Good morning,
Happy Friday! 🎉
We’re back again with another DTC Summer Series Takeover. ☀️
Today’s guest writer is Spencer Toomey. Spencer is a Growth Marketer from Orange County, CA, managing paid media for BYLT Premium Basics.
He has robust experience in Paid Media, Traditional Media, Sales Engineering, and B2B Revenue Growth across different tech and ecom verticals. Other than selling shirts on the internet, he loves traveling and heading to the beach with his dog! 🐶
Here’s what you’ll find in today’s DTC:
💸 Spencer Toomey shares how he got laid off after landing his dream job in paid media.
✍️ Ten things he would do differently in 2024 to lead growth at a company.
😇 And…how to create stellar short-form video on your product that can be used everywhere.
You’re reading this newsletter along with new subscribers from: Self Space, Ramsay Health Care, and Skaggs Inc. 👋
💬 From Dream Job to Layoff: What I Learned from My Biggest Marketing Mistakes
It was April 2021, and I finally got my big break as a marketer. I had been working my way up, even for free at times, for the past five years, taking any opportunity I could get my hands on.
Finally, I secured my own growth team, a salary that exceeded my expectations, and the autonomy to scale paid media for one of California's rapidly expanding recreational 🥬🍃 delivery services. 😉 (Note from DTC team: you know what we mean, but we can’t say it without being flagged. 😂)
It was a dream come true in the middle of a pandemic that had us all working from home.
But, just six short months after accepting my dream role, I was “laid off” along with a group of direct reports and other colleagues.
And even though it was labelled as a layoff, I knew the reality. I had mismanaged channels and campaigns, scaling in the wrong directions at the wrong pace. Let's be honest, I was fired.
🫨 So, How Did I End Up In This Position?
When I joined the company, it was thriving during the pandemic. They had great prices, a great service, and people at home ready to consume. 🥬🍃 companies had even been deemed essential businesses by the government.
All of their growth and success had come organically, without spending a single cent on advertising. Now, they were eager to scale paid media quickly to capture a larger market share in California and expand into other states.
Given a blank check, a clean slate for marketing, and pressure to spend large budgets, I made a classic rookie mistake: I scaled too rapidly and diversified too quickly.
Within three months, I launched accounts on two popular 🥬🍃 marketplaces, partnered with multiple programmatic platforms, and initiated campaigns across native ads, CTV, Google, partnership takeovers, street teams, and OOH.
We ran numerous creatives and promo codes, executing high-volume A/B testing. We also spent at a higher clip than we should have to get fast learnings because there was so much (perceived) cash from 2020. The approach from a structure, planning, and execution standpoint was textbook.
But month over month, revenue slipped.
Just as we launched our ads, the 🥬🍃 industry shifted from easy growth to a more competitive landscape that I wasn’t prepared for. The TAM had been saturated and prices were driven down by competition from first-time patient deals. Retention for most companies was near zero.
My biggest mistakes were diversifying channels too quickly and spending far too much. As the growth leader, it was my responsibility to ensure we mastered each channel and to curb heavy spending if the margins weren't justified on the first purchase or within CAC parameters.
🤔 So, what 10 things would I do if I joined a company to lead growth from scratch in 2024?
💬 From Dream Job to Layoff: What I Learned from My Biggest Marketing Mistakes
1️⃣ I would push harder to understand our financial runway.
How much could we hypothetically spend on launching paid media before management or investors decided to pull the plug?
2️⃣ What are the most important business KPIs beyond just paid media?
Is it revenue growth at all costs, CAC, retention, LTV, profitability, or something else? It's crucial to push here, as these metrics will form the foundation for all decision-making going forward.
3️⃣ Understand the industry landscape and business itself.
How is that industry’s economy performing? Is there untapped potential for a large influx of new customers, or has the market been stagnant? Are there legal or governmental barriers, or has the industry received significant funding? For example, in 2024, the health powders and weight loss supplements industry comes to mind. Additionally, consider whether this business is better suited for attracting new customers with a low LTV or if the opposite is true.
4️⃣ I would prioritize launching channels based on their ability to achieve business KPIs in their respective industry.
Only then would I focus on their performance in paid media specifically.
5️⃣ For the first six months, I would focus on launching only 1-3 channels.
By mastering these channels, we can establish the brand as a top performer within them. Implementing a scalable process across your team that executes best practices and rigorous testing will be key. Additionally, I would consider vetting or hiring a top agency to audit the accounts and offer strategic recommendations if your budget allows.
6️⃣ I would not scale heavily past the budget needed for learning purposes unless the business is meeting its KPIs—not just the platform-specific return on ad spend (ROAS).
If both business goals and paid media targets are being met, I would then consider increasing spending more aggressively.
7️⃣ Make sure to stay in lockstep with management on shifting goals, business performance, and runway.
These changes often occur in startups and companies scaling paid media.
8️⃣ Test, test, and test some more.
Make sure you’re continuously testing. Creatives, messaging, audiences, value props, CTAs, promos, and deals.
Ensure these tests are rigorously structured. Even after identifying what you believe are the top performers, maintain continuous testing against them.
9️⃣ Ensure your data is clean and sourced from multiple partners.
Depending on the business size, review in-platform results, multi-touch attribution, incrementality, and post-purchase surveys. The post-purchase survey is often overlooked but can be a highly effective attribution tool, especially if incentivized.
🔟 Only explore new channels when absolutely necessary.
If you've mastered a current channel and are experiencing diminishing returns, consider testing new channels under the following conditions: other top brands are achieving success, the new channel offers ad credits, or you have data (not just company-made case studies) proving it can attract incremental customers not reached through current channels.
Then, test and repeat steps 1-9.
In the end, my journey from a hopeful marketer to a laid-off growth leader taught me invaluable lessons that shape my career today.
Rushing to scale and diversify marketing channels for quick wins without a proper grasp of industry dynamics and business-level KPIs led to my downfall.
The way I avoid this now involves deeply understanding the financial runway, prioritizing core business KPIs, and mastering select channels before expanding further. Rigorous testing, maintaining clean data, and close alignment with management are also essential practices.
Thank you for taking the time to read about my journey! For any other questions, feel free to reach out to me anytime on LinkedIn or email - spencer@byltbasics.com!
🌐 IN THE SOCIAL SPHERE
Want to master short-form videos? Show off these clips to create a compelling video and then use it on your social media, website, and email campaigns to drive conversions. 👇
⚡ QUICK HITS
🐳 Have you secured your ticket to DTC’s C-Suite Mastermind yet? Join us on September 18th and 19th in Victoria, BC, for two days of learning, networking, and unforgettable experiences. Secure your seat now!
🤔 What SHOULDN’T you be doing this Q4? You know what you should be, but have you flipped the script? Join the DTC x Pilothouse virtual webinar on August 14th for The Ultimate Q4 Guide: Big Wins and Even Bigger Mistakes. Register here.
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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.
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