Thread by @TaylorHoliday

What drives ad account success?

Is it story and marketing? Or the next best ad?

Many businesses are on a hamster wheel of constantly trying to create the next best ad. It's an endless, volatile cycle.

Ready to break free? Let’s talk four-peaks theory …

1/ Look under the hood of many DTC brands and you’ll see they rely on a two-peak revenue model in which they experience massive spikes in revenue twice a year.

However, these peaks are followed by deep valleys in which ROAS and volume decline.

It can look something like this

2/ In your own ad account and Google Analytics, you’ll notice that peaks in spend and ROAS align directly with peaks in revenue.

The question you need to ask is about causal chains…

Is the ad account driving the moment or is the moment driving the ad account?

3/ With spikes in revenue comes cash flow risk.

Anticipated peaks require more inventory and, therefore, more risk. In the two-peak model, first, you’re dependent on year-old data to forecast; second, cash runs low immediately before you really need it.

4/ Ecommerce brands following a four-peaks revenue model create a cycle of recurring peaks that allows them to take advantage of:

1️⃣ Q4 holidays
2️⃣ Major gifting events
3️⃣ Product releases
4️⃣ And cultural moments

5/ Here is a slightly longer explanation:

6/ The four-peaks theory gives you a marketing calendar that drives demand and increases performance through storytelling and imperative purchase opportunities.

Read my guide (and get your own automated template) here: commonthreadco.com/blogs/coachs-c…