S11 E10: Breaking Down the Marpipe Report: Catalog Ads + DPA
Mar 12, 2025
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Nik shares fascinating insights from a DPA report with Marpipe, revealing catalog ads as strategic carpool lanes for marketing. He discusses how TikTok and Snapchat are enhancing their catalog ads for improved performance. Learn how a simple 'Add to Cart' test can dramatically transform consumer behavior. Discover innovative strategies used by second-time founders that emphasize efficiency and learning from past experiences, paving the way for successful brand launches.
25:29
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Quick takeaways
Enriched catalog ads significantly enhance e-commerce performance by yielding double the return on ad spend and higher average order values.
Second-time founders exhibit a proactive mindset by prioritizing innovative solutions and rapid execution, leading to greater business growth and sustainability.
Deep dives
Leveraging Retention Marketing with Instant
Identifying anonymous website visitors presents a challenge for brands, but Instant provides a retention marketing solution that captures these potential customers. This platform enables brands to send significantly more site abandonment emails, potentially doubling their revenue from these abandoned flows. The capacity to reach out to traffic that would otherwise remain unidentified enhances the likelihood of conversion, making it a valuable tool for e-commerce businesses. By utilizing such a platform, brands can maximize their return on ad spend and improve overall sales efficiency.
Key Insights from the DPA Report
A recent analysis of over $2 billion in catalog revenue revealed significant advantages of using enriched catalog ads over standard catalog ads. These enriched versions demonstrated nearly double the return on ad spend, a substantial increase in average order value, and a notably lower customer acquisition cost. By utilizing more dynamic content in catalog ads, brands can create a more engaging shopping experience that translates into higher conversion rates and revenue. As the use of enriched catalog strategies grows, brands are encouraged to adapt their advertising methods to leverage these insights effectively.
Differences Among Second-Time Founders
Second-time founders display distinct behaviors that contribute to their success compared to first-time entrepreneurs. They often prioritize innovative solutions over mere competition, pushing for proprietary products that stand out in the market. Additionally, they focus on rapid execution and distribution, aiming for quick responses and prioritizing product placement in consumer-accessible locations. This proactive mindset, combined with a focus on measurable outcomes such as units sold and profit, positions them for faster growth and more sustainable business practices.
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Insights into Enriched Catalog Ads and Second-Time Founder Success
Nik did a DPA report with everyone’s favorite ad software, Marpipe. And it’s time to share what he found.
First, let’s start off with catalog ads: they’re actually carpool lanes, and you’re only running in the carpool lane if you’re paying for it or have others on board. How does this relate to catalog ad options? How do they run on their own?
Plus, TikTok and Snapchat are working to improve their DPAs and catalog ads—which means things like this are probably going to become uniform across platforms. They’re starting to understand traits and tags that will help them sell more. How can you use this to your advantage if you’re selling via social? What’s the future of catalog ads? (Hint: they’re not going away anytime soon.)
And, find out how a simple “Add to Cart” test can affect behavior.
Instant turns browsers into buyers by supercharging your retention marketing.
Double Your Revenue: Capture 2-3x more abandonment signals to power targeted re-marketing flows.
Remembers your opt-ins: Keep opted-in shoppers remembered for longer while keeping Klaviyo updated.
Automated Re-Marketing: Instantly notify your email or SMS platform when a subscriber abandons your site, triggering automated flows to bring them back.
And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik’s most unfiltered, uncensored thoughts.