Ep 162: Why Trying to Serve Everyone Could Be Killing Your Agency’s Growth | with Hal Smith of H Street Digital

I want to call out though, sorry, I felt so excited when you said that you've basically sort of niched down or sort of changed your positioning to outdoor brands specifically.

I mean, that's awesome.

And I wish that more agencies would do that.

Why specifically outdoor brands? Did you have like a pattern of success with outdoor brands in the past? Did you see an opportunity there? What were your thoughts?

Yeah, so the first kind of started with the pattern of success.

We had one client in the space and we scaled them really efficiently.

And we, you know, one kind of early signal on that was just on meta.

We realized, you know...

We came, we had a couple of clients that were in like the high end, like luxury skincare products.

Right.

And people that work in this space know, like, it's really expensive to advertise for those products.

So the CPMs on Meta, so the cost to advertise to a thousand people, you know, they'll hover between like 150 to $300.

which is insane.

And so you have to have really high conversion rates.

You have to have really efficient, strong, creative, you have to have great, you know, basically optimization techniques on those campaigns.

With this one outdoor brand specifically, our CPMs were like eight bucks.

And I was like, wow, there's a massive arbitrage opportunity with this type of customer because Meta is an auction and it's based off of how many other advertisers are specifically targeting those customer types for that product.

And I realized there's just really not a whole lot of people advertising for these customers.

And then we started working with a couple other outdoor brands that were actually referrals from the first one.

And it was the same story.

Very efficient customer acquisition.

We could scale very quickly.

We had good addressable markets to scale into.

And then also, too, I think the creative for these platforms was it really does kind of fit what you need for like Instagram or meta.

It's very visual.