Six thousand brands have now bought ads inside ChatGPT, a store where most shoppers came in to ask a question and leave. Paid visits there convert at about a third of Google’s rate, making it the most expensive way yet to be told “great question.”
Celsius, meanwhile, had a record quarter and learned its best seller is now Alani Nu, a brand it bought last year. Few things humble a founder like being outsold by the acquisition. Poppi’s founders, freshly paid by PepsiCo, have started a drink to take on PepsiCo’s Gatorade, which is one way to stay in touch.
In partnership with LoyaltyLion
Got a plan to bring shoppers back for a second purchase post-BFCM?
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Brands like Evereve, 47 Brand and ILIA Beauty are already planning how to make the most of this, using exclusive loyalty experiences to bring back newly acquired shoppers.
Giving shoppers reasons to return and repeat purchase in January is essential to driving ROI on peak acquisition spend.
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Bonus point promotions on specific products or collections
Incentivizing receipt uploads for third-party purchases
Challenges that motivate positive behaviors like reviews or referrals
A Loyalty Pass that goes everywhere your new shoppers go
Loyalty tiers that drive up engagement and CLV
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Need a little more inspiration? Watch top brands tell us how they’ll drive repeat purchases post peak!
Tweet of the Week
How Hiya Became a Category Leader Without Taking VC Money
OpenAI only started selling ads this year, and brands have turned up in numbers: Adthena counted 6,333 advertising on ChatGPT in August, up from 1,082 in June. Whether the clicks become orders is a separate question.
Digiday’s Krystal Scanlon pulls together the numbers from Adthena, Sensor Tower, Similarweb and New Street Research. Inside:
Paid ChatGPT visits convert at 0.37%, against 1.17% for paid Google Search, according to a working paper on ecommerce data
Revenue per session: $0.89 from ChatGPT, $2.45 from Google
Shopping fell from 38% of US ChatGPT ad spend in April to 20% by September, while financial services rose from 2% to 13%
Fewer than half of ad-eligible users see ads, even in the UK (45.7%) and the US (43.4%)
Accuracast’s Farhad Divecha says the new Magnite and PubMatic integrations haven’t necessarily fixed the tracking discrepancies
(Six thousand brands getting in line mainly to find out where the line goes is, to be fair, how most new ad channels begin.)
Quick Shots
Drew Fallon Alani Nu now outsells Celsius. Celsius’s biggest brand is no longer Celsius.
Andrew Youderian The 2019 eCom playbook needed money for Meta. The new craftsman model needs a product people talk about and patience.
Jess @ FireTeam I think the traditional agency advantage is dead… or maybe… it never existed?
Bar Bruhis The Wegmans PO was roughly 50% of what we do in 1 day of revenue on DTC!
Chris Lang Fresh Chile, last 365 days: 5.44x ROAS, 2.03 new-customer ROAS, 18.4% MER. Last 7 days: 24.2% MER.
Here for the Memes
Top Headlines this Week
Best from LinkedIn
Zack Miller: Here’s an example of a “reach campaign” that did nothing but waste money on a $250/day budget.
Of the 210k people reached L7, only 8% of them overlapped with the rest of the account (purchase campaigns).
$3 CPM on the reach campaign
$70 CPM on the purchase campaigns
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Stat Attack
One ad channel that mostly answers questions, one beverage company outsold by its own purchase, and two founders picking a fight with their old buyer. Enjoy the run-up to Black Friday, and if a chatbot calls your ad a great question, take the compliment, then check the conversion rate.
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