Sharm Tank Vol. 22

Author

Nik Sharma
April 19, 2024

Happy Friday,

While I was pursuing DTC Twitter (or X, if you’re that guy), I came across a very insightful thread from Gunnar Holm, the owner and operator of a newsletter growth agency called Growjoy.

I’ve followed Gunnar for a while and he is an ace when it comes to growing newsletters. In fact, he recently changed up the format of his newsletter to be less long-form and more digestible.

He reported on X that he saw his clickthrough rate triple as a result (I know you guys will do the same for me), and being a growth marketer, I immediately wanted to test the same.

That’s to say, sorry for changing up the format of the newsletter yet again. Instead of focusing on one main topic, I want to cover several diverse stories to give you as much value as possible.

I’m also going to add a poll at the bottom of this newsletter so you can let me know which format you prefer.

Without further ado, let’s jump into it!

Navigating the Quagmire: The Rise and Scrutiny of 'Made for Advertising' Websites

The digital advertising landscape is facing a new challenge with the proliferation of "Made for Advertising" (MFA) websites. These sites, which lure users through clickbait and aggressive ad refresh tactics, are now under scrutiny for compromising user experience and skewing advertising metrics.

Despite their dubious reputation, MFA sites command a significant portion of online ad spend, exploiting the system's focus on reach over quality.

This controversy highlights the need for clearer definitions and more reliable standards within the advertising industry to safeguard both the user experience and advertiser investment.

Ads Incoming: Meta Prepares to Monetize Threads

Meta is gearing up to introduce advertisements on Threads, its text-based platform that rivals X (formerly Twitter), potentially by the second half of this year.

As it approaches just over a year since Threads' launch, Meta has begun briefing ad executives on the upcoming ad integration, though specifics remain under wraps.

The move to monetize Threads with ads like those on Facebook and Instagram indicates Meta's confidence in the platform's growth and its strategy to expand ad impressions.

This development could mark a significant shift in how businesses engage with Threads, moving from purely organic interactions to a more structured ad-driven engagement model.

Slam Jam x New Balance: Reinventing the Loafer with a Sneaker Twist

Your grandpa’s New Balances could never. Slam Jam and New Balance are pushing the boundaries of footwear with their latest collaboration, which is not your typical sneaker but a bold reinterpretation of New Balance’s 1906 penny loafer.

This innovative design marries the technical aspects of New Balance’s famed sneakers with the classic aesthetics of a penny loafer, featuring a metallic upper derived from the 1906R sneaker and a sneaker-like sole that adds a modern twist to the traditional dress shoe silhouette.

The result is a hybrid that challenges the conventions of both streetwear and formal wear, two aesthetics that have found resonance with Gen Z.

Temu's Aggressive Advertising Push: A Strategy Driving Meta Ad Prices Up

Temu's recent aggressive digital advertising campaign, involving a staggering 8,000 campaigns and 19,000 ads, has significantly impacted ad pricing across Meta platforms.

This massive push not only spiked the cost of ads but also strategically bolstered Temu's app ranking. Data analysis reveals a direct correlation: a reduction in Google Ads spending by Temu shows a .8 correlation with a drop in their app rank, highlighting the direct impact of digital advertising on app visibility and engagement.

Despite this aggressive marketing strategy, Temu has shown some softness in its performance throughout Q1, indicating potential challenges in sustaining long-term growth solely through advertising.

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