏼 2024’s Top Trends in Marketing

According to new research by Mediaocean, this is what marketers are doing so far this year:

72% will increase spend in Display and Video. Other Digital increases:

Connected TV: 56% increase
Social platforms: 67% increase
Search: 56% increase

📉 Decrease in Spend on Traditional Channels:

Print: 45%
National TV: 29%
Local TV: 32%
Radio/Audio: 22%

⚡️ Shift to Performance-Driven Campaigns:

63% prioritize performance-driven paid media.
51% prioritize measurement and attribution.

🤖 Gen AI Usage:

38% for data analysis.
92% for content creation.

♪ TikTok Launches Management Platform for Creators

TikTok Studio intends to help creators to manage their presence.

This dashboard centralizes tools for video uploads, editing, performance analytics, and monetization. It improves accessibility to auto caption, photo editor, and autocut, offering a more efficient creation process.

Ultimately the integration aims to help creators - from beginners to businesses – in optimizing their content creation and engagement strategies.

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