第 284 期:不只是为了出版商

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A frame from: Fullsterkur (full strength), a Rogue film debut on Youtube – August 26

Between the months of May and July, 5.75 million consumers visited an online retailer that strength and conditioning enthusiasts know as Rogue (No. 11 DNVB). And that’s just the Ohio company’s American site; the company also operates out of Canada, Europe, and Australia. Every SKU sold has been through their native eCommerce channels. They’ve quietly and successfully competed with the old guard of strength and conditioning while holding off well-known retailers like Sports Authority (RIP), Dick’s, and Academy Sports.

It’s quite the operation with an astounding number of online visitors for a company that you’ll rarely hear about. And from what I know about Bill and Caity Henniger, that’s fine by them. The company is eleven years old now, operating out of a single 650,000 square foot installation. Rogue employs over 500 people: from front end development to welding. And, anecdotally at least, the company seems stronger than ever.

There’s very little tech media and pop business notoriety for Rogue but, it suits the company just fine. They’re a well-oiled machine, from what I know. And machines don’t really need the affirmation of public relations mentions. They’re so quiet that, if you want a list of venture capitalists that track them (out of admiration), it’s GGV’s Jeff Richards and Indie.vc‘s Bryce Roberts. And, for the record, Rogue is where I cut my teeth in the sophisticated world of online customer acquisition. Back then, it was just Google SEM, Facebook spend, and daily ROI audits.

Today, for retailers, that’s not enough to efficiently grow a business. CAC is rising, knock offs are abound. And Amazon, Alibaba, and the industry seem to alter the battlefield quarterly,

There’s a point of diminishing return in brand-first eCommerce. At some point, you have to begin to think outside of the box or sales begin to slow, awareness tanks, and the old guard regains their footing against your early years’ momentum. This is the story facing numerous brands across consumer packaged goods (CPG), digitally vertical native brands (DNVB), and marketplaces. But there aren’t many companies in America operating at the level of complexity that Rogue seems to be.

For brands looking at how to navigate Porter’s Five Forces, look no further. It’s the basic understanding of positioning, competition, and other market forces that influence the best and brightest leaders throughout the eCommerce landscape. Not only is the company forward-thinking in manufacturing IP, tech development (in-app, one-click purchasing), and marketing (Youtube is now 21% of all organic social traffic). They seem to understand that for many consumers, there is an important question: “Will a brand be around in ten years?” The answer lies here: “Well, are they respected? Is their product an institution?” The last two questions will determine the answer of the first.

Rogue is quickly becoming an institution. This latest production, live streamed on a Sunday night, was a great introduction to a project that they’ve been working on for years: The Index. For the casual industry observer, it’s a content x commerce play. And it is. But deeper than that, it’s a bridge. You can watch, through the evolution of their videos and academic archives, as Rogue became more and more respected by those at the top of their crafts.


Issue No. 267: On DNVB Branding

For heritage brands, presenting an aura of staying power means that the products and channels will present as forward-thinking for a millennial-driven, omni-channel age.

Meanwhile, vertical brands work to establish their products as an evolution of heritage products, while maintaining as many of their technological advantages as possible. For digitally vertical brands, longevity is projected by tethering to history and tradition.

The next wave in DNVB branding will be focused on developing history and tradition. Brands will deepen their roots by way of product collaborations, messaging, and unique origin stories of their own.


The film was impressive. Directed by a talented videographer named Todd Sansom, who’s been there forever, the film was executive produced by the owners of the company, and influenced by their closest peers. It was a passion project as much as it was a way to address how buyers decide and consume on the internet today.

Content and commerce isn’t just for publishers anymore. And quiet old Rogue, is at the leading edge. The ability to reach new consumers by becoming a destination for their enrichment is often theorized but rarely executed by eCommerce brands. While some go for virality, this is not the intent here. The latest film is part of a collection that draws you in. And while I may be biased here, it works. Rogue’s equipment isn’t exactly inexpensive compared to foreign manufacturers or bargain options, stateside. But for tens of thousands of people who run, jump, and lift – Rogue is their source. Not only for products but for inspiration, education, and the great examples of strength’s golden era. By the time that visitors conclude their rabbit hole viewing of content, they’re reminded that there are tools, apparel, and heavy equipment available to them by freight or overnight mail, depending on the tonnage sold.

Update: Rogue’s Fullsterkur film has garnered critical praise. It is being screened at the Austin Film Festival as a Marquee feature. Per Rogue’s online store:

The Austin Film Festival & Writers Conference (AFF) is the premier film festival recognizing the writers’ contributions to film, television, and new media. The festival is marking its 25th Anniversary in 2018, with a packed schedule of screenings, panels and other events taking place from October 25 through November 1. Among the other Marquee Features joining Fullsterkur on the schedule will be Gillian Flynn and Steve McQueen’s new thriller Widows, Mike Leigh’s period piece Peterloo, the Mickey Rourke-starring boxing drama Tiger, and Paul Dano’s Wildlife, starring Jake Gyllenhaal and Carey Mulligan.

The film will show at the Austin Film Festival on October 30 at 4:30 PM Central. The 90 minute film was broadcast live, where it was viewed 4.1 million times on Facebook and has been watched over 270,000 times on Youtube.

Read more of Issue 284 here.

作者:Web Smith | 编辑:Meghan Terwilliger |约 2PM

第283期驾驭 DNVB 的增长依赖性

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With very few exceptions, a digitally vertical native brand (DNVB) that succeeds over the long term will have command over three core components. To CMO-level operators, these core components develop a virtuous sales cycle. The top brands: foster organic (word of mouth) community, convert social following into revenue, and optimize performance marketing spend.

But there are hazards to consider, especially when balance isn’t a priority for a brand. When a DNVB depends too heavily on one of the three components, growth will stall. In an upcoming report commissioned by 2PM and Common Thread Collective, the firm’s Managing Partner Taylor Holiday and I discuss the limits of a DNVB’s proverbial adolescent years.

The teenage years: from start to the end of a brand’s natural growth.

It’s how brands position themselves for the next phase of growth that separates them from their competitors. For brands, the teenage years can look different. Here are three cases:

  1. Dependency: grassroots community. An online kitchenware brand has a coveted, quarterly brochure. The production of the brochure is 60% of all marketing spend. Historically, it has converted well. Sales have begun to stall as fresh entrants eat away at their grassroots awareness by spending heavily on performance marketing. Rather than competing to amplify their sales through social channels and performance marketing, they spend more on the next quarter’s brochure. This exacerbates the problem and opens them to more of an issue once brochure sales falter.
  2. Dependency: performance marketing. An online dress shirt brand builds a strategy around Facebook marketing. They hyper target potential customers and reach them again and again. But the cost per thousand (CPM) for DNVB advertising has risen 50% per year over the last three years. It’s not sustainable and as such, the brand begins to lose to competing brands with word-of-mouth influence and great social capital.
  3. Dependency: social. A CPG beauty brand is backed by a high-powered celebrity. Each instagram post generates 100,000 clicks to the brand’s site and sales are nearly automatic to the tune of a 7% conversion rate. But Instagram’s algorithm changes to deemphasize promotional posts that aren’t run through Facebook’s ad server. Traffic decreases and there is no performance marketing system in place.

For DNVBs, it’s often easier to stick with what works at the expense of missing out on efficient, long term growth. In a recent article on eCommerce innovation and DNVBs, Internet Retailer’s James Risley got something completely wrong.

DNVBs’ ability to create unique products and connect with niche audiences insulates them from some competition with Amazon.com Inc. (No. 1) and other big retailers. And the direct-to-consumer model keeps prices down as well, making their unique wears more affordable to the niche or mass-market audience they want to draw.

Brands are not at all insulated. In fact, you’re beginning to see well-funded startups and brand conglomerates go after early-stage retailers even earlier, these days. When direct to consumer shoe brand Atoms launched, Allbirds immediately went on the offensive. And fashion retailers, including Stitch Fix, were met with opposition very early on.

Amazon has launched their version of nearly every product offering on the market. Brands don’t win by insulating themselves. Quite the opposite, they succeed by branching into new channels and reaching the customers that are adjacent to their most passionate advocates. Eventually every DNVB faces the incumbent, but first they have to get out of their own way.

To leave adolescence behind, diversification is often a necessity. There are several brands who’ve successfully navigated brand adolescence:

Originally (and passionately) online-only, Warby Parker began opening up retail locations to influence customers who were hesitant to purchase without touching the product.

Though Harry’s was competing with Gillette by marketing directly to consumers and getting to customers before they made it to stores, the razor brand eventually partnered with Target stores to compete with Gillette head to head.

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Sunset Plaza on January 5, 2018.

Rihanna’s Fenty Beauty is driven by the superstar’s social following. However, to reach new potential customers, she began paying for traditional advertising in major cities. This allowed her to back off promoting the product so often through her primary channel – Instagram.

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Facebook’s % growth in CPM (Cost Per Mille)

For C-Suite level marketers, there is a three-part operational exercise that can go a long way in identifying best practices for a DNVB’s demand generation program.

  1. Identify the most important variables that drive your brand’s success.
  2. Collect and interpret data from a range of market research materials to better evaluate marketing mix strategies.
  3. Develop marketing recommendations that are fact-based and free of inference.

Diversification, within reason, is often the outcome of this exercise. To move beyond the early days of a brand’s growth, it is necessary to meet potential customers half way. This means reinvesting in new marketing verticals is a worthwhile strategy. Advantage goes to the brands that see this and act on it before the market makes the decision for them.

Read more of Issue No. 283.

作者:Web Smith | 编辑:Meghan Terwilliger |约 2PM

第 282 期:Instagram 的 CPG 问题

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图为来自俄亥俄州的 CBD 美容品牌 Cannuka

想象一下推出一个消费类商品品牌的情景。你花费毕生积蓄开发产品。你精心打造品牌和包装。您建立了分销渠道,并聘请了一家营销机构来传播您的信息。但是,该战略严重依赖于 DNVB / CPG 领域其他公司通常采用的媒体购买和影响者营销类型,而 Facebook 却不配合。

CBD 是大麻二酚的简称,在美容和保健消费者中越来越受欢迎。它是一种不含四氢大麻酚的物质,可用于治疗从肌肉缓解到失眠等各种疾病。今年 6 月,美国食品和药物管理局批准了第一种基于 CBD 的癫痫治疗药物。与本文相关的是,CBD 已经出现在高端护肤品中。但是,Facebook 和 Instagram 的规则参差不齐,在消费类电子产品领域造成了不小的影响。这属于 Facebook 的违禁内容类别

因此,当我见到Cannuka 的联合创始人迈克尔-邦格纳(Michael Bumgarner)时,我很惊讶地听说他与 Facebook 的违禁内容政策发生了冲突。尽管他销售的产品不含 THC,可以通过Popsugar 等网站销售。"他最近在接受《商业期刊》(Business Journals)的 Carrie Ghose 采访时说: "他们承认我们的产品百分之百合法,但仍然不允许我们发布广告

虽然公平性是一个完全不同的问题,但 Facebook 将平台定位为禁止 CBD 类产品其实是有正当理由的:缺乏监管。虽然 Facebook 因其对新闻和小道消息的有效性监管不力而长期成为众矢之的,但他们一直反对不受监管的产品(保健品等)。

消费者护肤品中的 CBD 仍有点像狂野的西部。发表在《美国医学会杂志》上的一项研究发现,网上销售的 CBD 产品普遍标签错误。"比罗说:"问题是没有研究表明正确的剂量。杰克宁还提醒说:"目前,CBD 和大麻产品完全不受监管,罐子里的成分不必与包装上的一样,因为没有人检查。

凯伦-阿德尔森 | 战略家 

然而,正是由于 Cannuka 的质量,使其在充斥着错误标签产品和黑心卖家的行业中脱颖而出,获得了全国性的关注和 75 万美元的早期种子投资。尽管在全国范围内,大麻衍生品 100% 合法的推动工作在逐步进行,但 Facebook(和 Instagram)在这方面却落在后面。他们会重新考虑如何影响 CPG 公司的命运吗?

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照片脏柠檬公司提供

CPG 饮料品牌 "Dirty Lemon "的经历却恰恰相反,尽管产品动力和起源相似。该饮料品牌在 Instagram 上拥有 101,000 多名粉丝,并得到了众多有影响力的人的支持,通过将 Facebook 和 Instagram 作为收购渠道,该品牌获得了成功。

这款药水可消除焦虑、舒缓压力、减轻肌肉和关节疼痛、镇静痤疮并改善睡眠质量,其中包括 20 毫克全谱大麻二酚(来自奢侈大麻品牌 BEBOE)、纯麻油以及菠萝汁、血橙汁和橘子汁的混合物(被厚颜无耻地称为 "菠萝特快混合物")。当然,"脏柠檬 "的常见成分也包括在内:过滤水、纯柠檬汁、海洋矿物质、喜马拉雅粉红海盐、罗汉果和左旋茶氨酸。

Kells McPhillips | Well and Good

虽然这些品牌有许多相似之处,但营销方式似乎是品牌与 Facebook 之间关系的关键所在。Glossy 的 Priya Rao 报道

6 月下旬,Dirty Lemon 首次在 Instagram Stories 上发布了一款新饮料,并要求社区猜测该公司的最新配料,以换取一箱免费饮料。[......]迄今为止,[脏柠檬]在 7 月份推出的 +CBD 是该公司力度最大的一次。Dirty Lemon 的第一批产品(约 2 万瓶)在两天内就销售一空,直到上周还在排队等待。所有 Dirty Lemon 饮料均以六瓶装出售,并以 65 美元的价格运送到客户家中。

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7 月份,他们高达 66% 的转介流量是通过雅虎网站的 付费渠道获得的,而通过FB Messenger 在 Facebook 上的聊天则产生了近 8% 的转介流量。虽然 Dirty Lemon 避开了传统的 Instagram 广告,但他们的 Instagram 故事带来了最多的 "直接 "流量:27%。IG 的故事平台似乎是他们最常将有机推广与影响者(付费)推广相结合的地方。这种模棱两可的做法让他们受益匪浅。其回报可能高达数十亿美元。

数据

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估计 CBD 产品的增长
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生物多样性保护产品的估计收入(单位:百万美元)

大麻驱动的 CPG 行业是一个值得跟踪的重要行业。这不仅是因为该行业在未来四年的预计增长,还因为它是仅存的几家以产品为基础的公司之一,这些公司似乎都在努力克服 Facebook 陈旧的广告规则。Facebook 的广告系统缺乏客观性和一致性。它加速了一些 CPG 初创公司的发展,却让其他公司望尘莫及。

点击此处阅读第 282 期的更多内容。

By Web Smith |About 2PM