Cutting Ad Spend on December 2nd Is the Most Expensive Mistake of Q4 | AKNF

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What's more important? This Black Friday Cyber Monday, you're offer or a multi-faceted approach to your creative. What are we putting the priority on? I think I'd like to say anything to be done with the fact that it's a bit of a shorter year this year. I feel like some brands joke and say, like, get's earlier every year, but feels kind of true, where even though Black Friday falls at a weird

“time this year doesn't mean that you have to shorten your sale. The lead up to Q5, you know, a lot of”

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It's all killer no filler that did a see rundown. We're doing it for the first time with a

couple of new guests. We've got Jacob and Abby from the socials team here at pilot house. Welcome back to the rundown guys. Welcome to your first ever rundown episode. Let's just kick it off. I didn't even tell you guys we'd mention this but oh here I got you got to start the board. Start the board going. Talk to me about Meta CPMs. I'm in my chat groups, people are going crazy about

“Meta CPMs. I see they're up about 13% over last year. Jacob what are we seeing in the field?”

Yeah, no yeah pretty much that like they're definitely a bit higher this year. You're over year and obviously we're in Q4 now. So cost of traffic naturally is going to go up. But we also

in the states there's like the midterms which always affects it as well. So it's a couple of things

that have been stacking up and you know obviously it doesn't mean your traffic quality is bad or anything like that but it doesn't mean the the average cost of delivers going up a bit. So yeah that's that's kind of where it's at. Those brands that have prep for this and fed the pixel and brought in cold traffic or uh started to see that payoff versus brands that are you know doing the usual day-to-day stuff right now. Yeah definitely nothing new to report your except prices keep going up which is

the norm. It's it's classic. Yeah let's let's leave that one at a minute we're going to jump to the next one

“which is a change that Meta is making to campaigns that becomes a default as of Friday. I believe”

of this week this will actually come out on Friday so this will be a new default where they're actually putting their sort of storefront in between your ad and the website. You tell me what you know about that one. Yeah I mean on my end I don't know a ton like you said there hasn't hasn't been a ton of uh you know documentation put out by Meta or anything like that we we had a quick chat with the reps on it but yeah it is something that I think you it by default is going to

be added in unless you're opting out you'll start to see this somewhat extra step where yeah like you said Meta's kind of taking products automatically if they click that tag there's a bit of a pop-up that lives on Meta so obviously some advantages and disadvantages of of that but um definitely an interesting thing that that advertiser is going to start to see yeah are we going to opt out of it for most clients are we going to I guess we're going to test a little bit what what's

well we'll definitely see what initial metrics are looking like um typically when Meta pushes out and update like this it's it's at least we're testing into like a lot of the time it's going to feed into your opportunity score so if you opt out of it you might see like a lower opportunity score which might mean your ads deliver uh not quite as effectively so that side of it is worth taking

into consideration and you know it's always always worth testing but um yeah the other side of it you

know losing some data potential that extra step you know losing potential like site visitors is

“is also a downside so it really comes down to your your KPIs I think I want to what Shopify”

thinks of it Meta kind of encroaching into their territory a little bit I know everyone wants to be the place where these purchases are made but it just sounds like a pretty crazy thing to be putting into place right before like right in the heat of Q4 right before all the traffic it's partly why they're doing it but uh yeah it's it's an interesting update I uh you know obviously we haven't tested yet it's not out but it's definitely something we're keeping an eye on yeah all right

well we'll watch this space another quick one here we'll move on to the the meat of the discussion here and maybe Abby will start with you on this one let's start it off on the rundown counter here this is sort of I have this idea of creative first creative versus discounts and I think a lot of people we we put out a big report last month about or this month about um the amount of brands that sort of become overly dependent on discounting and this Q4 this idea that you've got to meet

customers where they're at you've got to do deep discounts what's more important this Black Friday Cyber Monday you're offer or you know a strategic really strong deep discounted approach to your

“offer or a multi-faceted approach to your creative what are we putting the priority on?”

I think I'd like to say both um like I wouldn't want your offer to ever be secondary in the creative that you're running for Black Friday like it should be the primary um you're just competing against like assuming you're just running in conversion campaigns and you're something like a cookware brand you're just competing against like all-clad care away like all these big names that are just being as clear as they can with their offer so you're trying to just win attention at

that point but I think where like strategy kind of comes into play is like the contrasting ways that you can like expand your reach through your creative so still like making your offer your primary like kind of like this is number one make it as clear as possible front and center in the creative but then like how you do it really matters so don't just make a hundred static odds this year video is also like really important when Jacob was talking about CPMs increasing I actually have one brand

who's always struggled with CPMs but because they've invested on their side heavily in a video

content they're the only brand in my portfolio that has had CPMs go down this year like during this time which is nuts but it was just because of a huge flood of video content so if you're like worried about traffic costs and whatnot think of like diversity video content as a primary over stratics I would say and then but I wouldn't like like don't overthink it still go offer as a primary when you say video investing heavily into video what like all kinds of video we talking UGC

are we talking you know founder videos what are the videos that are moving the needle for this account literally everything but I think that's kind of the point like with UGC there's so much you could do because you can literally go source out the type of persona that you want and then have them create content that like hyper targets that persona but then also founder content is very contrasting

but it's also really good for improving your watch times because I always like to say like people are

nosy and if they get like the inside scoop or what they feel like is the inside scoop of a brand then

“I just feel like they're like lead a watch the video longer because that's what I've been seeing”

with founders content and then I'd say like a third prong is very I don't want to say I'll say low-fi where like you know I'm going to one of my brand's warehouses next week and we are running around with cardboard pieces of paper saying black Friday sale and throwing their product in the air but like those ads won't be longer than 20 seconds because it's just like a fun way to make the offer like as in the fate in like consumers faces we possibly can.

Yeah we're going to add their Jacob I agree but I do think it also comes down to the audience right like your retargeting audience those people that are aware of you that's when your offer is going to matter more like you know 30 40% off they're actually aware of your your product

30% off site wide like that's you want to hammer that all but to the cold audience you know what does it mean right 20% off 40% off they're seeing all these deals higher percent doesn't necessarily mean better savings in terms of well how costly is the product so I think for the the cold audiences it still does come down to like your creative your strategy your actual messaging and being unique and you know standing out and make them aware of the product sure

you want to put it black Friday sale upfront everyone's just looking for those black Friday

“call outs at this this time of year but I think like it's a bit more important to have that variety”

in the cold traffic and you still need to be like Abby said introducing tons of videos strong hooks you know all these things but for that retargeting audience who simple offer is the main thing for sure so I think like think about that as your structure in your meta campaigns don't just throw all the same ads across like every campaign actually start to segment out all those those retargeting audiences and hit them a little more clearly all bold lettering offer offer full traffic sure

you're still mentioning black Friday but get a little more you know variety in there and then as the sale goes three four days in really start to like narrow it down to what what is working and start iterating on to that pretty quickly obviously yeah right to the next one here we this is just a short one because it's basically just that Thanksgiving is landing late this year which means there's a bit of a shortened season that we have to be making these offers anything

to be done with the fact that it's a bit of a shorter year this year I start your sale earlier I don't think you have to wait for like actual black Friday I would look at like the timeline that you've done historically and like what you're comfortable with those at brand I feel like some brands joke and say like gets earlier every year but it's also feels kind of true where even though like black Friday falls at a weird time this year doesn't mean that you have to shorten your sale

definitely just like look at the window that you feel comfortable in and start earlier that's

“that's what I'm doing no yeah I think you know launching early is definitely going to be a”

port and you don't want to just run a four day black Friday sale you're going to be missing out on on weeks of a better traffic you know it will be interesting like that might be another reason CPMs are a bit higher this year is the shorter season people spending a bit more in a shorter time period so you might be able to take advantage of that by extending a little longer so yeah it's it's kind of an interesting one like I think black Friday is on the 27th obviously Cyber Monday's the

30th the late Thanksgiving does you know compress things a little bit so I think yeah looking to launch as soon as you kind of get your ducks in a row you know early to mid November you can

always have a staggered you know offer in the sense of if you're noticing your your promo is kind

of fizzling out as you approach actual black Friday weekend maybe that's when you stack on the additional five percent or that's when you launch a countdown timer stat that additional urgency

“but yeah in general like I think we'll probably see most brands launching kind of early to mid”

November for sure I will say if you launch like another five percent for example or something just to kind of like yeah more rev so you're like pacing behind don't feel like you need a rein invent your whole creative strategy to just keep what's working on it's like a happy surprise for people when they land post-click where no one's gonna complain and hit you up being like you advertise 20 percent and it's 25 percent so I wouldn't let that be a panic that's something

that I always like to like establish before the sale because I don't want like my media buyers

having like any jump scares as well being like why we have to relaunch our black Friday ad so yeah that's a small nugget but I think it's more of a conversion booster than like a click through generator in a way it's like oh wow it's it's it's a happy surprise on the landing page when they're both make the purchase yeah I think some brands like actually like that's kind of their strategy as well as like you know mentioning 20 percent or 25 percent off on the front end probably might not

make much of a difference right like people are still gonna click that ad it's still 20 percent off whatever but then yeah you get to the site oh it's 25 you feel like you found this secret and they're like it kind of does give you that extra bit of a happiness or less regret I guess to just pull the trigger at that point so yeah it's a really good point yeah you also don't like another thing you could keep in mind is if your sales not going well there was one jewelry brand

I worked with last year where like we were experiencing that and they just added more to their

clearance section and we're able to pivot from like 30 percent off site wide to up to 50 percent so

another kind of like lever if you're if you feel like your discount needs to be deeper but you don't

“want to change your site wide offer so on top of that you should split test the two so like”

prepping right now I'm doing somewhere I'm like site wide messaging and then some up to messaging to see which one does better nice and speaking of holiday timing this Halloween is the last Saturday Halloween until 2037 so if you're hoping to have an epic night out on Halloween night this is this is the year to do it I saw that I'm so mad that I didn't DM you guys to dress up because Jacob I feel like you could have been Nathan Fielder and I would have been Elizabeth Holmes

or that would be pretty good I could be yeah can you just open your eyes to their maximum potential for the rest of this interview I think that would help oh my god I see that's that let's go oh you guys want it yeah yeah it's a real it's a real doozy of a film that's for sure it's like yeah we just do what we'll do a whole episode on that one next time maybe because there's a lot I've been a Nathan Fielder fan for years he went to you Vic you know yeah I was just

going to say that I learned that yesterday that's pretty cool this episode is brought to you by focal the AI asset management platform for creative teams everyone working in D to C uses an LLM now but almost everyone uses it in their own silo your media buyer and your creative strategists each have their own chats and neither knows what the other knows in creative that can get expensive real fast brands winning on meta and tiktok are shipping dozens of new ads a month across different angles

and formats because that's with the algorithm rewards keeping that pace only works if the whole team knows what's winning try pulling up last black Friday's ads and figuring out which ones actually drove sales most teams I talk to end up digging through drive slack and a pile of spreadsheets focal ties ad performance to the creative itself across every ad it ever ran in you can find any asset in seconds with AI search and run your whole production process from brief to approval in the

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okay next topic quickly starting with this was your topic jk basically you were saying

one of the biggest mistakes you can make as an advertiser is pausing or dramatically cutting your spend after cyber monday uh is that q5 what what what what what frame that topic for is properly yeah well q5 is actually like i think typically post Christmas to new that's right that one week but uh the lead up to q5 you know a lot of brands like oh you know cyber monday's done let's pull back regain efficiency for December you know whatever it might be

but like traffic is still buying you know Christmas is coming um sure maybe there's spots to pull

“back a little bit you might need to pause up some of your black Friday messaging but you should”

have gifting ready to go you should have you know Christmas sale ready to go um and ideally you just keep that momentum pushing like if you saw a big ramp up over black Friday weekend um yeah again ideally keep keep tailing off that wave and uh don't don't pull back and cut because a lot of

those black Friday customers if this is their first purchase you know they bought through black Friday

they're actually might come back to you and buy again for gifts right like you know this is awesome I love this thing oh the brand is still having a sale a gift in sale that's by five more of them for my family um and you know a lot of forecasts actually see those first two weeks of uh December outperform the last two weeks of November you know the black Friday sale versus the the first couple weeks of that December push um a lot of the time that December pushes is bigger so I don't

think you want to project that you're gonna pull back a bunch you know unless you're out of stock

“'cause you crushed it in black Friday I think you want to really push until that uh you know shipping cut off”

or whatever it might be December 20th um so that's yeah I think it's a good point to keep in mind and you know just plan about how you're gonna manage that transition manage that sale um and ideally you still do have some type of sale running in in early December keep spending also I guess one

especially the big big retailers the Walmart so you know whatever they're they're typically pulling

“back a bit um and yeah it's something that you want to take advantage of anything to add their”

Abby I would say like you're in cyberweek now which is like most brands I'm seeing just run for the whole week again you don't need to completely change your creative during that week you can just keep black Friday on you don't need to relaunch like all new cyberweekads and let them build up learnings by then a lot of your ads will be out of the learning phase four black Friday and it feels like a huge miss just to cut those if your cyber week offers the same offer is black

Friday a consumer doesn't care if they're seeing black Friday in cyberweek they're definitely not confused if anything it's gonna feel like a special like oh I can still shop this sale say

like Jacob's point if like the first one comes in and they want to do another for gifting I think

for supplementary ads I'd focus less on like cyberweek especially if the offer is the same and transition more into like gifting holiday paired with your sale because you're gonna be in peak

“gifting kind of like mindset for people um yeah I don't think you need to leave your sale on”

for like the whole period up until that your shipping cut off some brands do but once it's paused definitely having gifting already running in your account and then being able to transition your spend into that is key and then start thinking of what you can do post shipping cut off so um for example I've already prepped a few gifting ads for some brands because we're just like trying to plan early this year but those will get launched during black Friday with like

even though they don't have sale messaging they are just strong evergreen ads that we're working on but we have the intent of like wanting to take advantage of like that high in 10 period for shoppers to get learnings quickly so when we're post sale the ads that we want to prioritize in that short window already have learnings and they're like spending properly and built up with uh with rowads and like performance and everything but the last thing I'll say is

also just post shipping cut off think of like what else you can do like squeeze your list and like who you can reach and whatnot so like a gift card offer like 20% off gift cards or free shipping expedited shipping all of that is definitely going to be really really important. I made the decision the past two years to just do all my Christmas shopping at my friend Rob Fraser's company at that way so everyone in my family gets nice pairs of marino wool socks every year and it is

“so nice not to have to worry about anything else but like I think about that in terms of like”

I don't know that makes me a bad family member because I'm buying everyone socks but uh at the same time it just it's what an opportunity for advertisers to get people lazy like me who might just do all their Christmas shopping at one store. For sure hey someone's got to get get someone's socks there's gotta be that one person I get socks and they're nice socks guys so I think anyone out there just looking for my friend Rob's business go buy your family a bunch of nice marino wool

socks for Christmas. You guys would like that if I gave you those right? Of course. Honestly once my partner's

parents gave me marino wool socks and at first I was like classic I got socks but then I was like

these are really nice socks and I was like this shouldn't be a bad stereotype it was it was nice. Especially if you haven't worn marino wool socks before the way they the way they hug your feet are are some little it's usually just like a Costco socks guys so that's like premium for me yeah yeah oh step it up yeah step it up now I know what you need for Christmas. Yeah I agree with Abby point about leaving Black Friday on we've had some brands come to us

in the middle of March and they sell Black Friday ads running that's maybe a little too long yeah they leave them running because like they perform right like why why cut it eventually you want to consider like hey this brands out of touch are still running Black Friday ads but if yeah if the performance is aired or in the holidays you know extend the sale or just keep those ads going and yeah they will we'll definitely keep performing so yeah also if you see yourself as a brand

that like can jump into gifting during Black Friday consider self gifting and just like say like the brands really specific to like sizing and it's tough to guess for people be like you did your holiday shopping it's time to think of you it's our biggest sale of the year it's like a great you'll take yeah and then the few five last point like yeah there's that there's by Friday there's gifting Christmas happens probably a couple slower days there you know during actual Christmas or

box or a family togetherness but cue five you know 26 7 8 9 30 January 1st you know there's there's opportunities to kind of pivot your messaging start the new year right you know all those

are laughing right you got all these sales happening everyone's buying all this stuff and then boom now it's oh January what's my new year's resolution to get healthy and like you take advantage of that so you kind of need to be thinking ahead and you know plan all these sales and messaging keep what's working running the whole time and then layer in these these new messages and these new ads and yeah like cue five into cue one next year it's not every brand's gonna see a huge

dip some will obviously but if you're in the health space or you know athletics or whatever it might be there's opportunities for you to keep that momentum going of course yeah not just like the

“this is such a sneaky one in my opinion but I think jewelry is a big one because February is always”

such a strongman for jewelry and it always feels like there's this aha moment in January where it's

like it's time to start prepping some strong ads knowing that our spend's gonna increase in February with Valentine's Day this year I just I don't want to scramble it's like I should have that ready to go in cue five and just have a bank of like strong evergreen creatives ready to go live one CPMs are cut because people are in vacation like people have pulled back spend because Shopify's looking weak and I just want to be prepared on like the jewelry front to go hard with like some

really good evergreen ads that'll give us a boost into January with filling up our funnel and then really try to drain that funnel and February once we launch a valid stay offer this is something we talked about with other podcasts guess before what do you when you say drain the funnel what

what do you mean by that just sort of like going to all the people who've expressed interest but

haven't made a purchase and make a final sort of liquidators offer in terms of of the discount

“yeah it's like it's what you should have been doing this month in October and if you haven't”

I'm sorry but like when I do forecasting for brands and we're like coming up with media planning and everything you'll see like we have a set row as target and then you look at October and it's slashed in half and that's because a huge percentage of our spend goes into new audience building and like for this one cook we're brand that I work on where we saw CPMs actually drop our whole intention was we want to hit new audiences with really compelling video that might not be so like

direct conversion focusing on like a welcome offer but more brand building more focused on top of the funnel introducing people to the brand name and then come November now for a black Friday we're a little bit less worried about like how to capture attention for net new audiences and introduce them to the brand and teach them about it but we are going all in on just like juice in that funnel and like going middle of funnel and bottom of funnel with like heavy black

Friday so October should have been the month for yeah just going very top of funnel in your outspend and like brand building awareness building messaging and then draining it would be like shifting a little bit of your media spending middle of funnel with like heavy discounting messaging. We're going over on this topic because we we went under on a few of the other ones. I did a podcast well last week with Tyler from the Amazon team and he mentioned he was noticing purchasing behavior

from whatever that maybe was Thanksgiving or maybe Labor Day the last time they ran some sales that they were seeing that the a lot of the biggest purchase behaviors were in consumable products so one so that and he was surmising or theorizing that people because of the economic pressures right now were not buying conspicuous consumption they were buying things that they would consume throughout the year and just making big purchases in order to get the discount in order to save

money over the long term. Are you guys seeing purchasing behavior like that in the run up to

“Black Friday's every Monday at all? Yeah I think like definitely here and there for certain brands”

I think it'll you know ramp up once the sales go go active like you said that's when people will actually pull the trigger it's kind of an interesting is a lot of Halloween sales are going on right now and people are still like hesitant to buy right because they know something that is coming right why would you go buy a thousand dollars a product you know three weeks before a Black Friday sale so you kind of have to like gauge it because you're still wanting to to build up

that momentum so you almost need to take like a short term hit to have that momentum so that on Black Friday when it launches you don't have to go okay we got a cadrupal all our budgets in two days you ideally need that like ramp up it's like a short term pain for a bit of a longer term gain as you hit mid November but we're seeing that on some accounts for sure yeah well that okay

we have this the first time on this show we've ever had time for a mystery topic and today's

mystery topic is I don't know if we're impartial enough to discuss it but take this situation into account row s is down and the brand founder wants to fire the agency on November 15th two weeks before Black Friday 30 seconds each would you write it out now or would you do it now and jump to a

your agency is literally not doing anything and they're checked out then probably better so just pull the trigger but you know for the most part I would say it makes sense to write it out

if you've locked in like a Black Friday strategy there's always going to be at a bit of a ramp up

“period for a new agency and you know the worst thing that could happen is you have this new agency”

come in and not live up to your expectations in those two weeks and you've just basically cut off everything you know the new agency has to build new creatives all this stuff so it can definitely hurt you and I think that's probably why more brands are switching agencies and January February like that's when we see most brands come into us or on its pickup or sales pickup so it's tough it really kind of depends on your agency situation I guess yeah yeah I have to wonder like

could be worth looking for like a third party opinion like a consultant or something where you know like if you feel like your agency's just doing nothing but it's very scary and risky to switch

agencies two weeks but weeks before the biggest sale the year try to find like differing

opinions like see what forms you can join like post on LinkedIn things like that but yeah it's kind of case by case if you're asking your agency like what am I what are you going to do to improve performance and they're like I don't know lunch the sale early like they just jump to sale for example and they don't have like clear steps on auditing the account then it's a pretty red big red flag so I like that any other red flags for people right now without seeing certain behaviors from their

agency or lack of behaviors from an agency on you know October 26th that they should be looking at at switching horses midstream as George Bush once said yeah if your agency didn't talk to you about like filling up your funnel this month and like they weren't focused on goals like new customer visits transitioning add spend into pure top of funnel knowing that like they should be kind of like filling up their pool before November that's a huge red flag if you don't have a black Friday

plan yet that's a huge red flag if they kind of haven't laid out like their approach to that that's a little spooky in my opinion because they're also going to get busier on their side and being planned out is better uh what else Jacob can you think of any? No yeah just if they aren't mentioning black Friday and cue for their just business is usual then that's the biggest red flag it's like do these these guys even know what happens on black Friday or um so yeah all that planning all

that's you know the promo should be locked in by now at least at least close to locked in so yeah

“I think that's just kind of the flag is your team fully locked in with the plans and working ahead”

of time and getting approvals on ads and you also don't want them to build all the campaigns the day of the sale what happens if meta disapproves all those ads right like working ahead of time at this point of the year is is key and uh yeah I think everything Abby said makes sense another little one if they didn't know about uh Jacob's like meta update happening this Friday that's a little spooky I feel like that that's something not to just rip on people but like I feel like it was really nice

for me to see that update comes through on Slack and be like hey I know about this thing and I can talk to clients about it well we're on the ball we've been talking about not only do we do it we talk about it on this podcast and now this is our seventh uh Black Friday Cyber Monday that

we've been talking about it on the D to C podcast first time we've ever done it on the rundown format

the last red flag I would say is they if they they haven't seen you can see everything or if they haven't made plans to see it or at least said I got to see that film like Jacob did so you're fine Jacob don't worry they should probably get rid of them too because I was that's a cultural touchstone

“that you need to be aware of in this in this world I think it's hard to to get to the theaters these”

days with the two kids gonna find a babysitter but my daughter just this weekend did a her red cross babysitter training so you have no excuse I guess I don't know if she's driving them to deny mold but anyway any do you guys have are you either if you're gonna go out for Halloween or do you either of you have any costumes I don't know you have to be Elizabeth Holmes oh my god yeah you're just gonna be walking around creeping everyone just with the with the thing in your hand

and just telling artists to us everyone we're we're not very original but we're all superheroes I'm just Batman James and Torina the Hulk and Spider-Man it's pretty nice yeah so yeah should be good how about yourself I'm gonna have to put something last minute together I've I quite often will pull out a shot of the dead costume I don't know if you know that movie but that that one I I've done quite a bit of and this year I'm just thinking of just getting some black

panty hose and some big high rubber boots and my bomber jacket and I'll just be like I'm yay you kind of do you look like Simon Pay because is that like you that yeah that's why I do that

helps because I play cricket but yeah so that's that's that's my default otherwise a little less

“controversial than you maybe let's fair all right well thanks guys last thing I guess this will”

come out on Friday and Thursday we will have done our most successful D to C Dines event ever

Abby you've been to one you haven't been to one yet Jacob but we've got 50 RSVPs for this dinner

we were aiming to get like 30 and we had to expand our our space it's gonna be the absolute best room to be in in Vancouver when you're there and we're gonna be coming to multiple new cities

“in 2027 so if you want to come to a D to C Dines event reach out and tell us where we should have it”

I love the idea of coordinating them especially over the winter months with some great ski destinations

because I'm in just skiing Abby you got to come out you got we got to get you both back out to to some in the future I know you guys are super busy right now but next when you got to come

“yeah probably not November but any other months I'm there great happy Halloween and happy hunting”

this Black Friday Cyber Monday thank you thanks so much for listening to today's episode if you're not a subscriber to our newsletter you can do that right now at direct to consumer all one word dot co i'm Eric Dick and this has been the D to C podcast we'll see you next time holiday starts early on Walmart Marketplace apply to sell and get your inventory to Walmart

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