here's why ecom founders should do research without AI

Research Techniques: AI vs. Manual

Introduction to Research Methods

• The speaker expresses dissatisfaction with how research is taught on YouTube, emphasizing the need to differentiate between AI-driven and manual research methods.

• Many individuals rush through the research phase, often creating extensive documents that go unread, which the speaker considers a waste of time.

Importance of Research in Strategy

• The speaker highlights that effective research constitutes about 70% of a creative strategist's job, surprising many who expect more focus on copywriting or execution.

• Proper research involves identifying relevant variables and efficiently documenting findings rather than randomly noting information.

Utilizing AI for Research

• The speaker advocates for leveraging AI tools to handle tasks that can be automated, suggesting that manual efforts should only supplement what AI cannot do effectively.

• Emphasizes the value of using the Ads Library as a primary tool for competitive analysis instead of relying on paid spy tools.

Structuring Your Research

• A market research spreadsheet is recommended, featuring tabs for competitor analysis including direct and indirect competitors along with key metrics like active ads and page likes.

• It’s crucial to maintain this spreadsheet separately from foundational documents to ensure ongoing updates and relevance in your research process.

Competitor Analysis Breakdown

• Competitors are categorized into direct (same problem/solution) and indirect (same problem/different solution), both providing valuable insights during research.

• Understanding competitors' ad activity relative to their page likes helps identify their growth stage; high ad volume with low followers indicates recent scaling efforts.

Understanding Active Ads and Competitor Analysis

The Importance of Active Ads

• The initial increase in active ads is crucial; advertisers often publish many ads first, leading to increased likes and followers as they identify winning campaigns.

• A scenario with over 100 active ads and fewer than 1,000 page likes indicates a competitor that has recently started scaling effectively.

Mid-Level Competitors

• A mid-case scenario features high active ads (100+) alongside a moderate number of page likes (1,000 to 2,000), suggesting the competitor has been around for some time but is still scaling slowly.

• Noting these competitors is essential as they are likely generating revenue despite their slower growth.

Low Active Ads: What to Avoid

• Any competitor with fewer than 100 active ads should not be analyzed; this represents a significant mistake in research efforts.

• Low active ads combined with low page likes indicate a lack of understanding or strategy from the competitor's side.

Red Flags in Competitor Analysis

• A combination of low active ads and high page likes suggests previous success that has since declined due to issues like product failure or account bans.

• Competitors with below 100 active ads and high follower counts should also be disregarded as they are no longer actively engaging in effective advertising strategies.

Ideal Scenarios for Research

• The best case involves having over 100 active ads paired with very few page likes (ideally under 1,000), indicating recent successful scaling efforts.

• When analyzing larger brands like Rise or AG1, focus on their ability to address various consumer desires rather than direct competition.

Analyzing Larger Brands

• Larger brands typically have numerous active ads across multiple pages; thus, it's important to assess what desires they cater to rather than just their ad metrics.

• Understanding consumer motivations—such as health concerns driving weight loss goals—can provide insights into effective marketing strategies.

Understanding Consumer Desires and Brand Value

The Three Core Desires

• The speaker identifies three primary consumer desires: relationships, wealth, and health. These desires drive individuals to seek self-improvement and personal growth.

• Brands that address only one of these desires are less valuable compared to those that cater to multiple desires simultaneously.

Risks of Single Desire Focus

• Focusing on a single audience pocket can be risky; if a new trend or solution emerges (e.g., a "magic pill" for weight loss), brands limited to one desire may lose relevance.

• A brand that only addresses health-related weight loss may fail when consumers shift their focus towards wealth or relationship improvements.

Value in Multi-Desire Brands

• Brands that engage with multiple consumer desires (health, wealth, relationships) create more value by diversifying their audience reach.

• Research should differentiate between brands addressing one desire versus those tackling multiple ones, as this impacts the effectiveness of marketing strategies.

Analyzing Brand Variables

• When analyzing large brands focused on a single desire, it’s crucial to recognize they may not represent broader market trends effectively.

• High hit rates are rare among even successful brands; thus, understanding their limitations is essential for accurate analysis.

Consistency Across Audience Pockets

• Successful brands often repeat effective variables across different audience segments. This consistency indicates which marketing strategies truly resonate with consumers.

• Identifying common concepts in ads—such as format (UGC vs. VSL), hook structure, and visual elements—can provide insights into what works across various demographics.

Importance of Variable Analysis

• It’s important to analyze specific ad formats and styles within broader categories (e.g., types of UGC like interviews or reviews).

• By examining how certain variables perform across diverse audiences, marketers can better understand which strategies yield consistent results.

This structured approach highlights the importance of understanding consumer motivations while also emphasizing the need for diversified branding strategies in order to remain relevant in changing markets.

Market Research Strategies for Competitors

Understanding Competitor Analysis

• Larger brands operate in distinct niches, making competitor analysis complex. The best-case scenario involves identifying competitors who effectively cater to multiple consumer desires with the same product.

• It is beneficial to document various variables related to these competitors, which can be seen in market research spreadsheets that include diverse data points.

Manual Research vs. AI Tools

• The speaker prefers manual research over AI tools for gathering insights, emphasizing the value of personal engagement in understanding market dynamics.

• When analyzing brands with limited consumer desires but notable strengths, it’s important to record them while focusing on their most common concepts and leaving other columns blank for clarity.

Value of Detailed Documentation

• Leaving blanks in documentation allows researchers to highlight significant findings without overwhelming details, enhancing the overall value of the research process.