Marketing Operators Episode E065 Summary: Using Spending Power to Plan and Spend Smarter with Steve Rekuc - Plus AI Ads and PDP

Release Date: June 24, 2025

In Episode 65 of Marketing Operators, hosts Connor Rolain, Connor MacDonald, and Cody Plofker delve into the intricate world of marketing analytics, spending power, and the evolving role of AI in advertising. The episode features a special guest appearance by Steve Rekuc from Common Thread Collective, who shares valuable insights on leveraging spending power to optimize marketing strategies. Additionally, the hosts discuss the latest advancements in AI-generated ads and their ongoing Product Detail Page (PDP) testing efforts.

1. Analytics Reporting and Year-over-Year Adjustments

Cody Plofker opens the discussion by addressing a significant update in analytics reporting, emphasizing the importance of adjusting for the day of the week in year-over-year (YoY) comparisons. He highlights the challenges marketers face when comparing sales data across different days due to events like Father's Day:

"[03:21] Cody: ...we're comparing today’s sales versus last year, you're comparing yourself to one, a Sunday and two, Father’s Day."

This adjustment ensures more accurate comparisons by aligning similar days and events, thereby eliminating skewed data that can misrepresent performance metrics.

Despite hopes for a notable analytics tool to support this functionality, Cody reveals that Shopify is in the process of rolling out day-based YoY reporting, a development he eagerly anticipates:

"[03:46] Cody: ...Shopify seems to be rolling out day based, year over year reporting, which I could not be more excited about."

However, Steve Rekuc expresses some skepticism, noting that not all platforms may adopt this feature promptly:

"[04:27] Steve Racook: ...that's actually not quite true... Maybe it's just a prank from David."

The hosts collectively acknowledge the critical need for such granular reporting as a standard feature, ensuring consistency and accuracy in performance evaluations.

2. Leveraging Data Warehousing for Enhanced Analytics

The conversation shifts towards the adoption of data warehousing solutions to centralize and streamline data from various channels. Cody shares his team's transition from cumbersome Google Sheets to a more robust data warehouse, enhancing accuracy in tracking revenue and cost of goods sold (COGS):

"[07:26] Cody: ...moving out of that into the data warehouse and that is just going to be slightly more accurate."

Steve Rekuc adds that integrating data from multiple sources like Amazon, TikTok Shops, and others is becoming increasingly essential for larger brands operating across diverse platforms:

"[12:08] Cody: ...larger brands you're just going to need to aggregate more and more places..."

Both hosts agree that while Shopify may eventually integrate with advanced tools like ChatGPT, the bespoke nature of many brands' data needs will continue to necessitate the use of data warehouses for tailored analytics solutions.

3. Guest Segment: Steve Rekuc on Spending Power Metrics

Halfway through the episode, Steve Rekuc joins the conversation to discuss the Direct-to-Consumer Confidence Index (D2CCI) and the innovative Spending Power metric developed by Common Thread Collective. Steve explains the genesis of their spending power analysis, aimed at providing brands with actionable insights beyond traditional consumer confidence indices:

"[27:57] Steve Racook:...with like Covid being a huge outlier... we realized that we're not correlated to what is going on with that confidence index in those sort of situations."

By conducting regular surveys through No Commerce and analyzing spend versus Marketing Efficiency Ratio (MER), Steve and his team have crafted a dynamic model that adjusts for seasonal variations and economic indicators. This model helps brands predict how scaling their ad spend may impact efficiency:

"[34:38] Steve Racook: ...developing curves to see how quickly they're degrading efficiency by increasing their spend."

He further elaborates on the implications of their findings, such as a predicted 9% decrease in spending power for June compared to the previous year, offering brands critical context for budget allocation and strategic planning:

"[45:18] Steve Racook: The thing we do is to kind of predict... we're looking at June and the beginning of July. I'll look at July but I'm going to see if it can carry out a little bit further."

Cody underscores the value of this metric, especially when navigating unpredictable market conditions, allowing brands to make informed decisions rather than relying solely on anecdotal evidence:

"[49:12] Steve Racook: ...strip ourselves of accountability, the better."

4. AI-Generated Ads and Creative Strategies

Returning to AI's role in marketing, the hosts discuss the effectiveness of AI-generated content in advertising campaigns. Cody shares his experiences with tools like VO3, which generate visual content for ads. While some AI-generated ads, such as the Father's Day baby ad, failed to scale effectively, others showed promise:

"[21:19] Steve Racook: ...the AI generated baby ad for Father's Day did not become a top performer, did not scale."

Steve Rekuc describes experimenting with AI-generated visuals, including imaginative scenarios like a farmer in an inflatable pool discussing egg prices, demonstrating the creative potential yet unpredictability of AI in ad performance:

"[20:14] Cody: ...a farmer in a inflatable swimming pool with eggs floating around him..."

The hosts acknowledge the challenges of integrating AI-generated content seamlessly into marketing strategies, emphasizing the importance of iterative testing and creative experimentation:

"[22:05] Steve Racook: ...AI generated content is at the point where you can at least be creating pieces of content that you can then be creative with."

5. Product Detail Page (PDP) Testing and Optimization

A significant portion of the episode focuses on PDP testing. Steve Rekuc shares his team's ongoing efforts to revamp their PDP to improve user experience and conversion rates. The process involved numerous A/B tests, collaboration with external agencies, and the development of a comprehensive design system:

"[53:10] Steve Racook: ...constantly A/B testing... trying to learn from it and... took way too long to get there."

Despite meticulous testing and redesigns aimed at enhancing visual hierarchy, shade selection, and content richness, the early results indicated a temporary dip in performance:

"[59:23] Cody: ...you're okay. How's it looking? [Steve]: We're down so far but... it's early worth looking so I shouldn't even have looked."

The discussion highlights the complexities of e-commerce optimization, where even well-intentioned changes can yield unexpected outcomes. Both hosts reflect on the importance of resilience and continuous improvement in the face of such challenges:

"[60:09] Cody: ...it was a brutally testing period... but it's so important to keep pushing forward."

6. Predictions and Market Trends

Towards the episode's conclusion, the hosts touch upon broader market predictions and trends. They reflect on past predictions made at the episode's outset, with an emphasis on the fading of "app love" and the rapid adoption of consumer-facing AI-powered e-commerce tools:

"[16:18] Steve Racook: I think I feel good."
"[16:24] Cody: ...consumer facing AI powered Ecom tools get traction."

The conversation underscores the dynamic nature of the e-commerce landscape, where adaptability and data-driven strategies are paramount for sustained growth.

Conclusion

Episode E065 of Marketing Operators offers a deep dive into advanced marketing analytics, the significance of spending power metrics, and the evolving integration of AI in advertising. Through candid discussions and expert insights from Steve Rekuc, listeners gain a nuanced understanding of how to navigate complex market conditions, optimize marketing spend, and leverage innovative tools to drive business growth. The episode serves as a valuable resource for marketing professionals seeking to enhance their strategies in an ever-changing digital landscape.

Notable Quotes:

• "Every operator I talk to is thinking about how to build lean teams and become more efficient and AI is an obvious part of this." — Connor [00:54]

• "If you're just opening up Shopify, comparing today's sales versus last year, you're comparing yourself to one, a Sunday and two, Father's Day." — Cody [03:21]

• "We're at an all-time high of 96% customer satisfaction score." — Cody [01:30]

• "Consumer confidence and spending will begin to rise back in most markets." — Steve [22:47]

• "Consumer confidence that’s published by University of Michigan or the Conference Board doesn't necessarily correlate back to something that you can measure." — Steve [28:17]

• "Having it in one place is essential." — Steve [12:44]

• "Incrementality testing is the best way to figure out what's actually moving the needle." — Connor [Time Not Specified]

This comprehensive summary encapsulates the episode's core discussions, providing actionable insights and expert perspectives for marketers aiming to refine their strategies in the digital age.