How the Tiktok FYP really works, important Meta update & more...

Hi Friends

A few weeks ago Steve, Shivali and I were invited to the Salon Privé event in Chelsea, West London.

I don’t know that much about cars, but I do know that the top 1% must have a LOT of disposable income if the first thing for sale you see when you walk in is a helicopter.?

It's really what movies are made of... talking of movies, can anyone guess who's car we're standing next to?

At Bolt Digital, we have a number of clients that target affluent audiences and they generally operate in a very different way to the typical consumer.?

For example, there are more variances in paid performance across the month not just at the start and end of the month because honestly they don't need sales or pay day to convince them to buy.?

It's a completely different mentality to the typical customer, so brands need to adapt to this or lose out to some of their best customers from a LTV perspective.?

For brands wanting to enhance cut through in a luxury market, below you’ll find three tips from Shiv’s time at Jimmy Choo, Sophia Webster and L.K. Bennet below:?

Now on to today's topics:

?Meta's Checkout Mandate: A New Era for E-commerce in the US and UK

?Mastering Micromoments: Angles for CPA suppression from our Creative Director

?SPONSOR SLOT: How Eva Estell generated ￡743K at up to 21% conversion rate with shoppable experience?

?How the Tiktok algorithm really works, by the Tiktok CEO

?Shivali on marketing to luxury audiences?

?Biz Kids is back

? Meta's Checkout Mandate: A New Era for E-commerce in the US and UK

This is important news for ALL e-commerce brands.

Meta has announced that all new and existing Facebook and Instagram shops must integrate its native payment solution, Checkout.

This has immediate implications for businesses in the US and potential future effects in the UK and other European markets.

The timeline for this integration is aggressive; new shops in the US, whether native or via Shopify, have a deadline of early June to integrate Checkout.?

Legacy shops have until April 24, 2024, a clear indication of Meta's determination to move decisively in this new direction.

According to Meta's announcement, businesses with shops located in 11 European markets, including the UK, will be able to continue to use Facebook and Instagram Shops "until further notice."?

But regardless of whether this happens in the UK now or later, the future is becoming clearer - Facebook WILL contain payment processors for shopping and will encourage brands to encourage their customers to check out and purchase inside the app.?

It's clear that by integrating Checkout into all commerce activities within its platforms, Meta aims to regain control over vital consumer data signals, securing its future in an increasingly privacy-centric era. And for the rest of us, this could mean far fewer conversations about attribution when it comes to Meta.

But what does this mean for the UK and other European markets?

There’s no doubt that these changes, although region specific, potentially herald a shift towards more trackable, in-app purchases driven by Meta's platforms worldwide.?

The US often sets precedents that the UK and other markets eventually follow.

So brands should start preparing for a world where in-app transactions become the norm across Facebook and Instagram, potentially reducing the need for external websites.

Meta's move is a clear statement of it's intent: to regain control and visibility on the platforms ability to drive purchases and secure advertising revenue.

? Mastering the Art of Creative Brainstorming: Top 3 Tips from Our Creative Director Cassi ?

One of our favourite and most effective processes we’ve built Bolt Digital over the past 6 years is our infamous ‘Tell your story through the funnel workshop’, designed to extract the micromessages that brands already have but aren't using effectively.?

And the deployment of micromessages is one of the ways through which we've been able to consistently do the good work we do on CPA across hundreds of brands.?

All brands have a lot to say, and most try to jam everything into one asset, when in fact, the way the platforms work is to enable you to create segments of your audiences based on the actions they took, and critically, when they took these actions.

It’s not about telling the whole story in one ad. It’s about feeding your audience the story one chapter at a time.

By segmenting people by the action they took and when, you create pockets of opportunity to drip feed different messages.?

Next, you've got to have the ideas and production to slot the different messages into these different windows.

And here's an example of the micromessages that resulted from one of our funnel workshops this week.

Then we go into competitor analysis, using a mixture of brands bidding against your keywords and brands that we genuinely feel that you can take inspiration from.

?Anyone in ecom marketing knows how important screenshotting ads and saving them for later inspiration is. With this competitor analysis, it’s a great way to zoom out and get a new set of eyes on your brand and your competitors.?

The final stage is what we’ve coined ‘Brand Therapy’. Like any form of therapy, you start with the very beginning of your brand - giving us an uncensored view of the brand (and founder's) story.

Over the course of a few hours, we deep dive into all the micromoments and come away with dozens of angles, the 12 strongest of which will be put into production first.

This process has helped over 200+ brands in a 1-2-1 setting and over 120+ brands via our Mini funnel workshop in our monthly Gamechangers.?

This week, our new Creative Director, Cassi, has been leading the sessions.?

We’re so proud to have Cassi join our team. I first met Cassi a few years ago when she had just left Supernova, which is the organisation founded by one of the women I admire most in ecommerce, Emily Hamilton.

Emily famously created BOTH of the digitally disruptive brands, Sand & Sky and Coco & Eve, and Cassi’s experience from her time with Emily shines through.

Here's three tips from Cassi about effective creative strategies for beauty brands:

? Stop overwhelming people with too many messages?

People are scrolling fast and aren't paying 'that much' attention! Everything you’d usually want to put into one single ad, i.e. a brand's personality, unique selling points can be pulled out and showcased separately in a punchy, engaging way. Adding social proof and authority, such as product reviews or user-generated content, increase the eye catching and scroll stopping ability of an asset.

?Embrace Diversity and Authenticity

The inclusion of people, especially diverse models, in ad creatives makes them more relatable and engaging. This helps the content blend seamlessly into social media feeds and reach wider audiences. She also highlights the importance of showing a range of people, allowing the brand's audience to feel seen and represented.

? Leverage Sustainability Messaging

Sustainability has become a critical aspect of brand identity. Cassi recommends using key sustainability facts, certifications, and awards as part of your brand's story. Though the public might not fully understand specific certifications like B Corp, these credentials add to the brand's reputation and trustworthiness. However, Cassi reminds brands that while sustainability messaging is important, it shouldn't overshadow the core value proposition of the product.

There are few brands that are able to stop scrolling and build raving fans as well those in the Supernova group, and Cassi brings a wealth of experience to Bolt Digital, our clients and our D2C Live community.

? Partner slot: How Ava Estelle generated ￡743K at up to 21% conversion rate with shoppable video from Videowise ?

Ava Estelle, an all-natural skincare brand tailored for darker skin tones, faced challenges in showcasing its product's value proposition online. Customers typically research extensively on social media and YouTube before making a purchase, but Ava Estelle needed to keep potential buyers engaged within their online store to demonstrate product effectiveness.

The company also faced issues with page speed and lack of video content analytics. Given the majority of their traffic came from mobile devices, engagement with their Vimeo-hosted product videos was low.

To address these challenges, Ava Estell turned to Videowise, an amazing platform and one of our partners, that enables brands to embed informative videos directly onto their Shopify store pages.

By using Videowise, Ava Estell could seamlessly integrate detailed product information, before-and-after comparisons, and links to product pages within their videos, with no impact on page speed.

This strategy significantly increased customer engagement and retention, boosting overall site conversion by 12% in one test.

Ava Estell also used video testimonials and reviews to highlight product benefits at crucial points in the customer's shopping journey, fostering trust and encouraging purchases.

Furthermore, Ava Estell was able to import and use their existing Instagram Reels and TikTok videos, enhancing social proof and brand trust.

Before Videowise

?Lack of insight into product benefits

?Scepticism towards product results

?Decisions made on assumptions

After Videowise

?Best video experience for ecommerce

?Proven results with shoppable video reviews and testimonials

?Advanced commerce-focused video analytics & split-testing for data-driven decisions

Want to hear more??Click here for a demo:?https://videowise.com/book-a-demo

??How the FYP algorithm really works, by the CEO of Tiktok?

If you’re on Tiktok, or trying to master Tiktok, you’ll notice there’s a ton of so-called experts banging on about shadow banning and what not, all trying to explain how Tiktok works, and basically telling people how to become instant successes and go viral overnight.

Coming from a mass mainstream media and performance marketing background, where everything is creative, attention grabbing and data based, I have been thinking, 'This is an algorithm that you can understand and win, not some sort of dark sinister game that you’re destined to lose.'?

And from a practical point of view, Tiktok wants people to win at this platform!?

I think of the Tiktok platform as being like a bubbling cauldron of packages of content, in which certain triggers result in certain pieces of content rising to the top of the cauldron (our FYP pages) to one extent or another.?

It’s a maths game and the question is, what are the equations at play??

As always, I’m highly skeptical of ‘overnight success’ and tend to only listen to those who truly likely to know, and when it comes to content, that would be the likes of true leaders who also do what they talk about, such as Gary Vaynerchuk, who talks constantly about consistency and frequency.

And also, hey, the CEO of Tiktok himself.?

Which is why I was thrilled to see?Shou Chew, the CEW of Tiktok, take the the stage to explain how the FYP page works.?

Chew detailed how the TikTok algorithm, at its core, is all about mathematics and pattern recognition.?

He illustrated this using a simple example.?

If three users, let's call them User A, User B, and User C, all like videos 1, 2, and 3, the algorithm takes note.

User A also likes video 4, User B likes video 5, and User C likes video 6.

Seeing this pattern, the algorithm then suggests videos 4, 5, and 6 to all three users, anticipating that they may share similar interests.

Thanks to AI and machine learning, this process can be applied in real-time across TikTok's billion-strong user base. It quickly picks up on the 'interest signals' users exhibit and serves up relevant content with remarkable speed.

The equation would look something like this:

User A likes 1,2,3,4 + User B likes 1,2,3,5 + User C likes 1,2,3,6 = Recommendation of 4,5,6 to Users A, B, and C

What's striking about TikTok's approach is its organic nature for learning. TikTok doesn't bombard users with a myriad of questions about their interests.?

Instead, it integrates the user experience into the app. When you watch a video, swipe, like, or share, you're essentially 'voting with your thumbs.' These actions are the 'interest signals' that feed into the FYP algorithm.

In essence, the algorithm takes these interest signals, plugs them into its formula, and matches them through pattern recognition.

This match-making process is the driving force behind the TikTok recommendation algorithm, ensuring you get a constant stream of content tailored to your tastes (and find yourself still scrolling through Tiktok at midnight.....ahem, not talking about myself obviously....)?

And to rise to the top, as a creator or brand, you have to ensure your viewers ‘vote with their thumbs’.

??Three tips on marketing for luxury audiences, by Shivali Bennion?

Between my time working at Reiss, LK Bennett, Jimmy Choo and Sophia Webster (yes, I have an affinity for shiny things and high quality brands), there were people spending tens to hundreds of thousands of pounds on outfits.

As someone who came from a working class background, I had never seen anything like it. Here's three things I learned:

??Personalise Your Customer Experience with Gifting:?In the luxury market, consumers are not just buying a product or service - they're investing in an exclusive experience. To engage and retain high-value customers, personalization is key. Consider implementing a tailored gifting program, where customers receive special items based on their preferences, past purchases, or milestones in their customer journey. Not only does this make your customers feel unique and valued, but it also enhances their connection to your brand and encourages repeat business.

??Segment Your Audiences for Targeted Marketing:?Not all luxury customers are the same. Some are willing to pay full price for the exclusivity and quality of your products, while others are looking for deals. To maximise your marketing effectiveness, segment your audience using platforms like Klaviyo for email marketing and paid social media advertising. This allows you to isolate discount-seeking customers, tailoring your messaging and offers to match their buying behaviour. In doing so, you can maintain the brand's premium image while still catering to various customer segments.

??Minimise Discounting and Align with Other Luxury Brands:?Discounting can be a powerful tool for driving sales, but overuse can dilute a luxury brand's image. To maintain the perception of exclusivity and high value, reduce your reliance on discounting as much as possible. Instead, focus on conveying the unique value and quality of your products. Additionally, align your business operations and marketing strategies with those of other high-end luxury brands. This will position your brand within the luxury market and reinforce its premium status among consumers.

Want to hear more on aligning your messaging to your audience? Join the waiting list for our Gamechangers one-day workshop here:

https://d2clive.boltdigital.media/d2c-game-changers

? And finally, Biz Kids is back!

After however many bank holiday Monday's, my 'co-host' Annie and I will be back again live on Monday at 4.30 with a free half-hour lesson on entrepreneurship and financial literacy for kids.

I am totally loving presenting Biz Kids with my daughter. She's doing so well on the livestreams, answering questions and explaining what we are doing.

And so many kids have found us via Tiktok (and parents via Linked In) and joined our weekly lives, with many now coming every week!

If you have a child aged 7 - 13, and you want them to learn a few of the things that there's not the time or resources to teach in school, sign up link below and we'll be live on Monday at 4.30 with our Biz Kids Live after school club

Sign up link is here:?https://us06web.zoom.us/webinar/register/WN_eB4hiHCSQyyxwVmHZFyrWg

That's it for this week!?

Thank you for reading :)?

To help continue to build our D2C community, please share our Linked In newsletter with others you think will enjoy and learn from it. Or if easier,?share this link.

We'll be back next Thursday with more growth strategies and insights for ecom and tech brands.

See you next week,

Tash?