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In this newsletter, you’ll find:
🚀 2024’s Winning Models: High LTV vs. High AOV
🌟 Cutting-Edge Ad Solutions Debut at Cannes Lions: Amazon and Yahoo Innovate
💸 Tackling Ad Budget Waste: The Hidden Cost of Close Variants
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BUSINESS STRATEGY MODEL
🚀 2024’s Winning Models: High LTV vs. High AOV
Insights from Nativ Yanko
As ad costs rise, only two business models are proving sustainable. Here are two brands that exemplify these models:
☕ Spacegoods Mushroom Coffee - Low AOV, High LTV
Affordable Entry Point: Priced at £39 with high margins.
Subscription-Based: Each pack offers 30 servings, encouraging repeat purchases.
Incentives: Uses low-cost “free gifts” to drive subscriptions.
Simplicity: One SKU accounts for 95% of revenue, reducing complexity.
Investment-Backed: With external funding, they can sustain high ad spend.
Quick ROI: Customer acquisition cost (CAC) doesn’t need to be extremely low as they recoup spending within a few months.
❄️ Lumi Ice Baths - High AOV and First-Order Profitability
Range of Offers: Products priced from £115 to £995.
Payment Flexibility: U