Category: Marketing Automation

Whenever a new feature comes out on social media, I am usually a late adopter.
Back when Instagram launched Stories, a worthy Snapchat opponent, I thought, “Hm, I don’t know about this.” Perhaps it’s because change, even if slight, is uncomfortable or just because I’m naturally a cautious person.

But here we are a few years after its launch and I barely look at my newsfeed. Where am I? You guessed it, endlessly swiping through Stories.
The feature gained steam on Instagram but was then integrated on Facebook. Now, every brand with a Facebook Business Page has gained another marketing tool to reach users.
So, what exactly can you post on Facebook Stories? Get inspired by these eight brands.
Examples of Facebook Stories for Business
A Look Behind the Scenes
Back when Facebook only allowed brands to publish posts, brands were probably more selective about their content, knowing it would stay there permanently.
Now that Facebook Stories is here, brands can have a little bit more fun with what they post knowing the content will only be available for the next 24 hours.
That’s why behind-the-scenes content is perfect for Facebook Stories. It’s not necessarily important enough to be featured on the news feed but it can be a great way to create some buzz around an upcoming release.In this example, Woven Nook, a home decor company, posts a Story to tease an upcoming project. The Story allows the brand to create some anticipation around the project and also gauge the audience’s interest in this type of content.
Another important element in this Story is that it features one of the founders of the company. In recent years, studies have shown that consumers connect more with brands who pull back the curtains and show the faces behind the business.
Woven Nook could have posted the sneak peek without the founder. However, having a human featured in the image can leave a stronger impression than just a setting.
Polls and Surveys
Facebook Stories isn’t just another publishing channel, it also has great features that help brands connect with and engage their audience. Engagement is vital for building brand loyalty and understanding your consumers.
The better you understand them, the better equipped you are to deliver content that resonates.
The grocery delivery company Instacart hosted its own trivia game on Facebook Stories to test its audience’s food knowledge.

While this may not necessarily give the brand valuable insight into their audience, their engagement with the post may tell them a lot about the type of content their followers enjoy.
Want another way to use polls? Tie them to a product or service.

Alaffia posted a simple poll asking its audience about its product.
This accomplished two things at once: It introduced followers to a product they may not yet know and it had an interactive element that encouraged audience engagement.
User-Generated Content
One of the most popular uses for Facebook Stories is user-generated content (UGC). UGC provides what’s known as social proof, a psychological phenomenon where we tend to look to others for guidance on what to do.

Adjourn Teahouse leverages UGC to show the various ways in which consumers use its products. Because of the Facebook Stories repost feature, the brand can fill its Stories with content already created by others, saving both time and money.
One thing to note is that because Facebook now owns Instagram, you can repost another user’s Instagram content to your Facebook Stories – something that’s not available between other social media platforms.
The brand Curls uses this same approach to promote its products.

What brand doesn’t love free promotion? This type of UGC helps brands gain credibility and earn new customers.
Direct to Website Traffic
Have an article on your website you want your Facebook followers to read? Take advantage of the “‘See More” feature on Facebook Stories. Blavity, a news and media company, often uses this feature to lead Facebook users to its blog posts.
While this brand mostly directs traffic to its blog posts, businesses can use this feature to lead their followers to landing pages, product pages, or any other webpage.
What’s great about this tool is that it makes it easy for users to navigate to other channels from the brand without ever leaving the Facebook platform.
Giveaways
If you’re hosting a giveaway, you’ll likely create a Facebook post so that users can access it beyond the 24-hour window. However, it’s important to promote the giveaway on other channels to give it more visibility.
Note how beverage company BLK & Bold promoted its giveaway on Facebook Stories. Instead of posting all of the giveaway details, like the rules and eligibility requirements, the brand highlighted what its audience is most excited most: the giveaway itself.
If your giveaway is hosted on another social media platform – say Instagram or Twitter – you can still promote it on your Facebook Story and use the “See More” feature.
There’s no right or wrong way to post on Facebook Stories. It’s all about finding what stories resonate best with your audience.
Every Story you post is an opportunity to connect with your audience and learn more about them.
While some of these strategies may not work for your brand, they’re worth trying out. Because even stories that don’t perform well give you as much insight as those that do.

To understand what peer-to-peer (P2P) marketing is, let’s start with an example.
Recently, I was looking for a new face moisturizer. Of course, I could’ve trusted the numerous influencers I follow on Instagram, all with strong opinions regarding the “best, most effective” options available.
But I wasn’t convinced these influencers had my best interest in-mind. Yes, most influencers’ (and micro-influencers) are successful because they promote valuable products. But they’re getting commission off those posts, too.
So I handled my problem the old-fashioned way — I texted my friends and asked what products they use.
This isn’t to say influencer marketing is ineffective. Quite the opposite: When done right, influencer marketing is a fantastic opportunity to expand your brand’s reach and increase sales.
But depending on your team’s budget, influencer marketing could be limiting. Plus, influencer marketing inhibits your brand from reaching those consumers who still trust their peers above all else.
Enter: P2P marketing.

Given 93% of consumers trust friends and family over all other influences (including review sites, blogs, and social media platforms), it makes sense why P2P marketing works.
And P2P marketing, a form of word-of-mouth marketing, isn’t new. People have been giving personal opinions about their favorite — and least favorite — brands, products, and services long before social media.
Some older forms of P2P marketing include Yelp, reviews on personal business’ websites, and good old-fashioned conversations between your consumers and their friends and family.
However, there are some new tools that help businesses leverage P2P marketing on a broader scale. Amazing Brands, for instance, helps businesses generate customer reviews and referrals, guarantee event attendance, or even increase in-store foot traffic.
The tool ultimately relies on the premise of P2P marketing, which is that there’s nothing more powerful than peer recommendations.
Other tools, like Higher Logic, work to establish a sense of community among existing consumers, and increase brand loyalty — a critical component of P2P marketing. (Since consumers won’t refer products or services towards which they don’t feel loyal.)
However, if you’re learning about P2P marketing for the first time, you might be wondering — why invest in P2P marketing, instead of more traditional forms of influencer marketing?
And what’s the difference, anyway? 
What’s the difference between P2P marketing and influencer marketing?
Over the past couple years, influencer marketing has been one of the most popular and effective opportunities for brands to reach new audiences by leveraging those influencers’ built-in communities.
However, as mentioned above, consumers still trust their own peers more than anyone else. And influencers can often feel like celebrities to the general public — in fact, sometimes, they are actual celebrities, like George Clooney with Nespresso. This removes a level of authenticity you might be striving for as a brand.
Additionally, many small and medium-sized businesses can’t afford the typical influencer cost. Celebrity or macro-influencers charge between $3,000 and $500,000 for a single post — and while micro-influencers are undoubtedly cheaper, they can also charge upwards of $500 per post.

Ultimately, P2P is a form of marketing that can feel increasingly trustworthy and authentic through real, genuine reviews from peers who have no incentive to promote businesses they don’t care about.

To further explore the difference between P2P marketing and influencer marketing, let’s consider an example. 
Jessica Alba’s business, The Honest Company, has a referral program in which they credit existing customers $20 for each invited friend who makes a purchase. 
This is an example of P2P marketing. 
Influencer marketing, on the other hand, refers to the influencers on Instagram (as well as other social platforms) who tag posts with #honestambassador, signifying the post is sponsored by The Honest Company. 
These are both equally valuable marketing options, but they achieve different goals. The P2P marketing initiative (in this case, the referral program), aims to tap into The Honest Company’s existing consumers to reach new prospects.
The P2P program is likely more narrow in reach, but has the potential to convert more quickly than influencer marketing, since it’s leveraging the power of an existing relationship between customers and their friends or family. 
The influencer marketing program, alternatively, is meant to spread brand awareness about Honest Company to a wider audience. 
P2P marketing can take many different forms depending on your brand and business goals — including creating a referral program, encouraging reviews on your site in exchange for a small discount or prize, or organizing events meant to increase brand awareness to the larger community.
Ultimately, P2P marketing comes down to increasing the incentive for your consumers to share your product or service with friends and family, which is undoubtedly one of the best long-term strategies for success.

Facebook is an undeniably powerful channel for marketing purposes. In fact, 91% of B2B and 96% of B2C marketers currently use it for advertising and marketing.
The success of your social media marketing strategy depends on engagement, typically in the form of Likes, comments, or shares. But high engagement rates are easier said than done.
One opportunity to increase engagement on your business’ Facebook Page is by embedding your Page on your website — which could increase likes and comments on your posts without driving viewers away from your site.
Here, we’ll explore how to embed a Facebook feed on a website. Whether you host your website on HubSpot, WordPress, Squarespace, or Wix, we’ve got you covered.

How to Embed a Facebook Feed on a Website
1. HubSpot
If you want to embed a Facebook feed on your HubSpot-hosted site, it’s incredibly easy to do.
1. First, go to Facebook’s Plugin Page.
2. Copy-and-paste your business’ Business Page into the “Facebook Page URL” box.

3. Then, adjust the width and height to suit your preferences depending on your website and placement. Once you’ve adjusted the timeline, click the “Get Code” button.

4. Switch to the IFrame tab, and copy the custom module.

5. Next, open the Editor tool on your HubSpot Landing Page, and select “Source Code”.

6. Now, paste your IFrame code into the Source Code section of your page. Then click, “Save Changes”.

And voila! Your timeline is officially embedded on the HubSpot landing page of your choosing.
2. Squarespace
If you host your website on Squarespace, you’re going to follow most of the instructions listed above. However, the third step varies for this website hosting platform.
Let’s explore how to embed a Facebook feed on Squarespace. It’s important to note: Adding JavaScript or IFrames to Code Blocks is a Premium feature available in Business and Commerce plans, so you’ll need a Premium account to proceed.
1. First, go to Facebook’s Plugin Page.

2. Copy-and-paste your business Page URL into the “Facebook Page URL” box. Then, adjust the width and height to suit your preferences depending on your website and placement.
Once you’ve adjusted the timeline, click the “Get Code” button. Copy the code in JavaScript form. 

3. Next, click “Edit Post” on a Squarespace page, then click an Insert point and choose “Code” from the menu:

4. Next, choose Javascript from the dropdown menu, and then copy-and-paste your Facebook code into the box. Then click “Apply”.

If you have additional questions on adding unique code into your Squarespace page, take a look at Squarespace’s Code Blocks FAQ page.
3. WordPress
WordPress varies slightly from the instructions listed above.
Instead of using Facebook’s custom code, you can use a WordPress plugin. (Note: You will need to upgrade to the Business plan on WordPress to use this plugin feature.)
For our purposes, let’s use this Smash Balloon Social Post Feed plugin, which is 5-star rated and has over 200,000 active installations.
Before proceeding with the following steps, ensure you install the plugin on your Business plan WordPress account. You can install either via the WordPress plugin directory, or by uploading the files to your web server (in the /wp-content/plugins/ directory). Then click “Activate”.
1. Navigate to the ‘Facebook Feed’ tab within WordPress to configure your feed. Then click “Connect a Facebook account” and choose your Business page.

2. Next, copy the shortcode [custom-facebook-feed] to embed your feed on your site. (You can also display multiple feeds of different Facebook pages by specifying a Page ID directly in the shortcode: [custom-facebook-feed id=smashballoon num=5].)

3. Paste it into the body text on your new or existing WordPress page.

4. All set! Once you preview your page you’ll see how the timeline looks in Live mode.

4. Wix
For Wix customers, you’ll use a third-party tool — Elfsight — to create the unique code that you can use on your Wix website, which is why there are a few additional steps in this list.
1. Create your own Elfsight Apps account, or login to your existing account. (It’s free to embed one Facebook feed code. If you need to use Elfsight often, consider the Basic plan, which is $18/month for startups and new businesses.)
2. Click on the “Facebook Feed” application, under the Social Tab.

3. Select the template you want to use, which will determine how your Facebook feed looks on your Wix site. For instance, you can choose to have a small-widget Facebook feed, or a full-screen Facebook feed. Click “Continue with this template…” when you’re ready.

4. Next, click the “Connect to Facebook” button to connect your business’ Facebook Page with Elfsight. You can also click on the “Layout” tab to change the height and width of your widget.

5. When you’re ready, click “Save”. A pop-up will appear that provides you with the code you need to embed your page on your Wix website.

6. Now, open your Wix ADI and select “Add” at the top of your Wix page. Click “Section to Page”.

7. Choose “HTML Embed” in the navigation bar.

8. Now, click on the section design you prefer. Then fill in the title, subtitle, and paragraph. When you’re ready, click the blue “Settings” button on HTML.

9. Choose the embed type — in this case, you’ll want “HTML code”. Then, paste the HTML code you got from Elfsight into this section. 

10. Finally, click “Publish” on your Wix page to add your Facebook feed to your live Wix site.
How to Embed Facebook Event Feed on Website
To embed a Facebook Event Feed on your website, go to the Page Plugin and paste your Facebook Page URL into the box. Then, type “events” into the Tabs section.
Now, click “Get Code” and copy-and-paste that code into your existing site using the steps outlined above.   
And there you have it! You’re now ready to embed any post, timeline, or event onto your website to increase engagement to your social pages. 

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Have you tried any? Have you had good/bad results? Have you tested AI-written ads or sales copy (product descriptions, headlines, etc) comparing to human-written content? I’m building an AI-powered copywriting apps based on OpenAI GPT-3 and I’m trying to get some of your thoughts on the similar apps. I’ve been writing most of my copy only using the AI-generated content and I’m absolutely in love with the concept, simply because how much I hate writing myself. What has been your experience? Have you heard of good tools? What would you use AI to write the most?
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Ever wonder who is behind those banner ads on the sites you visit the most? Or the Super Bowl ads we talk about for weeks after they’ve aired? The answer is media buyers.
When a brand gets a marketing budget, a portion of that typically goes to paid advertising. That’s where media buying comes in.

It doesn’t get much buzz in the marketing industry, but this process is responsible for the targeted ads we see today.
Let’s dive into this process of which so many of us are on the receiving end.
Whether they’re watching a TV show or scrolling through a website, media buyers get brands in front of their target market.
It’s not like social media where users come and find you. It’s an outbound strategy that is only effective if you have a well thought-out strategy. Rex Gelb, director of advertising and analytics at HubSpot, says one of the biggest mistakes brands make is not thinking through their marketing goals.
“Some ad placements might be good for one set of goals, but bad for another. Let’s say you’re an airline and your focus is impressions and awareness, rather than an immediate sale, you can buy a placement that is known to get cheap impressions,” he said.
Gelb continued,”Now, let’s say you’re a CEO who wants to promote a ‘letter to our customers.’ In this instance, what you’ll care about is cheap clicks. Buying cheap impressions, which made sense in the previous example, no longer helps you accomplish your goal.”
That’s why media planning is such an important step, as it helps you get the most out of your ads. 
Nowadays, media buying is done in one of two ways:

Direct buy – Media buyers forge relationships with publishers to negotiate ad inventory, e.g., working with a newspaper to have an ad placed in the upcoming issue.

Programmatic buy – The buying process is done using automated technology.

Media Buying vs. Media Planning
Media buying and media planning fall into the same category but are two different processes. While media buying focuses on getting the most impressions from the right audience at the lowest cost, media planning focuses on the strategy behind the campaign.
During the planning phase, you determine what media will be most effective to reach a particular audience. So once media planning is complete, media buying follows. It’s also important to note that media planning isn’t solely for advertising, it’s for any media a brand puts out there.
However, in a small to medium-sized business, the job may be done by the same person or team.
How Digital Media Buying Works
With digital media buying, or programmatic buying, buying impressions is automated. The negotiation still technically happens but it’s done at a much quicker rate through open and private marketplaces.
The traditional approach, on the other hand, involves negotiations and relationship building with publishers.
There are three components to this automated buying structure:

Demand-side platforms (DSP) where advertisers and ad agencies set up their campaigns, bid on ad inventory, and optimize their ads based on performance.

Supply-side platforms (SSP) where publishers sell their ad inventory. It’s the publisher version of the DSP.

The ad exchange marketplace where advertisers and publishers buy or sell ad inventory through real-time bidding (RTB).

RTB is not the only way to purchase impressions, you can also use private marketplaces, in which publishers limit who can participate in the auction. Another option is called programmatic direct, in which ad inventory is sold at a fixed cost per thousand impressions (CPM) with no bidding.
So what about ad networks? Well those platforms aggregate ad inventory from various publishers and match them to advertisers’ needs, serving as intermediaries. Think Google Adsense and Facebook Audience Network.
Digital media buying can be more cost-effective and allow teams to focus on ad performance instead of back-and-forth negotiations. However, with the latest restrictions on cookies and Apple’s AppTrackingTransparency (ATT) rollout on iOS 14, it’s unclear how that will affect the media buying space.  
“With the upcoming release, Apple will be asking all of its users for permission to track when they open an app, and big ad networks like Facebook won’t be exempt,” said Gelb. “Needless to say, a lot of iOS users are going to opt out, which will have negative implications in terms of targeting and conversion tracking.”
“Nobody knows exactly what the impact will look like yet,” he added, “but we, in the industry, are crossing our fingers and hoping for the best.”
Media Buying Tips
1. Strategize.
Before you launch your ad campaign, you’ll have to figure out a few things.
The first question is, what’s the goal of your campaign? Do you want more website traffic, brand awareness, social engagement? Aligning your team on one goal will help focus your efforts and better track your campaign’s success.
This leads us to key progress indicators (KPIs). You’ll need them to monitor your campaign and determine if any adjustments need to be made. Lastly, your campaign will need a budget. If it’s a long-running campaign, you may set a daily budget.
These steps are typically completed during the media planning phase. However, in some cases, media planners are also responsible for buying ads as well.
2. Identify your target and where to find them.
Your next step is determining who the campaign will target and which networks will be most appropriate to reach them.
For instance, let’s say a health-focused vegan dessert company wants to run an ad campaign next quarter and they want to target health-conscious, vegan consumers. The marketing team may want to advertise on YouTube videos with vegan-friendly content, fitness and nutrition websites, or even cooking and recipe pages.
When buying media, you can target audience by device, location, behaviors, interests, web browser, and more.
3. Set up your campaign.
This step will vary depending on which media buying platform you are using.
However, when typically using a DSP, you will input your campaign details, such as campaign type, creative assets, budget, target audiences, and bidding strategies. So, once that process is complete, all there is to do is launch and wait for results to come in.
If you’re taking a direct approach, this will likely be a collaborative process between your team and your publisher’s account manager.
4. Track the results and optimize.
The most exciting (and possibly scariest) part of launching an ad campaign is tracking its performance.
As soon as it launches, you can start gathering data on how your ads are performing. In this stage, it’s important not to make decisions too quickly. You’ll want to gather enough data to get a full picture before switching gears.
Using the same vegan dessert company, let’s say they launched an ad campaign through Google’s ad network. They are using two static image ads and one video ad. After one week, they notice that the video ad is significantly outperforming the banner ads. The media buyer can decide to reallocate funds to that ad type and placement as it is generating better results.
A media buyer’s job is to maximize ad potential while staying within the budget. As such, if the ad isn’t delivering on expectations, adjustments can and should be made during the length of the campaign.
1. Google Display & Video 360

Inside the Google Marketing Platform, you’ll find Display & Video 360. Originally DoubleClick Bid Management, DV360 integrates seamlessly with Google Analytics and other Google products. So, if your team is already using those tools, this may be the right media buying tool for you.
There are five modules in DV360 to build your campaign, manage your audience and creative assets, analyze your data, and access ad inventory from top publishers. It also offers automated bidding and custom targeting using first and third-party data, making it easier to reach the right audience.
Lastly, the platform allows advertisers to not only reach users on websites and YouTube but also TV.
2. The Trade Desk

If you want access to premium publishers, the Trade Desk is one place you’ll want to look.
The platform has ad inventory from some of the biggest publishers, including Spotify, ABC, Wall Street Journal, and ESPN.
One of the platform’s key features is the AI-driven “Koa,” which uses data from over 600 billion daily queries to determine the smartest and most cost-effective way to run your digital campaign. The Trade Desk also has cross-device targeting capabilities to optimize your campaign’s reach.
3. AdColony

AdColony helps brands reach mobile app users on both IOS and Android.
The platform offers multiple video formats and placements, including full-screen, interactive, banner, and interstitial. This allows marketers to test various formats to see which garners the best results.
AdColony also has over 90K direct app integrations and a reported 450 million supply of app users.
4. Amazon DSP

Every time you think Amazon has capped, it comes out with another vertical.
Amazon DSP is one of the most used DSPs by brands and ad agencies, according to an article by Ad Exchanger. With this DSP, you can reach users on Amazon-owned websites like Audible and IMDb, and other Amazon partners.
They also make brand safety a top priority to ensure ads don’t appear in risky or unsuitable environments.
5. AdCritter

AdCritter is a DSP made for small to medium-sized businesses.
The platform has an ad builder and a library of pre-designed templates for businesses that may not have their own creative assets.
With AdCritter, media buyers can even hand-select the websites they’ll appear on to ensure their ads reach their intended audience. They can also reach consumers based on demographics and behavior.
6. Adobe Advertising Cloud

In 2017, Adobe launched a powerful DSP to tie with Adobe Audience Manager and Adobe Analytics.
Similar to Google, Adobe’s platforms integrate seamlessly, which makes collaboration easier and cross-data analysis simpler.
Adobe also has powerful performance optimization features to maximize return on ad spend (ROAS).
7. Verizon Media

If you’re like me, any mention of Verizon automatically brings “Can you hear me now?” to mind.
Well, turns out, Verizon does offer way more than just cell phone coverage. In 2019, they reported that their DSP generated a 71% higher average conversion rate from campaigns compared to third-party segments.
Their platform uses omnichannel strategies to engage consumers, such as digital out-of-home ads (i.e. billboards and on-car ads), audio streaming platforms, and connected TVs.
8. Criteo

This platform has access to a large network of premium retailers, making it a great DSP for brands who want to reach online shoppers. Think Best Buy, CVS pharmacy, Macy’s, and Kohls.
They rely on first-party data, instead of third-party cookies, to optimize ads and determine the right time and place to engage shoppers.
Criteo’s flexible attribution models also make data analysis easier for teams.
9. StackAdapt

If your brand is in the alcohol, cannabis, gambling industry, it can be difficult to navigate ad regulations and compliance guidelines. StackAdapt helps brands strengthen their messaging and maneuver around those challenges.
Some of their key features include dynamic retargeting, machine learning optimization, and cross-device capabilities.
10. AcuityAds

AcuityAds’s best feature is its intuitive interface.
With this DSP, your team can build an ad storyboard for any campaign and visualize the customer journey.
There is a drag-and-drop feature that streamlines the media planning process. AcuityAds also has a journey map that allows brands to quickly visualize how a campaign is performing.
11. Simpli.fi

Some DSPs offer pre-segmented audiences for ad campaigns, which can be limiting depending on who your team wants to reach. Simpli.fi offers custom targeting options to guarantee accuracy.
The platform also promotes cost and analytics transparency. Marketers can see a detailed breakdown of where their ad dollars are going and how much of it goes toward platform fees.
Another standout feature in Simpli.fi is the localization capabilities to reach audiences at the most granular level.
12. Adelphic

If customer support is important to your team, consider Adelphic. This omnichannel DSP reports consistently having a client satisfaction rate above 95%.
Unlike other DSPS, Adelphic offers a flexible pricing model, offering a subscription-based structure. This means media buyers pay one set monthly fee for unlimited media.
Additional features include advanced reporting tools and data integrations.
13. Amobee

With Amobee, you can design digital campaigns on various platforms and across multiple browsers and devices.
This DSP identifies potential consumers on a person-by-person level using their proprietary identity graph called “Amobee ID.” Using this tool, brands can forecast their campaign’s performance across multiple devices and channels.
The platform can also access APIs from social channels, such as Facebook and Instagram, for social campaign automation.
14. Basis by Centro

With over 9,000 vendors and 11,000 contacts, Basis has one of the largest inventories in the market.
Its artificial intelligence (AI) tool can also review over 30 campaign parameters and make optimization suggestions to get the best results. Basis also has scalable features, catering to both small and large businesses.
15. Xandr Invest

Zandr Invest specializes in reaching audiences through connected TV advertising.
The platform is built on AT&T’s first-party data, giving brands unique insight to deploy targeted campaigns. Marketers can segment users by lifestyle, interest, intent, demographic, and viewership.
Xandr also offers a sleek user interface to plan, launch and track campaigns.
When buying media, no ad placement is accidental. It does involve some trial and error as you get started and the optimization process will last throughout the campaign. However, once you have a strategy to follow and an intuitive platform to track performance, this will result in effective ads that meet your marketing objectives.

To consider the potential payoff of product diversification, let’s start with an example.
Lululemon, an athletic apparel company, was founded in 1998 with one core product: yoga clothing for women.
If you’ve been to a store recently, you’ve likely seen how far beyond women’s yoga-clothing Lululemon has grown.
For instance, my brother now buys all his button-down shirts and work pants from Lululemon.
Additionally, last week I bought a bathing suit from the shop.
On their Our Story page, Lululemon states: “Our first designs were made for women to wear during yoga. Through plenty of feedback from our guests, ambassadors and elite athletes, we now design for yoga, running, cycling, training and most other sweaty pursuits for women and men.”
This is an example of effective diversification in-action. Here, we’ll explore what diversification marketing is, and how it pertains to your marketing strategy.

Why diversify your product offerings?
There are three reasons a business might choose to diversify its existing product line:

You’ve reached the ‘limit’ on the amount of people you can convert in a market segment.
You’ve identified a new product or service that complements the needs of your existing customers.
You’ve decided a new level of growth can only be achieved through addressing new market segments.

Let’s dive into the difference between the three of these reasons, now.
First, perhaps you’ve reached the limit of the amount of people you can reach in a market segment. If you created a niche product or service, you might’ve spent the last few years marketing your product to your core audience demographic.
Eventually, you’ll reach your limit of potential people you can reach and convert within that audience segment.
For instance, GoPro started out selling HD cameras for sports and adventure. However, there are only so many people they can target with GoPro cameras — which is likely why they expanded to camera accessories, and even lifestyle gear, including backpacks and clothing.
With an expanded product line, GoPro can now target audiences who are looking for outdoor gear, along with audiences who are searching for HD cameras.
Second, perhaps you’ve identified a complementary product or service to the one you currently offer. To identify complementary products or services, consider what goal(s) your products help your customers achieve, and what other tools or services they need to achieve those goals even faster.
Mailchimp, as an example, started as an email marketing tool. Now, the company has diversified its product offerings and expanded into social media tools and even website builders.
Mailchimp created an email marketing tool to help customers reach new audiences and convert those audiences faster. Social media tools and website builders, then, are natural extensions of that primary goal.
Finally, a third reason you might diversify your product offerings is simply to reach and convert new segments of customers. This is less of a brand-new product or service, and more of a tier-method in which you have the same product with varying features depending on audience segment.
An example of this is a software company that initially targeted small businesses, and is now expanding into the enterprise audience segment.
To successfully expand, you’ll need to ensure your new product features accurately address enterprise users’ needs — which will be drastically different from your small business clients’.
Another example is a sports shoe company that continues to create sports shoes, and doesn’t diversify its products or services beyond sports shoes. However, the company does start creating different lines of sports shoes to address different audience segments: including tennis players, golfers, and joggers.
Advantages and Disadvantages to Product Diversification
There are a few major benefits to diversification, including:

Minimizing losses: Ever heard the term, “Don’t put all your eggs in one basket”? That’s the premise of this advantage. Basically, if one of your products underperforms, you’ll be able to minimize company revenue loss if your other products are performing well or better than expected.

Increasing brand recognition: If Apple only sold computers, it probably wouldn’t be the well-known brand it is today. But since the company has expanded into smartphones and music players, it’s expanded the amount of customers who use an Apple product. As customers increase, so does brand recognition.

Increasing customer lifetime value: By expanding your offerings, you’re increasing opportunities for customers to find value in your brand — which could increase brand loyalty. For instance, if Lululemon just offered yoga pants, I probably wouldn’t be such a big fan. But since I can get workout clothes, work clothes, and even swimwear from them, my loyalty towards them is high.

If you create a tier-program in which you offer additional product features for varying phases of a business, you’re minimizing the risk that your customers will outgrow you.

However, there are also risks associated with diversification. A few major risks include:

Brand dilution: People no longer associate your brand with the product or service you your were initially known for, and they’re unsure how your new products relate to your business mission or values.

Resourcing limitations: You don’t have the budget or headcount to effectively create new products or services, or your marketing team doesn’t have the resources to properly target a new market audience.

 Inconsistent support for additional products: If your support team isn’t prepped to handle the new complaints or challenges prospects and customers are facing with your new product, the industry’s overall satisfaction with your brand could decrease.

Marketing’s Role in Diversification
If your company is diversifying its product portfolio, your marketing team plays a major role in the success of that expansion.
Among other things, your marketing team is likely in charge of market research (including your new segment’s unique challenges and pain points), product development (i.e. ensuring your product successfully meets your target audience’s needs, especially as those needs evolve over time), and creating a successful product launch.
Ultimately, your marketing team needs to learn how to target your new market segment — which might be difficult if your brand hasn’t targeted that audience in previous marketing campaigns. (To learn more about audience segmentation and targeting, take a look at The Marketer’s Guide to Segmentation, Targeting, & Positioning.)
And, just as importantly, your marketing team needs to mitigate some of the risks associated with diversification.

For instance, marketers can minimize brand dilution by telling a comprehensive story to the public that outlines why these new products or services make sense to your business’ vision, goals, or overall mission.

Lastly, when marketing your new products, services, or expanding into new market segments, consider how you might diversify your marketing strategy to achieve growth with these new product offerings.
A marketing strategy that worked well for one product won’t necessarily work well for another — so it’s critical, as a marketer, you remain flexible and open-minded to pivoting to properly address the needs of these new customers.
When done properly, diversification is an incredibly exciting opportunity to fuel long-term growth … Just consider the growth Lululemon has seen since making the courageous leap into apparel beyond women’s yoga clothes.