Supplements are one of the hardest categories to scale on Meta, but the potential payoff is high. I talked to an expert to get the facts about scaling supplements with Meta ads.
This content was originally published in the No Best Practices newsletter on 9.29.2024.
I just spent almost two months telling you how to launch a brand successfully on Meta (part 1, part 2, part 3). But, as I’ve mentioned before, supplements are a product category with their own GTM and scaling dynamics.
Basically, supplements are playing the game on hard mode. It’s a category where finding initial product-channel fit is incredibly challenging. But once you find it, there’s more in-market demand to be had vs other categories.
I wanted to do a deep dive on this category, so I decided to talk to an expert. Daniel Okon is the founder of ACTIV, a performance agency that specializes in scaling brands in the health and wellness space–honestly.
Here are 6 insights from our conversation:
#1: What Makes Supplements So Challenging? They’re Hard To Demonstrate
When you’re selling fashion, all you have to do is show the product on a model. It’s a see it, like it, buy it model of consumer demand.
When you’re selling something like a Ridge Wallet or a Popsmith Popcorn Popper, it’s a little bit more complicated. But you can demonstrate the product’s functionality, durability, etc.
When you’re selling a supplement, the results take time to manifest. You can’t exactly X-Ray someone’s body every day for 60 days to “show it working”. So you need to think up other creative ways to demonstrate the efficacy of the product.
The obvious way to do this is via social proof–reviews, testimonials, before & after stories, etc.
But you also need to stand out from potentially hundreds of other competitors who are all trying to solve the same problem. So it’s good to have a unique approach– “nothing you’ve tried up until this point has worked, but that’s because you haven’t tried THIS.”
#2: What Factors Set Up A Supplement Brand For Success?
I talk a lot about opportunity selection and product/brand differentiation. According to Daniel, those two factors are extra important for supplement brands.
In the supplements space, product categories are based on consumer pain points, not product formulation. So you’re not in the “pills” or “powders” space, you’re in the “PMS” or “back pain” space.
Certain spaces with big, successful competitors have high Meta CPMs that make it almost impossible for new entrants to break in. Imagine trying to launch a greens powder to compete directly with AG1 and their bajillion dollar media budget…
That’s why differentiation is so important. You either need a new approach to an old problem, or a new angle or niche within a broad problem. This allows you to speak to a market that is less jaded, sophisticated and suspicious.
Riding a trending wave can also help your brand get some initial traction. For example, Armra rode the colostrum wave.
From a financial POV, you need to check one of these two boxes:
- First order contribution margin profitable, which usually requires an AOV of $60-100
- Contribution-margin profitable within 30-60 days at the cohort level, based on repeat purchases or subscriptions
#3: What Factors Set Up A Supplement Brand For Failure?
Go read that list, then add these to it if you’re thinking of launching a supplement:
→ You’re launching a direct knockoff of a big, established brand with a big, established marketing budget. This strategy can work in more impulse-driven categories (like fashion), but it won’t work here.
→ You’re riding a trend wave that is highly saturated and post-peak. For example, mushroom coffee peaked four years ago. It would be really hard to launch in this space today.
→ You don’t have a clear-cut offer with a high AOV. You can’t really send folks to a website with 5 different sub-$50 products and say…have at it!
→ You’re trying to market to 55+ women, and this is your first time. They are the most skeptical vertical in the supplements category. They’ve tried everything. They’ve done their own research. Some brands do this well, but earning this audience’s trust is hard.
→ Your COGS as a percent of AIR (AUR less promotions) is higher than 35%. You won’t have enough margin dollars to scale.
#4: What Are Meta Ads “Best Practices” (I Know…) For Supplements?
In terms of media buying, there isn’t “one true account structure to rule them all”. Daniel has seen brands scale with cost caps, a mix of highest volume and cost caps, and all highest volume. Media buying is the least important piece of the puzzle.
In terms of ad creative, there are a few ad formats that work consistently well across his clients:
Founder Ads work really well if the founder personally struggled with the problem and used the product him- or her-self.
UGC mashups can work really well, especially if you’re able to get compelling testimonials from real customers. Note–fake testimonials are a legal grey/black area.
Long form “video sales letters” can also work really well (here’s an example). But few brands are running these because it takes a lot of expertise and talent to execute successfully.
Daniel typically sees ads fatigue within 2-4 weeks, although there are “unicorn” ads that can spend $150k+ profitably and run for months. Net-new concepts usually perform better than iterations. So a strong creative pipeline is critical.
#5: How Do You Build A Strong Offer?
You want to create as much perceived value as possible (check out my last newsletter for more on perceived value). A few ways to do this:
→ The classic intro offer is a product bundle: 2-5 related products where the bundle price is lower than the price of each individual item.
→ Think of low cost GWPs you can include in the offer that amplify perceived value. Something like a PDF workout plan can be very compelling, depending on the category. Shaker bottles and other accessories can also work well. So can sample packets of other products and flavors.
→ Create low, medium and high priced bundles. Position the medium offer to be the most attractive one–it either provides the deepest discount, or the most free extras.
If you’re coming into a brand with some transaction history, build a bundle based on products that customers already purchase together frequently.
#6: How Do You Overcome Consumers’ Baseline Skepticism For Supplements?
According to Daniel, the best thing you can do is to be genuine:
→ Develop a deep understanding for your target customer and empathize with their challenges.
→ Be specific when you’re talking about their issues. For example, “bloating” can have a lot of causes. Talk about specific scenarios and dig into the science.
→ Produce a product that is high quality, and actually works!
Product reviews are also critical here. You should gather a minimum of 50 reviews before you try to run ads against your product. If you have the budget to run clinical trials, you can also use those results to reinforce that your product really works.
If you’re working with an existing brand, you can reach out to your best customers to test the product for free in exchange for reviews. If your brand and product are brand new, you’ll have to get more creative.
If you found this content valuable, Daniel & ACTIV have a few spots open for new clients in Q1 2025. Click here to reach out or just DM Daniel on X.
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