In a highly competitive landscape, retailers and direct-to-consumer brands are under pressure to optimize their return on ad spend (ROAS) as 2025 approaches.
The era of relying exclusively on Meta and Google is over; channel diversification has become an absolute necessity. According to the 2024 Marketing Channel Diversification report by Nift, 73% of brands that utilize three or more marketing channels report increased ROAS.
The current marketing environment necessitates more than mere advertisement exposure. The goal is to provide consumers with immersive experiences that resonate with them from the initial contact point to conversion. Diversifying channels not only enhances return on assets (ROAS) but also fosters more profound, meaningful customer relationships, thereby establishing a unified voyage that affects the way consumers perceive and interact with a brand.
Brands can enhance the consumer experience, maximize ROI, and attract attention by extending their marketing efforts to a broader range of platforms.
The hazards of excessive dependence on dominant advertising platforms For an extended period, Meta (Facebook and Instagram) and Google have dominated the advertising sector, providing a broad reach but also introducing a growing number of constraints. According to recent data, the cost-per-click has increased by 12.5%, while click-through rates on Meta have decreased by 12%. Consequently, these channels are becoming less cost-effective for numerous brands. The capacity of marketers to establish a personal and impactful connection is restricted by the increasing costs and algorithmic changes that result from an excessive reliance on these platforms.
Additionally, Meta and Google function as “walled gardens,” which limit access to valuable first-party data. Nift’s report revealed that 89% of marketers are enthusiastic about transcending these limitations and utilizing alternative channels that offer more flexible data collection capabilities. The risk of stagnation and declining returns is substantial when one exclusively relies on these platforms, as competition increases and algorithms evolve.
Investigating alternative channels to increase return on assets (ROA)
Email marketing, referrals, TikTok, and gift-based marketing are alternative channels that have proven successful for brands that expand beyond Meta and Google. Email marketing continues to be a potent instrument because of its exceptional personalization capabilities, which enable brands to develop segmented campaigns that consistently increase engagement. In reality, the majority of marketers who participated in Nift’s survey regard email marketing as indispensable for generating substantial returns on investment. In the same vein,
TikTok and influencer marketing provide innovative and captivating formats that facilitate the connection between brands and younger audiences.
The “surprise and delight” model of customer engagement is another strategy that is particularly effective yet frequently underutilized. This approach involves brands utilizing unexpected rewards to establish a connection with consumers. In this method, brands collaborate with popular consumer applications, including those that facilitate parking payments, fitness class reservations, or reviews, to provide incentives to users during critical engagement moments. Select advertisers provide users with exclusive gifts when they complete actions, such as leaving a review or paying for parking. This enables users to discover new brands in an organic and memorable manner, resulting in increased brand affinity and brand exposure.
The surprise and delight approach is a powerful tool for brands to connect with consumers in a manner that is authentic and meaningful, thereby increasing loyalty and promoting conversion rates. In fact, 80% of marketers who utilized gifting platforms were able to achieve their customer acquisition growth objectives within a month, as demonstrated in a previous study conducted by Nift. These platforms are employed by prominent brands, such as those in the meal packages, wholesale clubs, and eyewear industries, as 100% trackable performance marketing channels to achieve their CPA and ROAS objectives. They also expand their database with first-party data, including emails for remarketing purposes.
However, the actual strength of these alternative channels rests in how they operate together. Gifting, referrals, influencer marketing, and email campaigns can serve distinct yet interconnected duties within a diversified marketing strategy.
For instance, a gift-based campaign may serve as an introduction to a brand to a consumer, which is then followed by targeted email marketing to pique interest and influencer marketing to establish social proof and enhance engagement. By incorporating these alternative channels, brands establish a cohesive, multifaceted marketing strategy that optimizes engagement, conversions, and reach.
A well-balanced blend guarantees that brands establish a connection with consumers through a variety of contact points, thereby offering a broad audience reach and personalized experiences. This multi-channel synergy not only increases ROAS but also improves the overall perception of the brand and consumer loyalty.
Data as a catalyst for enhanced consumer experiences
Diversifying channels is not solely about introducing diversity; it is also about utilizing the distinctive data of each channel to enhance the consumer experience. Referrals, email campaigns, social media engagement, and gifting-based marketing are all alternative channels that offer invaluable insights.
For example, firms can ascertain which products are most popular among specific demographics and modify their strategies accordingly by providing customers with two options for a “thank you” gift. Social media interactions can disclose brand sentiment and emerging trends, while email campaigns can offer insights into consumer preferences through click behavior and open rates.
These data-driven insights allow marketers to optimize their messaging and product offerings, thereby improving the overall consumer experience and return on sales (ROAS). Nevertheless, the key to success in this context is the preservation of equilibrium. Despite the fact that consumers value personalization, it is essential to establish trust through transparency in data usage.
Brands are able to accommodate consumer preferences without compromising privacy by utilizing first-party data collected through gifting campaigns, referrals, email marketing, and social interactions. Marketers can establish more robust relationships and customize experiences to meet the unique requirements of each individual by integrating transparency and personalization.
Advantages of considering alternatives to conventional methods
In order to prosper in 2025, it is imperative for brands to diversify their marketing channels; it is no longer an option. Retailers can reduce costs, acquire valuable first-party data, and develop immersive consumer experiences that encourage loyalty by shifting from an excessive dependence on Meta and Google to a more diverse array of channels.
Those who are willing to investigate new channels will receive substantial benefits as the marketing landscape continues to change. Diversification not only improves ROAS but also develops lasting relationships with consumers, assuring a seamless brand experience from the first touch point through to conversion. In fact, Nift’s report revealed that 76% of direct-to-consumer marketers report consistent return on assets (ROAS) when diversifying their channels.
Now is the time for marketers to adopt a broader, data-driven approach to ensure their brands not only endure but thrive in today’s complex ecosystem.