Cost Caps vs. Highest Volume: The Ad Spend Debate

 In today’s newsletter 

• Creative Testing 101: The Key to Scaling Ads That Convert

• Get The Most Out Of ChatGPT

• Cost Caps vs. Highest Volume: The Ad Spend Debate

• DTC Playbook : Away

• Latest News: Costlier customer acquisition, AI reshaping ecommerce logistics, and crafting elite data teams.

  Let's Dive Into It! 👇

On 14-Jan, I spoke about Hook Testing 101: Finding the Message That Drives Clicks.

Today, let’s dive a bit deeper into Creative Testing.

While a great hook grabs attention, it’s the creative that keeps your audience engaged and compels them to take action. 

But how do you know which creative resonates most with your audience?

Welcome to Creative Testing 101, 

Why Creative Testing Matters

A compelling creative is the backbone of a scalable ad. 

By systematically testing creatives, you can achieve:

• Higher CTRs: More people click on your ad

• Decrease In CPM: Reduction in cost to advertise

• Optimized Ad Spend: Reduced wastage on non-performing ads

The Elements of a Winning Creative

A high-performing creative has:

1. Strong Visual Appeal

   • Eye-catching colors, clean layouts, and bold imagery.

   • Example: Vibrant product shots, lifestyle images, or dynamic videos.

2. Clear Value Proposition

   • Show the “why” behind your product in an instant.

   • Example: “The Tastiest Way To Lose Weight”

3. Emotional Resonance

   • Tug on heartstrings, create desire, or solve a pain point.

   • Example: Talk Before/After or Features/Benefits.

4. Social Proof

   • Add trust with Publications you are featured in.

   • Example: “Forbes, Business Insider” etc.,

How to Test Creatives Effectively

1. Start with the Basics

• Test one element at a time: imagery, colors, or copy.

• Keep your hook constant to isolate what works in the creative.

2. Create Variations Strategically

• Lifestyle vs. Product: Does your audience prefer aspirational shots or close-ups of the product?

• Before vs. After: Showcase transformations or tangible results.

• Static vs. Video: Test simple images against dynamic videos.

3. Analyze the Right Metrics

• CTR (Click-Through Rate): Are people engaging with the ad?

• CPC (Cost Per Click): Is the creative driving cost-effective traffic?

• ROAS (Return on Ad Spend): Are the clicks converting into sales?

Real-Life Example of Creative Testing

Brand: Beauty & Skincare
Objective: Test different visuals for a new face serum launch.

• Version A: Static product shot with benefits listed.

• Version B: Before-and-after transformation images.

• Version C: UGC-style video showing how to use the product.

Results:

• Version A: 0.9% CTR, $1.80 CPC

• Version B: 1.4% CTR, $1.20 CPC

• Version C: 2.1% CTR, $0.90 CPC

Winner: Version C performed best due to relatability and authenticity.

When done right, creative testing isn’t just about finding what works—it’s about understanding what resonates with your audience and doubling down on what’s working.

Next time, we’ll talk about how to scale your winning creatives effectively for consistent profitability.

P.S. Struggling with creative testing or ad performance? 

Let us take it off your plate.

👉 Book a Call Here to work with a Me to help you find your winning ads.

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Cost Caps vs. Highest Volume: The Ad Spend Debate

Cost caps = efficient spend.

Highest volume = potential scale.

But if the hit rate's the same, why pay more? Is it worth it?

Curious to hear where you stand on this (Reply and let us know)—and check out the discussion brewing here:

Continuing our DTC Playbook series on Lovevery, we've previously delved into their Amazon product page, advertising strategies, and social media presence. Today, we turn our attention to Lovevery’s website—a critical component in their direct-to-consumer success.

In my week one breakdown of Graza, i mentioned how they focus on showing their products being used and always in motion.

Lovevery does the exact same thing. Don’t people about, show them how it will

📰IN THE NEWS

👉 Businesses pay more for online customers but see drop in conversions
Businesses are increasingly spending more to acquire online customers, yet they are experiencing a decline in conversion rates. This trend suggests that while the cost of customer acquisition is going up, the efficiency of converting these investments into actual sales is diminishing​

👉 AI Resets Ecommerce Supply Chains
Artificial intelligence is significantly transforming ecommerce supply chains by optimizing essential aspects such as demand forecasting, delivery routes, and overall fulfillment processes.

👉 The secrets to developing a high-performing data team
To develop a high-performing data team, balance technical skills with soft skills, encourage ongoing learning, and align team efforts with business goals to drive impactful insights and outcomes​

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Have any questions that you need help with?

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