01:54:48 · John Coogan, Sean Frank, Jordi Hays
[01:54:48] S1: do. Okay. [01:54:48] S6: So we have, like, a travel line. [01:54:50] S1: Have Luggage. [01:54:51] S6: We do, like, 10% of all men's wedding rings in America. So we have, a huge 10%. [01:54:55] S1: Yeah. Yeah. [01:54:56] S0: It's Double digits of the TAM. [01:54:57] S6: Yeah. It's, like, a very boring monopoly. We sell a ton of, like, men's wedding rings. [01:55:01] S0: And they're coming for it all. [01:55:02] S6: Oh, yeah. Soon. [01:55:04] S0: You won't be able to get married. They're actually going for regulatory capture. You won't be able to get married if you're not planning to use a ridge ring. [01:55:11] S6: Yeah. Because I'm I'm like a big pronatist now because I'm like, get married. Yeah. Oh, [01:55:16] S1: So you're behind all of that. Every time I see some podcaster What's the style? About the the fertility crisis, it's you. Yeah. You're behind it funding it all. [01:55:24] S6: And the big thing now is, like, the tech business for us. Yeah. So, like, we do, like, phone cases, that type of stuff. Yeah. Yeah. It's, like, twelve months old, it's, like, already, like, a $100,000,000 a year. So Wow. Just adding a bunch of new random little little widgets to sell. [01:55:36] S1: That's insane. Okay. So take me through the demand generation side of the business. Like, what is actually changing? Obviously, there's AI generated advertising, AI enhanced targeting. There's all sorts of different stuff. But, like, from your day to day, from the platforms you're advertising on, like, what has been the most material change over the last twelve months?
01:55:36 · John Coogan, Sean Frank, Jordi Hays, Eric Seufert
[01:55:36] S1: That's insane. Okay. So take me through the demand generation side of the business. Like, what is actually changing? Obviously, there's AI generated advertising, AI enhanced targeting. There's all sorts of different stuff. But, like, from your day to day, from the platforms you're advertising on, like, what has been the most material change over the last twelve months? [01:55:58] S6: Well, it's a big day to be here. Right? Because the big meta announcements. Yeah. People were, like, dancing on Meta's grave, like, three days ago, and and now everyone's stoked on it. [01:56:08] S0: Now you have a 1% god candle. Totally. [01:56:12] S1: Is that specifically about the LLM or or the the image generation model? Because the image generation model seems much more impactful to the advertising business than the agentic coding capabilities. [01:56:22] S6: Well yeah. Yeah. Well, I would say the manus actually, like, really helped unlock, like, a lot of, like, stuff inside the ad account. [01:56:31] S1: Using the ad manager more [01:56:32] S6: than Got it. I think, like, it just democratized a lot [01:56:35] S1: of tools that, [01:56:35] S6: like, the best ad managers are already using. [01:56:37] S1: Yep. [01:56:39] S6: But really, we just want Meta to continue to get better. Better. [01:56:42] S2: Yeah. [01:56:43] S6: Right? Over the past three months, they've rolled out a lot of changes of, like, the actual ad algorithm. Yeah. And it was really bad for a lot of people. We just had, like, the best q [01:56:50] S1: two It was good
01:56:50 · John Coogan, Sean Frank, Jordi Hays, Bernt Øivind Børnich, Jeffrey Morgan, Eric Seufert
[01:56:50] S1: two It was good [01:56:50] S6: for you. Oh, it was awesome. [01:56:51] S1: Yeah. Interesting. [01:56:52] S6: I think they're getting So way [01:56:53] S0: so Yeah. Do you think that it was actually bad bad for some people, or they were just going through a slump in their business overall? They had, like, business problems that they wanted to blame on [01:57:04] S5: the ad changes. [01:57:06] S6: Well, dude, yeah. I mean, what's new, right? It's like, everyone so if your business is going bad, it's everyone else's fault. Yeah. But really, like, you know, they do, like, the meta performance summit every May. [01:57:15] S3: Mhmm. [01:57:15] S6: And they've just rolled out so many great changes to the ad algorithm that, like, I think you're getting better impressions with better people. [01:57:22] S2: Yeah. [01:57:22] S6: And I the more compute and AI they throw out, I think it's just gonna get better and better. And, like, we're gonna do it like a future where, like, the perfect impression at the perfect time with the perfect ad that's, like, customized to the person with AI, that's coming. [01:57:35] S1: Yeah. [01:57:35] S6: And click through rates will go up, conversion rates will go up, and CPMs will go up with it. But I think there'll be, like, a moment of arbitrage there.
01:57:35 · Sean Frank, John Coogan, Jordi Hays
[01:57:35] S6: And click through rates will go up, conversion rates will go up, and CPMs will go up with it. But I think there'll be, like, a moment of arbitrage there. [01:57:42] S1: Do do you think do you think Zuck is doing enough to actually message that to customers like you? Because Ben Thompson put out this piece on Monday, sort of an earnings call transcript that he wrote in the voice of Mark Zuckerberg, and his pitch was to investors, telling the investors, hey. Look. We are investing a lot in AI, but it's all in service of the ads business, which is great, which we do take seriously. We have taken some side quests, done some metaverse, some VR stuff. But this investment that we're making right now, you shouldn't beat us up in the public markets because it's going to come back huge. We're growing really fast on the ad side. 33% is massive at that scale, and it's gonna continue to double down. But I'm wondering if if advertisers are are receiving that signal from Meta that it is going to get better. It is some place that they should be spending more time and more dollars. [01:58:34] S6: Yeah. We're a captive audience, so I don't think he has to message to us. [01:58:37] S1: He doesn't. He [01:58:37] S6: he can talk [01:58:38] S0: to you more. Yeah.
01:58:38 · Jordi Hays, Sean Frank, Bernt Øivind Børnich, John Coogan
[01:58:38] S0: to you more. Yeah. [01:58:38] S6: Yeah. Like, the best thing he could do is get people to spend more time on their app. Yeah. Right? And then better understand who those people are and what they're in market for. Mhmm. And if he delivers those things, the ad dollars will come. Mhmm. Because besides that, like, where else we're gonna spend money? [01:58:49] S5: Yeah. [01:58:49] S6: Like, TikTok shop's actually doing great, but it's still a really small business. Right? Like, the GMV this year in America might be 20,000,000,000. [01:58:56] S1: Really? [01:58:56] S6: And Amazon does that, like, every four days or something. So it's like, it's still a very, very small business. [01:59:01] S1: Why is TikTok so small? Is it is it a separate panel or something? I feel like TikTok still has so many so many impressions, so many videos that are being served. Do you do you have an idea of why that business is [01:59:13] S0: falling out? I think it's it's not necessarily I think it's primarily that content platforms have been a place you discover products, but not where you transact. Like Meta has done a lot of had a lot of efforts in shopping in app. They never you would have thought that they would have clicked harder. Yeah. Right? It's like you have this captive audience that uses your product for an hour a day to discover things to buy, and they're not buying that many products in the app. [01:59:40] S1: Yeah.
01:59:40 · John Coogan, Sean Frank, Jordi Hays
[01:59:40] S1: Yeah. [01:59:40] S6: Yeah. And TikTok shop is delivering way more value than 20,000,000,000 in GMV. Like, a a brand is, like, Comfort Hoodies. I'm sure you guys have seen them. They're doing 1,000,000,000 a year right now. They're four years [01:59:51] S0: old. Last time time you told me about them, I think it was, like, 400 or something [01:59:55] S6: like they've more than doubled. Yeah. It's crazy. [01:59:57] S1: Yeah. Yeah. [01:59:57] S6: Yeah. And all it is is, like, TikTok shop affiliates. So people posting thousands of videos a day. They take those the best videos of it. Yep. They put it into TikTok shop GMV max. Yeah. They run that. And their TikTok shop business might do might do a 100,000,000 a year, but the spillover is crazy. Everyone goes to Amazon. Everyone goes to your website. [02:00:14] S1: Oh, got it. [02:00:15] S6: So, like Yeah. Yeah. They've just done a horrible job actually capturing the value they're generating. [02:00:19] S1: Interesting. But they're getting a lot of impressions. They're driving a of purchases. What's the sweet spot for price point on TikTok shop? That hoodie company, is that a $70 hoodie? [02:00:28] S6: It's cheaper. Right? Like, it's a successful product in TikTok shop is female focused Mhmm. Impulse buy. So like, you know, $20, $30, $40, something like that. And then you have people to make outrageous claims. Right? And so Yeah. Yeah. Comfort hoodies is like it's a hoodie that cures anxiety. Yeah. So, like, that's pretty good. [02:00:45] S1: Like, it's [02:00:46] S6: a pretty good value prop.