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Preston Rutherford

@PrestonRuther105,588 subscribers

Founder @Chubbies, @loop returns, marathon data, marathon engine

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CFO: what's with this ad? it has driven ZERO revenue. are you crazy? CMO: actually, it's one of our best performers CFO: in terms of WHAT? CMO: engagements, especially follows CFO: how does that relate to revenue? we're focused on profit. wasting money doesn't support this focus CMO: look at our results. revenue growth is re-accelerating, and our EBITDA margin is nearly doubling. something's working CFO: no way it's because of this ad CMO: i think it is—not just this ad, but the campaign. it's great for our brand and earning high-quality engagements like follows CFO: heartily disagree. our growth is due to COGS savings and new products CMO: true, but this has also contributed significantly. we've measured how these engagements lead to long-term growth in the types of high-margin purchase behaviors we want more of CFO: what are our "highest-margin purchase behaviors"? CMO: purchases from people who search for our brand name or enter our URL directly. brand is likely the primary purchase driver CFO: fair, but how is that different from ad clicks leading to purchases? CMO: it's different. while both are valuable, purchases from ad clicks often focus on product, price, or promotions, whereas branded searches indicate the brand brand is a bigger driver CFO: are you saying revenue from ad clicks is bad? CMO: not at all. but we've relied too much on purchases via paid clicks to drive growth—nearly all our growth came from them in the last two years CFO: really? hmm. but what's your point? CMO: as shown (shares the measurement data), revenue per session and lifetime value from ad clicks are lower than from branded organic searches CFO: where's this data? why haven't i seen it? CMO: i send it weekly in slack. CFO: (embarrassed) ummm, busted? CMO: all good—maybe now you'll open it. this campaign helps balance our approach, generating an emotional connection and reaching people we'd never hit with our conversion-optimized spend. it fills the funnel in a measurable, precise way. and yes, as an added benefit, it increases our direct response efficiency and effectiveness, but the under-appreciated and more important benefit is that it has measurably driven more of those high-margin purchase behaviors we want CFO: how do you know? CMO: we see how follower growth drives incremental revenue from organic search, direct sessions, and organic social referrals over the following six months. we can quantify revenue and ROAS just like our direct response campaigns CFO: why haven't i seen this data? CMO: it's in the same report i send you weekly CFO: (scans report for two minutes... awkward silence) this is awesome. keep doing what you're doing CMO: (surprised) excuse me? CFO: actually, spend more CMO: well, look at you—this is quite the surprise. appreciate the excitement, but i'm testing and scaling in a way that aligns with the process we follow CFO: let's speed up that process a bit, shall we? CMO: gladly

CFO: what's with this ad? it has driven ZERO revenue. are you crazy? CMO: actually, it's one of our best performers CFO: in terms of WHAT? CMO: engagements, especially follows CFO: how does that relate to revenue? we're focused on profit. wasting money doesn't support this focus CMO: look at our results. revenue growth is re-accelerating, and our EBITDA margin is nearly doubling. something's working CFO: no way it's because of this ad CMO: i think it is—not just this ad, but the campaign. it's great for our brand and earning high-quality engagements like follows CFO: heartily disagree. our growth is due to COGS savings and new products CMO: true, but this has also contributed significantly. we've measured how these engagements lead to long-term growth in the types of high-margin purchase behaviors we want more of CFO: what are our "highest-margin purchase behaviors"? CMO: purchases from people who search for our brand name or enter our URL directly. brand is likely the primary purchase driver CFO: fair, but how is that different from ad clicks leading to purchases? CMO: it's different. while both are valuable, purchases from ad clicks often focus on product, price, or promotions, whereas branded searches indicate the brand brand is a bigger driver CFO: are you saying revenue from ad clicks is bad? CMO: not at all. but we've relied too much on purchases via paid clicks to drive growth—nearly all our growth came from them in the last two years CFO: really? hmm. but what's your point? CMO: as shown (shares the measurement data), revenue per session and lifetime value from ad clicks are lower than from branded organic searches CFO: where's this data? why haven't i seen it? CMO: i send it weekly in slack. CFO: (embarrassed) ummm, busted? CMO: all good—maybe now you'll open it. this campaign helps balance our approach, generating an emotional connection and reaching people we'd never hit with our conversion-optimized spend. it fills the funnel in a measurable, precise way. and yes, as an added benefit, it increases our direct response efficiency and effectiveness, but the under-appreciated and more important benefit is that it has measurably driven more of those high-margin purchase behaviors we want CFO: how do you know? CMO: we see how follower growth drives incremental revenue from organic search, direct sessions, and organic social referrals over the following six months. we can quantify revenue and ROAS just like our direct response campaigns CFO: why haven't i seen this data? CMO: it's in the same report i send you weekly CFO: (scans report for two minutes... awkward silence) this is awesome. keep doing what you're doing CMO: (surprised) excuse me? CFO: actually, spend more CMO: well, look at you—this is quite the surprise. appreciate the excitement, but i'm testing and scaling in a way that aligns with the process we follow CFO: let's speed up that process a bit, shall we? CMO: gladly

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I used to think Brand was bullsh*t, so imagine my surprise when I was asked to speak at Meta's Performance Marketing Summit about Brand to a room of performance marketers How'd this happen? Many moons ago, I co-founded Chubbies. It's a nine-figure brand now: 8 straight years of top and bottom-line growth, EBITDA up 40% yoy But we almost went out of business first — running the exact playbook a lot of performance marketers are running right now CAC creeping up every year. Only 'growing' when we discounted harder, longer, wider. Same ads, same people, growth on loan from the algorithm Then we incorporated Brand into our 'performance' media, and revenue re-accelerated. More importantly, so did profit Here are 3 mistakes I made, 3 things I learned, and 3 actions you can take on Monday: Here's what I had wrong: 1. I thought brand was logos, fonts, or a brand book nobody opens 2. I thought spending ANY dollars on ads that didn't drive a conversion was the dumbest thing a performance marketer could do 3. And when I finally tried it, I chased the wrong thing — we went for meme-lord reach, piling up views with no connection back to the brand Here's what I know now: 1. Brand is the moat. It's pricing power. It's why people buy from you without you competing on price and features 2. The "trough of despair" everyone's scared of? It doesn't show up — because you fund brand by reallocating your least-efficient dollars, not by adding budget (and other reasons) 3. And it's accountable. Build a behavioral funnel, drive a real action like branded search, measure it with a geo-holdout. It's not a vibes contest More on this "trough of despair" being a nothing burger: 1. The brands we do this for don't see the trough. A ~$75M denim brand grew contribution dollars roughly 50% year over year — with new customers and total revenue climbing the whole time 2. An outdoor brand ran brand media alone — and the lift showed up everywhere its customers shop: its own site, Amazon, TikTok Shop, and strongest of all, 2.5x incremental revenue on a major brick-and-mortar retailer's shelves 3. A six-month geo-holdout showed brand driving 1.93x incremental revenue — while the saturated direct-response they'd been relying on was returning a blended 0.91x Les Binet's research concurs: grow your share of search, and good things follow So, three things you can do Monday: 1. Find the marginal return on your least-efficient dollars. Those can move to brand with no short-term revenue drop 2. Look at the creative you ship. Would your friends be hyped to see it — or "ugh, he's selling me something"? You want a healthy mix 3. Build your behavioral funnel. Define the action at every stage so brand stops being soft and starts being math The full vid is attached. Case studies in the comments. If you still think "performance" brand is bullsh*t — let's discuss What's the data you'd need to see to change your mind? Tell me where you're stuck/skeptical and let's get into it below

Preston Rutherford

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