In this episode of the Ecommerce Playbook podcast, Richard Gaffin and Luke Austin discuss how to optimize Q4 strategies for e-commerce brands using creative demand and spend models. They present a case study of a client whose initial Q4 plan was significantly improved by reallocating ad spend based on model recommendations. The model revealed discrepancies in AMER (Acquisition Efficiency) across different months, leading to a revised plan that cut spend in October and increased it in November and December. This reallocation, combined with a shift in marketing calendar events (switching from a 50% off to a BOGO offer), resulted in a projected $220,000 in incremental spend and over $400,000 in incremental contribution margin. The discussion also highlights the importance of increasing creative ad production to meet the demands of the new spend strategy, with the model indicating a need for approximately 452 ads per month. The hosts emphasize that the increased contribution margin can fund the necessary creative investments, ultimately improving the business's trajectory. They are also offering 12 free creative demand model builds for qualified brands.
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