The Bottom Line: Ecommerce Tactics for Profitable Growth artwork

Ep #021: Optimizing Scale by using Cost Cap Bid Strategy on Facebook (with Dan McCormick)

The Bottom Line: Ecommerce Tactics for Profitable Growth · with Dan McCormick · April 6, 2023 · 43 min

Summary

This episode dives deep into the successful, rapid growth of Create, a DTC brand disrupting the creatine market with gummies. It showcases how a strategic blend of Meta ads, particularly utilizing Cost Cap bid strategies and DCTs, partnered with a nuanced approach to influencer marketing and building in public on platforms like Twitter, can drive significant sales for a new brand. Entrepreneurs will learn how to efficiently scale paid acquisition and leverage organic strategies for brand awareness and customer acquisition in a competitive market.

Key takeaways

Themes

dtc strategyfounder & leadershipinfluencer & creatorpaid acquisition

Topics covered

brand buildingbuilding in publiccost cap biddingcreatine gummiesdtc growth strategiesdynamic creative testing (dcts)influencer seedingmeta adsorganic marketingugc contracts

Episode description

In this episode, Dan McCormick, the Founder, and CEO at Create Wellness, will be talking about how he’s been using cost cap bid strategy on Facebook (with the assistance of Kynship) to be their fastest rising D2C client. TIMESTAMPS [03:36]: Dan’s background. [08:20]: Create Wellness brand overview. [09:57]: The launch progress & projected goal of Create. [11:15]: Marketing channels. [13:45]: Utilizing relationships in pitching Create. [15:30]: Dan's philosophy. [19:13]: Feedback from Influencers. [24:00]: Facebook ban on Create's ad account [26:51]: Issue at the beginning of launching ads. [27:49]: Eye opener for launching creative pieces for Create [29:57]: Facebook ad performance. [32:03]: Lessons from product launch. [35:45]: Subscription model for acquiring more customers. [37:22]: Advice to brands.   KEY LESSONS & QUOTES  “Creative drives company brand, company brand then drives creative” – Dan McCormick “The top-down approach has its place in a company, but there's also a place for listening to who your product resonates with and then building from that

Frequently asked about this episode

What does this episode say about dtc strategy?
Implement Meta's Cost Cap bid strategy from launch to maintain profitability and scale ad spend efficiently, even with a new product.
What does this episode say about founder & leadership?
Prioritize building in public, especially as a founder, sharing real data and behind-the-scenes insights to foster community and organic growth, as demonstrated by Dan McCormick on Twitter.
What does this episode say about influencer & creator?
Adopt a long-term, relationship-focused approach to influencer marketing, understanding that initial content dissatisfaction can evolve into valuable UGC contracts and product feedback.
What does this episode say about paid acquisition?
Focus on a clear, differentiated product that addresses a market gap or consumer need, like Creatine's gummy format for wider creatine adoption.
What does this episode say about dtc strategy?
Leverage organic marketing channels strategically; for example, the 'Not Boring' newsletter's success highlights the power of high-quality organic reach with a defined, valuable audience.

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