DTC993: AI Visibility, CGC Statics, Outpacing Andromeda, Merchandising Strat, and More

Good morning,

Here’s what you’ll find in today’s DTC:

• 👀 Why CGC Statics Are A Cost Effective Ad Format
• 🛍️ Ways Brands Can Amp Up Their Merchandising Strategy
• 😨 How Uncertainty Kills Repeat Purchases and What To Do

You’re reading this newsletter along with new subscribers from: Geodesys, Bumkins, and Native Pet. 👋

‍🚀 59x Growth in One Year. Is Your AEO Strategy Ready?

In Q4 2025, Triple Whale merchants drove 424,000+ orders from LLM referrals.

All of 2024 delivered 7,152.

🔥 That’s not incremental growth. That’s a new acquisition channel turning on.

AEO—AI Engine Optimization—is the new SEO.

In the early days of SEO, the brands that moved first didn’t just climb rankings. They locked them in.

AEO is hitting that same moment. ⚡

Once AI systems decide who the “go-to” brands are in a category, everyone else is playing catch-up.

👀 Triple Whale's free AI Visibility tool shows exactly how LLMs perceive your brand across ChatGPT and other leading LLMs, and connects AI mentions to actual revenue with Triple Whale’s attribution.

💥 Plus, their free guide shows you how to track AI visibility, influence LLM brand perception, and tie it directly to revenue.

‍👀 The Case for CGC Statics

Short-form CGC video is everywhere right now. It dominates feeds, racks up engagement, and gets plenty of love on LinkedIn. But here’s the quiet truth most ad accounts are discovering behind the scenes:

Static CGC is still doing serious work, especially when efficiency matters.

Video absolutely has a role in modern performance marketing. But if your goal is lowering CPMs, stabilizing CPAs, and scaling profitably, statics deserve a seat at the table.

Pilothouse consistently tests video and static CGC side-by-side, and in many accounts, statics outperform when it comes to cost efficiency.

Here’s why.

Why CGC Statics Still Work

1️⃣ They’re easy to consume

People scroll fast. Many won’t watch past the first few seconds of a video, especially with sound off.

A strong static can communicate the product, benefit, and offer instantly.

2️⃣ They typically come with lower CPMs

Static ads often cost less to serve, and scrappier CGC images tend to drive lower CPMs, stronger CTRs, and cheaper link CPCs.

They also unlock placements where video can’t run (like the right-hand column), helping diversify delivery.

3️⃣ They increase creative diversity fast

Static CGC lets you test new hooks, angles, and creators without the cost or turnaround time of video shoots and edits.

That means more testing velocity and less creative fatigue.

4️⃣ They still feel authentic

A selfie-style image or raw product photo can feel just as real as a video.

‍Statics often humanize brands in a way that polished video can’t, especially in categories where trust matters.

The Pilothouse Meta team regularly tests and scales a mix of video and static CGC.

For a DTC supplement brand, they discovered statics quietly outperformed video on efficiency:

CGC Statics

• Spend: $32.3k
• CPA: $250.08

CGC Videos

• Spend: $19.7k
• CPA: $317.37

👉 The result? Statics delivered a 23% lower CPA than video.

Based on these learnings, the team is actively reducing budget on underperforming video, scaling winning statics, sourcing more static CGC from creators to expand testing.

The takeaway?

CGC video might generate the most buzz, but static CGC often drives the most efficient growth.

If you’re not already running CGC statics in your account, now’s the time to get some live.

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With turnaround times designed for scale, they’re helping brands unlock bold creative possibilities beyond traditional statics and videos.

From static and video to paid ads, social content, and website assets. Brands choose the mix. Darbyon delivers at scale.

Discover the subscription plans behind 100+ ads a month. During your white-glove onboarding, mention “DTC26” and enjoy a free trial.

‍🎧 How To Nail DTC Merchandising in Q1: From Scroll To Sale

Effective merchandising can be the difference between a consumer bouncing or making a purchase.

On this episode, Taylor and Aves from Pilothouse share how to blend creativity with strategic merchandising to win Q1.

With consumers visiting multiple websites before making a purchase, it’s crucial for brands to create a compelling online presence that stands out.

Learn how Pilothouse actually thinks about connecting merch and creative across the entire funnel.

What we cover:

• Why Q1 is the time to de-risk creative investments
• The importance of understanding customer intent and emotional truths
• Creating creative content that resonates with consumers even during slower sales periods
• The art behind crafting compelling offers that don’t confuse consumers
• Leveraging data to create tailored experiences and better merchandising

▶️ Watch the full episode on YouTube.

🎧 Or listen here on Spotify.

Uncertainty is the silent killer of retention.

Jimmy Kim explains brands with strong retention systems proactively remove these 5 uncertainties so customers don’t churn.

When uncertainty is removed, repeat purchases happen by default.

‍💸 Have you been paying attention to your sales tax? If you're not sure what to do, Anrok's guide covers registration, filing, and when to automate. Check it out here. *

‍📥 Got a B2B Biz?

Join dozens of B2B companies finding demand-gen success through our niche community of 150k brand leaders and founders this year. Talk to our team to learn more.

Have you heard our latest podcasts?

• 👱 Ad-venturous 37: The Personal Brand Era
• 📧 TWBERP 69: Email Metrics and Reporting That Matter
• 👄 How Breath Death Cracked TikTok Shops with $0 Creator Content
• ⏯️ AKNF 577: Why Content Targeting on YouTube is Beating CPVs
• 💯 Ad-venturous 37: The Old Spice Rebrand That Actually Worked
• 🛠️ TWBERP 68: Inside DEWALT’s Post-Click Ecosystem

Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

Please note that items in this newsletter marked with * contain sponsored content.