The end of the year is a make-or-break period for direct-to-consumer (DTC) brands. As they gear up for 2025, the marketers behind the scenes will face intense competition to capture consumer attention. And with rising advertising costs, maximizing return on ad spend (ROAS) is becoming more challenging.

At Nift, we’re deeply invested in helping marketers drive customer acquisition with authentic, data-driven strategies. Our latest research reveals that channel diversification isn’t just a nice-to-have anymore, it’s a necessity.

According to our 2024 Marketing Channel Diversification Report, DTC brands using three or more marketing channels are 73% more likely to achieve higher ROAS. As the limitations of channels like Meta and Google become more apparent, diversification is more critical than ever.

Here, I’ll share key findings from our research and offer actionable strategies to help you navigate the holiday rush and maximize your ROAS.

Looking Beyond Meta and Google

Marketers have traditionally relied on Meta (Facebook and Instagram) and Google Ads as their main acquisition channels. While these channels still hold significant value, over-reliance on them presents serious challenges that can limit your ability to optimize your marketing strategy.

Here’s why it’s time to diversify:

1. Data ownership and control:

Meta and Google’s restrictions on first-party data make it harder to personalize campaigns and build direct customer relationships. Customer names, emails, and behaviors are crucial for effective retargeting.

2. Rising costs and diminishing returns:

Advertising costs on Meta have surged, with click-through rates down 12%, cost-per-click up 12.5%, and cost-per-acquisition rising by $3 compared to last year. Long story short: you’re paying more for less impact.

3. Lack of transparency:

Algorithm changes and limited data insights can make it harder to pinpoint the true drivers of your campaign performance, preventing data-driven decision-making.

Our report found that 83% of DTC marketing teams see the lack of first-party data as a major obstacle. And while 89% of marketers want greater control and data ownership, only 40% feel confident they have enough to act on.

Diversify your marketing mix and take control. Reducing your dependence on Meta and Google will not only help you access valuable first-party data, but also make your marketing strategy more sustainable and profitable.

Prioritizing Channels for Optimal ROAS

Breaking free from Meta and Google is only the first step. To truly maximize ROAS, marketers must carefully evaluate each channel’s potential impact. Not all channels will deliver the same value, so understanding the nuances of each and focusing your budget on the right mix is key.

Before diving into new platforms, it’s critical to analyze past performance. Here’s how to identify your high-performing channels:

1. Analyze historical data:

Dive deep into past campaign performance across different channels. Which ones consistently delivered the highest ROAS and the lowest CPA (cost per acquisition)?

2. A/B testing:

Don’t rely on assumptions. Continuously test different channels, creatives, and messaging to understand what truly resonates with your audience. Our report found that 89% of marketers agree that diversification is important, but only 34% regularly test channels against each other.

3. Prioritize proven performers:

Focus on channels that have consistently demonstrated strong results for your brand. Platforms like email marketing and SMS – where you own the audience and data – are highly effective at driving repeat purchases. Additionally, consider emerging platforms like TikTok or influencer marketing, but prioritize those that align best with your audience and objectives.

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Boosting Engagement Through Alternative Channels

Once you’ve identified the high-performing channels, it’s time to maximize engagement across those platforms. The most successful brands won’t just stick to the usual suspects – they’ll strategically utilize a mix of traditional and alternative channels to drive better engagement and returns on ad spend.

Here’s how to make the most of the channels you’ve prioritized:

1. Email marketing:

Despite the rise of newer platforms, email remains a workhorse for nurturing leads and driving conversions. Our report found that email is the most popular alternative channel among marketers. Segment your audience and personalize your messaging to stand out in crowded inboxes.

2. Referral and gift-based marketing:

Gifting platforms help brands create authentic connections with consumers. By surprising customers with thoughtful gestures, brands can build trust and foster loyalty while collecting valuable first-party data. This approach provides a memorable experience and a cost-effective alternative to traditional ads.

3. TikTok:

Engage younger audiences with creative, authentic content. Experiment with ad formats and leverage user-generated content to build brand awareness.

4. Snapchat:

Another way to engage younger audiences in an authentic, dynamic way is with Snapchat’s creative ad formats. Focus on eye-catching visuals and interactive features to capture attention and drive engagement.

5. Amazon PPC:

Reach purchase-ready consumers on Amazon. While competition is fierce, targeted ads on Amazon can deliver high conversion rates.

6. Influencer marketing:

Partner with influencers to build trust and reach niche audiences. Authenticity is key here, so choose influencers who align with your brand values and resonate with your target customers.

The Power of Data and Measurement

Driving engagement is only half the battle. To ensure your marketing efforts yield the best results, you need to measure performance across your chosen channels and optimize based on the insights you gather.

Here’s how to use data to fine-tune your strategy:

1. Track the KPIs that matter the most:

Go beyond vanity metrics like impressions. Focus on ROAS, CPA, and net new customer acquisition.

2. Unify your data:

Operating across multiple channels can create data silos, making it difficult to get a clear picture of performance. 74% of DTC marketing leaders find it challenging to correlate results from alternative channel testing. Additionally, 77% find it challenging to accurately attribute results from alternative channels. Implement tools and systems to centralize your data and gain a holistic view of your marketing performance.

3. Embrace AI:

Use AI-powered tools to personalize campaigns and improve targeting. Our research indicates that 77% of marketers observe better performance with AI-optimized channels.

Looking Ahead

The strategies you implement today will not only maximize ROAS in the short term but also set the stage for continued growth in 2025 and beyond. By prioritizing high-performing channels, engaging your audience through a diversified mix, and measuring your results with a data-driven approach, you’ll have the tools to stay agile in a competitive landscape.

Diversifying your marketing mix isn’t just about reacting to rising costs on Meta and Google; it’s about building a resilient strategy that adapts to changing consumer behaviors and market conditions. The brands that win are those that continuously test, refine, and evolve their approaches, using data to drive smarter decisions.

Use the end of the year as an opportunity to fine-tune your strategy, invest in the right channels, and set the foundation for long-term success. By starting now, you’ll be well-positioned to capitalize on growth opportunities, deepen customer connections, and outpace your competitors in 2025.

Read our full 2024 Marketing Channel Diversification Report to get more actionable insights and start building a winning marketing mix today.

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