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Overview

Stepping into the paid advertising world can be a daunting task for any DTC ecommerce brand. With so many factors to consider from platform selection (e.g. Instagram, TikTok, or Facebook) to writing ad copy that attracts your customers — it’s easy for founders to try their next test only for the results to be less than expected. We recommend working with a full-time expert or agency on your paid ad strategy but here are some do’s and don’t to help assist brands with their best step forward.

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Why it matters

Paid ads can drive real revenue, and it’s measurable. The dollars that you put in can translate to actual purchases.

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The simple steps to ads:

  1. Clarify your positioning, and what makes you different
  2. Generate ad copy
  3. Create visuals
  4. Launch on a platform
  5. Review results

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Positioning

Focusing on a single SKU and a primary marketing channel, such as Meta (Facebook and Instagram ads), is recommended for scalability. Creating compelling ad creative, consistent content, and a coherent messaging strategy are essential for DTC success. The most useful content formats to have when launching paid advertising are:
  • User-generated content (UGC): Influencer and founder testimonials, factory or manufacturer footage, and you can even use friends and family using your products!
  • Polished studio footage and product shots

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Website and landing pages

If you have a higher-priced product (>$45), direct ad traffic to a landing page or pre-sale page is recommended. It’s also recommended to optimize your PDP page. Take a look at the guidelines for landing pages.

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Tracking ad success

There are three key success signals to obsessively track when first testing a paid channel: cost per click (CPC), conversion rate (CR), and demographic information.
  • CPC measures traffic efficiency - aim for under 1.25,with1.25, with 1.50 baseline acceptable but over $2.50 is generally too high.
  • For CR, evaluate paid CR from ad traffic (over 1.5% typically) and overall sitewide CR (over 3% typically), though CR depends on average order value.
The other important strategy is to save your headlines and ad copy into a library. Test value propositions as “hooks” in ads and copy to gain customer insights on what resonates. Implement post-purchase surveys asking the main purchase reason and any site confusion.

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What to look for if you need help

When evaluating potential agencies, look for those with a proven track record, up-to-date knowledge of digital advertising trends (watch for outdated strategies like talk of building the top funnel or retargeting), and a comprehensive approach to ad creative, media buying, and landing page optimization. A great place to start is by following ad agency owners and influencers in the space. The discussions are a good place to see how reputable or how experienced the agency is. An agency’s pricing model can signal how they’ll perform in the long run. If they charge a percentage of ad spend, ask how they’ll commit the time and resources needed to properly launch and manage your campaigns—especially during the critical, often unprofitable first few months. Effective creative testing, landing page optimization, and account setup all require significant upfront effort. Agencies with low upfront costs may underinvest early, since their incentives only kick in once you’re profitable. But once your funnel is working, a percentage-of-spend model effectively becomes a tax on your success—often disconnected from the actual work they’re doing.

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Pricing and bundles

Bundles and pricing structure are key to direct-to-consumer (DTC) success. A target Average Order Value (AOV) of 25to25 to 100 is ideal—it helps cover shipping costs and leaves room for paid advertising. And to ensure your gross margins stay healthy it’s also important to factor into your operational costs, like weight and shipping expenses. When bundling products for DTC customers, clarity is key. Too many options can overwhelm shoppers and lead to decision paralysis. An easy “starter bundle” helps simplify the choice, making it easier for customers to convert. Additionally, historical customer data like repeat purchase rates and lifetime value can inform paid ad strategies. Metrics including the average customer’s repeat purchase rate, first purchase AOV, and Lifetime Value (LTV) gleaned from these channels can help inform an effective paid ads strategy. Don’t forget to take a conservative approach to projecting acquired customers through paid channels, such as Facebook, since they typically are lower quality compared to those from organic, direct, or wholesale channels.