E-commerce in 2025, Top AI App,s and more

Good morning.

We got a fun one today. Have the usual ad dissections with DTC predictions and some advice at the end

—Matej Dolenec

What is Happening Today

Table of Contents

• Ad Dissection Vuori

• Ad Dissection Curology

• E-commerce Predictions in 2025

• Broad Targeting Isn’t Broad. What?

• A16Z AI apps

• Closing thoughts

Ad Dissection Vuori

This ad by Vuori highlights their joggers, emphasizing superior comfort and fit compared to a competing brand (“Lulu jogger”). It uses a blend of product imagery and lifestyle action shots to appeal to active, comfort-conscious buyers.

CREATIVE

Quote from a customer (“Better fit and comfort than any Lulu jogger!”) adds credibility while directly addressing a competitor

Left Panel: A clear lineup of the joggers in different colors and patterns against a serene backdrop, showcasing variety and style.

Right Panel: An action shot of a man running outdoors, reinforcing the product’s versatility for physical activity and casual wear. The cityscape in the background adds a modern and aspirational tone.

COPY

“Better fit and comfort than any Lulu jogger!” – Craig K.

The direct comparison with a known competitor piques curiosity, especially among those familiar with Lululemon.

Why It Works

• Product and Lifestyle Balance

• Social proof

• Aspirational Appeal

Ad Dissection Curology

This ad is a “before-and-after” testimonial for Curology, a personalized skincare brand. It uses a split image format to display a clear transformation in skin quality, reinforcing the effectiveness of the product in treating acne and improving complexion.

CREATIVE

Split-Image Comparison (“How it started” vs. “How it’s going”):

The side-by-side format highlights the user’s skin improvement over time, making the transformation obvious and impactful.

User-Focused Imagery:

The photos feature a relatable, real-life user rather than a model, creating authenticity. The casual settings in both images reinforce the idea that the product fits into an everyday routine.

COPY

This meme-inspired format is widely recognized, making the ad feel approachable and on-trend.

Why It Works

• Visual Proof

• Relatability

• Minimal Copy, Maximum Impact

E-commerce Predictions in 2025

I gathered a few predictions from Cody Plofker on his take of state of DTC in 2025

1. 2025 is the first year AI makes a decent-sized difference for consumer brands. It will come from automating CX, and there will be some legitimate ad creative options for the first time.

2. Brands will continue to hone in on low opex. The best brands will outsource a lot of manual work. It's happening but will continue happening at scale. 3. Meta will bounce back. Lots was changed and tested in 2024, some of that will start to take shape and stabilize in 2025.

3. RFK will ban political ads. Brands that have been testing TV will greatly benefit from this arbitrage opportunity.

4. Applovin hype will fade. Many brands will still find success there, but many will not. I predict 5% of overall spending.

5. TikTok will be forced sold to an American company. It will go to either Amazon, Walmart, or Apple.

6. Attribution will continue to fade away and become even more widespread incrementally. People on X may even begin to use that term correctly.

7. Consumer confidence and spending will begin to rise in most markets. Luxury will take a few years to bounce back though.

8. Meta admits they suck at reaching new audiences, and they find a way to fix it and help brands actually find new audiences on a purchase objective.

9. Running some kind of mid or upper funnel strategy becomes de facto best practice for 8 fig and beyond brands.

10. The ad creative as a % of spend model dies off amongst margin pressure and the rise of legit AI creative solutions.

11. We see further consolidation in the SAAS space. To stay competitive, companies will build or acquire horizontal solutions to become all in one bundled solutions.

12. On the two above notes, SAAS variable pricing is dead. Brands demand flat fees for commoditized services. The only things that are variable are proven to be truly incremental to profit.

Full post below

Broad Targeting Isn’t Broad. What?

Are you afraid of broad targeting on Meta?

You're not alone. But here's the thing:

Broad targeting doesn't mean Meta is going to serve your ads to anyone and everyone on the platform.

That's a common misconception. Let me break it down for you.

Broad targeting means:

• Your ads will be served to your competitor's audiences. Think about it. These are people already interested in products or services similar to yours.

• Your ads will reach people who are in-market for your product. Meta's algorithms are smart. They know who's actively looking for solutions like yours.

• Meta will use your pixel data, plus data from websites similar to yours, to find your ideal audience. It's not just guesswork.

• The platform analyzes your ad creative and copy to further refine the targeting. Every element of your ad contributes to finding the right people.

Here's the secret: Broad targeting lets Meta's AI do the heavy lifting for you. It's using massive amounts of data to find people most likely to convert.

So many founders I work with are hesitant to try broad targeting. They think it's wasteful. But in reality, it often leads to better results and lower CPAs.

Why? Because you're not limiting the algorithm. You're giving it room to find hidden pockets of high-converting audiences you might have missed with narrow targeting.

Next time you're setting up a Meta campaign, give broad targeting a shot. You might be surprised by the results.

Full Post Below:

A16Z AI apps

A16 shares their top AI apps based on functionality

Closing thoughts

Let me know what you would like to see more in coming editions

Matej