Why your digital media might not be scaling

As digital ad costs surge by 43% year-on-year, South African businesses are facing a troubling reality: increased spending on social media advertising is delivering diminishing returns. In this challenging landscape, TDMC (The Digital Media Collective) media director, Caleb Shepard, warns that most companies are making fundamental mistakes that prevent sustainable growth. “We’re seeing businesses burn through marketing budgets without addressing the real barriers to scaling,” says Shepard, who reveals the critical questions business owners must confront to diagnose their digital stagnation.
Why your digital media might not be scaling

Increased digital noise, category competition and dynamism in the e-commerce space means that without ongoing and robust learning and understanding of everchanging trends, algorithms and platform shifts, it’s virtually impossible to stay ahead of the curve.

Before kicking off with his checklist, Shepard reiterates that it’s imperative that businesses understand that marketing spend and sales spend should be treated as two fundamentally separate budgets with different objectives. “The first should be to build the brand, the other to sell product. Understanding and embracing this is essential if you are to succeed.”

Key challenges in digital marketing scaling

1. Funnel fundamentals

Are you focusing only on immediate sales while neglecting brand awareness?

Many businesses fall into the trap of focusing exclusively on bottom-funnel activities. “If your social is only playing in the bottom of the funnel – the conversion stage where customers are ready to purchase – it doesn’t matter how much you spend, your scaling is unsustainable,” says Shepard.

Businesses chasing immediate returns without building the foundation that supports long-term growth are at risk, and understanding that different channels reach different audience segments is fundamental. “Looking at ads in isolation rather than as part of an integrated strategy is a common mistake that prevents scaling,” he says.

2. Technical barriers to conversion

Is your website experience undermining your advertising investment?

Data shows that users abandon sites that take longer than three seconds to load, creating a significant barrier to conversion. “You can have the perfect ad creative, but if you’re sending traffic to a less-than-stellar landing page experience, your conversion rates will suffer tremendously,” Shepard warns. If your conversion rates have gone backwards while your ad spend increases, it’s time for an honest technical audit. “Our most successful clients obsess over their site performance metrics, and we continuously work on optimising their landing page experience.”

3. Content and messaging misalignment

Has your brand lost its narrative in pursuit of quick conversions?

“We’re seeing a concerning trend where businesses are losing the art of storytelling – the need for a compelling narrative has never been more important,” says Shepard. “In a crowded marketplace, your story is often the only thing that differentiates you from competitors with similar products and pricing.”

He cautions against the belief that a single perfect ad will solve all growth challenges. “If ads aren’t scaling, most businesses immediately start testing copy and ad visuals – but that’s often addressing symptoms rather than causes. Working on your narrative should be an ongoing priority,” says Shepard.

4. Budget allocation imbalance

Are you sacrificing long-term brand value for short-term sales spikes?

The most successful businesses follow what Shepard calls “the golden ratio of marketing effectiveness”. Research across hundreds of campaigns shows that the optimal balance is approximately 60% brand building and 40% sales activation. “This 60/40 split has been proven repeatedly across industries and market sizes,” explains Shepard, “yet most South African SMEs we encounter are investing over 90% in direct response and virtually nothing in building brand equity. This imbalance is perhaps the single biggest barrier to sustainable growth.”

The data is compelling: businesses that maintain this balanced approach see conversion rates improve by up to 2.8 times compared to those focusing primarily on performance marketing. “Every rand spent on brand building makes your performance marketing more efficient,” adds Shepard. “It’s not either/or – it’s both, in the right proportion.”

5. Neglected channels and opportunities

Are you ignoring proven channels while chasing the latest platform trends?

Shepard says unevolved or underdeveloped email marketing strategies are a missed marketing opportunity. Often neglected as a channel despite being an enormous contributor to overall sales, email marketing should be viewed as crucial. “An abandoned cart email isn’t enough anymore,” he insists. “The businesses that excel are implementing customised email messaging that builds relationships over time – our teams are constantly working on customised email threads to meet customers where they are in their journey.”

The path forward: sustainable scaling strategies

Shepard’s five key recommendations for sustainable growth:

  1. Understand your customer journey: At its core, we’re in a human behavioural science business. Every business on the street is trying to propose before the first date. You need to date your customer before asking them to commit.

  2. Recognise channel differences: The person engaging with your organic content is in a different mindset than someone clicking your paid ad or reading your email.

  3. Balance marketing investments: Implement the proven 60/40 split between brand building and activation. This ratio has been validated across industries and market sizes.

  4. Return to marketing fundamentals: Product, price, place, promotion – these classic principles still determine success regardless of how sophisticated your ad targeting becomes.

  5. Upskill your team: The platforms and algorithms change constantly, but the principles of effective marketing remain surprisingly consistent.

Not everyone is an expert, so calling in those who are to fulfil crucial marketing fundamentals is often key to a business’s success, says Shepard. “We see it time and time again with our clients. When they are able to focus on what they are excellent at by leaving us to flex our expertise in the paid media space, sustainable growth and scaling starts to happen.”

TDMC
TDMC
We are a close-knit team of digital marketing and Shopify experts based in South Africa and the United Kingdom. As one of 4 accredited Shopify experts in South Africa, we work with over 130+ online retailers to deliver a holistic e-commerce and digital marketing solution, gearing their brands for success in a competitive online space.

 
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