Blues Brothers Podcast

Google vs Facebook Ads for eCommerce Startups

February 29, 2024 Nathan Perdriau & Sebastian Bensch Episode 2
Google vs Facebook Ads for eCommerce Startups
Blues Brothers Podcast
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Blues Brothers Podcast
Google vs Facebook Ads for eCommerce Startups
Feb 29, 2024 Episode 2
Nathan Perdriau & Sebastian Bensch

This conversation discusses the choice between Google Ads and Facebook Ads for e-commerce brands. It covers considerations for choosing the platform based on search volume, novelty, and CPA targets. The conversation also explores the importance of testing both platforms and setting up initial campaigns. It provides insights into the potential of advertising on TikTok and the content requirements for success. Additionally, it addresses budget considerations for startups and established retailers, as well as the impact of cross-channel marketing. The conversation concludes with a discussion on large-scale advertising and optimizing platform allocation.

Takeaways

- Consider existing search volume and novelty when choosing between Google Ads and Facebook Ads.
- Test both platforms with a low budget to determine which performs better.
- Retailers should start with Google Ads to leverage existing brand search volume.
- Budget allocation should be based on the platform generating the majority of top-of-funnel traffic.
- Consider the content requirements and potential dilution of focus when advertising on TikTok.

Chapters

00:00 Introduction
00:38 Choosing the Platform for Paid Advertising
02:03 Considerations for CPA Targets
04:10 Competitiveness on Google
05:14 Unique Value Propositions and Platform Prioritization
06:53 Testing Both Platforms
07:09 Setting Up Initial Tests
09:36 Budget Considerations and Cross-Channel Marketing
13:43 Considerations for Advertising on TikTok
19:32 Content Requirements for TikTok
20:22 Setting Up Initial Tests for Retailers
28:36 Paid Media Considerations for Established Retailers
32:25 Budget Considerations for Startups and Established Retailers
34:19 Considerations for Large-Scale Advertising
36:07 Conclusion


Show Notes Transcript

This conversation discusses the choice between Google Ads and Facebook Ads for e-commerce brands. It covers considerations for choosing the platform based on search volume, novelty, and CPA targets. The conversation also explores the importance of testing both platforms and setting up initial campaigns. It provides insights into the potential of advertising on TikTok and the content requirements for success. Additionally, it addresses budget considerations for startups and established retailers, as well as the impact of cross-channel marketing. The conversation concludes with a discussion on large-scale advertising and optimizing platform allocation.

Takeaways

- Consider existing search volume and novelty when choosing between Google Ads and Facebook Ads.
- Test both platforms with a low budget to determine which performs better.
- Retailers should start with Google Ads to leverage existing brand search volume.
- Budget allocation should be based on the platform generating the majority of top-of-funnel traffic.
- Consider the content requirements and potential dilution of focus when advertising on TikTok.

Chapters

00:00 Introduction
00:38 Choosing the Platform for Paid Advertising
02:03 Considerations for CPA Targets
04:10 Competitiveness on Google
05:14 Unique Value Propositions and Platform Prioritization
06:53 Testing Both Platforms
07:09 Setting Up Initial Tests
09:36 Budget Considerations and Cross-Channel Marketing
13:43 Considerations for Advertising on TikTok
19:32 Content Requirements for TikTok
20:22 Setting Up Initial Tests for Retailers
28:36 Paid Media Considerations for Established Retailers
32:25 Budget Considerations for Startups and Established Retailers
34:19 Considerations for Large-Scale Advertising
36:07 Conclusion


Welcome to the Blues Brothers podcast, the show in which we share the challenges, insights and triumphs that come with taking e-commerce brands from seven figures to eight figures and beyond and building the remarkable teams behind them. I'm your co-host, Sebastian Bench, and I'm joined as always by the brilliant Nathan Ferdra. How you doing? Very well, thank you. Today we're talking about Google Ads versus Facebook Ads for e-commerce brands. I think a good place to start is to ask you the question is where to start? And we can talk about a new brand and established brand, but let's start with a new brand, PurePlay D2C. Which platform should I start on when it comes to paid advertising? So there's a few questions that you should ask yourself straight out of the gates and you'll get a pretty quick answer as to where you should be putting your budget. The first is, is there existing search volume for the product? So are you retailing an existing product? Is it somewhat of a commoditized product? Or... Alternatively, is it novel? Is it something new in the market? Is it something that you don't have awareness on yet and you need to start building awareness on the fact that your solution exists to the problem that exists within the marketplace? If it's commoditized already exists, the search for him, Google's probably going to be your best plan. We'll touch on why later in terms of how you can likely get cheaper, cost per acquisition, better return on ad spend on Google versus Facebook. But that would be the starting spot. Vice versa. If there isn't search for him and you have a unique product, it's something new in the market, no one's going to be searching for it. It's it differentiates significantly from anything pre existing within your niche. then Facebook's going to be the player. And then outside of the question of novelty, what other questions should you be asking yourself? The next question would be what CPA targets do you need to hit with the contribution margin that you have a valuable within your first purchase average order value. So generally speaking, it's going to be and actually, I want generalized here and we'll get more specific which is CPAs are going to fluctuate between Facebook and Google depending on the individual product. What do I mean by that? How compelling is your product within Creative on Facebook to generate a high click-through rate and consequently a high conversion rate? And if you're able to do that incredibly effectively, if you have a product that is super novel, and actually sells a solution incredibly well, you're going to be able to yield quite high CTRs to 3%, you're going to be able to get quite high conversion rates, assuming your websites dialed in probably 3, 4%. And so you're going to be able to achieve CPAs that are actually incredibly low 20 to $30. Vice versa on Google, Google's CPAs are actually less in the hands of you as the advertiser, and it's more in the hands of the marketplace. The reason being is that Google operates on a second price auction system. So whoever's ranking number one, they're simply paying one more cent than whoever ranks number two. And so whoever's number two in the marketplace sets how much everyone's going to pay to rank. And so then you start to ask the question, well, could you just come into any niche, any product, and just start out bidding everyone on rank number one? Absolutely you can. You could steal everyone's traffic, you can get all the conversions. But do you have the margin in your product to be able to do so? Do you, are you able to pay $6 per click to be able to get this traffic to your site and then convert it? That's where the questions start to come up. And generally speaking, you won't be able to, unless you've had some kind of innovation in manufacturing that's allowed you to drive your cogs down. Generally speaking, you want because the big players will already have the best efficiencies in their production line, alongside the best LTV built out. So they might not necessarily be profitable on first purchase when they're acquiring through Google, but they're going to be profitable on the second and third. And they have the cash flow available, they're established enough of a brand to be able to play that long, long game and dominate the top rankings on Google and operate at much higher CPAs. So how competitive is your space on Google is going to be another big determinant. If you sell a, because there is a middle ground here as to what I've been talking about, which is you sell somewhat a commoditized product, but you have somewhat a unique value prop. So let's say that you, I'm just gonna try to think of a random example here. Let's say that you sell fake plants, but you've come up with somewhat of an innovation that allows you to box these plants down to a very, very small size, to where you can ship them. They're super lightweight. You can get them to doors and then they unfold into large indoor fake plants. Fake plants exist. sort of a commodity, there's hundreds of retailers selling them, but you have a little bit of an edge. So the question then is, should you be selling on Google? Or should you be selling on Facebook? Where should you be prioritizing your initial spend out of the gates? The initial answer is going to be a really basic and simple one and probably not the answer that you want, which is split it 50 50. see where the traction is out of the gates, look at your core KPIs, see what does it cost you to drive a click to site on Google versus Facebook. That's gonna give you a very quick indication of how cheap traffic is, and then where you can start to optimize in terms of that traffic source. Yes, you can do keyword research, you can get a bit of an idea for what CPCs are gonna be like on Google, but it's never gonna be that accurate, and it's never gonna take into consideration all of the quality score components that go into you placing at auction. The same thing applies for Facebook. We can sit here and we can assume that it's a pretty strong value prop that we can probably Put some creative together. That's gonna be really compelling We can assume that you're gonna have a 3% click-through rate But we might start running your campaigns and your CPMs are through the roof and it throws all the numbers off So the best advice that I have really there is to test both in a low budget Look at those pre-purchase metrics and then start to skew spend accordingly For those just starting out in terms of those metrics there, what is the test that they should be running? What's the window? It looks like, what's the budget? I mean, how do they validate which platform is going to be the right move? I'll provide an answer in the context of an actual like case study. So my advice to all anyone that wants to start a DTC econ brand is to mock up the creative, get a few samples, and then run ads before you even have stock. That's how I would do it. That's how I'd recommend everyone does. And the reason being is that you can immediately validate any of your key assumptions as to how you think you're going to scale them around. Because when you go and you start putting a brand together, you go, okay, I'm gonna sell this supplement. It's gonna cost me $20, I can sell it for 80. I've got $60 of margin. Yeah, I can probably get customers for under $60 on Facebook and Google. Let's go and spend $10,000 on a stock order. It's the wrong order of operations. You should be validating the idea before going and trying to scale on the platform to de-whisk yourself. And you can do this in a very ethical way. It's not unethical. You're not going to get banned on the platforms. All you do is you get a sample, you shoot your creative, you spend $500 to $1,000 on Facebook, $500 to $1,000 on Google. And then in that $500 to $1,000, you really should have enough spend to see conversions and to see purchases. If you don't, it's a concern. but you can look at other metrics such as your CPCs is gonna be your starting spot. You wanna know how much is it gonna cost to drive traffic to site? Because once it's on site, if you're getting people to click, if you're getting people enticed on the front end, then it's just about dialing in the continuity on site and basic conversion rate optimization so that you can get them converting on site, have your flow set up so you can be capturing any abandoned checkouts and the list goes on. So it really, really starts with CPCs. You're not gonna have it dialed in. Conversion rate optimized site right out of the gates. Yeah, I think that answers the question. Yeah. So starting off testing both platforms, then what's the question of shift budget entirely into one platform versus keep multiple platforms? What are the considerations there? What's the testing look like? Um, especially when we consider cross channel marketing and the additional lift that we often say on one platform when introducing another. Yeah, cross channel marketing starts to make it more complicated, particularly in the early days because users are always going to pathway cross channel, especially if you're retargeting all users across the board. And it's generally going to have an uplift in marketing efficiency ratio. So the first thing that you need to identify and let's contextualize this within low budget. So you're spending under five to $10,000 a month. The consideration is If you have a 50-50 split between Google and Facebook, and you're seeing in-platform return on ad spend be the same, number one, you want to be considerate in how you're structuring your campaigns so that you can get better clarity on where new customer acquisition is coming from within the platform. And what I mean by that on Facebook is simply splitting out cold targeting versus retargeting, splitting out on Google brand search versus shopping. and negative key wording out your branded in shopping and having dedicated branded shopping campaigns, etc. So that's the first is just having better clarity and platform. Because once you have that, you might actually find that will get Google top line says a six who Facebook top line says a six, but Google is heavily skewed upward by brand search. And so then we're able to identify that Google is actually acting at that bottom of funnel. And then Facebook's generating all of the new awareness that's then pushing people over to Google. And so that's then the second consideration is getting a good understanding of where are people starting and then where are they ending. Are they starting on Google and then pathwaying to Facebook, or are they starting on Facebook and pathwaying to Google? And you can get that data within GA4. Conversion pathways are available to you as long as you have UTM parameters set up on all of your ads campaigns. You can also get that data within the attribution tool inside Google Ads. So it's going to give you an idea for days to conversion or clicks to conversion. That's gonna give you a really good idea to be able to extrapolate. where you believe people are starting the conversion journey. For example, if you see in your attribution settings within Google that people take on average one day to convert, but you have a very expensive product that should have a longer conversion cycle, then we know that it's likely people starting on Facebook taking three, four, five days, and then they go to Google and buy immediately. And so from Google Ads perspective, it looks like they bought immediately, but in reality, we know that there was a warm up period of three to four days on Facebook. And then vice versa. If we see it says, and we have clients that have attribution windows on Google Ads of 17 days on average. And that's particularly in the parent hood niche where they're buying. products for their babies or kids, they have incredibly long conversion windows. And the reason being is that these moms and dads search for something, they click on an ad, and then they get distracted because they're with their kid. They're thinking about buying it, they're searching for it, when they're with their kid. And so only when they're around their kid is when they're making that search. And so then it's very easy also for them to bounce and delay that purchase. Um, which is why in that instance, it's also very important to retail across platform because we know that people are taking a long time. They're taking a long time on Google, but let's see if we can push them a little bit faster down that conversion cycle, uh, to retargeting them on other platforms. about other platforms. We're talking about Google and Facebook here. Why not, for example, one many people opt towards and that's TikTok. And might be good to split that out between your usual, you know, maybe a home and living brand, high ticket, one off purchases or, you know, full data, full fit outs versus a brand that feels as though they should be on TikTok because they're a younger brand, they're in the consumable space, target demographic from initial sort of their initial take on the platform is the demographic overlap is strong. I'll start by saying I think TikTok's a good ad platform. I think you can see a lot of success on TikTok. I think you can scale it. I think you did quite big numbers there. And then I'm gonna follow that up by saying I don't think you should advertise on TikTok because I think it's a dilution of focus and Facebook's a proven platform. especially for every single person inside your niche. So look at any of your competitors that are doing huge numbers, they're probably spending a lot on Facebook. They're probably spending tens of thousand dollars a month and they've probably been doing so for years, if not close to decades. On TikTok, it's new, which means there's opportunity, but it's worth knowing that you're gonna be sailing into uncharted waters. There's likely no competitors that are doing huge numbers yet on. TikTok. Why do I believe it's a dilution of focus? Why would I say just do both? Because I'm sort of saying to you do Google and Facebook. That could be a dilution of focus. That's both. The key difference there is that Google and Facebook are very, very different platforms in the fact that Facebook is a CPM based platform. And all that means is that you're placing ads in front of people and you're paying to do so. And so you end up placing in front of direct cold audiences. Google in comparison being a second price opt-in system, you're bidding on people that are already searching for your product. So they're very bottom of funnel. They're two very, very different advertising strategies. And in doing so, you should be focusing on both because there's so much overlay. People that start on Google go to Facebook. People that start on Facebook go to Google. It's not necessarily the direct same for TikTok. In terms of you will not, at least from what we've seen, see a material uplift in marketing efficiency ratio by having additional retargeting across a third platform. Is there any downside to doing so? No, you can have small budget retargeting running on TikTok, but the dilution of focus between Facebook and TikTok is... going to cause long-term harm to the growth of the business. And I can go a bit deeper there, which is that there's three reasons why. Number one is it impacts your cashflow. If you're running on Facebook, you need a testing budget. If you're running on TikTok, you're also going to need a testing budget. And at the start, that testing budget is 100% of allocated budget. And so... what ends up happening as a proportion of total ad spend, your testing budget increases, which is gonna decrease efficiency in the short term, which is gonna have an impact on cashflow, which is gonna impact how quickly you can scale ad spend. The second core issue is just dilution of focus. If you're doing this in-house, becoming excellent at TikTok ads and Facebook ads and Google ads, it's gonna be very, very difficult to do while you're running every other part of the business. in combination with the fact that if you're hiring an agency, okay, the agency are experts at this, they're only going to dilute their focus so far as well. Okay, we could hire a separate agency for TikTok. You probably won't see a return unless you're a big business. There's no point in paying an additional$3,000 retainer for TikTok ad management when you're allocating a $2,000 testing budget to it. So yes, it makes sense in the later stages of business as you're doing eight figures, but in the early stages where you're really cash poor, factor in the agency cost into that budget allocation towards testing a new platform. because we see time and time again where client will get sold on Pinterest ads and we'll go and sign with a Pinterest agency. And the question is, okay, how much, what's the testing budget on Pinterest? Oh, it's 1.5 to 2,000 a month. Okay. But what's the agency fee? Oh, it's 2,000 a month. Okay, so you're really spending 4,000 a month on Pinterest. And so the return on ad spend that you need to see on that platform needs to be 2X, whatever you're seeing on Facebook and Google right now. And you're seeing an H return on ad spend on Facebook and Google. So can you run me through how you expect to get a 16 on Pinterest? And there's no answer. The numbers haven't been thought through, the math hasn't been run. Just a good sales pitch has been presented. The third reason why. you should be hesitant before moving into TikTok is the content requirements, which is. On TikTok, creators fatigue much faster, number one. And number two, the type of creative differs from Facebook. It doesn't differ enormously. You probably have content that's compatible with TikTok right now, but not all your content is compatible. And if you don't have actual video content, images don't really do well on the platform. I don't know if you've scrolled TikTok, but you'll never see an image. And so images stand out like. It's very obvious. And so it's very evident that it's an ad. So you get a very high scroll through rate. And so unless you have the ability to curate content specific for the platform in high volumes on a consistent basis, it's also gonna be a very difficult platform to scale on. On Facebook, we have clients spending 20,000, 30,000 a month. We're not running a single video. All of the creatives are images and they're all built from the basic product images. They're not even lifestyle. They're literally just the product shots and we've mocked them up into different creative variants. And so you just aren't able to do that on TikTok, which gives you another advantage of prioritizing your focus on Facebook. One last thing which I'll sneak in as a question is during the initial test across Google and Facebook, that structured test, you mentioned separating cold with warm, introducing a retargeting campaign. What should the starting campaign setup look like? I may have spent a couple of thousand dollars, I may have, as part of setting up the store, set up a Google ad account and clicked a few buttons and all of a sudden I have Google ad campaign up and running and I've been spending, you know, a couple of hundred dollars a month on Facebook's boosting posts. And I haven't received any conversions across the two platforms or nothing that is seeming as though it's going to tend towards profitable anytime soon. So how should I be setting up the initial test from a campaign to speak? I start with Google. On Google, if you're an econ, DTC brand, you're always going to see the highest return on ad spend on shopping. And so 100% of your effort should be on shopping campaigns. It's not on performance max, you have no data. So you really wanna be leaning away from smart bidding strategies as much as possible. And you wanna be going towards the manual direction. So a standard shopping campaign. with your entire product range, unless you have accessories that are very cheap, exclude them. And then the bidding strategy, you'll be forced into using maximized clicks on a new account. But as quickly as possible, you wanna switch that over to a target ROAS at a low 50 to 100% target. And the reason for that is when you set a really low target ROAS, it's the same thing as using maximized conversion value on other campaign types. So it's just a little hack there to use a better bidding strategy on whatever's provided to you within shopping. In addition to that shopping campaign, and that should be 95% of your budget on Google, the remaining 5% is on a dedicated brand search and a dedicated branded shopping. And the reason for that is what you mentioned, the segmentation of data. We want to make sure that shopping campaign doesn't go and just start prioritizing bidding on our brand and keyword, scooping all of those conversions in and then claiming that the platform's doing well. We want that segmentation. So we want to have those dedicated brand campaigns that are just bidding on the brand of keywords so that we can see that segmentation of where conversions are being attributed to. Moving to Facebook, you want two campaigns. Number one is a dedicated retargeting. set it up as an ABO targeting 90 day visitors. And a good rule of thumb for where you should set the budget is to take your daily visitors and divide by 25. And so if you have 100 daily visitors divide by 25, you should be setting at $4 a day. And the reason for that is that should roughly get you in the position where your frequency will be a six to a seven. The reason why it's important to have a high frequency is pretty obvious on the surface. It's okay, we wanna retarget everyone six to seven times. That's gonna be the optimal range to be able to get people to come back and buy, of course. But there's actually a more important reason in there, which is if you don't have a high frequency, and this gets a little bit technical, then your other campaigns can prioritize your existing custom audiences. So when you go to launch the second campaign that I'm about to recommend you, which is a cold targeting campaign, which is where you can target broad audiences, interests, lookalikes, the list goes on as long as they're cold. That campaign will still go and target existing visitors. It will still go and target existing customers unless the retargeting campaign has a high frequency and is getting prioritized at placement on those users. And the reason why Facebook does this, and it's the reason why Facebook and Google and all of these platforms do these things, and this is the lens that you always need to be viewing everything through from a media buying perspective, is they're trying to maximize revenue. And the way that they maximize revenue is to maximize attributed ROAS within platform. And so if you launch a cold targeting campaign, And it says that you got three purchases out of five row as what are you going to do? You're going to keep spending on the platform. You're going to keep spending on cold targeting. And so how does Facebook deceive that slightly is well, they just let the cold targeting target your existing business a little bit. They let it bleed into existing customer targeting a little bit and you'll be able to see this because you are an existing visitor. You are an existing customer. Run that structure. See what ads you get served. Make sure your retargeting ads are different from cold targeting. With retargeting, you want to be objection focused, handling objections. These users visited site, they didn't buy. Why didn't they buy? Can we actually get zero party data on why they didn't buy? Can we have a live chat? Can we have a pop-up? Can we find out why these users aren't buying? Maybe it's they don't trust us. Maybe it's that there were no reviews, evident, available. Maybe it's the fact that they don't believe that the products are the quality that it should be. Maybe it's a price objection. You wanna be handling those in the retargeting ads. In the cold targeting ads, you wanna be enticing people in for the initial click. So you want to be testing different unique value propositions and different, I've started to call it different positions in the market because you can position your product in multiple different ways and test what resonates best with the target audience. And then based on that, begin to iterate over time. If you own the brand, check your Facebook feed, you'll probably see the cold targeting ads as alongside the retargeting ads. And so that's just direct proof that it's gonna bleed over. And to prevent that bleed, make sure that your retargeting budget is high. Make sure it's really, really high so it always gets prioritized at placement. Going back to the cold targeting and that testing is you want to be running through consistent tests. The number one most consistent mistake that literally 95% of advertisers make on Facebook, whether it's a calm whether it's service based, no matter what it is, is they do no testing. They just launch a and it's almost this traditional media approach. And I think that's why everyone approaches like this is yes, let's put a marketing campaign together and then launch it. And it's like, okay, we can do that. But you could also launch it. And then if it doesn't work after four days, launch two more. And then if one of those don't work after two days, launch another one and then launch another one. So you wanna be running consistent tests at all times. It's one of the biggest level points that you have on digital verse. and non digital advertising is that you can split test these things live when you place an ad in a newspaper, you can't do a direct split test on headlines. You could probably negotiate that half the prints have one headline on the other half have another and you could have a QR code that redirects but I don't think most people are gonna be too happy about that. On digital you can do that at a micro level all the time on all your ads and so you better be leveraging it. Split testing headlines, split testing creatives. split testing creative mediums is video or image resonating best with the target audience because some brands will have video that works better, some brands will have image. And let me give you an example of that. If you have a product that has an incredibly difficult value proposition to convey, images won't work. And you might not even realize that. We might not even realize that until we try images and they just don't work. And then we figure out, okay, we were wrong. The complexity of this value proposition is too high for us to be running single image ads. A plant that unfolds, for example, can't be translated into an image. We need a GIF at a bare minimum that shows the plant unfolding out of the box. We need a video at minimum that demonstrates what's actually happening here. If you just have a photo of a box, it's like, I don't know what's unique here. And then so it goes from creative medium to copy, to targeting, to campaign structures. There's so much stuff that you can test within the platform and that's what you want your second campaign to be dedicated to. So to recap that, on Google, shopping should be 95% of your budget. The remaining 5% is those branded campaigns. On Facebook, it's just two campaigns, one's retargeting. Make sure the budget is really, really high to ensure your frequency is up. And the second is cold targeting with consistent tests being run within that cold targeting campaign. Awesome. Any last comments around where to start when it comes to paid media for ACOM? I think the only thing worth adding to this discussion is to shift from where to start new brands and shift into retailers that are going online as well as established brands because I still see and we order brands every single week establish big brands who have got their budgets split wrong across Google and Facebook. And we see retailers moving to online and they've got their budget split wrong as well. And the benefit of a retailer going online as opposed to a new brand going online is they have cash ready to invest. And so we're not starting at $2,000 a month in budget. We're starting at $10, $15, $20. And so this decision is actually a lot more important for those brands arguably when they're at that kind of scale. The savings are there. The opportunity cost is there. So we can dive into. Retailers if you'd like. Let's do it. So the core principle of a retailer is that they're, well number one, retailing other people's products or number two, they're retailing their own products as like a chain under a brand, but it's relatively commoditized. Anyone that's selling, anyone that has 50 stores across Australia is selling a product that is relatively commoditized and they have brand equity that allows them to price the way that they do. simply through the way that they position the brand historically. So with that being said, retailers, if they are retailing, other products should start at Google. And the reason why they should start at Google is because brand search volume already exists for every brand that you're stocking. And so you can lean in and leverage that. and really take yourself to 100K a month just off the back of that. If you retail Nike and we have clients that retail Nike products, you simply run shopping, you simply run search on the keywords relevant to the Nike shoes, and you just scoop up super bottom of funnel, incredibly high intent traffic that is looking for your products. They're not looking for your brand, but they're looking for your products and so you can get really, really good CPAs. Alternatively, if you were to go and start spending on Facebook, you're competing with Nike on your ad spend on Facebook. And so there just isn't gonna be as much cut through. Now is it gonna work? It's still gonna work because once again, you're leveraging their existing brand presence that already exists within everyone. Everyone's saying your ad knows Nike. And so there's already a given increase in your ability to convert those users, but Google is going to be the best place to start. You can structure all of your campaigns, your ad account. according to simply brand terms, simply brand names and approach like that. When it comes... Do a question on that. I was going to move on to something else, but feel free to continue. Now let's move on. I was just going to ask about budgets. So a startup brand, Pure Play Direct to Consumer, they have what you would think limited resources relative to a relatively established retail store. Maybe they have two brick and mortar locations, maybe doing a hundred thousand a month in revenue, massive fixed costs, but they need to determine their budgets. Traditionally from conversations we've held, they are a little bit more old school and a little bit more shy, I suppose, when it comes to investing in paid media. Is there any difference in budget considerations for an established retailer moving into online versus startup brand online, or should they both be trying to spend as much as possible within the bounds of an actual test and a hypothesis as part of that test? Yeah, I would probably agree with what you just said there, which is they should be, a retailer should ideally be trying to spend as much as they can allocate to the testing period for a one to two month period. The thing is with a retailer is it's almost guaranteed to work online because they've proven the business model in store, in person. the products clearly retail well. And so they will translate directly to online. It will translate directly to digital. If they have any first party data that they've collected in store as well, they can translate that straight to digital too and start to kickstart their returning customer revenue as well in support of new customer acquisition. So I would generally recommend spending as much as possible. And the reason being particularly is that if you don't spend enough, you'll simply be spending enough to annoy yourself. And so there is this threshold of where if you, if your budgets aren't high enough, you're just going to somewhat nearly see results and you're going to go, Oh, we're nearly there. It's nearly profitable. It's, it's sorta makes sense, but you haven't reached escape velocity because you don't have enough data. or conversion volume within your campaigns. Any other comments around Google versus Facebook? The only other comment would be if you're an established brand and you've reached a large scale, you're spending $80,000, maybe $150,000 a month, there's two key considerations that I'd leave you with, which is number one, are you spending too much? Because most of the brands I order that are spending $100,000 a month shouldn't be. which is funny because it goes against everything that we've said so far, but you start to overinflate budgets as you start to reach a certain level. And it's somewhat unnecessary. And the second question to ask is where is the majority of your top of funnel traffic being generated from? Is it Google or is it Facebook? Because I see accounts time and time again that are spending a hundred thousand on Facebook, 20,000 on Google. And then they're spending 20,000 on Google because their target row is a three and they're hitting a three on Facebook and therefore three on Google. But then you start to look at the Google campaigns and you go, wait a second. Every single keyword that's converting every single keyword that's being spent on is brand or product titles. And so it's all just branded, everything. You're spending $20,000 a month on it. You could cut that to 2000 tomorrow and you just add 18K to bottom line net or the opportunity cost redirected to Facebook. And then you've suddenly unlocked a round of about 60K on top line. So they're really the two questions to ask is, am I spending too much? And number two. is where is the top of funnel traffic and customers being generated from and which platform is just scooping up the bottom of funnel conversions and claiming it. Excellent. Anything else? Yeah, all good. All right, for those watching, grateful for your time. Speak soon.