Andrew Faris challenges the conventional wisdom of diversifying ad spend, arguing that for most ecommerce brands, especially those under $100M in revenue, focusing efforts on a single, high-performing platform like Meta is far more effective. He advocates for maximizing efficiency and scale on one channel before attempting to expand, highlighting that true diversification often occurs at a much higher spend threshold than commonly believed.
Key takeaways
For lean ecommerce brands, resist the urge to diversify ad spend across multiple platforms; instead, concentrate resources on the single channel delivering the best performance, typically Meta.
Before exploring new ad channels, ensure you've exhausted all scaling opportunities and efficiency gains within your primary platform.
Recognize that "diversification" for media buying only becomes truly beneficial and necessary when you are operating at a scale where a single platform cannot absorb your full budget (e.g., spending over $50-100k/day on Meta).
Avoid confusing your "presence" on a platform with effective ad "spend" on that platform; a brand profile does not equate to a viable ad channel.
Continuously monitor and optimize your chosen primary ad channel for diminishing returns rather than prematurely moving to new platforms.
"We need to diversify our ad spend away from Facebook!"
That's one of the most common things I hear ecom operators & marketers say right now, and it's mostly a bad idea. In this episode, I'll explain to you why the better path is to focus more resolutely on the best opportunity for efficient customer acquisition at scale–Facebook–and only diversify if and when the conditions are right for it.
Follow Andrew on Twitter: @andrewjfaris
Email Andrew: podcast@ajfgrowth.com
Work with Andrew: www.ajfgrowth.com Intro Music: "Tell Me Mama" by The Devious Means
Outro Music: "Rusty Little Scissors" by The Devious Means
What does this episode say about paid acquisition?
For lean ecommerce brands, resist the urge to diversify ad spend across multiple platforms; instead, concentrate resources on the single channel delivering the best performance, typically Meta.
What does this episode say about dtc strategy?
Before exploring new ad channels, ensure you've exhausted all scaling opportunities and efficiency gains within your primary platform.
What does this episode say about founder & leadership?
Recognize that "diversification" for media buying only becomes truly beneficial and necessary when you are operating at a scale where a single platform cannot absorb your full budget (e.g., spending over $50-100k/day on Meta).
What does this episode say about paid acquisition?
Avoid confusing your "presence" on a platform with effective ad "spend" on that platform; a brand profile does not equate to a viable ad channel.
What does this episode say about paid acquisition?
Continuously monitor and optimize your chosen primary ad channel for diminishing returns rather than prematurely moving to new platforms.
