📦 - 🚨 Beware of Automatic Adjustments

DTC 676 - On Running Brand Story, Dangers of Amazon AI, and Automatic Adjustments Monday, October 28, 2024 Good morning, Meta has rolled out automatic adjustments in some ad accounts. What does this mean? Automatic rules can pause, activate, scale or downscale budgets without you knowing… Learn how to turn off this feature below. Here’s what you’ll find in today’s DTC: 🤖 We discuss the benefits and dangers of using AI in your Amazon creatives. 🏃 Learn how On Running captured 40% of the Swiss running shoe market with these clever tactics. ⭐ How Dixxon Flannel Co. built a million order per month cult following + loyalty and review programs with Okendo 😲 And…double check your Meta ad account. A new feature may be making changes to your campaigns without your knowledge. You’re reading this newsletter along with new subscribers from: [Malin+Goetz](, [Decathlon](, and [Buster and Punch](. 👋 STRATEGY ⏰ Will These 35 Minutes Change How Your Brand Approaches BFCM ‘24? You never know where the next tip or insight that propels your brand forward will come from. 👀 And when we’re coming up on the most impactful time of year for DTC brands, you can’t afford to miss out on those chances to find the thing that makes your brand come out on top. 🏆 In just 48 hours, [Klaviyo will be presenting the 2024 top consumer trends and practical last-minute strategy tips for BFCM](. Get the info you need and understand how to integrate trends, like early bird shoppers and managing inflation, into your strategy now. Don’t miss out on unlocking these last-minute BFCM ‘24 strategies. [Register Here]( *Sponsored AMAZON 💡 Beware of Amazon Generative AI Limitations Amazon has been rolling out [AI features quickly this year](, and a big topic at the Accelerate conference in Seattle was Generative AI's potential and limitations. What has changed? Lots. Amazon's AI features allow sellers to create product titles, descriptions, and generate product attributes within seconds. The ecommerce giant has also rolled out generative tools to create listing images, A+ Content, and [videos for listings](. And… at the Accelerate Conference they teased the release of using AI to dynamically change listings based on customer search terms. That's a lot of changes. [Pilothouse]( explains that on the one hand, these tools will make it quicker and easier to populate a listing's details prior to moving to a launch. And hopefully, these AI tools will help create a standard for sellers regarding creative and copy. However, the early examples of creatives are not that great (especially when compared to the caliber of what is capable on Amazon). So performing well on Amazon will still come from custom imagery and content created by experts (and will set you far above the competition). The takeaway? At this time these suggested optimizations will be mediocre at best. As any experienced Amazon Seller knows, what Amazon recommends, is rarely if ever a true best practice for maximizing performance on the platform. (Sorry, Amazon, we do love you still! 💗) So make sure to review any generative AI changes carefully before implementing them. What you can do is continue to feed the AI with the best possible information. Right now, Pilothouse is reviewing all listings to ensure all attributes, backend keywords, and every detail we can give Amazon about our product is filled in. AI is only as good as the available data, so we are ensuring Amazon has the data it needs. Ideally, this will also help [Rufus]( (Amazon AI shopping assistant) answer any questions from prospective customers. As with anything AI, the first iteration is never perfect, so sellers continue to monitor these changes, and as they develop they will be able to reach their full potential. UGC 🗣️ Last Call for BFCM! Did You Get Your UGC Campaign Order In Yet? You heard it here first, minisocial’s got what you need for the holidays—[one-of-a-kind UGC campaigns]( that effortlessly take your marketing to the next level. ⏫ It’s time to find out why over 1,000 brands trust minisocial and their no-commitment campaigns for scaling up marketing efforts right when it’s needed the most. (Which is RIGHT NOW!) 💥 Don’t miss out. Get: - Fully-licensed UGC - Micro-influencer posts - TikTok Affiliates - Local retail-activations - Whitelisting/Spark Ads and more with minisocial’s one-of-a-kind UGC campaigns for the holidays. 🎁 Give the gift of their fully-managed projects to your team this season for effortless deployment of creators to boost sales and generate content. Get started before the end of this week for BFCM live dates (we know you need creator content to whitelist) and get 15% off! [Get Started Now]( *Sponsored BRAND STORY 🏃 Four Moves That Helped On Running Scale Have you heard of [On Running](? The Swiss shoe brand has been making big moves in the footwear market thanks to its innovative tech, sustainability mission, and community-building efforts. Here’s how On Running captured 40% of the Swiss running shoe market, bringing in an estimated $43 million monthly. The story Ever since he was a kid, founder Olivier Bernhard has loved running. Running gave him a sense of belonging. Growing up, he became a Swiss pro athlete, winning multiple Ironman titles. Unsatisfied with the running shoes on the market, he decided to develop a shoe with a different running feel. His idea came to life when he used part of a garden hose to create a springy base optimal for running long distances. While Nike rejected his proposal, he continued to work on developing a shoe and partnered with two friends who were skeptical at first but changed their minds once they tested out the prototype themselves. Four moves that helped them scale: 1️⃣ Using celebrities as brand ambassadors: Tennis legend Roger Federer was a fan of the brand, and since they didn’t have the budget to pay for his endorsement fees, they made him a shareholder instead. Earlier this year, [the brand inked a multi-year deal with A-list actress and fashion icon Zendaya](, who was coming off the press tour for the tennis movie Challengers. This was a huge win for the brand, who wanted to be known as an elevated sports shoe. Thanks to her endorsement, 2024 Q2 sales rose to 27.8% YoY. 2️⃣ Creating a customer feedback loop: On Running partnered with professional athletes to sport their product and get their feedback. The [On Athletics Club]( has a say in product development so the shoes are always made for runners in mind. 3️⃣ Focusing on creating a strong community: In the absence of third spaces, On focuses on developing community-run clubs so their customers can connect over their love of running. 4️⃣ Zeroing in on sustainability: The company started a circularity program called [Cyclon™](. Customers who purchase shoes that are part of their Cyclon™ collection will be able to recycle them after six months. The shoe is made from a single material derived from castor beans, making it fully recyclable. Their innovation got them tons of press mentions and free exposure. The takeaway? Innovation is part of On Running’s brand DNA, and it is quickly gaining traction in the global shoe market thanks to these clever tactics. PODCAST ⭐ How Dixxon Flannel Co Built A Million Order Per Month Cult Following + Loyalty and Review Programs with Okendo This week on the DTC Podcast, we’re not just talking loyalty programs—we're diving deep into the fabric of cult brand creation. We’re joined by [Gabrielle Noakes from Dixxon and Priya Patel from Okendo](, to unfold how Dixxon, known for their killer flannels, has partnered with Okendo to weave customer data into the very threads of their brand strategy, enhancing loyalty through authentic engagement. 🧵 If you’ve ever pondered the real ROI of loyalty programs or doubted their impact, [tune in](. This discussion might just revolutionize your approach to customer engagement. In the episode, you’ll hear: 👇 - How custom review strategies can transform customer feedback. - The benefits of integrating your brand culture into your loyalty program to drive engagement and how Dixxon’s audience-tailored program, DILF (Dixxon Insider Loyalty Fam), has resulted in 20,000 signups since June. - The benefits of a well-targeted loyalty program for your AOV. For Dixxon, loyalty members spend 12% more than non-members! If you’re looking to deepen customer loyalty and transform your customers into brand advocates, make sure you… 👇 [Listen Here]( OR [Continue Reading Here]( 🌐 IN THE SOCIAL SPHERE ICYMI, Meta might be making tweaks to your campaign without you knowing. 😱 To make sure this isn’t happening in your ad account follow the steps below. 👇 - In your Ad account go to All Tools -> Automated Rules - Click ‘See Automatic Adjustments’ - Click to toggle off ‘Manage Automatic Adjustments’ Can't view the image? [Click here]( ⚡ QUICK HITS 🤖 💬 Your AI chatbot could close your next sale. How? Here’s 11 conversation examples where an AI shopping assistant led to conversions from industries including electronics, fashion, and more! [Find out here](.* 💸 MERGERS & ACQUISITIONS - Keurig Dr. Pepper [acquires a 60% stake in energy drink Ghost for $990 million](. - PriceSpider [teams up with Intellias to deliver ecommerce solutions for global brands](. - Subscription management firm Zuora [is acquired for $1.7 billion](. - Stripe [looks to acquire crypto start up Bridge in a deal worth $1.1 billion](. 📰 NEWS - X [launches new AI-powered advertising tools for SMBs](. - OpenAI [plans to launch its next AI model ‘Orion’ by the end of the year](. SPONSOR DTC 📥 Got a B2B Biz? Join dozens of B2B companies finding demand-gen success through our niche community of 160k brand leaders and founders this year. [Talk to our team to learn more](. Have you heard our latest podcasts? - 🎯 [TWBERP 4:]( Retargeting Tips - Boost Revenue Post-Purchase - 🧢 How DadGang Scaled Their Brand Into A Multimillion Dollar Biz - ✅ [TWBERP 3:]( BFCM Email Strategies That Work - 🦁 Building [A Mathematical Model That Leads To Growth Goals]( - 💸 [AKNF 446:]( The Art of Not Leaving Money on The Table - 📧 [TWBERP 2:]( Master Email Metrics and Measure Program Success Don’t forget to [rate the DTC Podcast]( on Apple (⭐️⭐️⭐️⭐️⭐️) DTC Newsletter is written by [Rebecca Knight]( and [Frances Du](. Edited by [Eric Dyck](. Was this email forwarded to you? Sign up [here](. Please note that items in this newsletter marked with * contain sponsored content. [Direct To Consumer]( Pilothouse, 1011 Government St., Victoria, BC V8W 1X6, Canada [Advertise with DTC]( | [Work With Pilothouse]( [Unsubscribe](