On this week’s podcast we’ve got Simon Wool, the Growth Manager at Little Spoon
Little Spoon is an organic baby and kids food subscription brand with massive traction and a cool $44 million Series B.
The Takeaways: 👇
Strategies for adapting to iOS14.5
Before iOS 14.5 Simon felt more comfortable handing more budget control to Facebook Ads, but since then he’s finding more success with “moving money manually.”
Here he’s got multiple ad sets with similar sizes, and he’s actively moving budgets to the winning sets and pausing others manually.
It’s a high-touch approach, but it’s paying dividends for Little Spoon.
🚨 Little Spoon’s recent tactical wins:
- Moving off of CBO (Campaign Budget Optimization) and onto ABO (Adset Budget Optimization)
- Shortening the number of ads per adset
- Experimenting with different conversion windows
- Moving aggressively to scale non-branded Google Search
Little Spoon’s Golden Metric = Blended CaC
Blended CaC is all sales and marketing expenses (excluding salaries and overheads) divided by total new customers acquired.
Pre iOS 14.5, if Facebook Ads reported a cost per conversion of $75, the blended CaC would look roughly the same.
This is because Facebook would be claiming any user within your conversion window who either clicked or saw an ad as a Facebook conversion.
But since the change, Simon’s seeing a 60-70% reduction in reported conversion events.
This means that a $200 Facebook conversion, might net out to $75 blended CaC.
This is why it’s so important to zoom out to ecosystem reporting and blended CaC.
Paper products for the win (and crazy margins)
Little Spoon recently created its own card game for new parents called “Is This Normal?”
It’s a play on the classic card game Cards Against Humanity.
They launched the card game exclusively with influencers for a very profitable return.
Paper products have a notoriously high margin.
Gamified side products like this are a great way to build even more traction with customers, as well as your network of creators and influencers.