Unlocking the Power of Upper Funnel Spending in eCommerce

In today's fast-paced eCommerce landscape, understanding how to optimize your marketing spend is crucial. Whether you’re a seasoned marketer or a newcomer, knowing where to allocate your budget to get the best return on ad spend (ROAS) is the key to success.

To help you navigate this complex terrain, Fospha has released an insightful report titled "Elevating eCommerce: The Unseen Power of Upper Funnel Spending". The report deep-dives into the importance of investing in upper funnel activities - Brand Awareness and Consideration - and how it can significantly impact your long-term metrics.

Understanding the eCommerce Funnel

The eCommerce funnel represents the customer's journey from awareness to the final purchase. Upper funnel marketing stages, including awareness and consideration, are crucial in attracting potential customers and nurturing their interest in your brand.

However, these stages are often neglected by marketers due to the difficulty in directly attributing them to sales. It's easier to track the impact of conversion-focused activities, but without a robust strategy that encompasses the entire funnel, brands miss out on long-term growth opportunities.

The Unseen Power of Upper Funnel Spending

Fospha's 2023 research report reveals fascinating data on the impact of sustained upper funnel marketing activities. According to the report, brands that maintain upper funnel spending for over ten months see significantly lower customer acquisition costs and higher return on ad spend (ROAS) than those that don't invest in upper funnel activities or only do so for a short period.

This implies that while conversion-focused activities yield immediate results, they might not be as effective for long-term growth. On the other hand, investing in upper funnel marketing can potentially increase your brand's overall effectiveness in terms of cost reduction and return on investment in the long run.

The Importance of Persistence

The report also emphasises that the benefits of upper funnel spending might not be immediately apparent. There's often a lag between upper funnel activities, such as brand awareness campaigns, and the eventual increase in sales.

However, brands that persist with their upper funnel marketing activities reap significant benefits in the long term. The study found that brands that maintain upper funnel spending for over ten months see a substantial decrease in acquisition cost and an increase in ROAS.

Leveraging Data for Effective Marketing

A clear lesson from Fospha's report is the importance of data-driven decision-making in eCommerce marketing. Without the ability to measure and analyze your marketing activities across the entire funnel, it's challenging to make informed decisions and optimize your strategies.

Fospha's advanced measurement tools provide a comprehensive view of your marketing activities, making it easier to track and understand the impact of your upper funnel spending. This visibility enables you to justify your investment in upper funnel activities and focus on long-term growth, rather than just immediate results.

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Best Practices for Upper Funnel Spending

To become a better eCommerce marketer and unlock the full potential of upper funnel spending, consider the following best practices:

  1. Invest in upper funnel spending: The report reveals that brands which maintain upper funnel spend for 10+ months see lower acquisition costs and higher ROAS than those who don't invest at all, or those who invest for a shorter period.

  2. Think long-term: Upper funnel investment is not a quick fix, but a long-term strategy. Immediate KPI improvements may not fully reflect the eventual benefits of these efforts, but sustained investment can significantly reduce acquisition costs and improve returns over time.

  3. Diversify your spend: Fospha's most optimized brands invest up to 25% of their overall spend in Brand Awareness and Consideration. This diversification away from just Conversion activities has played a key role in their ability to scale effectively.

  4. Measurement is key: A data-driven approach is crucial for success. Monitor the success of your campaign objectives over time, rather than making decisions based solely on immediate performance.

  5. Implement full funnel measurement: To get a comprehensive view of your marketing efforts, implement full-funnel measurement. Tools like Fospha can provide clear, actionable insights on where to invest to maximise growth and can help justify investment in upper funnel activities.

By implementing these best practices, you can optimise your marketing strategies, reduce costs, and improve your return on investment in the long term.


In conclusion, you need to broaden your focus beyond immediate conversions. Upper funnel marketing activities play a crucial role in attracting and nurturing potential customers, and with the right tools, you can measure their impact and optimize your strategies for long-term growth.

To delve deeper into the power of upper funnel spending, download Fospha's 2023 research report, "Elevating eCommerce: The Unseen Power of Upper Funnel Spending," today.

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