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Timothy Davis (Shopify)28 July 2024

The ultimate guide to performance marketing

9Frameworks
16Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 4

Hot Take06:30

Why Paid Search Should Be a Baseline for Almost Every Company

Timothy argues paid is now for everyone because the major platforms have become pay-for-play — Google's first four spots and AI results push organic far down the page, and meta requires promoted posts just to be seen. He distinguishes paid search as user-driven (someone types a relevant keyword) versus disruptive media like meta and YouTube ads. His baseline recommendation: nearly every business should run paid search.

  • Google's paid spots plus AI push organic listings far down the page
  • Meta is 'almost pay for play' — promoted posts are needed to be seen
  • Even influencer marketing counts as a paid component
  • Paid search is user-driven: the user types a keyword for the ad to show
  • Other channels (meta, YouTube) are disruptive media, not user-driven

I would say paid is for everyone

Timothy Davis · 06:30

paid search is user driven you have to type in a relevant keyword for your ad to show anything else is more disruptive media

Timothy Davis · 07:00
#paid-search#performance-marketing#channels#strategy
Hot Take18:00

Give Yourself Grace: You're Either Winning or Learning

Timothy pushes back on the pressure to succeed at every experiment. Because each platform is unique with different user behavior, testing something new means learning its bells and whistles, and things won't always work. He advocates creating an environment where it's okay to fail — as long as you're learning from it, you'll be okay.

  • Companies often put pressure or a need to succeed on every experiment
  • Each platform is unique — new tests mean learning its functionality
  • Frame failure as winning-or-learning, not failure
  • Give yourself grace; understand it may not work

I believe in creating an environment where it's okay to fail because we're either winning or we're learning

Timothy Davis · 18:00
#experimentation#mindset#culture#testing
Hot Take33:30

Why Agencies Underperform: Playbooks Instead of Getting in the Weeds

Asked why he can crush an agency's performance within a month of taking over, Timothy says agencies run generic playbooks — 'this is a B2C company, copy-paste, done' — and aren't willing to get deep into the weeds. They manage 50+ clients, so they turn on automated bidding, run search-query reports, and move on, rather than testing landing pages, examining conversions, or partnering with PMM to improve the funnel.

  • Agencies apply generic playbooks per company archetype
  • They touch only what they think they need to, spread across ~50 clients
  • They lean on automated bidding and basic reports, then move on
  • They rarely test landing pages or dig into conversion steps
  • Going deep — e.g. cutting a 5-step flow to 3 — is where the wins are

I think agencies have playbooks

Timothy Davis · 33:30

this is what we're doing copy paste done move on

Timothy Davis · 34:00
#agencies#conversion#process#management
Hot Take56:30

Impression Share Is Ego Marketing — Optimize for Click Share Instead

Timothy contends that chasing impression share — being on top of the page all the time — is 'ego marketing.' The goal isn't showing as often as possible to everyone; it's showing to the right person as often as possible. He measures this with Click Share, and when you talk to the right people, Google rewards you with top-of-page placement anyway (visible via top impression share).

  • Wanting to be number one all the time is ego marketing
  • Aim to show to the right user, not to everyone as often as possible
  • Click Share measures whether you're reaching the right people
  • Serving the right users earns top-of-page placement from Google
  • In a real 2023 test, impression share held flat while Click Share rose

that's kind of like ego marketing I want to be number one I want to be there

Timothy Davis · 56:30

instead of thinking about being on top of the page you should think about serving the right user

Timothy Davis · 57:00
#google-ads#metrics#click-share#optimization

Explainer· 5

Explainer12:30

How to Test Lookalike Audiences From 1% to 10%

Timothy explains the number one tactic for a signs-of-life test: start with your own customer data loaded into the platform to build lookalikes. On meta you can build ad sets from a 1% match (most tightly correlated to your customers) up to a 10% match (a much wider base). With a limited budget, start at 1% because it's most tied to your existing customers.

  • Start with your own existing customer data, not cold targeting
  • Build ad sets at 1%, then 2-4%, then 5-7%, then 8%+
  • The percentage is how closely the audience's behavior matches your customers
  • Smaller percentage = closer match; 10% is a very wide base
  • 8%+ usually doesn't work, but occasionally does — worth a test
  • On a limited budget, just start at 1% for the clearest signal

use your own data start with your own data

Timothy Davis · 12:30

where 10% is pretty wide base that you're going to hit

Timothy Davis · 14:00
#meta-ads#audience-targeting#testing#lookalikes
Explainer14:30

How to Tell If Your Creative or Your Content Is Failing

When an ad isn't working, Timothy first checks that the targeting is correct and the right users are getting impressions, then uses click-through rate to see if they're engaging. Distinguishing whether the creative or the content is failing is harder — for infeed ads with headline, primary, and description, he says the real answer usually comes from a focus group, plus in-platform control-versus-test experiments.

  • First confirm the target is correct — the right users are seeing the ads
  • Click-through rate tells you if users are engaging with what they see
  • Story creative stands on its own; infeed has headline, primary, description
  • Data alone (CTR, reach, frequency) rarely explains why creative doesn't resonate
  • Run a control-vs-test (e.g. logo + headline vs full creative) in the platform
  • A focus group gives the qualitative 'why' the metrics can't

it's a million-- dollar question to be honest with you

Timothy Davis · 14:30
#creative#diagnostics#testing#focus-groups
Explainer30:30

Don't Run Paid Ads Before You Have Product-Market Fit

Timothy shares that IBM ran ads across all of Africa but wasn't converting — the real issue was an operational product-market-fit problem: the continent has many currencies (franc, rand, shilling) while IBM only offered USD. Once they focused on South Africa and enabled the rand, performance improved dramatically. His broader point: without PMF, conversion stays low, you waste money, and you risk burning users who won't come back.

  • IBM advertised across all of Africa but couldn't convert
  • Root cause was operational PMF — multiple currencies, only USD accepted
  • Focusing on South Africa and enabling the rand fixed conversion
  • Without PMF, ads mostly annoy users and conversion stays low
  • A bad first experience can lose a user's business permanently
  • Big-budget awareness plays can run, but expect weak conversion

in Africa there are multitudes of different types of uh currency there's the Fran there's the ran there's the shill

Timothy Davis · 31:00

it's probably not going to convert very well

Timothy Davis · 33:00
#product-market-fit#conversion#case-study#strategy
Explainer48:00

Pausing One Poor Ad Can Dramatically Lift Your Whole Account

Walking through real Google Ads reports, Timothy shows how quality-score components (expected CTR, landing page experience, ad relevance) reveal where to act — improving ad relevance raises ad strength, which raises quality score and can add roughly 12% more impressions. He argues there's an account-level quality score, so pausing a single poor-performing ad with a high CPC can dramatically improve overall performance.

  • Quality score breaks into expected CTR, landing page experience, ad relevance
  • Improving a metric from below- to above-average can add ~12% impressions
  • Google tells you exactly what to fix (more unique headlines, unpin assets, more keywords)
  • He believes in an account-level quality score, not just per-keyword or per-ad
  • Pausing one poor ad with a high CPC can dramatically improve the account

so just turning this one off and removing it from the account this one ad could dramatically improve your performance

Timothy Davis · 51:00
#google-ads#quality-score#optimization#reporting
Explainer1:02:00

Multi-Touch Attribution and Measuring True Incrementality

Timothy favors multi-touch attribution, leaning toward time-decay because users quickly forget where they first found a brand. But he cautions attribution is biased — it can't tell you whether a user would have converted without the ad. That's why companies like Netflix and eBay run incrementality studies; eBay's ~2012 experiment led them to cut nearly all brand spend because users were finding them organically anyway. True incrementality is measured with geo experiments or conversion-lift tests where you withhold ads from a control group.

  • Time-decay multi-touch attribution beats first-touch — users forget early touches
  • Attribution is biased: it can't say if a user would've converted without the ad
  • Netflix and eBay ran incrementality studies to answer that
  • eBay's ~2012 test led them to cut almost all brand spend
  • Conversion-lift tests withhold your ad from a control group when you win an auction
  • Don't bother with incrementality tests below ~$50k/month — not enough signal

they ultimately decided to cut almost all of their brands Ben because they found that users were already going to find them through organic anyway

Timothy Davis · 1:03:30

when you're running a conversion lift test you intentionally do not show your ad to some users when you win an auction and instead Google…

Timothy Davis · 1:07:00
#attribution#incrementality#measurement#conversion-lift

Story· 2

Story20:30

How SoftLayer Geofenced Coca-Cola's Execs on LinkedIn to Win the Deal

At SoftLayer (later acquired by IBM), Timothy's team was competing with AWS and Microsoft for Coca-Cola's cloud business. The prospect's two concerns were recency and security, so they ran LinkedIn ads targeting anyone at Coca-Cola about exactly those topics — and geofenced the decision makers, who they discovered sat in LA, not Atlanta. On the next sales call the buyers said their concerns were resolved.

  • Two buyer objections were recency and security — ads addressed both directly
  • Targeted everyone at Coca-Cola, not just the single decision maker
  • Discovered the decision makers were in LA, not Atlanta, and geofenced them
  • The sales team heard 'security is fine, recency is fine' on the next call
  • They even tried to buy billboards around the office to reinforce it
  • LinkedIn's job-title and company targeting made this possible

we also Geo fenced it because you would think Coca-Cola Atlanta that's where the decision maker sits but they were actually in La

Timothy Davis · 22:30

we get it we're seeing it everywhere we actually tried

Timothy Davis · 23:30
#linkedin#b2b#abm#geofencing#case-study
Story1:11:30

The Ugly '$0 Setup Fee' Ad That Beat the 'Perfect' Ad

Timothy warns that the ad you think is perfect often flops because you're not the target audience. Working with ADT, his team crafted an ad that packed every value prop into Google's old headline-plus-two-descriptions format — and it lost to a barebones competitor ad that just said '$0 setup fee, $0 install fee.' They took the lesson, applied it to their value props, and did better. His rule: ad copy should be collaborative and no idea belongs on the cutting room floor without a test.

  • The ad you're proudest of often flops — you're not the target audience
  • ADT's value-prop-packed ad lost to a plain '$0 setup fee, $0 install fee' ad
  • The winning ad barely used any characters yet had more conversions and higher CTR
  • Ad copy should be collaborative, not written by the marketer alone
  • Always test — no idea should be left on the cutting room floor

it flops because I'm not the target audience

Timothy Davis · 1:12:00

the ad that it was going against was dollar sign zero setup Fe dollar sign zero install fee

Timothy Davis · 1:12:30
#creative#copywriting#testing#case-study

Tool· 1

Tool58:30

PPC Hero's 'True Competition Metric' for Spotting Real Rivals

Timothy recommends PPC Hero ('terrible name, great content') and specifically writer Jacob Brown's 'true competition metric,' which builds four new metrics from Google's auction insights. Two of them — position-above rate and how often a competitor shows when you don't — combine to reveal how often a rival ranks above you across all auctions, helping identify genuine threats rather than reacting to personalized search results.

  • Source: PPC Hero, writer Jacob Brown's 'true competition metric'
  • Builds four new metrics from Google auction insights data
  • Two key metrics: position-above rate, and show-when-you-don't rate
  • Reveals how often a competitor ranks above you across all your auctions
  • Identifies genuine threats vs assumptions from personalized SERPs or SEMrush

terrible name great content

Timothy Davis · 58:30

the writer there his name is Jacob Brown this is what he calls the true competition metric

Timothy Davis · 59:00
#tools#competitive-analysis#google-ads#auction-insights

Takeaway· 4

Takeaway08:30

Look at Where Users Already Find You, Then Turn That Channel Up

To judge whether paid could be a majority of your growth, Timothy says start by finding where users already are using your analytics data. If a channel like TikTok or Google is already sending you users organically, that is the signal to lean in with paid. But he warns creative doesn't transfer one-to-one — what works on meta may not work on TikTok.

  • Use Google Analytics or your analytics tool to see where users already find you
  • If a channel is already delivering, 'turn that knob up to 11' with paid
  • Adjacent channels (e.g. TikTok content repurposed to Snap) can be tested
  • Creative from one platform often doesn't work on another — different user mindset

I always say where where are your users

Timothy Davis · 08:30
#analytics#channels#growth#testing
Takeaway19:00

The Order to Roll Out Platforms: Google Search, Meta, Then YouTube

Asked which platforms to seriously consider, Timothy names Google (which includes YouTube, Search, and the Google Display Network) and meta (Facebook and Instagram), plus TikTok if the data shows users there. For someone getting their feet wet, his order is: start with Google search, then meta, and add YouTube if you have video creative available.

  • Google encompasses YouTube, Search, and GDN — many options
  • Meta contains both Facebook and Instagram
  • He's very bullish on video when measured correctly
  • Getting started order: Google search → meta → YouTube (if video ready)
  • Add TikTok if your data shows users are there

start with Google search then get into meta uh and if you have video available definitely get into YouTube

Timothy Davis · 20:00
#channels#platforms#video#getting-started
Takeaway24:00

LinkedIn Is ~3x More Expensive — Test Google and Meta First

Timothy warns LinkedIn looks roughly three times more expensive than other channels, but its targeting (job titles, industries, specific companies) is very powerful. His advice: don't get into LinkedIn until you've tested Google and meta first, unless you're an enterprise-level company where starting on LinkedIn can make sense. It suits higher-LTV, higher-ACV products.

  • LinkedIn costs about three times more than other channels
  • Its targeting of job titles, industries, and specific companies is powerful
  • Don't start on LinkedIn until Google and meta are tested
  • Enterprise-level companies can justify starting on LinkedIn
  • Best fit for higher-LTV, higher-ACV products

it's going to look almost three times more expensive than other channels

Timothy Davis · 20:30

I would not recommend getting into LinkedIn until you've uh tested Google and meta first

Timothy Davis · 24:00
#linkedin#b2b#budget#channel-strategy
Takeaway40:30

Your First Performance Hire Should Find Signal in the Noise

Timothy's most important trait for a first hire is a data thought process, not platform skills — he can teach anyone Google or meta ads, but the hard part is the data. Ad platforms give you everything (reach, frequency, CPM, CPC, conversion rate, cost per lead, cost per MQL), which is overwhelming noise; the job is knowing which signal to focus on given the campaign's actual goal.

  • Platform skills are teachable; data judgment is the hard, rare part
  • Platforms flood you with metrics — most of it is noise
  • The skill is separating the signal from the noise for the campaign goal
  • Inspired by Nate Silver's 'The Signal and the Noise' — 'signal not noise'
  • In interviews he throws data points at candidates and asks what to optimize

I can teach anyone how to do Google ads I can teach anyone how to do meta ads that that is not the hard part…

Timothy Davis · 41:30
#hiring#data#team-building#analytics