How Obvi's Ad Spend Doubled When Ash Went International
Oct 9, 2024
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Ash Melwani, Co-Founder and CMO of Obvi and Chew On This DTC, dives into the transformative power of international advertising for e-commerce brands. He reveals how expanding into new markets led to a doubling of ad spend. The conversation covers strategic partnerships, influencer marketing, and navigating the intricacies of customer acquisition costs. Ash offers valuable insight into tailored pricing strategies and the significance of localized advertising to enhance global reach and customer satisfaction.
Expanding into international markets presents brands with significant ad spend opportunities and the ability to reach audiences with unmet demand.
Effective operational logistics and customer experience management, such as local currency pricing and shipping, are crucial for international market success.
Utilizing a mix of ad campaign strategies and influencer marketing is essential for enhancing brand visibility and long-term growth in e-commerce.
Deep dives
Exploring International Advertising Opportunities
International advertising presents significant opportunities for brands, as demonstrated by experiences shared by both the speaker and Ash Melwani from Obvi. Expanding advertising to foreign markets has led to increased ad spend and enhanced performance metrics, with both parties reporting that around 50% of their spending is now allocated to international markets. By tapping into countries with cheaper cost per mille (CPM) rates and unmet demand for their products, brands can effectively leverage international audiences. As Q4 approaches and market conditions fluctuate, this expansion appears particularly timely and strategic for sustained growth.
Operational Considerations for Selling Internationally
Entering international markets involves careful planning around operational logistics and customer experience. Successful strategies include ensuring that customers can shop in their local currency and that all shipping, customs, and duties are managed effectively to minimize friction during the purchase process. Implementing tools like Open Border has enabled brands to dynamically adjust pricing and offer a smoother checkout experience for international customers. This not only streamlines the purchasing process but also significantly boosts conversion rates by eliminating unexpected costs.
Campaign Structure and Ad Spend Management
Ad campaign structure plays a crucial role in successfully engaging international audiences. Brands are advised to create separate campaigns for different countries, enabling them to tailor targeting and messaging effectively. A focus on monitoring each campaign's performance and adjusting bids based on local market conditions has been beneficial for scaling international efforts. This allows for better allocation of resources and ensuring that each campaign meets its unique audience needs while maximizing overall return on ad spend (ROAS).
Influencer Marketing and Organic Growth
The conversation highlighted the importance of leveraging influencer marketing and organic growth strategies alongside traditional paid advertising channels. Building strong relationships with creators and influencers can enhance brand visibility and drive better engagement with target audiences, particularly in the competitive landscape of e-commerce. There is a growing recognition that brands should not rely exclusively on platforms like Meta for traffic generation; instead, diversifying advertising strategies into organic methods is essential for long-term growth. This approach helps establish a more resilient marketing framework that can adapt to changing market conditions.
Future Growth Through Omnichannel Approaches
Looking ahead, brands are encouraged to explore omnichannel strategies as a means to drive growth and reach new customer segments. Integrating online platforms with physical retail presence offers a pathway to capturing additional market share and meeting consumer demand in various regions. The experiences shared in the podcast suggest that as brands refine their international advertising efforts, they should also consider broader marketing tactics that include out-of-home advertising, local partnerships, and entry into new retailer spaces. By taking a proactive approach to diversification, businesses can set themselves up for substantial growth in an increasingly global marketplace.
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