Ad and organic revenue can rise together

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 32:16

   one of the things that we are very, very, very good at is, um, increasing basket size, like regularly. Um, the other thing that we're really, really good at is typically historically, um, you know, uh, as revenue and organic revenue are considered competing metrics, which makes sense typically usually when ad revenue goes up it goes at the expense of organic because you at the end of the day have a list of items and either organic goes to the top or odds or whatever and what we've been able to consistently show is that we're actually able to drive both up together um so that one doesn't cannibalize the other which allows us to compound these massive massive gains on incredibly mature relevant stacks elaborate on that for me when you talk about ad revenue are you talking about ad spend that's getting the user to the site or

2. 33:10

   are you talking about like at an amazon where there's promoted site promoted items versus second okay right so i guess i think about that from an amazon perspective because it's you know very you know it's it's surfaced it's you know more or less transparent you know a little bit more than less you know whereas i don't know that when i think about wayfair i think about sponsored items versus non-spider sponsored items but you know a side of that scale is probably doing that whether or not i know about it is kind of the i think they're fairly transparent about it i just think that you see it more on amazon because amazon has a much much larger ads business and they're a huge huge company and so you're saying that you know typically when when an organization is kind of uh they optimize ad revenue as a as the primary objective

3. 34:10

   conversion tends to go down yeah yeah okay because people will because they're optimizing for people clicking on stuff as opposed to buying things as opposed to buying things and what sequin has proven that we can do time and time again is we can get people to click significantly more and get them to also buy after the fact why is that is the same thing we're talking about just more data like is it that you're individually optimizing these things and so they both go up or is it some cross no they're they both go up we're just creating like much more we're showing people things that they actually want to see um based on what we call micro feedback that we get things like scroll speed and stuff yeah it's funny you you you say that because i was thinking just a bit ago about how you know typically the the big kind of aha moment for relevance is if you

4. 35:09

   can find And, you know, some feedback, like any feedback, and usually it's like, or, you know, historically has been in, I'm thinking about like RAG systems, for example, like, you know, did the user click? Like, you know, that's a, did the user click on the thing that we showed them? Oh, like, or did the user thumb up or thumb down? Like, you know, there's, I would say teams have kind of been starred for like, you know, any kind of feedback and like they you know have very few levers for this explicit feedback and now like you're just creating way more implicit way more feedback implicit feedback yeah yeah no and we rely i would say overwhelmingly on implicit feedback data overwhelmingly it's crazy