Owen Loft

TikTok Shop AOV is WAY lower than website b/c: 1. Discounts are CAPPED which does not incentivize higher cart sizes (in the below example, you think it's 50% off, but the coupon is maxed at $20 discount) 2. Upsells/cross-sells in the CART are below the fold and ppl will rarely scroll below the "checkout button" 3. These are largely impulse purchases. If TTS doesn't incentivize higher AOV, brands are stuck in low AOV purgatory. If I'm TikTok, I start considering a solve for both of the above.. honestly pretty easy Despite TTS low AOVs, we're noticing 2.5-7x higher conversion rate than the DTC site. B/c of this- TikTok Ads performance has been higher driving to the Shop (vs website) for every client we've touched on TikTok in 2024.

48

15 Comments

I've audited hundreds of ad accounts for ecommerce brands the past 5 years. Here are the 5 most common mistakes I've seen, whether a brand is at $1M, $10M, or $100M in revenue: 1. Improper attribution: 7DC vs. view-through attribution 2. Creative stagnation: low refresh frequency 3. Untapped creatives: inactive/archived campaigns 4. Above CPA spend: not using cost controls 5. Stale content: poor diversity/variety Check out the slides for a deeper breakdown:

34

25 Comments

If you (or your agency) aren't looking at these 4 often overlooked metrics in your ad account, take note. We use these to audit every 8-9 figure ecommerce brand working with Kynship. 1. Delayed Attribution Multiplier %: helps adjust cost control strategy, shows how customers convert in a 1-day vs. 7-day vs. 28-day window. 2. Blended COGS: measured with breakeven CAC. 3. Above Target Spend Analysis: wasted spend as a % of total spend. 4. Creative Diversity, Volume, and Refresh Scores (%): how a creative set is graded based on content variety (static vs. video, product vs. human), total volume, and frequency of incoming net new creative. Any questions or want to know more about these metrics? Let me know in the comments 🤝

39

24 Comments

ATTN Agencies Focused on Lead Gen: Greg Sterling shared that Google crushed it in Q1 and here are some key metrics: CTR: up 5.1% (more clicks are taking place than before) CPC: up 10.4% (each click is costing more than before) Conversions: down 1.1% (less conversions are taking place than before) CPL: up 24.6% (leads are costing more than before) Don't lose your client's budget and your margin to increase in Google costs, especially while conversions are going down. Close the gap on conversions. Make it easy for your clients to gather leads from all channels (GBP, FB, Insta, email, text, live chat, chatbot, etc) not just paid search. Birdeye can help. Make it easy for your clients to influence over 50% of the top 10 ranking and conversion factors. Birdeye can help. Once you lose your budget to Google's paid search game, it may be too late to get it back again...

16

Pop Quiz: Which email A-B test variant drove more DTC eCommerce conversions? Hit 👍 for A - BOGO50 Hit ❤️ for B - 25% OFF There are a lot of options for what you can A-B test in your emails: → Frequency & cadence → Call to Actions (CTA) → Promotional Offers → Send Day of Week → Personalization → Segmentation → Subject Lines → Email Content → Email Layout → Send Time → Headers → Footers You should always let your data and goals drive that prioritization but I think offer testing is something that tends to not get tested enough. In some cases, is discounting even helping or hurting your brand in the long run? There's only one way to find out. Test it. So let me know with your vote and comments. Who do you think was the winner of this test?

33

29 Comments

PSA: accrue returns and use estimates for daily tracking. And Shopify please stop presenting Total Sales as the default revenue definition in the dashboard. If we can't have contribution margin can we at least get order revenue?

8

Have you seen Walmart's new virtual shopping platform? 3D influencer storefronts and gamified experiences. Yes. It's buggy and feels disconnected today. But it won't stay like this for long. Walmart is betting on this consumer trend: We're moving from transactional ecom to -> experiential ecom. That's why TikTok shop has earned so much traction. People want a connected shopping experience. When your brand gets it right? Consumers will want to enter your brand's world. This shift could have massive implications. Product pages will become more like social media profiles. Checkouts will feel more like in-game purchases. Influencers will become your virtual shopping companions. The brands that master this blend of: Commerce, content, and community will dominate. They'll create shopping experiences so engaging that people want to hang out there even when they're not buying anything.

575

30 Comments

Hive Mind... If the media budget is less than $10MM, what's your favorite MMM/MTA measurement platform for eCommerce? The few (budget right sized) solutions that I have seen so far, tend to lack a key element or two in my mind... maybe I'm expecting too much but a boy can dream, right? #marketinganalytics #MMM #MTA

2

9 Comments

Amazing article by Roger Dunn. Made me realize why Amazon Ads Can be a Your Secret Weapon for Growth! I'm Surprised Amazon is Outselling YouTube in Ads? 🤯 Amazon is now beating YouTube in ad revenue, covering 40% of e-commerce in the US! 📊 Why Choose Amazon Ads as a Seller? 📈 Clear ROI: Direct sales data shows exactly what you get back. 🛒 Ready-to-Buy Shoppers: People come to Amazon to make purchases. 👥 Access to Power Shoppers: Reach the most active buyers. 🤖 Smart Ad Placement: Ads are shown to the right people at the right time. 🌟 Gain New Customers: Proven way to expand your customer base. Takeaway: If you want to boost sales and reach more buyers, Amazon Ads could be a great choice! 🌟 If you wish to advertise your brand, we offer top-notch Amazon Ads services at competitive prices. Let's connect and discuss how we can help.

5

The number 1 oversight I see… That’s limiting DTC revenue growth: Poor budget management. If you want to unlock growth for your brand Here’s exactly what you need to do. Let’s start with a simple breakdown of traffic. Cold traffic ↳ Converts less Warm traffic ↳ Converts better Hot traffic ↳ Converts best Now, as you increase a campaign’s daily budget You start breaking into different levels of traffic. Let’s analyse spend to see how this works. $100/day = 100% hot traffic = ROAS 5 $200/day = 100% hot and warm traffic = ROAS 4 $300/day = 100% hot, warm and cold traffic = ROAS 3 These numbers are examples and will differ for your account. But do you see the relationship between spend and performance? As you spend more… Google will show your ads to a broader audience… Which converts at a lower rate than your initial warmer audience. Increasing spend, whilst decreasing ROAS and profitable revenue. Here’s the key: You need to find the sweet spot for each campaign. Where scale meets profitability. Once you’ve done so, you shouldn’t scale the campaign any further. What to do instead? Create a new campaign targeting a new category or product set. P.S. How are you managing your budgets to meet revenue targets? ————————— Hey I’m Ramzy Ibrahim 🚀 I’m on a mission to help as many eCommerce brands as possible. If you enjoyed this post: 💬 Add a comment and like it 🔔 Follow me to learn more about eCommerce 🏡 Visit my profile to scale your brand using Google Ads

40

52 Comments

Five reasons why you shouldn't do TikTok Shop 1. You can't afford sending 300+ units as free samples to creators 2. Your products are $100+ AOV in a category with $50 AOV on TTS 3. You can't afford to do discounts 4. You have a long lead time when products go out of stock 5. You aren't ready to breakeven or lose money in month 1 and 2

18

1 Comment

$100M Leads by Alex Hormozi has a formula to guarantee profitable return on paid advertising…. The difference between Alex’s formula and most business owners is he looks at Lifetime Gross Profit (LTGP) instead of single ticket profit. What is yours LTGP : CAC ratio?

8

At PANEL we use our tracking tech to measure all the way to bottom of the funnel conversions. However, advertisers shouldn't get tunnel vision for just bottom of the funnel. If bottom of the funnel activity is there it safe to deduce that top of the funnel halo effect multiplier is adding significant value beyond the tracked conversions. #influencermarketing #creatoreconomy

10

The most common reason brands do attribution wrong? Fear. "This is the way we've always done it." "What if you're wrong? It's a big risk." "This is what I'm measured against." "This isn't my direct responsibility." Most of my job is just mitigating risk: • Risk of wasting time • Risk of wasting money • Risk of hurting revenue • Risk of upsetting growth But there are so many brands that I work with that have grown DESPITE their strategies rather than because of them. • They don't focus on incrementality • They throw millions of dollars at advertising • They focus on little things that don't matter • They ignore massive problems that are killing them The brands that I work with that routinely put up 2x, 3x, 5x growth year over year are willing to take calculated risks -- informed by data -- and then heavily invest in something that truly works. One brand went from $14m in revenue to $43m in revenue year over year because they realized that they were sitting on a goldmine of recurring customer value. Their biggest constraint in the business was just getting more customers. But the conversation started with something like "Oh that would require us to spend a lot more on media and increase our CAC. How are you sure we can afford it." The easiest way to mitigate risk in my experience is to test your hypothesis in as controlled of an environment as possible: • Build a TikTok campaign in only a few geos • Try changing the mix for a single promo • Split test your first party audiences • Split test your traffic I'm not asking you to go ALL IN without validating it first. That'd be foolhardy. But I'm also demanding that you pull your head out of the sand and start making some moves. What's that famous quote, "All profit is derived from risk?" If you want to be successful more than just your natural trajectory, you'll have to set fear aside and make some moves. #growth #dtc #ecommerce

56

12 Comments

Concerned your DTC email list is too small to generate any meaningful revenue? We recently made our client $5,539.60 from 48 subscribers on their short list. This proves you don’t need a massive list to succeed. Excellent deliverability is key. Don’t get me wrong, a larger list is ideal. You can acquire thousands of subscribers each week with a healthy amount of traffic to your website + optimized popups. However, you don’t need a large audience base before you actually start marketing them. In fact, that’s a terrible idea. By the time you think your list is “ready” (whatever that means) – you’ll be sending emails to an unresponsive list. Your audience will be semi-cold at best, or dead at worst. Instead, start immediately, learn the ropes, keep your list engaged & when your list isn’t even that large, it’ll start bringing in cash. Once you start seeing a respectable revenue per recipient, you’ll be even more motivated to acquire more subscribers. Did you find this content helpful? Repost it so your audience can appreciate it!

3

4 Comments

9/10 eComm brands I talk to struggle with attribution & don’t know if their ad spend drives an incremental impact on their store. This is something we’ve been battling with for the better part of 2024. It’s especially important for our brands that spend over $5000/day. Looking at the Facebook or Google ads manager has proven to be pretty unreliable... So one way to solve this issue is using post-purchase surveys which we try to set up for every client we work with. Asking people how they first heard about you will give you probably the most accurate representation of which channel is working best for you and which channel is wasting your ad spend. We track responses daily and use internal spreadsheets to track the total New Customer CPA which you can monitor while scaling the ad spend on 1 channel and maintaining your ad spend on every other channel. 3 questions I advise every eComm brand to include in their PPS are: ✅ How did you first hear about us? ✅ How long have you known about us before deciding to purchase our product? ✅ What are you most looking forward to from your purchase today? You have to do everything in your capabilities to understand the customer journey otherwise you might be easily lighting your money on fire.

16

11 Comments

Hot take: selling in B2B is actually easier than DTC. (My B2B team is probably rolling their eyes right now). In DTC, the brand is selling and communicating to the buyer directly. That buyer's decision making is non-linear and subjective: • Do I want this thing • Do I even need this thing? • What about these 5 other things? • Will it actually make me feel better / happy? This is where a lot of the concept of "brand" comes from. There's a status association with certain products and the network effect of that individual buyer's psychology with all of their other "inputs." In B2B, it's actually super simple. A product or service needs to do one of two things: 1. Make the company money 2. Save the company money Really highly valuable products do both. If you -- as a seller in a B2B context -- can demonstrate to your prospective client justification for why it will do one or both of those things (make or save money), then it's an "easy" decision. The difficulty in B2B comes in from the nature of the buying committee, high contract values, budgets, and long decision cycles. You have to do the convincing at multiple points of the organization, and those stakeholders might have different priorities, might not believe you, etc etc. But again, if your pitch is clear and credible, and the scenario that you present is pretty undeniable, why would any organization refuse you? (Note: this doesn't really apply to true enterprise sales because enterprise is more like dealing with a small country than an actually functional and coherent organization). But if you're, like me, selling services for 5-6 figures a month to brands that are sub $1 billion in revenue, it's straight forward: "Here's how I'm going to make you more money than I cost." "Here's how I'm going to save you more money than I cost." If you want to see my pitch first hand -- reach out and I'll show you how we can pay for ourselves easily. #b2b #sales #revenue

42

16 Comments

This is truly outstanding! Reach out to Ali Manning and the Chalice Custom Algorithms team!!! In the latest podcast of Programmatic Digest podcast, I break down Adalytics report(s), including MFA(s), Frequency capping, targeting measurement, challenges and opportunities. One of the #1 recommendation I share is to partner strategically and with the right partners, NOW! Like now, we can't "keep waiting" - we gotta act now and partner up, now. Automate, and automate well! Allow your team to be strategic ninjas instead of just wasting time on mundane day-to-day!! I would say Chalice Custom Algorithms is a pretty solid start! #programmatic

9