Marketing

Maximize return on ad spend with smart channel diversification

As the marketing landscape evolves, those willing to explore new channels will reap substantial rewards.

Photo: Adobe Stock

November 21, 2024 by Elery Pfeffer — CEO & Founder, Nift Networks

As 2025 approaches, retailers and direct-to-consumer brands are under pressure to optimize their return on ad spend (ROAS) in a highly competitive landscape.

The days of relying solely on Meta and Google are over — channel diversification has become a necessity. In fact, 73% of brands using three or more marketing channels report higher ROAS, according to Nift's 2024 Marketing Channel Diversification report.

Today's marketing landscape demands more than basic ad exposure. It's about delivering immersive experiences that resonate with customers from the initial touch point through to conversion. Diversifying channels not only boosts ROAS but also helps create deeper, more meaningful customer relationships, establishing a cohesive journey that influences how consumers perceive and interact with a brand.

By expanding marketing efforts to a wider mix of platforms, brands can capture attention, maximize ROI, and enhance customer experience.

The risks of over-reliance on dominant advertising platforms

Meta (Facebook and Instagram) and Google have long dominated the advertising industry, offering extensive reach but also introducing increasing limitations. Recent data shows that click-through rates on Meta are down by 12%, while cost-per-click has risen by 12.5%, making these channels less cost-effective for many brands. Over-relying on these platforms puts marketers at the mercy of rising costs and algorithm changes, limiting their ability to connect in a personal and impactful way.

Furthermore, Meta and Google operate as "walled gardens," restricting access to valuable first-party data. Nift's report found that 89% of marketers are eager to move beyond these constraints and leverage alternative channels that provide greater control over data collection. Relying exclusively on these platforms poses a significant risk of stagnation and diminishing returns as competition intensifies and algorithms shift.

Exploring alternative channels to elevate ROAS

Brands that diversify beyond Meta and Google have found success using alternative channels such as email marketing, referrals, TikTok, and gift-based marketing. Email marketing remains a powerful tool due to its high personalization capabilities, allowing brands to create segmented campaigns that consistently drive engagement. In fact, most marketers surveyed in Nift's report consider email marketing essential for driving high ROI. Similarly,

TikTok and influencer marketing offer creative and engaging formats that connect brands with younger audiences.

Another particularly effective yet often underutilized strategy is the "surprise and delight" model of customer engagement – where brands use unexpected rewards to connect with consumers. In this approach, brands partner with popular consumer apps, such as those used for reviews, parking payments, or fitness class bookings, to reward users during key engagement moments. When a user completes an action — like leaving a review or paying for parking — they receive an exclusive gift from select advertisers. This allows users to discover new brands organically and memorably, leading to higher brand exposure and increased brand affinity.

The surprise and delight approach helps brands reach consumers in a way that genuinely resonates, enhancing loyalty and driving conversion rates. In fact, in a prior study by Nift, 80% of marketers who used gifting platforms hit growth targets for customer acquisition within one month. Leading brands — like those in meal kits, wholesale clubs, and eyewear — use these platforms as 100% trackable performance marketing channels to meet their CPA and ROAS goals while growing their database with first-party data, including emails for remarketing purposes.

However, the true strength of these alternative channels lies in how they work together. Gifting, referrals, influencer marketing, and email campaigns can serve distinct yet interconnected roles within a diversified marketing strategy.

For example, a gift-based campaign might introduce a brand to a consumer, followed by targeted email marketing to entice interest, and influencer marketing to build social proof and deepen engagement. By integrating these alternative channels, brands create a cohesive, multifaceted marketing approach that maximizes reach, engagement, and conversions.

A well-balanced mix ensures that brands connect with consumers across multiple touch points, providing both personalized experiences and broad audience reach. This multi-channel synergy not only drives ROAS but also enhances overall brand perception and customer loyalty.

Data as a driver for better customer experience

Channel diversification isn't just about adding variety — it's about leveraging each channel's unique data to improve the customer experience. Alternative channels such as referrals, gifting-based marketing, email campaigns, and social media engagement all provide invaluable insights.

For instance, by offering customers two options for a "thank you" gift, brands can determine which products resonate with specific demographics and adjust their strategies accordingly. Email campaigns can provide insights into customer preferences based on open rates and click behavior, while social media interactions can reveal brand sentiment and emerging trends.

These data-driven insights enable marketers to refine their messaging and product offerings, enhancing ROAS and the overall customer experience. However, the key to success here is maintaining balance. While consumers appreciate personalization, transparency in data usage is crucial for building trust.

First-party data collected through gifting campaigns, referrals, email marketing, and social interactions allows brands to cater to customer preferences without compromising privacy. By combining personalization with transparency, marketers can build stronger relationships and tailor experiences to individual needs.

Benefits of thinking beyond traditional channels

Diversifying marketing channels is no longer optional; it's essential for brands seeking to thrive in 2025. Moving away from an over-reliance on Meta and Google and investing in a broader mix of channels allows retailers to reduce costs, gain valuable first-party data, and create immersive customer experiences that foster loyalty.

As the marketing landscape evolves, those willing to explore new channels will reap substantial rewards. Diversification not only improves ROAS but also builds lasting relationships with consumers, ensuring a seamless brand experience from the first touch point through to conversion. In fact, Nift's report found 76% of DTC marketers report consistent ROAS when diversifying their channels.

Now is the time for marketers to embrace a broader, data-driven approach to ensure their brands not only survive but thrive in today's complex ecosystem.

About Elery Pfeffer

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Elery Pfeffer is the CEO & Founder of Nift Networks, a marketplace transforming how consumers discover and engage with brands. HelloFresh, Liquid I.V., Thrive Causemetics, Tripadvisor, and Afterpay have partnered with Nift to get exclusive access to millions of unique, super-engaged customers and reliably hit acquisition goals. Under Elery’s leadership, Nift has more than doubled annually. Previously, he co-founded Pursway, serving Fortune 500 clients. Elery holds a degree from Tel Aviv University and was a research fellow at Harvard. 

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