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PLUS: Did OpenAI make a mistake with Sora?
We highlight from today’s newsletter:
◾ Adobe Hits Over $17 Billion in Current Revenue – Key Lessons for Subscription-Based E-Commerce
◾ Purpose-driven brands like Tony Chocolonely show how authentic missions drive growth
◾ Get exclusive access to Phospha’s Black Friday performance analysis and 2024 benchmarks
EDITOR’S CHOICE
Adobe’s impressive $17 billion in recurring revenue shows that subscriptions aren’t dead—they’re evolving. Their results for 2024 offer key lessons for e-commerce brands considering or currently using subscription models.
While predictable revenue streams remain attractive, users are increasingly tired of subscriptions. The key to success? Adobe’s approach suggests it’s about creating integrated ecosystems rather than stand-alone subscriptions. They were able to grow Document Cloud revenue by 18% year over year by focusing on solving specific customer problems rather than just selling features.
What this means for your business: Think about how you can combine products and services into a more comprehensive offering and ensure that your subscription actually solves customer pain points, rather than just adding another monthly charge to their credit card.
Google’s decision to stop prioritizing PMax over Shopping campaigns is already making waves. Shopping CPCs doubled year-over-year, reflecting the increasing return of advertisers to Shopping for better control and strategy. As shopping spend increases further, CPCs could rise even further.
READ INSIGHTS FROM JOSH DUGGAN HERE 👉
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AppLovin, a major player in mobile app monetization, recently faced a setback when it was excluded from the S&P 500 index despite its stock’s incredible 900% rise this year. That decision sent the stock plummeting 14.7%, marking its worst trading day in two years. Analysts believe AppLovin’s volatility and the index board’s preference for stability may have influenced the exclusion. While some see this as a buying opportunity due to AppLovin’s strong growth in mobile game advertising, concerns remain about the valuation and insider sales of the stock. |
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Brand purpose dead or evolving? While some companies are abandoning it, others like Tony Chocolonely and Who Gives A Crap thrive by authentically integrating purpose with quality products. Consumers prefer real missions over superficial alignments. The trend suggests that purposeful brands will continue to gain momentum, challenging traditional market leaders. |
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Historically, Goliaths have succeeded online because they have been able to deploy enterprise-grade platforms to drive exceptional customer experiences. As platforms like Shopify emerged, Davids caught up: they can get up and running quickly. Smaller brands can transact well online. They have accessed and leveraged the efforts of thousands of developers, meaning the pace of development has increased at a fraction of the cost. |
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In a winner-take-all market, traditional brand books are inadequate. Success requires brands to set new benchmarks and adopt bold, original strategies. Incremental improvements and adherence to best practices risk irrelevance. Brands must innovate outside established norms to effectively capture consumer attention, loyalty and market share. |
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Curious about how other brands fared this Black Friday? Phospha’s latest report looks at key performance channels, outstanding strategies and industry benchmark data for this peak season. Perfect for digital marketers and e-commerce leaders, it’s packed with actionable insights to contextualize your 2024 results and sharpen your 2025 strategy. Sign up for priority access 👉️ |
🎙 MARKETING AGAINST THE GRAIN
The launch of OpenAI Sora has been criticized as a major misstep in 2024, highlighting issues with AI-generated memes, text-to-video technology and data privacy. The failure of the rollout highlights the challenges in developing artificial intelligence products and the importance of addressing regulatory and privacy issues in the technology industry.
