April 2, 2020
Ecommerce on Facebook | AWeurope 2017

Ecommerce on Facebook | AWeurope 2017

Thank you so much guys for coming today.
Really excited to give the audience some insights in the ecommerce space because
there’s a huge window of opportunity there, from building your own products to
marketing other products on ecommerce. So I’m gonna kick it off with a question
for Roland. Yeah sure. So Roland has a lot of experience in the field of making
your own product to marketing to advertising and what not. So a lot of people
in this room are thinking of the next flashlight or fidgets spinner or whatnot.
You have experience in this. What would you advise the audience in making your own
product, marketing it and making it successful and avoid. Like where don’t we want to go
into? Yeah absolutely. So one of the key things for us is as we were building our
performance marketing business, was really understanding your audience and
understanding the target audience and for us, by far the most profitable target
audience was say, like in the female demographic. And so for us, we were able
to grow our business and invest in MergeLane which is a an accelerator fund that
invests in exceptional startups, founded by exceptional women. And what was really
great is it created a pipeline of over 1,800 different startups that we were
able to listen to and let me take a step back. I think for them and to invest
in that is really get behind passion and to be super passionate about something,
because yeah, you were talking about fidgets spinners and stuff like
that, but if you invest and work with folks
who are super passionate about a particular product, it is amazing how
much faster and how much more engagement that you get on Facebook to grow and
things like that. And in terms of getting away from stuff, I mean you have
like the Jungle Scouts of the world. You could build your relationships
with folks over at Alibaba and things like that, but for example,
working with Facebook, it’s amazing. Through dynamic product ads, you could
actually just run a shit ton of traffic to an ad and kind of start seeing what
gets the most engagement and then start building individual campaigns off of
that. So yeah. Awesome. So as we all know, based on the
shift from retail to ecommerce it’s a booming industry but so many sub-
verticals lie within it. So I want to ask Darlene this. Within the sub-vertical
space, what’s performing best and why? I think
the simple answer there is anything that’s personalised towards the customer.
So if you think about it, I mean it’s definitely not a linear map when I think of a
sub-vertical. So we’ve identified some early successes amongst like retail tech.
So those are the Stitch Fix’s, the Trunk Club’s the Five Four clubs of the world,
that will curate and have their own algorithm for what they send a customer
moving forward and they also have an algorithm for taking in user feedback. So
within the business models there, it’s actually part of being a customer is
that you actually have to respond every time you get a shipment with what you
liked, why you didn’t like it, so on and so forth. And a lot of them are
developing mobile apps to make this really easy for customers to actually
give feedback. I think like a hot area for funding right now in Silicon Valley
is health tech. So this all started with wearables coming out at CS not too long
ago and Apple watch taking over that sort of like a movement. So if something
can be worn on my wrist and it can tell me when I haven’t stood up for a long
time or when I haven’t taken a deep breath, then why not have a product that
can tell me it’s time to go to the doctor because my blood sugar is too
high or my blood pressure is too high. So that’s like a kind of an area of
interest right now and then we still have within the disruptors realm, we
still have like the PurePlay marketplaces that are coming up. You look
at Jet.com or Wish taking over and taking a piece of the pie from Amazon
and these marketers have done huge things to curate the shopping experience
in a fee, based on where you stopped, what you screenshot, what you click on or put
in your cart that will determine what shows up in your feed the following day
and also how they stock their inventory. So they’ve taken a huge amount of effort
in terms of collecting data to personalise the shopping feed for
each individual and then there’s also an axis that you have to consider, which is
what type of company is this in terms of funding. So you have self-funding as well
as crowd-funded startups and then you have the series A through D that are
funded by VCS and then companies that either want an exit or that want to go
IPO and within each sub-vertical, as well as the stages, all these companies will
operate differently. So I love that you mentioned Wish just to kind of go off
tangent a little bit. Many of people in this room are within the app buyers
group and we get very frustrated when we see Wish marketing products like crack
pipes, which I have seen being flagged. How do we deal with this like low-quality
but not even low-quality but illegal stuff that these ecommerce
marketing companies are doing and I would love both of your opinion on that.
Sure, so with which a lot of that stuff is actually getting through the cracks
and then our bot will recognise it in due time. probably because of users x-ing
out that ad, which specifically is just a really good marketer when it comes to
retargeting. So there are times where a user will deny this but they were
looking at that crack pipe and then they showed up on their feed later on, but I
mean, we’re doing a better job, I think every day recognizing those images in
building AI so that we know what is in an ad and so that we will no longer
serve those ads right and we don’t need to have user action in order to
recognise that this is a gun or a crack pipe or something that shouldn’t be on
feed. Yeah and a lot of times, it’s just like for sustainability. If you want to
you know, what I call daily comma profits. It’s really kind of focused on
particular products, where you could at least make the packaging nice and also
just kind of test it out. I mean make sure when you’re building
relationships with the factories that you’re able to really go out there and visit,
take a look at the product, test it out and things like that.
Take a look, a lot of people aren’t even focusing on the comments.
Engage with your users, see the type of feedback that you’re getting and as
you start having a conversation, you start building what I call a
brand equity funnel, where as you keep engaging your customers and have a much
better understanding of what you’re building, you have a lot of long-term of
sustainability. Not something like a lot of the crap that’s out there sure and so
of course, we’d prefer the highest quality ecommerce products in the
platform possible to drive a higher user experience. So what advice can you give
to the people in this room of kind of going away from these low-quality
ecommerce products. I hate to mention fidgets spinners again, but to like a
MVMT Watches or something that’s sustainable, high-quality, looks good
and it’s still cost-effective. Like how can these guys like pivot into that
industry? Oh yeah, okay, so because I know this
audience right, so it’s kind of like, shit how do I build a sustainable campaign
and then at the same time not take shortcuts? And one thing I would do is
just take a step back and really build what I call, I was saying earlier
a brand equity funnel and so, you start getting into influencer marketing
and start retargeting and really getting an understanding of what engages the
most. So one of our most recent investments was a
company called a Forge Survival right. So tactical survival gear and you know, we
have about 700 SKUs from flashlights to gun sites to all sorts of different
things, and on the low end, you’re like, oh crap it’s another tactical, high-quality
flashlight but as you’re running your DPA and you’re driving traffic to a
bunch of multiple offers, you start seeing engagement on some of these type
of products like a crovel, a shovel that’s also an axe and the data doesn’t lie and
you start seeing the engagement there and the product is a higher quality and
what’s ironic is, yes I did build that custom audience off of what is perceived
as a lower-quality product, which is the flashlight but when you’re able to cross
or upsell right into a much higher- quality product. I definitely recommend
that as a way to get into the more higher-quality products. So I love that you mentioned MVMT
Watches because I’m actually wearing one right now and they also are direct
partner of mine. So I’m slightly biased here but I think what you have to
do is you have to find a product that you’re passionate about building. I’ve
never met a CEO that’s had an exit or an IPO that didn’t have some sort of like
personal story that was connected to the product right. So I think my favourite
example is that last year I met with 30 portfolio companies in Tel Aviv, which a
lot of people don’t know, is the second largest area in the world next to
Silicon Valley for start-up funding right. So there’s a lot of talent coming
out of Tel Aviv. A lot of great people in the audience from Tel Aviv. They’re awesome marketers. Yeah, I was
a huge fan. I’m glad that I didn’t start talking shit and I’m like talking you
guys out. Now you know I love you guys but I was fortunate enough to meet the
CEO of this company called Dario, which is a product that you plug into your
iPhone that makes it easy for people with diabetes to read their blood sugar
levels as well as record it and they’ve actually developed like a log that can
go directly to your physician. So I had a grandfather who had diabetes. I’m very
close with the cause. The CEO of this company, both of his parents were lost to
diabetes right, so I think that’s a very dramatic connection
right there, but having a CEO or co-founders leadership that is connected
with the cause is key. The other thing is knowing when to diversify your portfolio.
So inevitably for the people in this room that are interested in starting an
ecommerce company, you’re probably going to start with a very tight book of
products and then you have to listen to your user feedback, in terms of like
where should you take the products next, which is a huge missed opportunity. Like
on the MVMT front, they had a lot of people commenting about how much they
liked the sunglasses that were on the models within the photos and they just
launched a sunglass line a few weeks ago. So they’re listening and it was an
extremely successful launch. So I think those are like the two easy pieces of
advice that I can give there. Yeah and just to echo that. I think one of the
things, I don’t want it to make it sound all
fancy like oh you know, start an investment fund and and figure out and find
high-quality products like that. I think one of the key things is that,
you know, you hear things like growth hacking or whatever the case may
be, but as an affiliate who has a skill set specifically around performance
marketing and customer acquisition, you would be surprised what your skill set
can bring to a table. So if you’re living in Tel Aviv, New York, San Francisco or LA,
do some research and find a fund that has a couple hundred companies in their
portfolio and you would be surprised that if you offered your services, not
only can you drive traffic profitably but you could actually get an equity
stake in some of these companies. So if they were to exit for like a couple
$100 million, boom, you’re actually making more money that way as
opposed to running a shitty campaign. I like that. That’s awesome. So
because stage one for the most part is driving traffic. Yeah.
Roland, I would love to know from you, aside from Facebook, we can’t make this
all about Facebook even though I tried. iStack yelled at me for that.
What other channels are you seeing success from in ecommerce? For us,
actually, so one of our more traditional, it’s kind of weird right,
it’s emails. Email, email, email, and email sounds like so old-school but what’s
really powerful about email is, I kind of take a look at it more as an ecosystem
right. So we have like a database now of about 60 million emails off of all
the customers we’ve driven to our advertisers and to our own products over
the last ten years and when you have that many emails, you’re able to do
custom audiences on Facebook, you’re able to do email marketing specific blasts,
because you know there’s no ad blockers for email, but I think what’s really
interesting too is once you start collecting data, artificial-intelligence
messaging has just been through the roof right. I mean, as I’m talking to you, some
robot is like hey, I heard you need this. What? Okay cool,
and then I just probably made $100 right now, you know. So it’s just crazy
how the power of AI messaging and things like that have really boosted a
lot so. Speaking of AI messaging, how are you guys thinking about
the messaging platform Facebook has to offer?
What are your clients seeing, Darlene? How are they utilising it? Roland, I know
we’ve spoken in the past about building out a bot and there’s a ton of
capability there. So I’d love to get your take on like, how we are moving forward
with the AI, AR kind of build outs and how it can help you guys be profitable
in ecommerce at the end of the day. So several of my clients have a bot, when
their business model makes sense to have a bot. It’s one of those
things where I’m like, just don’t build a bot just because you went to F8 and all
they talked about was bots. It has to make sense for your business model. I’ll
say the same thing about a mobile app. There’s sometimes clients that I have
where I will postpone the building of their mobile app because it’s just not
gonna get organic adoption. So with the bot example, for instance I worked
with a partner named Ever Lane that will sell you your product and allow you to
track your shipment, much like you would track an Uber arriving within Messenger,
as well as order like they’re a basics company. So they have like just basic
tees. So if you like the shirt that you get and you want to order it in like three
different colors or order three more, which is like a very common behavior
right now, you can do that within Messenger. So that makes sense. Can
you buy within Messenger at this point in time? Yeah. If you use PayPal as an
integration, you can do that. So that’s that’s one thing I think about Messenger
that works. All of my clients though right now and pretty much any partner I
talk to, I asked to become responsive on Messenger just because we know what’s
coming in the roadmap right and we know that user adoption is rising. I actually
have an entire like four or five slides on Messenger in my talk later today. So
you’ll hear more details. Don’t miss it, it’s gonna be awesome everyone. But the
streamline of communication is becoming very important and it’s also that buyer
expectation is becoming narrower and that becomes more prominent with the
younger generation is that there is this expectation that a business should be
available 24 hours a day to answer my question about why my package is late or
why my product is not the same colour than it was online.
So that’s I think the where I’m trying to get my clients started on Messenger
but the reality of the situation is like this is such a new user behaviour that we
still have a lot to learn. So test and iterate is gonna be like your best way
forward here. Yeah, no, I completely agree. I think one of the key things is, to echo
what Darlene is saying, it has to be kind of within your business model and really
kind of anticipated. So for example, in the case of say shirts, you know a lot
of times in terms of monetising abandons. Hey just want to let you know, it’s so funny
because the robot is saying this, but it’s like, hey just want to let you know that the shirt is
in stock. Oh cool, boom, buys. What the hell. It’s crazy right and you know
when you’re developing mobile apps for customer acquisition, it’s really great
because once you have that you’re starting to collect data and you’re
starting to see patterns and then as you see patterns, you just start you know
driving up the scripts to get that customer acquisition, more iterations
more test. So speaking of customer acquisition, we have kind of two ends of
the spectrum. The intent-based versus the discovery-
based and obviously we’re talking about the duopoly of Google or Facebook at
this point. So I personally hate shopping. I just go buy things and I’m like
last-minute stress, oh my god, I have a conference, I need to get a dress or oh I
need to get a mattress. So I type it into Google but Facebook offers the discovery
platform. I’d love your guy’s opinion on the two and where you kind of see the
future of ecommerce going. More discovery or more intent? Well, for me,
because uhm. And you can also think of discovery as like the upsells, if that helps.
Yeah, exactly and I think one of the things that I really want to stress is
for example, the merger of influencer marketing and the
ability to get a return on investment in investing in influencer marketing. And
one of my friends, Ted who owns a company called Engage:BDR had developed a new
self-serve platform called Iconic Reach and what I love about it is the ability
to buy influencer traffic to start seeding your product and to
start generating user intent, but then to your point, if you’re retargeting that
person off of placing a Facebook pixel, off of the engagement with those users,
that custom audience really allows you to get them to start upselling into all
sorts of different products. So I mean, for me, I’m a fan of both, I guess. So I
think as the shift to mobile continues, that they both become important
right and symbiotic with each other. One thing that for my clients sake, I do hope
Google does figure out is the solution to people are not searching as much on
mobile as they do on desktop and that’s where they’re struggling. So for
my partners. I kind of don’t really care as long as it’s working, I’m like do it,
go ahead, do branded but the reality is once you start doing things right, that’s
when people are gonna start bidding on your organic search terms. So you have to
go there and play defense right and that becomes very important to just make
sure someone’s not raking in all of the discovery dollars that you’re spending
on a channel like Facebook or on display channels, on search. So that’s my
two cents on that one. Awesome, so we’ve kind of briefly touched on
different products that Facebook offers. Darlene, I’d love to know what’s like
new, hot, coming, that’s working in ecommerce and Roland, you can give some
flavor on that too. So influencers is like this whole new topic of
conversation that’s happening that we didn’t have to deal with until like a
year ago. It was so beautiful when we didn’t have to because they’re so hard
to measure. So that’s topic number one, is
measurement. We’re trying to build advanced measurement technology with our
partners right now. We’re trying to help them develop a multi-touch attribution
system that works across different devices and different publishers and
that’s really hard because in the US, on average, people have three devices now
like a desktop a mobile phone and maybe a laptop or a tablet.
And if you’re going across iOS and Android, it’s like a whole other mess of
a flowchart you have to deal with, in order to measure one person. If they drop
a cookie. So that’s one thing as measurement and we’re trying to figure
that one out. The other thing is obviously the shift to mobile and the
shift to video advertising, within these like small bumper spaces that people
have to get their message across within like six to ten seconds. It has to be
visually appealing, focus on the product, has to be sound off. That’s a hard
challenge and typically we’re working with these amazing creative
folks that are used to creating things in like a 30-second spot or longer up to
60 seconds and we tell them, alright now you’ve got six, but it has to be
square formatted. When you’re used to 16:9 and it has to be less
than ten seconds and by the way, no one’s actually gonna listen to the sounds. So
make sure you put subtitles if you do that and I want your product within the
first 1.8 seconds and someone is gonna have the opportunity to scroll by this.
So the people that I talk to, that I say that to, are like these creative people.
They’re like okay, you’re an asshole, I don’t appreciate working with
you, but that’s what they have to do to make ROI right. I would say to answer
your first question Maria, of like what’s hot right now is Instagram stories. It
has been such explosive growth, especially international markets.
People are adopting this product at exponential rate and I think that
Facebook did a really good job at implementing the swipe up feature like
almost immediately and for VR partners it’s very exciting because we
did have a global roll-out of website conversion optimisation events for that
product. So I would say that’s something to keep my eye out on, that a
lot of people are not tuned into, it would be that placement. And specifically,
when we’re talking about storytelling, one of the products about Facebook that
I’m really excited about is. what do you all call it? The one with the video and
then you have the ecommerce right below it. Collection ads. So collection ads is
because when you’re building your custom audiences with the influencers, you could
actually start working on video that talks to something relevant to the
engagement. So right now, you could retarget off of 5, 10, 30 seconds whatever
and so just off with a 30 second and then retarget off of that and then while
they’re watching the storytelling of this influencer or whatever you did, the
products are like right there and you just click on it and you just
buy and then boom, call it a day. You know, that type of stuff is the stuff that’s
really exciting to me. Awesome. So Snapchat is going into more lead ads, VR
formats. What are your thoughts there and is that successful? Is it something
Google, Facebook display natives should be worried about? So I did read recently
that they integrated PayPal into their API. So I know they’re up to something
right. There’s some monetisation that’s going on there. I think anything that has
a 150 million active users on it is something to pay attention to.
I’ve had some partners run campaigns but they’re just premature and 4-d our
partners it’s more of like snapshots giving them like half the ad credits at
this point for them to test it, so they’ll jump on that opportunity but the
measurement is not there and they’re used to like Google, Facebook standard
measurement when it comes to digital. So that’s where Snapchat becomes
unacceptable to DR partners specifically, but there’s been some
clients that I’ve met within like the auto industry and the retail industry
that have had positive things to say about the experience. Snapchat, at this
point, has a team of people that will actually create the augmented filter for
you, which is kind of an awesome offering to have as a company. They
take all that legwork off of your creative team. So it’s definitely
something to look out for. I know that they’re prioritising like entertainment
for instance, mobile app install, but the rumor mill is saying that the PayPal
integration is actually going to be used for shopping. So we’ll see. So speaking of kind of more of
the retail approach for an ecomm product, I think it’s
important to think not just DR acquisition but full funnel. So I’d love
your opinion of like what you could advise people in this room to do and
think about their products or even affiliate marketing in general. Even if
it’s like driving leads, should they be thinking about the brand at the end
of the day or just acquisition? Yeah, well so back to
the brand equity fund, so if if you’re running a super profitable
campaign right here. It could go down at any moment right. An affiliate network
will tell you, oh sorry we can’t pay you or whatnot but don’t spend all your
profits on being baller or whatever. I think one thing that’s
actually worth investing is building a brand equity funnel, where you are
investing and telling stories around it. Like, I don’t know, fidget spinners
are a bad idea but hey let’s go with that. So one of the things is
how do you differentiate yourself? It’s not just, oh there’s frigate spinners but I’m
the best fidget spinner and let me tell you the story why. Garyvee the shit out of
that with videos and start building a brand equity funnel there and then being
able to retarget and build a custom audience off of that. Then once that
funnel kind of goes deep and then you’re redirecting them out to your
traditional funnel, that’s one thing that I highly recommend that I’m seeing
that’s really taking off. Is if you want to differentiate yourself from the
competition, be the best at whatever ecommerce product that is and
then really start building content around that for not just custom
audiences but also for engagement and for long term sustainability and things
like that. I’d say get the pixel on your site. So there’s a lot of power
behind having the the pixel, which we completely redesigned last year to have
some machine learning idea of what the funnel means. So before we had CTP,
which is conversion tracking pixel and you can create one for any event that
was meaningful to you and drop it on your site, on those pages and then
Facebook quickly realised that, wait now we don’t know what everyone’s funnel
looks like. We can’t match this. We can’t have people win the auction based on how
well their funnel is performing on their website, so we had everyone recondition
their pixels, which hopefully nobody in this room was part of that whole system
because it was a huge pain, but now we have 14 standard events. Anywhere from
landing page all the way to purchase and where our algorithm actually understands
what the conversion funnel on your site is. So that bring me to my next point, which is do not trip at the finish line with your
mobile website. The OCPM algorithm, which is generally what the best DR
partners will use is something called optimised cost per impression, will work
determine on a 24-hour, click-based window before a conversion for the most
part. Ynless you manually expand your window to 7 days. So what that means is
that the more same-day conversions that you get, the better we can deliver for
you moving forward right and that’s where I think new ecommerce partners
drop the ball, is actually testing their own websites on like 3G networks,
2G networks, things that we don’t really realise because we’re in this like a
tech bubble and we’re always connected to Wi-Fi. We don’t realise that most
people aren’t and if you wait longer than 3 to 5 seconds for our first object
load, for instance you’ve lost that person. Especially if they are
completely unfamiliar with your brand or your products. So speaking of kind of
losing the first people in the first 3 seconds, as we know mobile
landing page optimisation is very key and very important and we’re starting to
now penalise advertisers for high bounce rate but if you have an ecommerce site
and have a lot of products, it takes a long time to load. Roland,
I’d love your opinion on how to make the best mobile-optimised experience for
ecommerce. Okay, because I know a lot of the buying that I’m doing
with you is on the lead generation side but for ecommerce, I think for sure you
really got to test and make sure that the the site is super fast. To Darlene’s
point, you have to test it across devices, across different networks. We actually
have a team of people internationally and when we send our Skype’s out, we say
everyone click on the link now and then in real-time everyone starts kind of
giving their feedback on what’s going on with the website and that sounds fancy,
but no, I mean if you have like a developer in India and you have QA
people here and whatever. You just fire it off and the whole
team kind of just make sure that everything’s on, loading, that
type of stuff. I do highly recommend, well, in our context, we have a lot of
conversations. So you have to have a strong relationship with the people that
you’re working out with, your traffic source to really give you some
recommendations on what they would do and without Maria’s invaluable feedback,
we wouldn’t be able to be in a position to be able to optimise websites, making
sure that they’re perfect for mobile. I think the common denominators
that we found and doing a lot of stress testing is that the biggest partners
will literally have three sites for like weekends, for instance. So have a backup
site in case one of your sites crashes but also distribute traffic from
different channels. So their respective landing pages, landing
optimisation is a huge topic of conversation right now in ecommerce and
I’m a different customer coming from Google, than I am coming from Facebook
for instance. So a Facebook landing page for an audience of people that has never
been to your site before because that’s completely doable with the tools that we
give you, is going to be a little bit softer than a Google landing page that
just asks for the clothes. If you’re bidding on your branded search
terms for instance, people already know who you are obviously, they’re
coming back here to buy something and you don’t want to dilute your high
intent traffic with your discovery traffic. So that’s one thing that I think
is like very commonly neglected amongst ecommerce startups, especially people
that are trying this for the first time. The second thing is that so, from
Facebook, we started prefetching data about eight months ago. So the load
times have gotten better but it’s hard for us to prefetch when there’s like a
ton of JavaScript on your homepage and on a mobile device, it’s not that
big of a deal. You don’t need like tons of products and video on your
landing page, you just need it to load and you need to tell me how to get to
the women’s products or the men’s products simply.
Once I’m there, my propensity to wait to get to the product page is actually
much higher than it is from a landing page. The other thing is that from
Facebook traffic, which is something that we’re testing right now,
you actually lose about a quarter of an inch to our Facebook browser URL
bar. So that people can navigate back to Facebook in an easier way and when
developers are developing the site, you want either the product or a call to
action available for somebody that is just ready to buy. So definitely
testing your landing pages from each channel that’s important to you become
something that’s also easily neglected by developers in the ecommerce world.
The last thing I’ll say is that have easy payment options. Passwords.
Yeah, exactly. The Wi-Fi password is like my favourite thing about this whole entire
day so far, but adding options like PayPal, Apple Pay, Amazon Checkout, even
Visa Checkout has an awesome product now. We’ve done some like really simple
testing and seen like 14% increase in conversion rate just from
adding an easy payment option. So if there’s nothing else you can do during
the conversion process, definitely get that done. Alright. So we talked about
landing pages but I think the key thing especially running on Facebook is
targeting. Given we’re a people-based platform, we actually want to
deliver you the most relevant ads to whatever you want to buy.
I’d love targeting strategies for ecommerce from both of you.
What’s working? What’s not working? Yeah. Sure. So when I was talking about
IconicReach that’s an amazing way. Retargeting off of the engagement of
influencer marketing is gold. A recent tactic that super worked with us,
in tactical is, it’s funny, it’s like super old-school but
there’s a like a lot of crazy people that like these flashlights. A lot
of crazy people that like all this stupid stuff and what’s crazy is there’s
lists out there at the top 100. Survival prepper bloggers websites
and it’s fucking nuts. Number one on the top 100 list has like 4
million unique monthly users to 2 million whatever, whatever, whatever and
you just pick up the phone, call these like crazy people and they’re like hello
and then hey, I would like to advertise on your blog and they go,
oh yeah sure and it’s crazy. For like a 300×250 you could pay
like $200, $300 a month. Can your practical survival blog, can I pay you like $300 or $400
to put this 300×250 on your website and they’re like yeah!
Sure! I’m like okay, well here’s the thing in addition to just putting like this
flashlight on there, what’s gonna help me give the best ads for your blog
is can I put this little code here that helps me and it’s a Facebook pixel right
and so, what happens is for 4 million unique active users, I go to this blog
for $200 a month, I’m getting priceless retargeting data that I’m gonna go ahead
and start buying a shit ton of traffic to you on Facebook. Where all these
people in the South are like, oh cool flashlight and then they buy the
flashlight. So it’s just like that type of stuff and you just rinse
and repeat from the top 100 and do your homework. Just
depending on what particular vertical it is, think psychologically of what is
super relevant to the ecommerce product that you’re marketing and you would be
super surprised at how affordable it would be to actually build your own
custom audience network, without having to go through like an ad network or
whatever the case may be. You just build your own traffic source. I think
like my take on targeting is that if you have a cool product and good
creative, you can get more open with your targeting as long as in you’re in the
low consideration price point. So I’m saying anything that’s like under 80
bucks. So people don’t think as hard and it’s not a commitment, it’s
not a subscription, it’s a one off buy. So if you have good video creative, you
can do like 18+ gender and get away with it, actually because our
optimisation algorithm is just working that well. It’s kind of funny like
seeing people that are new that will set up like one ad campaign, one creative and
then have a pixel for purchase and do manual bid. They just do so well and
then you have somebody that has like 10 years of media experience, over-complicates
it and then doesn’t do as good as the first person. Yeah,
so that’s my first point. If you have creative expertise, you don’t really
need to be that good at targeting. If you don’t have the resources
for it or you just haven’t tried it yet you can use the lookalikes product to
get started. So you can give us like an email list that’s 20 people matched or
or more. So we don’t really require that much of the business anymore and then we will scan them for like 500 attributes. Facebook has a lot of data
and then find the next 1 to 10% of people within the location that you’re
advertising to that look like those people. So even 1% in the US gives you
1.2 million people to target and we’ve recently released the ability for
you to do cross-border lookalike targeting. So if I’m a US-based
company and I want to break into the German market, I can use my email list of
20 people from the US that I’ve acquired to find the next 1% of people
in Germany the act and look like the people in the US and then
lastly, like definitely, get DPA in place. Which is dynamic ads. I don’t think we’re calling it DPA. I’m a relic of Facebook. So I use all the old algorithms but what we used to call
dynamic product ads, this is essentially like creative auto populates based on a
product ID that fires on your website that will match with your catalogue that
you upload into your business manager on Facebook. So it is like the
creepy ad form. It’s the lowest funnel product that we have right now. So that’s
not where you want to drop the ball right, is when you’ve paid for that
initial traffic for someone to come and add to cart but because you didn’t have
PayPal or because your your credit card field was a QWERTY keyboard instead of a
number of keyboards, someone lost their patience and left. You can certainly win
that person back later on if you have a dynamic product ad set up. Even outside
of dynamic product ads, if you don’t have a vast product catalogue, there’s ways to
hack it for lead gen or any other kind of industry we’ve seen work. Just as a heads
up. We’ll probably get into that in more detail tomorrow on the Facebook panel. So
to bring it back because we are at Affiliate World Conferences,
if you’re looking to make a jump into the ecommerce space from affiliate, like
many have done like Chewie, the dog food company. Or meal kits. How does one go about doing that and I know Hugh talked about how to make
it into your dream industry by being an affiliate because you guys are the most
successful people on the planet because you’re scrappy, you know how to hack
stuff together but for ecommerce in particular, like how do we make that jump.
To echo Darlene, I mean passion right. A lot of my triple digit, billionaire like friends, you have to be
passionate about this particular product and so for Ryan right. So you know
Ryan was an affiliate, I think a lot of his ecommerce stuff was like CJ-type
stuff or whatever but what was cool was based on his success and his
developer, who was building the websites. Here you’ve got an affiliate marketer, who’s like,
oh dude we’re doing so well on this jewelry affiliate site, let’s
let’s just make our own ecommerce product and they put like 50 grand in
that shit and they fucking lost their ass and it was crazy because they didn’t
really care that much about it but they did it because they thought they were
gonna make a lot of money, but during the process of working on that jewellery site,
he was trying to feed one of his dogs, and he’s like super passionate about
luxury pet food and they’re like, hey I have an idea and then so they took what
was left of their failing jewellery ecommerce site, see don’t be afraid of
failure right, they went for it and they learned through that mistake and they
were able to scrap about like a $150 grand and then within four years, they were competing head-on with Petsmart and the
Petco and Petsmart made him a $3.5 billion US dollar offer and they
just sold for $3 billion, I mean it’s fucking crazy. Someone in this
room, who was an affiliate marketer, in four years went from zero to $3 billion. I mean it’s an amazing story and kudos to him.
Fail harder, one of our mottos. Yeah, fail as fast as you can. I’ll pass it to Darlene now.
So you mentioned the meal kit companies right and this is a very
interesting and also very competitive space. You think about even Uber and
Amazon eats as like everybody’s trying to get their hands on this market and
the people that are doing the best with that, are the people that have advocates
as their as their customers. So the way to break through, I think something
that is already very saturated and that’s kind of the only way but to
answer your original question of like how does somebody that’s in the
affiliate world break into ecommerce. I think that if it’s your first time ever,
start small with something that you know is gonna work. I have some
friends that will just like a Kickstarter right and I have a couple
clients actually they started as a Kickstarter or IndieGoGo movement
included and now they’re the fastest growing watch company in the world
actually. So I think that what you’re familiar with is gonna be important. So
like when I advise my clients to staff up for instance. I say that there’s like
three people that are gonna be important and if your affiliate network is not set
up and equipped with these three people, you have to get them before you start
otherwise you might as well burn money first thing in the
morning. One is like a macro strategist that’s familiar with the
vertical that you’re trying to dive into. So within like the Stitch Fix example,
it’s retail. Within Netflix example, its media. So you have to have someone that
just understands the product, the yearly trends, the seasonality so that you know
when to spend your money. So that’s one person. The second person is gonna be
like an analyst. So somebody that knows how to use Excel, simply put. It’s like
pivot tables, not my area strengths and that’s the person that is likely
launching ads and using Power Editor, Ads Manager or and Google AdWords,
like somebody that just sees the numbers and can understand them and
then the third person is a creative strategist, like this is where I think
this room of people can probably use the most help is actually breaking into how
can we use video creative in a way that’s effective to connect with people
and get them to convert on my site, without using a referral. Okay, so
my one last question for both you guys and Roland, you are not allowed to
answer this with passion but I love you for being so passionat. So if you were sitting in
this audience before you became successful, wanting to get into the
ecommerce space, listening to someone on stage. Going home like what’s the one
takeaway you would want from this discussion on ecommerce being
successful and but whatever. So the one takeaway coming from
starting out in affiliate marketing. Say was like damn, like 10 years ago. Honestly
don’t… Okay so like, think long-term. Yes you get
your weekly payments and all that type of stuff and you’re running
your rebuilds and all that stuff that’s great but honestly think long-term. I
want you to bank this money and be able to put yourself in a position to invest
say like 5-figures or 6-figures into a passion project that can quickly
become the thing that changes your life. I’ve seen it over and over again with
friends that I’ve advised over the years. Whether it was a subscription box
business that grew to 250,000 subscribers per month to selling a
company for $900 million to say like a Chewy that just sold for
$3 billion. All former affiliate marketers and just think long-term and really position yourself where it’s like okay, cool I got my
short-term shit here and I’m making my money but I got to bank it in for
something that I’m gonna go really huge on and for us, it’s just been great. We’ve
been able to do that multiple times. We have a performance marketing
company that generates a lot of leads but one of our sidelines is we
create short form lead gen offers that we give to affiliate networks and all the
traffic that these affiliates send traffic to, we just retarget it
or like technology companies Hit Path was one of our early
investments and yeah there’s a bunch of different competitors but
Hit Path is a great performance marketing software for a lot of these
affiliate networks and that business for us is netting 7-figures a year for the last like eight years and that’s way
more sustainable than an acai berry offer that you’ll not have
like in four months. I mean, so again, I’m just saying like run
your short-term shit and then bank it in and start investing and make a shit more
money later. Sorry. It’s fine. I thought Alex Shearing cursed more last year in
our Bangkok but I think though you’ve taken the award but congrats for that.
Thank you. I was trying not to be passionate and it turned into fuck. I don’t know if I could follow that amount of passion. I think that I would creatively try to sell something that is not a physical
product first. So the hard thing about breaking into ecommerce is that
it takes materials to make a product. So let’s use the example of jeans.
Something that everybody has, where are your profit margins? How long is it
going to take for you to get textiles over from usually abroad? When are they
going to be assembled? I have to do stress test forecasting for
selling these products. When should I order more and you have to keep
your warehouse time small because essentially when you’re a start-up and
you’re selling a physical product, you’re losing money initially because you’re
competing with other people that are willing to lose money. So that’s the hard
part. I think the hard part is actually learning like how to ship the physical
product and then there’s like shipping right and
free shipping is expected at this point and then you have to go through and make
all these contracts with all like the delivery companies and make sure that
people get their packages on time and stuff. It’s like a customer service team that’s
available 24 hours a day. It’s like, get back to these people when they don’t get
their stuff. So it’s so much more than people think it is. So I would say
like test something out that is a service. So whether it be your expertise
in like creating video or running marketing like do that direct to a
business or direct a consumer first. So that you understand like what the demand
is and then also do your research in that area.
One common mistake I’ve seen is like people being very secretive about the
way that they run their business, whereas it’s a give-and-take world like in the
example, I use of jeans, there’s going to be enough people in the world that wanna
buy jeans that if you talk to like one other CEO that is either selling jeans
or interested in selling jeans, so that you guys can share for real learning’s,
like not lie to each other about it, I’ve seen in order to get in hopes that
the other guys and like tell you the truth. That’s been a way that I’ve seen
CEOs that are just starting leapfrog like six months of learning and testing
and spending money and time on learning and testing and that’s how I would
love to like actually finish off, is you have to have a test and iterate
mentality and when you do have a physical product that’s so hard to
accept because you’re losing money you’re not used to it. In
this world you’re not as used to losing money I think as actually
having to buy and warehouse something and sit on it for like three months to six
months before you can actually sell it, but you have to break past that if
you’re gonna be successful. Yeah great, so thank you so much everyone for being
here and thank you Darlene and Roland for giving us your like black box knowledge
in the ecommerce space. Really appreciate the time.

3 thoughts on “Ecommerce on Facebook | AWeurope 2017

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