Monday Dec 9

Author

Crys A.
December 09, 2024

 đźš¨ In today’s newsletter đźš¨

  • How SunSip built trust and boosted sales with micro-influencer content

  • How True Classic generated $500 Million in Just 4 Years

  • Manual bidding during sales? Here’s a tip that’ll save your margins

  • Unit economics calculator - A must have!

  • AI-powered on-brand ad generation 

  • Latest News: Victoria’s Secret & Co. turns its focus to Gen Z and more

    Let's dive into it! 👇

#1
How SunSip Built Trust and Boosted Sales with Micro-Influencer Content

Here’s how they did it:

SunSip, the new gut-healthy soda from Health-Ade, needed to build consumer trust quickly and create authentic content for ads. They partnered with MiniSocial to tap into micro-influencers, using lifestyle and taste-test videos to generate organic reach and create social-first content.

The results?

  • 426K total reach from micro-influencers

  • $6,700 in earned media value

  • 35+ fully-licensed videos for ads and organic campaigns

  • Dozens of unique ad variations for Meta and TikTok

What worked?

  1. Relatable content: Influencers shared authentic, lifestyle-driven videos that highlighted SunSip’s benefits.

  2. Authentic, socially-native assets: MiniSocial’s approach made the content feel natural and trustworthy.

  3. Repurposed for scale: SunSip maximized impact with ad-ready videos that could be used across multiple platforms.

By using creator-driven content that felt authentic, SunSip built trust and maximized their marketing efforts. Could micro-influencers help you achieve the same results?

#2

How True Classic Scaled to $500 Million in Just 4 Years

When you think of scaling a business, what comes to mind—aggressive ad spend, viral marketing?

What if I told you there’s a secret KPI that True Classic used to go from zero to half a billion dollars in just four years?

In this video, we reveal the simple but powerful strategy that helped them unlock unlimited growth. You don’t want to miss how they did it.

#3

Manual bidding during sales: Here’s a tip that’ll save your margins.

Dave Rekuc nails it: when a sale is ending, drop your bids hard. Overcorrecting might sound scary, but, under-correcting is where the real damage happens. Your eCVR (expected conversion rate) will tank when the sale hype dies, and if you don’t adjust, you’ll be paying too much for clicks that don’t convert.

Better to pull back aggressively and step it back up once performance stabilizes. It's easier to regain lost ground than to undo wasted spend.

#4

Unit Economics Calculator - A must have!

Last week I was speaking to a Founder, and I was surprised how the Founder has no idea about the unit economics of the business.

Whether you’re a Founder, Growth Analyst, or a Media Buyer, while you don’t have to be as good as your CFO or CA when it comes to numbers, it’s essential to know some fundamentals, such as the breakdown of unit economics, and plan your media spend accordingly.

Imagine this:

  • You sell product A for $50

  • Your cost of goods sold (COGS) is $5

  • Your landed cost is $8 (COGS + custom + shipping to warehouse + insurance, etc.)

  • Your transaction (payment processor) fees is $1.75

  • Your pick and pack is $2.5

  • Your shipping & fulfilment cost after deducting what the customer paid for shipping is $1.5 (if the shipping cost is $8, and assuming customer paid $6.5, we’re only taking into account what your expense will be, which is $1.5)

  • Your return rate is 3%, so that would be $1.5

  • Your total cost of delivery in this case would be $15.25, which would leave you with $34.75, accounting to 69.5% gross margin. I also like to call it Fuel Profit (inspired by Taylor, CTC) because this is the margin you get to play around with

  • You’re left with $34.75, and your target for net profit is $10 for each unit sold

  • That leaves us with $24.75 to spend on acquiring a customer, where the ROAS target should be at least 2.02

Now, how does having a break down such as this help you?

  • Firstly, if you’re spending on marketing or any related spend, you have a clear picture of the breakdown

  • You know if you’re profitable or not on the first sale of a SKU

  • You know which SKU has the highest margin, so you could try promoting that more often. This also gives you more margins to acquire a new customer, who might eventually buy other products as well

  • Cost Caps: When you have cost caps on Cost Per Acquisition (CPA) or on Return On Ad Spend (ROAS) target, and you’re running an ad for product A, you now know exactly how much you’re willing to spend, which in this case is $24.75, or a ROAS target of 2.02

    Note: if your cost caps are too low, Meta might choose not to spend at all if it isn’t confident about acquiring a customer at that CPA/ROAS cap

  • This also tells you what’s the maximum you could spend to break even, which in this case would be $34.75

If you don’t know these numbers yet, consider this as your calling. And don’t worry about manually building all this and hitting your head with the formulas because I’ve already gone through all that. Access the unit economics calculator here, and then go to file > Make a copy, and you’re good to go!

Please note:

  • You can duplicate this for all the SKUs, and understand the breakdown for each of them.

  • Whatever has the highest margins, you can try promoting that more aggressively, as long as it gives you a good ROI. But at least have you'll have higher margins to play with if you’re promoting products with higher margins.

  • If the product with higher margins isn’t your best seller and is hard to sell, where the CAC shoots to a point where it isn’t profitable, you might want to try with your best sellers instead. It’s about finding that sweet spot.

  • All the numbers used above are just for example. Please do your own numbers.

  • This template is meant to serve as a reference for a starting point. You'll be responsible to ensure all the numbers are right, and change the template however you’d like, that serves you the best.

Hope that was useful. If you have any questions, you can ask by clicking here.

#5

Generate more revenue for your paid ads

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  • Slay deadlines and effortlessly impress clients with always on-brand visuals

  • Unlock 10x efficiency and 50% more ROI on your ad creatives

đź“°IN THE NEWS

Victoria’s Secret Q3 sales rose 6.5% to $1.3 billion, the strongest growth in three years. The brand is focusing on Gen Z through its PINK line, revamped in-store experiences, and collaborations with influencers like Sabrina Carpenter. These efforts aim to modernize the brand and attract younger audiences.

Composable commerce in 2025 allows businesses of all sizes to create flexible e-commerce platforms by integrating modular tools for payments, personalization, and more. It reduces reliance on monolithic platforms, lowers costs, and ensures adaptability to changing consumer and market trends. 

Google Ads is evolving towards keywordless search campaigns, utilizing AI to match ads to user intent based on behavior and context rather than specific keywords. While it means more relevant ads for consumers; for advertisers, it demands better content and precise targeting to stay effective.

Have any questions that you need help with?

Ask here - look out for Friday’s issue where Ibrahim will answer them.

If you want to reach our audience, email [email protected] or set up a call here