Nift's 2024 Marketing Channel Diversification Report Shows 73% of Brands Achieve Higher ROAS by Diversifying Marketing Channels

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Sep 23, 2024, 07:00 ET

BOSTON, Sept. 23, 2024 /PRNewswire/ -- Nift Advertising for Brands, a performance marketing channel utilized by tens of thousands of advertisers, has released its 2024 Marketing Channel Diversification Report. The report reveals that Direct-to-Consumer (DTC) and retail brands using three or more marketing channels are 73% more likely to achieve higher Return On Ad Spend (ROAS).

The findings are detailed in Nift's eBook, Navigating Success: Insights from Marketers on Channel Diversification. This report is based on a survey of over 150 retail marketing executives. It provides actionable data and strategies for DTC and retail marketers aiming to optimize their performance marketing efforts as the 2024 holiday shopping season approaches and competition for consumer attention intensifies.

Key Takeaways from the Report:

Channel Utilization: On average, DTC and retail marketers advertise on 8.5 channels, but only 54% are confident they know which channels perform best.
First-Party Data Gap: 89% of marketers want to escape walled gardens like Amazon and Meta by using first-party data, but only 40% are sure they have enough first-party data from other channels.
Multi-Channel Success: 73% of brands using three or more channels report higher ROAS.
Trending Channels: Alternative marketing channels are gaining traction, with email marketing, referrals, and gifts (i.e., Nift), Amazon PPC, TikTok ads, influencer marketing, Pinterest ads, and Snapchat ads on the rise.

"Our survey has revealed that continuing to test new channels, even through staff changes and periods of volatility, is an absolute must for marketers," said Elery Pfeffer, CEO and Founder of Nift. "It is the only way for brands to achieve sustainable growth, optimize for profitability, and maintain a competitive edge in today's crowded market."

Report Highlights the Need to Prioritize Channel Diversification Now
The report indicates that traditional marketing channels aren't performing like they used to. With traditional marketing channels like Meta facing challenges—click-through rates are down by 12%, cost-per-click has risen by 12.5%, and cost-per-acquisition is up by $3 compared to last year—marketers need to rethink their strategies to explore new, diverse channels. Brands relying heavily on one or two platforms face escalating costs and stagnating growth. The report highlights how a diversified approach helps brands gather more data, engage with a broader audience, and reduce dependence on a single platform.

Non-Traditional Channels Drive Engagement and Revenue Growth
The report underscores the growing importance of non-traditional marketing channels. Marketers who expand beyond Meta and Google are experiencing enhanced customer acquisition and performance metrics. For instance, brands leveraging email marketing, referral programs, and gift-based marketing through platforms like Nift are connecting with new, high-value customers while reducing overall acquisition costs.

The report reveals that brands relying on a single or limited number of channels, such as Facebook or Google Ads, face rising costs and diminishing returns, exposing them to significant risks that can drastically impact performance and revenue. Conversely, marketers should prioritize channel diversification to ensure long-term growth, resilience, and adaptability in an increasingly competitive retail landscape, as brands that diversify their marketing efforts across various channels can:

Gather more diverse data to target and engage their audiences better.
Optimize ROAS and Cost-Per-Acquisition (CPA) spending by focusing on the best-performing channels.
Reduce dependency risks, protecting themselves from algorithm changes or platform price hikes.

Moreover, a multi-channel strategy enables more comprehensive customer engagement, a more substantial brand presence, and the ability to adapt to changing consumer behaviors and preferences.

Download the eBook Navigating Success: Insights from Marketers on Channel Diversification today to gain valuable insights that can help you optimize your marketing strategy and stay ahead in the competitive landscape.

Methodology:
Nift, a trusted platform used by 50 million consumers to discover new products, commissioned an independent research firm to conduct a comprehensive survey of 150 DTC and retail marketing leaders on diversifying and testing new marketing channels. The Nift study was conducted across the US in all 50 states in July 2024. The margin of error for this study is +/- 8% at the 95% confidence level.

Nift Advertising for Brands: Transforming Customer Acquisition
Nift has revolutionized how consumers discover and try new brands by seamlessly integrating brands as 'thank you' gifts within a closed ecosystem of premium consumer apps. Unlike traditional ads, Nift's personalized thank-you gifts are given only to high-value customers after they complete an action—such as leaving a review on Tripadvisor, paying for parking via ParkMobile, or registering for a yoga class via Mindbody. Nift's proprietary AI selects individualized gifts, ensuring they reach the right customers who are actively seeking new products and services to try.

Leading brands like HelloFresh, BJ's Wholesale, and Blenders Eyewear use Nift as a 100% trackable performance marketing channel to meet CPA and ROAS targets while growing their database with first-party data collection.

Critical Benefits of Nift Advertising for Brands:

100% trackable net new customer acquisition.
Cost-Effective: Cost that rivals paid digital ads with 3X better conversion rates.
Simplicity: 100% fully managed turnkey service, our team provides design & ad copy for you.
First-Party Data Collection: Grow your CRM with name, email, and opt-in permission for targeted remarketing.

Unlike traditional marketing channels, Nift provides verifiable net new customer acquisition for brands, rivaling paid digital ads—2X higher purchase likelihood by consumers who see products on Nift.

For media inquiries, please contact:

Nift Media Relations Email: [email protected]

About Nift Advertising for Brands:
Nift Advertising for Brands offers a verifiable method to acquire new customers through a unique, thoughtful thank-you gift approach. With 100% attribution tracking, every new customer and transaction is meticulously monitored. Unlike traditional ads, Nift gifts deliver ROAS for brands that rival paid digital ads. Operating within a closed ecosystem, Nift's patented AI helps brands acquire net new customers and collect first-party data, enabling them to grow their CRM with names, emails, and opt-in permissions for targeted remarketing. For more information, visit GoNift.com/Business.

SOURCE Nift