Podcast Summary: Episode #353 - Meta Ad Secrets: How Top DTC Brands Spend $300K/Month Profitably

Podcast Information:

• Title: DTC POD: How The Best Brands Are Built
• Hosts: Ramon Berrios, Blaine Bolus
• Episode: #353 - Meta Ad Secrets: How Top DTC Brands Spend $300K/Month Profitably
• Release Date: March 28, 2025

Introduction

In Episode #353 of DTC POD, hosts Ramon Berrios and Blaine Bolus delve into the intricate strategies that top Direct-to-Consumer (DTC) brands employ to manage substantial advertising budgets on Meta (formerly Facebook). The episode features Peter Sapiga, founder of Florida Flighted, an agency renowned for scaling DTC brands with monthly ad spends ranging from $50K to $300K profitably. Peter also runs his own brand, Ondo, further showcasing his expertise in the DTC landscape.

Guest Background

[02:09] Peter Sapiga:
Peter begins by sharing his journey into the DTC world. He initially worked in-house for prominent eCommerce businesses such as Bespoke Post, a nine-figure subscription service, and Healthy Baby, a premium baby brand where he served as Director of Growth. In March 2021, Peter launched Flighted, which has since successfully launched over 25 brands on Meta, achieving profitability and expanding to larger businesses with monthly ad budgets upwards of $200K.

Initial Ad Setup and Testing

The conversation kicks off with the critical steps for new brands setting up their Meta ad accounts. Peter emphasizes the importance of creative diversity to maximize Meta’s algorithmic potential.

[04:33] Peter Sapiga:
"Make sure you have the diversity of content to ensure that you're giving Meta the best possible chance."
Peter advises brands to test a broad range of creatives—ideally 25 unique assets—to give Meta ample data to determine what resonates with audiences. He likens brands to media companies, stressing that content variety is crucial before assessing product-market fit based solely on ad performance.

Budget Recommendations for Testing

Determining the right budget for initial ad testing is pivotal. Peter outlines a rule of thumb for new brands:

[07:28] Peter Sapiga:
"If you really need a minimum budget, probably $150 a day."
He suggests allocating around $150 to $200 daily across 20-25 different ad sets. This approach allows Meta’s algorithm to gather sufficient impressions and identify high-performing ads within a week, providing actionable insights on which creatives to scale or pause.

Scaling Ad Spend and Campaign Types

Once initial creatives show promise, the next phase involves scaling the ad spend effectively. Peter recommends retaining high-performing ads within their current structure while optimizing the overall campaign strategy.

[10:35] Peter Sapiga:
"If you're still not close to your CPA target or your profitability target, it might make sense to pump the brakes, pause, look at what the issues are in your funnel."
This involves transitioning from broad creative testing to more targeted audience testing campaigns, ensuring sustained growth without compromising on cost efficiency.

Advantage Plus Campaigns

A significant portion of the discussion focuses on Advantage Plus (ASC) campaigns, Meta’s AI-driven targeting solution.

[13:44] Peter Sapiga:
"Advantage plus shopping campaigns are essentially Meta's like AI black box targeting campaign type."
Peter explains that ASC campaigns rely heavily on Meta’s machine learning to optimize ad delivery without extensive manual targeting. He advises that brands typically transition to ASC campaigns after securing around 50 conversions, which signals Meta to leverage its AI for scaling ad spend effectively.

Exclusions and Ad Frequency

Managing who sees the ads and how often is crucial for maintaining ad performance.

Exclusion Strategies: [16:40] Peter Sapiga:
"We define the existing customer as past 180 day purchasers."
To prevent ad fatigue and wasted spend, Peter recommends excluding past purchasers and integrating CRM data to refine audience targeting.

Ad Frequency Management: [17:51] Peter Sapiga:
"We actually almost never look at ad level frequency because I think every major campaign in meta is almost its own ecosystem."
Instead of monitoring individual ad frequencies, Peter suggests tracking account-level frequency to decide when to introduce new campaigns or shift budget allocations.

Creative Strategy and Messaging

A standout segment of the episode discusses the importance of messaging over format in ad creatives.

[20:30] Peter Sapiga:
"We don't approach ad formats as scientifically as I think maybe other agencies. We are entirely focused on messaging."
Peter emphasizes that compelling messaging is the cornerstone of effective advertising. By understanding and translating product features into emotional benefits, brands can craft resonant messages that drive conversions, regardless of the ad format.

Sourcing and Producing Creative

Creating a high volume of quality ad creatives is a multifaceted process that Peter breaks down into three essential components:

1. Static Ads: Utilizing pre-designed templates to quickly generate numerous ad variations.
2. Raw Inputs: Gathering video content from creators, founders, or user-generated content (UGC).
3. Video Editors: Employing skilled editors to refine and repurpose raw video content into engaging ads.

[28:38] Peter Sapiga:
"You need static ads, raw inputs, and a video editor to create effective ad campaigns."
Peter advises brands to leverage affordable resources, such as hiring video editors from regions with competitive pricing or using platforms like brandsmeetscreators.com, to maintain a steady flow of fresh and diverse ad content.

AI in Ad Creative

The role of Artificial Intelligence (AI) in ad creative is explored, with Peter providing a nuanced perspective.

[33:28] Peter Sapiga:
"AI generated voiceovers always underperform that exact same voiceover done by a human."
He acknowledges that while AI tools are advancing, they currently fall short in replicating the authenticity and engagement of human-generated content, particularly in the eCommerce space. However, AI shows promise in areas like video scripting and editing, aiding in the scalable production of creatives without compromising quality.

Applying Tactics to Other Businesses

Translating DTC ad strategies to other sectors, such as SaaS, presents unique challenges and opportunities. Peter highlights that:

[38:55] Peter Sapiga:
"The performance is like tenfold because the space is so much less competitive."
In less saturated markets like SaaS, the same creative strategies can yield significantly better returns. However, nuanced differences in audience targeting and event optimization are essential to address, ensuring that ads align with the specific conversion goals of these businesses.

Working with Flighted

Peter concludes by outlining how Florida Flighted collaborates with clients to implement these advanced ad strategies.

Onboarding Process:

• Intake Form: Collecting detailed information on budget, KPIs, brand assets, and past performance.
• Production: Creating ad assets and designing optimized landing pages.

Services Offered:

• Paid Ads Management: Handling Meta, TikTok, and Google ads.
• Creative Production: Producing over 400 ads monthly to ensure continuous testing and optimization.
• Landing Page Design: Crafting high-converting funnels to support ad campaigns.

[43:36] Peter Sapiga:
"We deliver paid ads management, creative production, and landing page design for each brand."
Flighted operates on a flat fee model segmented by ad spend tiers, ensuring that pricing aligns with the varying levels of effort required for different client budgets.

Conclusion

Episode #353 of DTC POD provides an in-depth exploration of how top DTC brands effectively manage and scale large advertising budgets on Meta. Through Peter Sapiga’s expert insights, listeners gain valuable strategies on creative diversity, budget allocation, campaign scaling, and the nuanced application of AI in ad production. Additionally, the episode offers practical advice for agencies and brands looking to collaborate with experts like Flighted to achieve sustained growth in the competitive DTC landscape.

Notable Quotes:

• Peter Sapiga [04:33]: "Make sure you have the diversity of content to ensure that you're giving Meta the best possible chance."
• Peter Sapiga [07:28]: "If you really need a minimum budget, probably $150 a day."
• Peter Sapiga [13:44]: "Advantage plus shopping campaigns are essentially Meta's like AI black box targeting campaign type."
• Peter Sapiga [20:30]: "We don't approach ad formats as scientifically as I think maybe other agencies. We are entirely focused on messaging."
• Peter Sapiga [33:28]: "AI generated voiceovers always underperform that exact same voiceover done by a human."

Contact Information:

• Peter Sapiga: Visit flighted.co and connect on Twitter @PeterSapiga
• Flighted Agency: For inquiries, book time with Peter via flighted.co

Join the Community: For more insights and resources, visit dtcpod.com to join the founder community, access episode resources, and connect with other DTC brand builders.