Brand and performance marketing are merging 🤝

It’s Friday!

Google just launched "confidential match," an encrypted system that hides brands' first-party data when targeting ads. Using Trusted Execution Environments, advertisers can securely match customer data without anyone, including Google, accessing it. This move responds to growing concerns over data privacy and regulatory scrutiny.

TL;DR:

• Creator commerce dominates holiday 2024. Gen Z and millennials are spending big, focusing on home décor, gifts, and fashion. Brands working with creators are set to win.

• Brand and performance marketing are merging. Kate Spade builds loyalty with consistent messaging, while Starface uses TikTok humor to drive engagement.

• Subscription brands face rising chargebacks. With credit card debt soaring, brands like ButcherBox are adapting with better payment strategies to survive.

^{Before we dive into this edition, here’s a message from our partner…}

THE MOST BORING MARKETING TACTIC.

Let’s be real. Email marketing is not the “sexiest” member of the marketing family. And that’s okay. As a business owner, you have enough “exciting” stuff happening. Who wants more excitement when you can have stable and effective instead? Let us be boring, in the best way possible.  

• No guessing whether that marketing campaign will pay off. Brands using Omnisend on average make $73 for every $1 spent.* 

• No need to learn anything new here. A platform so boringly intuitive, it’s like you designed it yourself. 

• No venturing into the great unknown. Our support team is available 24/7 to make sure you don’t have any unwanted adventures.

• Same same, but for less. Get everything you expect from other platforms, except for those rollercoaster prices that make your heart race.

Check out Omnisend and take a nap

Creator commerce to dominate holiday 2024

LTK’s Festive Forecast: 2024 Holiday Shopper Study reveals that creator-led shopping is poised to lead the charge this holiday season. Here’s a breakdown of key insights:

• Creator spending surges: LTK shoppers’ buying power has jumped 38% YoY, while the general population's has decreased by 8%. Gen Z (75%) and millennials (64%) are leading the creator-driven buying trend.

• Brand loyalty reigns: Unlike general shoppers hunting for deals, LTK shoppers prioritize brand and product availability, showcasing creators’ influence on brand loyalty.

• Early shopping trends: 70% of LTK shoppers plan to begin shopping by September—18% earlier than last year—focusing on home décor, gifts, and personal treats.

• Hot categories: Expect higher spending in gifts, home goods, and fashion, driven by creator content.

With the rise in creator commerce and early shopping trends, brands partnering with creators are set to win big this holiday season.

Branding and performance are becoming more closely aligned

At Adweek’s Commerceweek, execs from Kate Spade and Starface World discussed how brand building and performance marketing are merging to drive loyalty and sales.

Kate Spade’s approach: Amanda Bopp, VP of marketing and ecommerce at Kate Spade, focuses on customer engagement, like online reviews, as a path to loyalty and sales. Consistency in messaging and staying true to brand values are key to building trust with consumers.

Starface’s playful strategy: Kara Brothers, president of Starface, explained how the brand uses humor on TikTok to promote its acne patches, engaging 2.5 million followers. By experimenting with playful content, Starface connects with younger audiences while driving engagement.

Both brands emphasize aligning brand values with performance goals, creating strong customer connections that boost both loyalty and sales.

Subscription brands struggle with credit card debt and chargebacks

Subscription startups are facing mounting pressure as credit card debt hits a record $1.14 trillion and chargebacks rise. In 2023, disputed transactions jumped to $11 billion, leaving subscription brands—relying on recurring payments—vulnerable.

The data: Chargebacks are becoming more frequent, with industry volume expected to reach $904 billion by 2026. As inflation squeezes consumers, more are disputing charges, hurting brands’ bottom lines.

How brands are coping: Some subscription brands are taking proactive steps to manage the risk. ButcherBox, for instance, is implementing SMS notifications for expiring credit cards to prevent failed payments. They also offer flexible refund policies to reduce the likelihood of chargebacks. Other services, like Dose, are partnering with retention vendors to help customers update payment methods and avoid cancellation.

The takeaway: As payment disputes grow, subscription brands must adapt by improving retention strategies and offering flexible payment solutions to combat rising credit card debt and chargebacks.