Ibotta, a cashback reward company, is modifying its advertising techniques to better capture shopper attention amid changes caused by Google’s third-party cookie phaseout and increased competition in the digital marketing landscape. The company has shifted its focus primarily to brand-building channels instead of solely relying on performance marketing.
Richard Donahue, Ibotta’s Chief Marketing Officer, acknowledged the increasing difficulty of reaching consumers and emphasized the need to expand the brand’s reach and impact. As part of this strategy, Ibotta recently introduced its first-ever augmented reality experience along with interactive art installations in different cities and a TikTok influencer activation, marking its first venture into experiential marketing. Although the investment amount for this marketing effort is undisclosed, Donahue confirmed that the company aims to allocate its media spend toward platforms where it can engage with shoppers.
However, Ibotta is not the only brand recognizing the benefits of experiential marketing. Direct-to-consumer brands such as Parachute Home, Halara, and Orangetheory Fitness have also bolstered their investments in this area. Amid this trend, agencies have reportedly been receiving more requests for proposals for brand building.
A study by eMarketer indicates that 36% of marketers intend to escalate their investment in brand marketing this year, whereas 40% plan to ramp up their performance marketing investments, down from 46% last year. Despite marketing budgets being under close scrutiny, Sammy Rubin, VP of Integrated Media at marketing agency Wpromote, noted that clients are more open to trying this approach.
Rubin and Donahue both agree, however, that performance marketing will remain essential. Rubin explained that there’s still emphasis on doing more with less and focusing on performance metrics. Likewise, Donahue affirmed that performance remains pivotal in Ibotta’s marketing mix, but there will be a clear balance with branding to keep customer attention.
Source: Amid digital marketing changes, Ibotta turns to brand-building efforts.
