Skyrocketing ad costs? 😰

Estimated read time: 3 min, 52 sec

In this week’s letter 📨:

• 👎 Lukewarm Q1? Here’s what you can do

• ​​​​✅ Test different discounts for product variants

• 💡 SEO Tip: Specialized product categories 

• ​​​​😴 #FeaturedAd - Bearaby

• 👜 #BrandedCatalog Spotlight - eské

• 🆕 New Ads @Socioh

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Higher CPMs Slowing You Down On Meta?

It’s been a weak Q1 for a lot of DTC brands.

The slowdown isn’t just Meta — the macro trends indicate a recession or a tipping point. 

But the fact remains, that Meta is broken. 

And it’s unlike anything we’ve seen before. 

What do we mean?

Unlike earlier, when we’d see Meta’s algorithm recover after a short adjustment period, Q1 has been extremely inconsistent, and there’s no correction in sight. Some problems reported by advertisers during this time:

• CPMs have been extremely high

• Lower conversion rates, pushing up your acquisition costs (CPAs)

• Volatile performance without clear signals - ROAS is 3x one day, 0.5x the next. 

• Cost-cap campaigns spending beyond caps, or entire campaign budgets being spent within hours

There’s been a lot of speculation on why this is and whether Meta will fix its algo (or what a stronger Meta algo even means). 

Here’s what you can do right now if you’ve seen a slower first quarter (thank you, @heyitsalexp!). 

1. Stop the bleeding: Identify where you’re losing money. Cut daily spend or shift to what is known and works for you. This may mean moving to a more manual setup, or reviewing what placements do better for you. 

2. Test new creative formats, offers, and campaigns: Has it been a while since static ads last worked for you? Now’s the time to test different creatives and offers. Never ran DPAs or gave up on them? Test creative optimization in dynamic ads.
   The same goes for campaign types you have not tested. Remember, no two accounts work the same — an account we work with has started a new ASC campaign (one year after first testing this format unsuccessfully) and is killing it!

3. Adjust your 2024 forecast: If a large part of your revenue depends on Meta, you may need to adjust your forecast for the year. Use the Q1 CAC as a new baseline and work from there. 

But what if the new baseline just doesn’t work for you? 

You’ll have to think beyond Meta — both short and long-term. 

In the short term, identify diversification quick wins. Can you use your Meta videos on YouTube? Do more with email? Run your static ads on Twitter? 

Longer-term strategies for channel diversification require new competencies. Read Alex’s newsletter for more.

Test Different Pricing For Different Variants

Would you price different product variants (say color or flavor) differently? 

A lot of big retailers do it. Check out Nike’s landing page in this tweet from @TaylorHoliday below: 

But this reminds you of surge pricing on Uber and you don’t want your customers to have the same experience? 

Fair.

So how should you implement it?

Instead of discounting all products the same, add higher discounts for variants with lower demand. 

After all, your inventory isn’t the same for all your variants, so why not add an incentive to purchase slower-moving items? Win-win!

Improve Your SEO with New Category Pages 

Working on your website SEO?

You already know that one way to rank for higher-volume keywords is by going after related longer-tailed keywords. 

But did you know that you can apply the same learnings to your category pages?

This tweet by @SEOKeval explains the strategy: 

P.S. Don’t forget to add them to your main navigation menu to get them to rank in Google fast!

#FeaturedAd - Bearaby

Brand: Bearaby
Category: Home Goods
Format: Static Image (Feed & Story)

WHY IT WORKS:

The simplicity. And the copy.

While it helps that Bearaby is known as a brand for better sleep solutions, the lifestyle photo with the product reinforces the brand’s association with rest and sleep. 

Don’t miss how well the product is centered. 

Right from the moment I see this ad, I know what Bearaby is advertising.

But it’s not just the photo. The ad helps differentiate their product from others in the market using a simple tool — USPs added as labels.

This is important especially when introducing a new product that shoppers may not be familiar with. 

What we think: Notice how often the copy does the hard work in a simple ad. 

A weighted, cooling sleep mask sounds great but will it be too heavy? No, it’s ‘gently weighted’ to ‘melt tension’. And yes, it blocks light, great but also suppresses noise — how quickly can I get it shipped to me?

Want more ideas? See this ad and 1000s of others in Socioh’s ad library.

#BrandedCatalog Spotlight - eské

Brand: eské
Category: Accessories
Template type:  Multi-image layout with mapped price

DESIGN HIGHLIGHTS:

• The category-based design is minimal, allowing shoppers to focus on the details and finish of each product.

• The design uses a two-image layout for bags and a three-image layout for their footwear to showcase different angles of their products.

• Slashed prices are automatically mapped for each product to convey value.

Use lifestyle or additional images, add backgrounds, or map key marketing info onto your dynamic ads. Learn more about customizing your dynamic ads with Socioh’s Branded Catalogs.

New Ads @Socioh

New ads this week — Beyond Yoga, Andie, Sakara Life, and more. Find these ads and tons of inspiration in Socioh’s ad library.

P.S. We update our library with new ads every week

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