The Andrew Faris Podcast

"Test creative until you have statistically significant results, then scale the winners based on that." That seems like good advice on first glance. How can you disagree with methodical testing that's attentive to good statistical principles? Because it's almost impossible to actually do without burning huge amounts of money on Meta, for one, and for two, it's unnecessary anyway, since Meta's machine learning can use better methods of forecasting your creative's performance than frequentist-style stat sig tests. Yes, this one is getting into the weeds. Hopefully it helps clarify more of why you absolutely positively should not run auto-bid creative testing campaigns on Meta. EPISODE HIGHLIGHTS [00:00:55] Creative testing strategies for meta ads. [00:05:10] Frustrations with new creative. [00:07:16] Creative testing campaigns on Meta. [00:11:15] Auto bidding creative tests. [00:14:25] Statistical significance in ad testing. [00:17:48] Ad Performance Analysis. [00:19:56] The pitfalls of ad testing. [00:24:41] Creative performance and optimization. [00:27:17] Meta's machine learning forecasting. [00:30:51] Creative testing in advertising. [00:33:19] Prediction at scale EPISODE SPONSOR Virtual assistants can be helpful. Virtual professionals can transform your business. Get connected to incredible ecommerce talent from the Philippines with More Staffing by visiting ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.morenow.co⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. REFERENCED IN THIS EPISODE "My Exact Creative Testing Method For Meta Ads" (Spotify, Apple) My Twitter Conversation With Zach Stuck On This Topic: https://bit.ly/42JsbZ0 FOLLOW UP WITH ANDREW Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

Explore the journey of Beardbrand from organic YouTube success to cracking the Meta Ads code. Learn about strategic ad account building and optimization, Shopify analytics for revenue growth, and the importance of creative content in online advertising. Dive into bid caps, CPA targets, and balancing writing with video creation for effective marketing. Discover innovative strategies for engagement and get valuable insights on ad campaign optimization for long-term profitability.

We're taking a break from the tactical, but this episode is no less practical. Taking a full day completely off of work every week has been one of the most important practices for keeping my relationship to work in its right place in my life while also providing the rest required to perform at work at as high of a level as possible. In this episode, I explain how the ancient practice of Sabbath has unique power for people like me who love our jobs, and I give practical recommendations on what has made it work for me. EPISODE HIGHLIGHTS [00:01:19] Setting aside one day. [00:04:29] Work-life balance struggle. [00:06:25] Sabbath as a repeatable process. [00:09:13] Setting work boundaries. [00:11:51] Rest and work productivity. [00:14:49] Work-life balance. [00:18:00] The value of work. [00:22:02] The perils of chasing success. [00:24:28] Deeper purpose beyond work. [00:27:47] Diversification strategy for joy. EPISODE SPONSOR Virtual assistants can be helpful. Virtual professionals can transform your business. Get connected to incredible ecommerce talent from the Philippines with More Staffing by visiting ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.morenow.co⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. FOLLOW UP WITH ANDREW Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

My last episode with Jones Road Beauty CMO & CRO Cody Plofker is the most popular episode in my podcast's history. Which meant it was time to bring him back. This is a wide-ranging episode in which Cody and I talk about how to think about Contribution Margin as a dollar amount (instead of just efficiency metrics like MER or aMER), how to forecast a DTC brand effectively, and how to use the concept of a "unique mechanism" in your DTC ad messaging. EPISODE HIGHLIGHTS [00:52] Cody's switch to bid caps. [03:39] Joining Slack groups for support. [07:12] Removing the pacing mechanism. [08:52] Bidding and budgeting strategies. [11:23] Ratio targets and contribution dollars. [14:23] Tying marketing to financial metrics. [17:20] ASC cost caps and lowest cost. [21:32] Relying on meta for demand. [22:37] Supply chain management in e-commerce. [26:23] Product launches and exclusivity. [29:12] Adjusting bid caps for sales. [31:41] Delayed attribution and Black Friday. [33:23] Making adjustments and comfort levels. [37:12] By-product value of advertising spend. [39:30] Bid multipliers and targeting. [41:19] In-store sales and advertising. EPISODE SPONSOR Add supply chain experts to your team at a drastically lower cost than you're expecting by hiring More Fractional Supply Chain, a service of my friends at More Staffing. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.morenow.co⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and use the code AJF20 to get 20% off your first 3 months. AFP EPISODES REFERENCED IN THIS EPISODE "Cody Plofker Goes DEEP On Meta Media Buying" (Spotify, Apple) "With $10M In Revenue And $0 In Ad Spend, Isaac Medeiros Is In A Class Of His Own" (Spotify, Apple) "Briefing A Longform Explainer Ad For Bambu Earth Live (With Dave Rekuc)" (Spotify, Apple) OTHER RESOURCES REFERENCED Dave Rekuc's CXL Forecasting Course Ogilvy On Advertising Breakthrough Advertising FOLLOW UP WITH CODY Sign Up For Cody's Newsletter: ⁠https://www.codyplofker.com/newsletter⁠ Follow Cody on X: ⁠https://twitter.com/codyplof⁠ Hire Cody On MentorPass: ⁠https://www.mentorpass.co/me/codyplofker⁠ FOLLOW UP WITH ANDREW Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

I've always said that the offer is the foremost driver of performance in direct response advertising. But I haven't always aligned my actions with that thought. But after some recent & massive client wins centering on running the same ads to new offers, I've been reminded of just how crucial it is to get this right. So in this episode, I'm categorizing defining what I mean by "offer" and categorizing offer type that can move the needle for different kinds of brands. EPISODE HIGHLIGHTS [00:00:25] The importance of offers. [00:05:53] Unlocking Account with Offer [00:06:46] Offer testing and optimization. [00:09:12] Email capture strategies. [00:13:59] Good, better, best offer. [00:15:46] Good, Better, Best offers. [00:19:05] Hiring talent from the Philippines. [00:21:44] Cash back and discounts. [00:27:22] Subscription-focused lander. [00:27:43] Strong offers and subscription funnels. EPISODE SPONSOR Virtual assistants can be helpful. Virtual professionals can transform your business. Get connected to incredible ecommerce talent from the Philippines with More Staffing by visiting ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.morenow.co⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. FOLLOW UP WITH ANDREW Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

A few weeks ago I told you that longform explainer ads are the best performing ads I run in an episode where I went through an overview of the concept and structure of the ads. But then I thought: "Wait, why don't I just record myself actually writing one of these instead?" So I got together with my good friend Dave Rekuc, President & COO at Bambu Earth, and we briefed out a longform explainer ad from start to finish to prep for an upcoming shoot of his. The result is a (long) episode in which we document the entire process of thinking through what makes customers love Bambu Earth and how to communicate that with clarity in an ad. Important note: we don't know how this ad will perform yet, but once we do, I'll update you. So make sure to subscribe so you don't miss out as we learn how it goes. EPISODE SPONSOR Add supply chain experts to your team at a drastically lower cost than you're expecting by hiring More Fractional Supply Chain, a service of my friends at More Staffing. Visit morenow.co and use the code AJF20 to get 20% off your first 3 months. OTHER AFP EPISODES REFERENCED IN THIS EPISODE "The Best Performing Meta Ads I Run" (Spotify, Apple) "Dave Rekuc Beat Cancer, Cash Conversion Cycles" (Spotify, Apple) "Let's Fix Your Supply Chain And Save You A Ton Of Money (With Lara Guevara)" (Spotify, Apple) FOLLOW UP WITH ANDREW Follow Andrew on X: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

One of the most common pieces of advice I give ecommerce operators is to hunt for savings in their supply chain so that their unit economics can better. Supply chain savings go straight to the bottom line (or open up more room for you to spend on customer acquisition). It's good advice, but it often isn't actionable, because there is an obvious follow-up question: How? Lara Guevara knows the answer, and on this episode of the show, she tells you. We talked about knowing your suppliers' suppliers, negotiating freight forwarding, and thinking intelligently about exchange rates. It's all doable, and if you don't know where to start, Lara is ready to help. EPISODE HIGHLIGHTS [00:03:11] Efficiency in e-commerce supply chain. [00:07:05] Savings in ocean freight. [00:13:16] Negotiating with local currency. [00:18:13] BlanketPO for cost savings. [00:21:28] Potential savings for brands. [00:25:45] Understanding tier one to tier three. [00:29:33] Negotiating payment terms for products [00:38:18] Slow-moving product report and marketing. [00:42:50] Balancing overstock and understock. [00:45:49] Out of stock and forecasting. [00:47:32] Fractional Supply Chain Services. EPISODE SPONSOR Add supply chain experts to your team at a drastically lower cost than you're expecting by hiring More Fractional Supply Chain, a service of my friends at More Staffing. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://morenow.co⁠⁠ and use the code AJF20 to get 20% off your first 3 months. REFERENCED IN THIS EPISODE To get a Cohort Forecast Template, sign up for my email list at https://ajfgrowth.com. Lara's incredible supply chain savings thread. 3rd Party Auditor recommendation: V-Trust. FOLLOW UP WITH LARA Follow Lara on X: ⁠@SupplyChainWomn FOLLOW UP WITH ANDREW Follow Andrew on X: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means

Boost your brand value by running organic content as ads without any additional cost. Repurpose organic Instagram posts as ads in your ad account and optimize ad spend while efficiently scaling ads. Maximize revenue and keep costs low in e-commerce by hiring Filipino employees. Use past posts in ad accounts to test performance and invest in long-form content. Generate revenue without ad spend by using organic social content as ads.

In this podcast, Kirk Williams discusses the importance of Google Ads for DTC brands, Google's antitrust case, concerns about Performance Max, advantage plus shopping campaigns, marketing differences between Google and Meta, new customer campaign success, efficiency in the supply chain, Google's advertising challenges, search advertising strategies, and agency brand relations.

Fan Bi sees 10 different ecommerce businesses every week and has seen ~1,000 in the last year. That's because Fan's job is to buy DTC brands for The Hedgehog Company, the aggregator where he's the CEO. He's got 4 now and looking to add. The upshot of all that? He has one of the deepest senses of the market for ecommerce brands of anyone I know, and he can tell you very quickly if your business is set up well for an exit. So on this week's episode, Fan and I talked through what makes a good DTC brand and what kind of multiples ecommerce businesses are getting today, all so that you can focus on the right metrics for maximizing the value of yours. EPISODE HIGHLIGHTS • [00:02:28] The meaning of life. • [00:05:11] Valuation of e-commerce businesses. • [00:08:09] Impact of investor preference. • [00:10:37] Early-stage valuation and investment. • [00:14:48] Valuing ROI and Exit Strategies. • [00:15:41] Valuing businesses based on EBITDA. • [00:19:32] Changing deal structures in acquisitions. • [00:22:06] Negative CAGR and business volatility. • [00:28:32] E-commerce business challenges. • [00:29:00] Lean operations in e-commerce. • [00:32:07] Revenue quality and valuation. • [00:35:33] Cash conversion and working capital. • [00:39:14] DTC advantages and scalability. • [00:42:31] Unfair advantages in e-commerce. • [00:45:56] Tough time to be selling. • [00:48:24] Building a business for scale and profit. EPISODE SPONSOR Add supply chain experts to your team at a drastically lower cost than you're expecting by hiring More Fractional Supply Chain, a service of my friends at More Staffing. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://morenow.co and use the code AJF20 to get 20% off your first 3 months. PREVIOUS AFP EPISODES REFERENCED • "Patrick Coddou Sold Supply" (Spotify, Apple) • "Dan McCormick Is Taking 'Build In Public' To A Whole New Level" (Spotify, Apple, YouTube) FOLLOW UP WITH FAN • ⁠Follow Fan on X: @LifeOfBi • Learn More About The Hedgehog Company: https://www.thehedgehogcompany.com/ FOLLOW UP WITH ANDREW Follow Andrew on X: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Email Andrew: podcast@ajfgrowth.com Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means