What is a good full-funnel ad strategy for DTC brands?

Expert answer · sourced from 0 podcast episodes

Short answer

A modern full-funnel ad strategy is less about a linear ad sequence and more about an integrated system. It balances brand-building on newer platforms with conversion tactics on established ones, focusing on creative, community, and blended metrics beyond simple last-click ROAS.

TL;DR

The classic marketing funnel isn't dead, but it's under serious pressure. The consensus among operators is that a successful full-funnel strategy is no longer about setting and optimizing a rigid sequence of ads on one platform. Instead, it’s about building a more holistic and resilient system that can weather diminishing returns from traditional channels and profitably acquire customers.

The top of the funnel used to be straightforward: broad prospecting campaigns on Facebook. Today, that's a recipe for burning cash. As Evan Moore of NBC/Universal noted on Future Commerce, everyone is seeing higher costs per acquisition on Facebook and Instagram. This reality forces a more creative approach to awareness. On Limited Supply, Nik Sharma and Moiz Ali have repeatedly made the case that you need to pick a primary marketing channel and go all-in to master it before trying to be everywhere. For many, this might still be Facebook, which they argue remains the ads giant, but it requires top-tier creative and a deep understanding of your audience. For others, particularly brands with a strong visual or cultural story, TikTok is becoming that primary channel. As Ashwinn Krishnaswamy discussed on Shopify Masters, platforms like TikTok aren’t just for ads but for building authentic brand connections that pay off later.

The middle of the funnel, where you nurture interest, has also evolved beyond simple cart-abandonment retargeting. This stage is now about deepening the relationship you started at the top of the funnel. Nik Sharma’s playbook often emphasizes building a loyal community and using content marketing to keep potential customers engaged. It's about giving them reasons to stick around beyond just waiting for a discount code. This is where owned media like email and SMS are critical. You use the attention you’ve rented from paid channels to build an audience you actually own, creating an asset that lowers your long-term dependency on ad spend.

At the bottom of the funnel, the conversation has expanded from just conversion rate and Return on Ad Spend (ROAS). In an episode of Limited Supply, Nood's VP of Marketing Bryan Cano talked about the importance of balancing ROAS vs. MER (Marketing Efficiency Ratio). This is a crucial shift. Instead of judging a top-of-funnel TikTok campaign on its immediate sales, you look at its contribution to the total revenue picture. A full-funnel view means understanding that an awareness play might not have a direct, last-click ROI, but it lifts the performance of your entire marketing ecosystem. This thinking requires better analytics and a move away from siloed channel management, as Bobby Palmieri detailed in his full-funnel approach on eCommerce Fastlane.

A truly modern strategy also adds a “post-funnel” layer focused on retention and lifetime value. Acquiring a customer is only the beginning. Ashwinn Krishnaswamy pointed out the need to focus on Customer Lifetime Value (CLV) strategies to make the high initial Customer Acquisition Cost (CAC) worthwhile. This means investing in the post-purchase experience, fostering community, and developing loyalty programs. This creates a powerful flywheel where your best customers, acquired through a thoughtful funnel, become a source of new acquisition through referrals and user-generated content.

Ultimately, a good full-funnel strategy today is a balanced ecosystem. It pairs the brand-building power of content and platforms like TikTok with the conversion-driving precision of Facebook and Google ads. Some brands, as Josh Rome explained on Honest Ecommerce, are even exploring B2B2C models to sidestep the high costs of traditional DTC ads entirely. The most durable brands seem to follow a few key principles: they master one channel first, they obsess over their brand story and creative, and they measure success with blended metrics that reflect the true health of the business. The funnel is no longer a straight line to purchase; it’s a web of touchpoints designed to build affinity and drive profitable, long-term growth.

Voices that come up across these episodes

Ask your own question

Get a personalized answer pulled from 16,779 ecommerce podcast episodes.

Ask a question →

More answers