#e4mExclusive:  Marketing Funnel vs Impulse Shopping: Is the purchase journey still relevant?

The rise of performance marketing and shoppable ads is pushing brands, especially direct-to-consumer brands, into depending on social and e-commerce platforms for sales. It’s been a game-changer for brands focused on driving sales, especially the initial boost required to cut through the clutter in the market and make their presence noticed. However, according to advertising experts, such direct and quick conversions come with risks.

Advertisers seeking quick conversions with ads that nudge customers to ‘buy now’ might witness a ‘shrinking’ of the marketing funnel. It leads to more sales in a short time, but it’s not a sustainable practice, say industry observers.

Reliance on third-party platforms makes brands vulnerable to algorithm changes, platform fees, and shifts in user behavior, they say. Brands must balance these quick sales with larger branding initiatives while collecting first-party data with consent and building owned channels for communication across different phases of the customer’s purchase journey.

“Consumers scrutinise purchases more, consider more brands, and do their homework to feel sure they’re making the right decision. Meeting consumers in their decision-making moments is important to build trust,” says a Google spokesperson, adding that this is how brands can prove they are worthy of consumer consideration when they ultimately decide what to buy.

Sharing insights into how shoppable ads fit into the funnel, the spokesperson highlights that they reduce friction in the purchase journey and make it easier for consumers to discover more brands. For well-recognised brands, ‘buy now’ ads can instantaneously convert users who are already in the purchase mindset. However, for brands that are yet to reach that stage, a lot of groundwork needs to be done to establish differentiation and product features.

Awareness gets a brand on the radar. Consideration gets the brand into the running. Shopping ads make it easy for consumers to take action. “That said, this ‘compression’ that shoppable ads offer does blur the lines between funnel stages, making the customer journey more fluid and less predictable,” the Google spokesperson adds.

Further, a seamless purchasing environment presents unique challenges for brands, from maintaining customer loyalty to balancing impulse-driven and strategic marketing efforts.

Yaron Tomchin, CEO of Mobupps, explains, “While a more frictionless purchase journey can drive higher conversions, it also introduces new complexities for brands. The ease of instant transactions may lead to increased impulse purchases, which can, in turn, result in higher return rates and impact profitability.”

“When speed takes precedence, there is a risk that brand differentiation becomes secondary to price and convenience, making long-term loyalty tougher to cultivate,” he adds. Brands must also take into account their fulfillment processes, ensuring that they can meet consumer expectations for rapid delivery and seamless post-purchase support.

Success, Tomchin highlights, requires more than conversion optimisation but also strengthening the whole customer experience — from discovery to retention.