There is a widening gap between thriving eCommerce businesses and those struggling to keep pace, reveals the latest edition of The Readout, the quarterly eCommerce marketing report by Nest Commerce.
The Readout is based on the global data from more than 40+ eCommerce brands, responsible for more than £100m of annual media spend. The report reveals that brands adopting a full-funnel strategy, encompassing awareness, consideration, and conversion, saw a 38 per cent YoY increase in average conversion rate in Q4. This compares to a 28 per cent decline for brands focused only on bottom-of-funnel activities.
This reversed the trend from Q4 2023. In fact CVR on Meta was the highest it has been for four years, since Apple’s iOS 14 changes were introduced, initially hampering performance.
This success was the result of a 73 per cent increase in upper-funnel spend YoY in Q4 as retailers invested in acquisition in the weeks leading up to peak. Based on the results of its latest research from Q4, Nest reveals a clear playbook for success: multi-channel expertise, continuous creative rotation, and a “funnel-first” approach.
Some of the other key findings included:
Search reaps rewards of holistic strategy
For brands implementing a coordinated full-funnel approach across Google and Meta, Nest observed a dramatic increase in performance on both platforms.
Despite overall spend increasing by 113 per cent, search-attributed revenue increased by more than five times year-over-year for these strategically aligned brands, showing the channel’s effectiveness for demand capture following demand generation elsewhere.
Creative rotation cross platform is key
The report stresses the critical need for strong, evolving creative strategy across all platforms, avoiding over-reliance on any single one. Brands investing in fresh, engaging creative across video-first platforms like Reels and TikTok, are seeing significant returns.
Reels spend more than doubled YoY in Q4, with a remarkable 70 per cent increase in CTR, further highlighting the importance of dynamic video-first content. Meanwhile, despite threats of a ban, TikTok spend soared 115 per cent in Q4 with a 152 per cent increase in average conversion rate.
Supporting this activity, platform-tailored creative delivered an average of 55 per cent higher Return on Ad Spend (ROAS) compared to brand-produced creative.
Global expansion as a de-risking strategy
The report also emphasises the importance of a progressive international strategy. Brands looking to mitigate economic challenges at home and unlock further growth potential are increasingly turning to global markets. The key focus needs to be brand building from day one in new territories. Those who haven’t adapted risk falling behind in the new global race for eCommerce success.
According to Will Ashton, CEO of Nest Commerce: “2025 is set to be a tumultuous year. Growth is available, but it’s not being distributed evenly. The gap between brands doing very well, and those that are struggling, is not just visible – it’s visceral. Companies are feeling it in their bones. Those clinging to outdated, channel-siloed strategies risk being left behind.”
He continued: “The playbook for winning is clear and proven by our Q4 data. Brands should prioritise a funnel-first paid media approach, mapping channels to each stage, based on audience and objectives. Strong creative strategy and continuous rotation are essential, using automation for ad optimisation to combat fatigue. Finally, a progressive international strategy is crucial for scaling and mitigating economic risks.”
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