Ross Hudgens

Agencies that only know how to “run accounts” are going extinct. Tech is catching up fast, but the future isn’t agencies vs. tech. It’s agencies with tech. They will converge. The smartest operators I know are already blending strategy, creative, and data. They’re building systems that make human decisions more accurate, not replacing humans. The agency of the future won’t be a service. It’ll be a strategic engine powered by tech.

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The most underestimated question in DTC paid media isn't "what's my ROAS." It's "what's my max CAC." And max CAC is a direct function of AOV. Consider two scenarios: AOV of $50. COGS of $12. After fees and shipping, your max CPA is somewhere around $30 before you're losing money. AOV of $110. Similar COGS. Your max CPA is probably closer to $60. Same product category. Same platform. Same creative quality. But the second brand can outspend the first on every single auction. It can acquire customers that are unprofitable at $50 AOV and still make money. It has room to test more, stay in the learning phase longer, and weather bad weeks without going underwater. This is why AOV strategy isn't a revenue optimization — it's an acquisition strategy. Before you ask what's wrong with your campaigns, ask what AOV structure you're competing with. The brand that changed their offer is going to beat you at auction before your creative even matters.

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People often ask about difference b/t agencies & our fractional team models: Here's a few key differences: 1) We work with partners across various verticals vs having 1 in-house team. This allows for vertical expertise (i.e. service biz get a Google Ad person with home service expertise, while a cannabis dispensary gets a Google Ad person w/ cannabis experience). This allows for flexible bandwidth as well (i.e. we don't just have 1 internal Google Ad person who could become overwhelmed). We work with plumbers, dispensaries, multi-unit franchisees, HVAC companies, B2B cannabis groups, SaaS tools, THC bevs, etc & each team looks different than the other. 2) We're flexible on scoping & projects. For example; we just closed a deal where client needed small support hours for Shopify, HubSpot, cold email, strategy, etc & we were able to pinpoint a specific level of service / support that not only met their needs but their budget. This can scale up or down very easily. 3) We work with a lot of the best agencies because sometimes they are the best fit. For example; we just hired Sandra Bergman, CLMP™for a consulting project for a dispensary client. This is because she fit their needs. We can bring a lenses of not only knowing all the good agencies but knowing WHEN to recommend one + get the added benefit of rolling her services into other deliverables (SEO + website) vs just working with her on a stand alone basis. 4) We embed; we don't just deliver. A fixed scope with clear deliverables is important; but there is a gap. Many small businesses need an ever-changing set of things, from design, to minor website edits, to async comms on global strategy; etc. And we try & bake in some grace for these items to allow for the variance & unknown that comes each month. This is done by sharing a Slack or Basecamp project together. We can work real-time on things as they arise. 5) We are business owners also. No offense, but many agency owners are agency owners only. Being able to bring experiences to our clients from owning multiple businesses can help provide a powerful POV to the conversation. I truly believe our model is a great hedge against hiring a generalist FTE for your org. For 50-75K a year; we can bring a lot of evolving resources to the table.

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When Dave Pickles and I started TTD, we wanted to create a platform that was more transparent and more aligned with buyers. We wanted to create closer alignment with brands and agencies. We were one of the few DSPs that didn’t focus on disintermediating the agencies. I stand by our choice to partner with agencies. I stand by our choice to be transparent, even though I think we at times have been too open (as I shared at Marketecture Media last week). Over the last year or two, things have gotten much harder for agencies. Lately it seems that there are those who want to wave the flag of transparency publicly, but run from it in practice as they arbitrage in the inefficiencies of programmatic. Or in the most ironic programmatic practice, principal-based buying. (More on this next week. I know…I’m such a tease.) It bothers me when leaders of non-transparent business models are critical of those of us who are setting the bar—especially when they advocate for moving dollars to more opaque platforms and transaction methods. As Terence Kawaja said to me last week as we sat backstage at Marketecture, the long arc of programmatic, like any market, will inevitably bend toward efficiency and competition. Those who succeed will be those who embrace transparency and offer clients competitive, objective value. Thankfully, almost all of our clients, including the world’s largest brands and agencies, share this point of view. TTD has not “failed" any audit ever. Ruben Schreurs, CEO of Ebiquity plc, assured me today that he was unaware (until after published) that his firm would be quoted or used in any articles about TTD. Relatedly, we will not disclose the bills of all of our clients and partners to one of them simply because they assert ambiguous audit rights.   Working with our clients, we always welcome objective and rigorous analysis of our processes, fees, and the value we deliver for clients.

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Your AOV obsession might be killing your TikTok Shop potential. Instead of pushing high ticket items first, consider this approach: 1. Use low-priced samples ($10-15) as acquisition tools 2. Focus on creating repeat customers 3. Introduce premium offerings after establishing trust The math is simple: $15 first purchase + 50% retention + $40 second purchase > Forcing a $50 first purchase with low conversion TikTok Shop thrives on impulse purchasing. Remove friction, build trust, then scale value.

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Hot take 🌶️ agencies sell SaaS brands traffic because it's safe. But traffic isn't growth.   I was just on a call with a SaaS brand spending $6K+/mo on ads, and in return getting a lot of website traffic.   But their website was converting at 0.1%.   It's easy for an agency to slap vanity metrics on a slide and smile on Zoom after decreasing your CPM and boosting your impressions, but that's not growth.   Growth = new users.   And it should be the simple algorithm you use to determine if something is working or not.   Most agencies avoid what really moves the needle.    ✅ CRO tests ✅ Clear messaging ✅ Mobile optimization These are much harder to pull off.   But they're what really moves the needle.   All without you needing to spend more on ads or SEO.   If your agency isn’t talking about your conversion rate, then they just want your money and aren't concerned about growing your business.

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Custom, subscription-oriented sticky CTAs have been crushing it on our LPs. IMO every single page needs to have it. -> People easily stray off & forget -> CTA is always within thumb reach -> Easy to make a purchase + subscribe If your LP copy is great, at some point people will be convinced and choose to buy. At this point, you need to make it as easy as possible to convert and go to the checkout. + ideally make them subscribe. Here's an example we did for Talo Skin.

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