Super Bowl LVIII is a Wrap!

We’re coming off one of the best Super Bowls in recent memory- it was the 2nd game ever that went to OT. Kansas City defeated San Fran 25-22 in a game where KC was outplayed in nearly every facet of the game. The Moody (SF Kicker) blocked extra point was the deciding factor that inevitably allowed KC to send the game to overtime. San Fran: you can’t gift Mahomes 2 turnovers and a missed XP and expect to win the Super Bowl. The Mahomes legacy continues to grow, he’s encroaching on Brady territory, something I didn’t think we’d see in our lifetime.

Football season is now officially over, but life goes on! As such, let’s dig in!

1. New Meta Attribution Setting: Engaged-View

On January 30, Meta announced its newest attribution setting: 1-Day Engaged-View (1DEV) for skippable video ads.

In order for a conversion to be attributed to 1DEV, someone needs to watch at least 10 seconds of a video ad (or 97% of it if the video is less than 10 seconds) and convert within one day. In-stream video ads can’t be skipped and thus don’t qualify for 1DEV attribution.

Here’s what Meta isn’t super explicit about, but is critical for you to understand:

• If a user clicks the ad, it will NOT be attributed to a 1DEV window (it will default to 1DC)

• 1DEV is a subset of “1-Day View.” If you’re looking at performance (CPA, ROAS, etc) in Ads Manager and have the attribution setting for “7DC/1DV",” it will automatically include all 1DEV conversions as part of 1DV. In order to dissect it further, you need to “compare attribution windows” between 7DC vs 1DV vs 1DEV and determine how many of the 1DV conversions were actually engaged views.

• If your ad set contains both video and image ads, be sure to look at your attribution windows at the ad level to determine if your view conversions are mostly engaged or not.

Meta studies show that advertisers who included Engaged-view in their attribution settings saw CAC reduce by 3% compared to click-only or click+view through with a 95% confidence score.

There has been widespread debate as to whether brands should optimize and analyze based on click-only or click + view, but inclusion of engaged view is certainly a happy medium that is hard to argue against. We all know conversion journeys are more complex than someone seeing an ad and immediately clicking and converting in the same session. Yet, we all can be rightfully skeptical that a view-only conversion is the main driver behind a conversion. We all know that Meta does a great job of identifying which consumers are near the bottom of the funnel and show them ads near the time of conversion that may or may not have happened due to the ad being shown. However, one could strongly argue that an engaged view conversion did indeed at the very least assist in the conversion if the consumer watched the video ad for at least 10 seconds or 97% of the video.

As a marketer, anytime a new tool becomes available to paint a clearer picture for you, pay attention. The more info you have & the more info the Meta algorithm has, the more confident your decision making process will be.

My recommendation: Use 1DEV in your ad set attribution settings AND in your column preset settings for attribution windows. If you notice an ad with a significant amount of 1DV conversions, but a low % of them are 1DEV, you should think twice about how you optimize that ad. Always compare attribution settings at the ad level to normalize for image & video ads within an ad set.

2. Career Journeys are NOT Linear

By now, you probably know that my background is unconventional- I’m an Orthodontist and a military veteran. I never went to school for business, marketing, e-commerce, or social media. Yet here I am.

Ecommerce and social media marketing were my side gig for years even as I was operating 8 figures in annual revenue on the brand side. I was a full-time practicing dentist.

If you know me well, you likely already know my full story and how I ended up as the founder of The Snow Agency (an Avenue Z company)- a Shopify Plus partner and the INC 5000 #2 Fastest Growing Marketing Company in the US.

But for many of you who don’t, my full story is now in writing and I highly encourage you check it out- I was just featured in BowTied Opossum’s newsletter.

In it, you’ll find how I stumbled upon the DTC world, wasn’t afraid to pivot and double down when I had clear indicators of passion and success, and that your career journey is NOT linear!

Every experience, good or bad, in life should lend you to becoming a better person and professional. You cultivate learnings, knowledge, and skills from seemingly irrelevant experiences that can be channeled into making you a better performer in your current role. It just requires some introspection and mindfulness.

I also highly recommend you check out BowTied Opossum on 𝕏. He runs a successful brand and is one of my favorite follows.

3. Credit Card and Auto Loan Delinquencies Surge to Highest Rate in 15 Years

This marks two weeks in a row that we’re talking about the consumer. Really only because it has more of an impact on brand performance than most things right now - we can’t ignore it. As I receive any significant updates on this topic, I will be sure to share them.

In not so good (but expected) news: credit card debt AND auto loan delinquency rates surged more than 50% in 2023 to their highest levels in ~15 years!

Credit card debt has now surged to over $1 trillion and 8.5%.

Auto loan delinquencies are now 7.7%.

These are numbers that haven’t been seen since the Great Recession.

What’s even scarier?

Credit card interest rates now hit a record 25% and new auto loan interest rates hit a record 9%… meaning these delinquencies will almost assuredly continue their march higher.

Something’s gotta give, right?

We’ll find out, stay tuned. 👀

Shopify Plus Pricing Increase: Justified or Not?

Last week, Shopify announced a significant pricing update for its Plus merchants.

Here’s what you need to know:

1. Plus plan increases from $2k to $2.5k per month & Variable Platform Fees from 0.25% to 0.4%.

BUT - if you’re an existing merchant and commit to a 3yr contract by April 2024, you lock in your current pricing for 3 years. NOTHING increases.

No brand in their right mind should look outward for alternative options.

Even if brands didn’t want to sign the 3yr contract and opted for the price increase, Shopify would still be underpriced & superior to its competitors.

No platform is even a standard deviation away from where Shopify sits currently.

Sign your 3yr deal and your problem is solved. Moot point.

2. On March 13, merchant processing fees are:

- Increasing 0.1% for non-AMEX and international transactions; but are actually

- Decreasing 0.2% for AMEX transactions

American Express only accounts for 10-15% of all credit card transactions by volume, so this will be a net negative for brands and will be a direct hit on their bottom line.

What I’m Listening to 🎧

Beats of the Week: Rony Seikaly - Circoloco Radio 331

Rony is one of my favorite DJs of all time. He’s well known in the Miami music scene for his groovy, unique sound. If you’re an NBA fan, you might remember him as the 7-foot All Star Center for the Miami Heat in the ‘90s. As I mentioned earlier today, career journeys are NOT linear! From NBA All-Star to worldwide DJ sensation, Rony exemplifies that anything is possible when you combine passion and effort.

I’ve been listening to Rony since 2010. His Sugar Free Radio sets got me through hours-long study sessions in dental school. I’ll be sure to drop those in future newsletters, but for now, give his new Circoloco Radio mix a listen. It just dropped👇

I welcome all feedback. Good, bad, everything in between.

Have any thoughts to share? Hit reply, and let’s hear it! 👂

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