20Growth: How Wix Built a $100M Marketing Machine | Why LTV is...

Full Title

20Growth: How Wix Built a $100M Marketing Machine | Why LTV is BS and Why Time Return On Investment is the Most Important Metric | How to 10x Your Growth: What is the Next Great Channel with Omer Shai, CMO @ Wix

Summary

This episode features Omer Shai, CMO of Wix, discussing his long-term marketing strategy and his unique approach to measuring growth.

Shai emphasizes the importance of Time Return on Investment (TROI) over traditional Lifetime Value (LTV) and details Wix's multi-channel marketing approach, including significant Super Bowl ad placements, to drive both brand awareness and acquisition.

Key Points

• Wix is making two Super Bowl ad placements this year, a significant investment reflecting their belief in its value for brand and acquisition.
• The decision to buy the Super Bowl spot for Base44 was made within 12 days of the acquisition announcement, driven by community feedback and perceived user acquisition potential.
• Super Bowl advertising is viewed as an investment that balances brand building and direct acquisition, with the day after the game being a key period for ongoing conversation and impact.
• Shai advocates for Time Return on Investment (TROI) over Lifetime Value (LTV), finding LTV to be too slow and difficult to accurately measure for agile decision-making.
• TROI allows for granular measurement of marketing channel performance, enabling real-time adjustments and budget allocation to maximize returns within defined timeframes (e.g., 8-12 months).
• Wix's marketing strategy embraces diversification across multiple channels to mitigate risk and find arbitrage opportunities, rejecting an all-in approach on a single channel.
• Shai believes in empowering marketing teams with AI tools to accelerate ideation and execution, prioritizing passion and AI-savviness over prior marketing experience.
• The most effective marketing for Wix is driven by its strong brand and the inherent value of its product, leading users to seek them out.
• TikTok and sports endorsements have not yet met Shai's expectations, highlighting his continuous pursuit of optimizing underperforming channels.
• Shai emphasizes that marketing is an investment, not a spend, and his focus is on building sustainable businesses with efficient marketing budgets and strong ARRs.
• He values a scientific approach to marketing, focusing on data and measurement to drive decisions, even if it means challenging long-held beliefs.
• Shai views himself as an "undrafted NFL player" in marketing, constantly striving for improvement and success, and he prioritizes user satisfaction and product improvement over solely chasing valuations.
• The "Omar Shai diaspora" refers to the talented individuals he has mentored and who have moved on to lead marketing efforts in other companies.
• Shai's parenting philosophy emphasizes multitasking and being deeply involved in his children's lives, even with demanding professional responsibilities.

Conclusion

Marketing is viewed as a strategic investment with a focus on measurable returns, rather than just a cost.

The paramount importance of Time Return on Investment (TROI) dictates agile decision-making and channel optimization.

Continuous learning, data-driven insights, and embracing AI are crucial for future growth and competitive advantage.

Discussion Topics

• What are your thoughts on prioritizing TROI over LTV for growth measurement, and how does this impact marketing strategy?
• How can companies effectively balance brand building with direct acquisition efforts, especially with large-scale campaigns like Super Bowl ads?
• In an increasingly AI-driven landscape, what are the most critical skills and mindsets for marketing professionals to cultivate for future success?

Key Terms

TROI

Time Return on Investment. A metric that measures how quickly marketing spend generates revenue or other desired outcomes, allowing for faster adjustments than traditional LTV.

LTV

Lifetime Value. A projection of the total revenue a customer is expected to generate over their entire relationship with a company.

CMO

Chief Marketing Officer. A senior executive responsible for a company's marketing activities.

ARR

Annual Recurring Revenue. The predictable revenue a company expects to receive from its customers over a one-year period, commonly used for subscription-based businesses.

AI

Artificial Intelligence. The simulation of human intelligence processes by computer systems.

Timeline