Advertising & Paid Media
What kind of return on ad spend can DTC brands expect from Facebook ads now?
Answered independently in 2 episodes. Every line below is verbatim from the transcript, timestamped to the moment it was said.
The short answer
What the archive says
01The Facebook-ads era of 20X return on ad spend is over; 3-4X ROAS is now considered above average, so DTC brands must layer influencers, affiliates, and branding to make the model work. source →
02Expect fewer overnight DTC successes because founders now have to be good at roughly 20 things or hire people who are, which favors organized teams and outside capital. source →
In their words
What was actually said
Nike and others that have, they're both sold in stores, have third party grease sellers have all kinds of layers. Versus the D to C and because the ad costs got so high and the targeting has gotten worse because of privacy and other things with Facebook and others still make good decent ROI. But this is not what it was five or 10 years ago where you could run Facebook ads and get 20 X your ads spend on sales.
The episodes
2 episodes answer this
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