added by sari · updated 2y ago
Distribution and conversion models for consumer startups
- 3. Influencers enable disintermediation of the social media superpowers: As Facebook matures, CPMs rise, driving up acquisition costs, often rendering the platform unsustainable or unscalable. We’ve witnessed the rise and fall of many D2C companies that competed for attention on Instagram and Facebook, and fell victim to increasingly expensive ad c... See more
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- 4. New platforms
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- Over the past two decades, top internet distribution waves included SEO & SEM arbitrage, email “spam,” and the Facebook newsfeed, among others. With each new wave, savvy internet upstarts leverage these platforms, channels, and communities as strategic ways to grow explosively.
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- The distribution channels that underpinned the rise of today’s Internet giants have dried up. Google, Facebook, and Amazon serve as a triopoly that dominates online advertising. The three accounted for 90% of US digital advertising in 2020, up from 80% in 2019. The arbitrage that once existed on these platforms has more or less disappeared and CPMs... See more
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- 1. Virality via social proof: Examples of social proof include user and friends recommendations, product endorsements from influencers, and the ability to see what others in a group have already done
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- Every few years within the consumer ecosystem, new waves of distribution open. Businesses experiment with and exploit these emerging distribution channels, and then these avenues of growth become crowded and far less attractive for new entrants.
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- 5. Group purchasing
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- 6. Niche markets unlock massive markets
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago
- 2. The Etsy Effect: “The Etsy Effect” is a phenomenon that occurs when a seller promotes their own content or product from a marketplace, and in turn, organically brings in new consumers that purchase not just from the seller but also from the entire marketplace.
from Distribution and conversion models for consumer startups by Talia Goldberg
sari added 3y ago