Performance marketing shifts to social-first as search is less efficient

17 Jul 2024

Successful performance marketing strategies are shifting to become social-first as Search becomes less efficient amid soaring cost-per-click. That’s the finding of Nest Commerce’s latest Readout report.

Against a backdrop of rising consumer confidence, the report reveals there has been a 57% year-on-year increase in average ad spend on Meta platforms, 5% up from peak season, Q4 2023.

Overall Meta cost-per1,000-impressions (CPMs) are rising by 6% year-on-year, “due to increased competition within the platform with advertiser activity hotting up in response to a more positive outlook”.

Nest Commerce's research, based on global ad data from 40+ e-commerce brands, managing over £100 million of media spend annually, spotlights a strategic shift in channel mix towards paid social to drive growth across all stages of the customer journey.

“The growing use of upper-funnel marketing strategies on social platforms is evidenced by a significant 4.2x year-over-year increase in awareness campaigns on Meta”, it said.

This shift is driven by factors such as rising customer acquisition costs and a decline in brand search visibility, making it crucial for brands to target new audiences and build brand preference on paid social.