OpinionTechnical

funnel diversity - creative diversity

Mark Builds Brands

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

Funnel optimization and performanceCreative asset performance dependencyReturn on ad spend (ROAS)Funnel metrics (conversion rate, AOV, EPV)Tool and technology limitations

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 Access

More from Mark Builds Brands

Get AI summaries like this delivered to your inbox daily

Get AI summaries delivered to your inbox

MurmurCast summarizes your YouTube channels, podcasts, and newsletters into one daily email digest.