Need a Crystal Ball? We have one.May 13, 2020 by Uncoil Advertising
Greetings eComm Heroes & Heroines,
I don’t need to tell you it’s been a challenging and stressful couple months… We’ve all been locked in our houses, spending too much time on TikTok, Advertising CPMs at record lows, Conversion Rates through the roof, then in the basement, then through the roof…
As we start to come out of quarantine and move towards a ‘new normal’ I want to take a minute to explore the rare opportunity you’ve all been handed. I’ve been talking with a lot of industry people and have heard two very different perspectives… Pull back, slash your team, wait it out and the total opposite, dig in, swing big, buy the dip, expand.
At Uncoil, we know that digital ads and eCommerce is ever evolving—it’s a code to be cracked under the best of circumstances, but maybe easier under ‘the worst of circumstances’ (read on, I’ll get there).
It seemed best to me to explore the data and market behavior, getting to the bottom of the best action to take. So that’s what I did and am sharing my analysis with you.
Regardless of how you are feeling, the numbers and logic check out. I’m going to get into WHY, based on data, we think you should be doubling down on growth right now.
Black Friday, Everyday.
This is a tweet (April 16th) by Shopify CTO Jean-Michel Lemieux that gave us a peek as to just how much Shopify and by association eCommerce in general was growing through the quarantine. I’m sure you’ve seen an increase in traffic as well.
eComm’s 850% Annualized Growth Rate!!
eCommerce before the quarantine was about 10% of total retail sales, getting an early bump in March to between 12-16%. The REALLY INTERESTING piece of data Bank of America released just a couple of days ago shows eComm climbing closer to 27% of all retail transactions!
What does this mean? It means the TAM (Total Addressable Market) for your products has basically nearly tripled over the last 8 weeks. Think of it, an ocean of new customers who have none or limited online buying behaviour are getting more comfortable making online purchases. They haven’t seen your ads, they don’t yet know about you. They’re waiting to discover what you’re selling!
Acquisition is Cheap. Don’t miss the party.
One of the main levers in your business is paid ads. Above is a chart of average CPMs from all Uncoil users over the last 90 days. Low CPMs = Cheaper to reach your audience & get customers. This is due to many of the big spenders like Expedia (Spends $5 Billion a year on digital ads) and others pulling out of the auctions on Facebook and Google.
Do you see something you like?
The icing on the cake? A little known consumer behavior is that when people are embroiled in times of chaos or change, their propensity to shift their brand choices goes way up. Take a look at this research from McKinsey & Co. Now is the time to capitalize on a major shift in consumer behavior
● More people shopping online 📈
● Cheapest Advertising rates in YEARS 📉
● Increased likelihood of people switching brands (to your brand)💰
So why am I writing this, trying to convince you to bet big on this opportunity? At Uncoil we deeply believe that disruptor brands like yours are the future, the future of wealth creation, the future of delightful products, hell, the future of a better planet. When you win. We all win. A rising tide lifts all boats.
That’s the reason why we built Uncoil in the first place. First hand we saw a huge problem in being able to consistently and systematically scale eCommerce brands. Brand owners and media buyers were uncertain what to do to improve their results.
It’s hard to get access to all the right data and even harder determining how to act on that data.
We solved this by building an easy to use, AI-driven platform focused on helping companies better understand what to do. We allow you to crack the code that is the trifecta of paid media, great products and iterative optimization.
Right now we’re letting you try it for free. No Credit Card Required. Just let us show you how to make more money.
So how does Uncoil supercharge your ability to grow?
Aside from being able to save a ton of time managing ads (check out how Uncoil made one user an extra $280k in 45 days while saving 23 hours of time)
● Scale with confidence: We tell you which ads to scale, when and by how much.
● Eliminate money-losing ads: Uncoil predicts whether an ad will be profitable, so you can cut down on testing costs.
● Convert Higher Value Customers: Better understand the characteristics of your best and worst customers.
● Plug leaky funnels: Track the journey your customer took to purchase a product
● Stop overpaying for customers: We predict the future value of your customer to identify how much you should spend to acquire them in the first place
● Know BEFORE ad performance declines: Uncoil’s Burnout Insight will let you know when a Facebook Ad’s performance is about to degrade so you can proactively deploy new creative to avoid declines in ROAS
● Sell More: Identify what products are selling together and create higher-performing, AOV exploding upsell flows and product bundles
We built the platform for Shopify merchants running Facebook ads to do all of this in an evolving competitive market, and now we’re helping our customers navigate unprecedented opportunities.
We’re excited to help you win