funnel diversity - creative diversity
The speaker argues that funnel optimization matters more than creative diversity in advertising. A well-optimized funnel (high conversion rate, AOV, EPV) makes all creatives perform better, while a poor funnel makes even great creatives underperform—the metaphor being that the funnel is the ocean and creatives are boats that rise and fall with the sea level.
Summary
The speaker challenges the conventional focus on creative diversity in advertising, asserting that funnel diversity is actually more important. Using the metaphor of an ocean and boats, the speaker explains that the funnel's performance fundamentally determines the success of all creative assets. When a funnel's sea level rises (improved conversion rates, average order value, and earnings per visitor), every creative boat rises with it. Conversely, when the sea level drops, all boats sink together.
The speaker illustrates this with two scenarios: a D-tier funnel produces minimal ROAS (return on ad spend), making scaling impossible, and even the best creative barely achieves 1x ROAS. When that same funnel is improved to B-tier status, creatives that were previously losing money become profitable, and the worst creative now performs at 1x ROAS—the same creatives yielding completely different results.
The speaker concludes that chasing new tools, workflows, and trendy solutions (like AI tools) doesn't address the core problem: a broken funnel. If your funnel is fundamentally flawed, AI simply accelerates the production of ineffective ads. The solution is to fix the funnel first, because 'a rising tide raises all ships.'
Key Insights
- The speaker claims that funnel performance functions as a multiplier for all creative assets—a D-tier funnel keeps even top creatives barely above 1x ROAS, while a B-tier funnel makes previously unprofitable creatives profitable without changing the creative itself
- The speaker uses the ocean and boats metaphor to argue that raising funnel performance (sea level) simultaneously improves all creative performance, and conversely, poor funnel performance drags down all creatives regardless of quality
- The speaker asserts that new AI tools and trendy workflows don't solve fundamental funnel problems—if your funnel is broken, AI simply enables faster production of ineffective ads
- The speaker argues that a terrible funnel prevents the ability to produce winning creatives or scale ad spend, establishing funnel quality as a prerequisite to effective advertising
- The speaker claims that the same creative assets produce drastically different results depending on funnel tier, demonstrating that funnel optimization has greater leverage than creative optimization
Topics
Transcript
[0:00] Everybody's out here yapping about creative diversity, but nobody is talking about funnel diversity. And I think funnel diversity actually matters more. Think of it like this. A funnel is like the ocean, and every single one of your creatives is a boat. If you raise the sea level, meaning you raise the performance of your funnel, every single boat rises with it, which is every single creative rises with. And in the same manner, if the sea level drops, all the boats will drop, too. So, let's say you have a D-tier funnel. Your ROAS is trash, you're not producing any winners, and you can't scale your ad spend. Now, if you improve that funnel, you increase [0:30]…
Full transcript available for MurmurCast members
Sign Up to AccessMore from Mark Builds Brands
google ads vs FB ads
Google and Facebook ads serve different purposes in the marketing funnel. Google excels at middle and bottom-funnel retargeting and should be implemented alongside Facebook for the halo effect, while Facebook is better for scaling cold traffic and demand generation/YouTube ads work well for top-of-funnel conversions.
The Real Role Organic Content Plays
The speaker argues that organic content is the only realistic starting point for e-commerce entrepreneurs without a budget, but paid advertising is ultimately a more valuable skill to develop. Learning paid ads requires developing direct response copywriting abilities, which the speaker compares to learning a new language.
is europe actually the shortcut to ecom succes
European markets can offer better CPAs and profitability for early-stage e-commerce businesses, but they're not a scalable shortcut to success. The U.S. market remains the dominant end-game for virtually all successful D2C and CPG exits, making it the inevitable focus regardless of initial market choice.
Is Being Happy With 1-2K a Month Actually Cope
The speaker argues that being satisfied with 1-2k per month is mostly self-deception and comfort zone avoidance rather than genuine contentment. They contend that life should be about pursuing one's full potential across all dimensions, and that claiming satisfaction with a low income is only justified after achieving significant wealth.
How to create S tier winners
To create S tier creatives, it's essential to understand your customer deeply and to analyze existing winning ads to identify effective variables that can be combined into new concepts. This iterative testing approach allows marketers to refine their creatives using insights gained from lower-tier ads.