Chew on This - Digestable DTC Content
Episode: How to Diversify Away from Meta and WIN
Release Date: April 1, 2025

In this compelling episode of Chew on This - Digestable DTC Content, host Chew delves deep into the critical strategy of diversifying advertising channels beyond Meta (formerly Facebook) to ensure sustained growth and resilience for Direct-to-Consumer (DTC) brands. Joined by the esteemed Nick Shackelford, a pivotal figure in the E-commerce landscape and partner at Breeze, the discussion unpacks real-world challenges, actionable strategies, and innovative tactics essential for DTC founders navigating an ever-evolving digital marketing terrain.

1. The Imperative of Diversification

From the onset, Nick underscores the pressing need to reduce dependency on a single advertising platform. Reflecting on his experiences, he states:

"This place is super important to us. The topic is extremely important to us... this is probably the best time to be talking about diversification or like, should we still be doing what we're doing?"
(01:11)

The sentiment resonates with many DTC brands facing fluctuating performance metrics on Meta, prompting a reevaluation of their marketing strategies.

2. Navigating Advertising Challenges and Costs

A significant portion of the conversation revolves around the rising costs and diminishing returns on traditional platforms like Meta. Nick shares insightful metrics:

"This last 30 days, $530,000 in spend. Our CPMs are sitting at about $24. For us on Meta, this is like 40 to 80 and our CPC is 83 cents. Bro, when's the last time you saw a CPC below a dollar?"
(00:05)

This highlights the escalating Cost Per Thousand Impressions (CPM) and Cost Per Click (CPC) on Meta, making alternative channels not just desirable but necessary.

3. Strategic Advertising Diversification

Nick elaborates on Breeze's strategic pivot towards Applovin as a viable alternative:

"Applovin was the only channel that would take our money... The only platform that had available inventory at a CAC that we were acceptable was Applovin."
(04:09)

He emphasizes the necessity-driven approach, where survival instincts pushed Breeze to explore and invest in Applovin, leading to substantial ad spend:

"Last month we publicly posted about this on LinkedIn. Every month we do a breakdown of where our ad spend is... we spent over $500,000 last month alone on Applovin."
(05:43)

4. Adapting Content Strategies Across Platforms

Transitioning to platforms like TikTok presented unique challenges, especially concerning product-specific restrictions. Nick recounts a mishap where TikTok's policies led to mismatched product promotions:

"TikTok only allowed her non-infused. The issue is... Amazon won't take our infused. So all of a sudden people are buying, going like dude, I don't feel that effect."
(06:25)

This experience underscores the importance of platform-specific content adaptation to maintain brand integrity and customer satisfaction.

5. Optimizing Content Engines for Diversification

Effective content creation is pivotal when expanding across multiple channels. Nick outlines Breeze's robust content engine:

"We have a team of six plus some freelancers... anywhere between like 30 to 80 assets we can get that going on a weekly basis."
(12:00)

By leveraging a dedicated team consisting of copywriters, designers, and influencer managers, Breeze ensures a steady stream of tailored content that aligns with each platform's nuances.

6. Enhancing Email and Retention Strategies

Beyond acquisition, retention through email marketing emerges as a cornerstone of Breeze's strategy. Nick discusses the intricate nuances of email segmentation:

"We have our specific offer which is like $5 off... we're running like specific pop-up tests based upon Traffic Source tagged into like [platform name]."
(23:36)

He advocates for personalized email flows that cater to the behavior and preferences of customers from different traffic sources, enhancing engagement and reducing churn.

7. Innovative Activation Tactics and Creative Marketing

Activation goes beyond digital ads for Breeze, extending into on-the-ground initiatives. Nick shares the success of their giveaway campaign:

"We launched a giveaway to all subscribers and non-subscribers that if you were subscribed by a certain day in March, you're entered to win a free six-pack... that was the largest day of subscriptions and that was the largest day of reactivation of subscriptions in our brand history."
(39:28)

Such inventive approaches not only bolster subscriber numbers but also foster a deeper connection with the brand.

8. Practical Advice for DTC Founders

Towards the episode's conclusion, Nick imparts actionable advice for brands contemplating diversification:

• Optimize Pop-Ups: Experiment with varying offers, such as shifting from percentage discounts to fixed-dollar amounts.

  "The optimizing of the pop up... changing the offer. If you are running a percentage off, please go test the specific dollar amount off."
  (49:02)

• Leverage In-House Expertise and Consultants: For smaller brands, investing in consultants for setup and periodic audits can be more cost-effective than retaining expensive agencies.

  "If you're under five figures, six figures, you should be able to run it and grow yourself... spend towards your ads, but it does make sense to spend like 2 GS or 3 GS of consulting time."
  (33:57)

• Diversify Offers Based on Traffic Sources: Tailor offers and email flows to match the unique behaviors and preferences of customers from different platforms.

  "Stage one is the pop up needs to be specifically different... stage two would be welcome flow, initial email series."
  (29:54)

9. Conclusion and Key Takeaways

Nick Shackelford's insights provide a roadmap for DTC brands aiming to build resilience through advertising diversification. Key takeaways include:

• Embrace Multiple Advertising Channels: Relying solely on Meta can be risky; exploring platforms like Applovin, Snapchat, and others can mitigate this risk.

• Adapt Content Strategically: Tailor your messaging and creative assets to fit each platform's unique requirements and audience behaviors.

• Invest in Robust Email Marketing: Personalized and segmented email flows can significantly enhance customer retention and lifetime value.

• Innovate Activation Tactics: On-the-ground activations and creative marketing initiatives can drive substantial engagement and subscriber growth.

• Optimize and Test Continuously: Regularly test different offers, pop-ups, and email strategies to identify what resonates best with your audience across various channels.

By adopting these strategies, DTC founders can navigate the complexities of modern digital marketing, ensuring sustainable growth and a competitive edge in the marketplace.

Notable Quotes:

• Nick Shackelford on CPC Challenges:

  "Bro, when's the last time you saw a CPC below a dollar?"
  (00:05)

• On Diversification Timing:

  "This is probably the best time to be talking about A, diversification or B, like, should we still be doing what we're doing?"
  (01:41)

• On Content Restrictions:

  "We're taking every word that you see that it would be associated with feeling high, feeling buzzed... just taken them adjacent to it."
  (14:11)

• On Email Strategy Evolution:

  "I got a crazy education and all of a sudden... I know exactly what I want."
  (24:18)

• On Optimizing Pop-Ups:

  "It's like nothing's wrong with that. Right? But when you're, when you're spending as much as you guys and us... if you just do percentage off versus dollar off, something will be better."
  (31:04)

For more actionable insights and strategies tailored to elevate your DTC business, subscribe to Chew on This and stay ahead in the competitive e-commerce landscape.