Ep 247: AKNF - Paid Social State of the Union: Performance Marketing vs Rising Costs
DTC Podcast · with Nate · October 21, 2022 · 19 min
Summary
This episode unveils the critical trends shaping paid social for DTC brands, addressing escalating ad costs and the paradox of rising CTRs signaling poor targeting. It champions "scrappy creative" as the undisputed growth driver and explores how brands leverage third-party collaborations for scale, with some channeling the majority of their ad spend through these partnerships. DTC operators will gain actionable strategies for navigating performance marketing challenges and optimizing ad spend in a dynamic landscape.
Key takeaways
Invest in "scrappy creative" (raw, authentic, UGC-style) as it consistently outperforms highly polished ads for engagement and conversions, even amidst rising costs.
Re-evaluate the interpretation of rising CTRs; they can indicate broader, less targeted audience segments rather than improved ad performance.
Explore strategic partnerships with third-party brands to increase scale and reach new audiences, even considering allocating a significant portion of your ad spend through these collaborations.
Prioritize creative testing and iteration to discover what resonates best with your target audience, as creative is the primary lever for performance growth in paid social.
Understand that optimizing for profitability requires a holistic view beyond just impression and clicks, especially given the current cost environment for paid acquisition channels.
Subscribe to DTC Newsletter - https://dtcnews.link/signup Welcome to All Killer No Filler the DTC Podcast
Today we're sharing a very special presentation from our C-Suite Mastermind in September. This talk features Dave Steele, CEO of Pilothouse and Head of Socials, Nate discussing the biggest trends of the year in the world of high spend performance marketing, including
Rising costs and click through rates (and why CTR increases mean worse audience targeting)
Why Scrappy Creative is still the undisputed king of performance growth
Why brands are using third party brands to increase their scale, and why some brands are spending the majority of their ad spend through them!)
Work with Pilothouse ➝ https://pilothouse.co
Pre-Order the C-Suite Mastermind - ➝ https://www.directtoconsumer.co/c-suite-mastermind-replays Subscribe to DTC Newsletter - https://dtcnews.link/signup
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Work with Pilothouse - https://dtcnews.link/pilothouse
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Watch this interview on YouTube - https://dtcnews.link/video
What does this episode say about paid acquisition?
Invest in "scrappy creative" (raw, authentic, UGC-style) as it consistently outperforms highly polished ads for engagement and conversions, even amidst rising costs.
What does this episode say about dtc strategy?
Re-evaluate the interpretation of rising CTRs; they can indicate broader, less targeted audience segments rather than improved ad performance.
What does this episode say about brand & content?
Explore strategic partnerships with third-party brands to increase scale and reach new audiences, even considering allocating a significant portion of your ad spend through these collaborations.
What does this episode say about founder & leadership?
Prioritize creative testing and iteration to discover what resonates best with your target audience, as creative is the primary lever for performance growth in paid social.
What does this episode say about paid acquisition?
Understand that optimizing for profitability requires a holistic view beyond just impression and clicks, especially given the current cost environment for paid acquisition channels.
