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That is a staggering CPA vis a vis product cost. Is that just based on the congestion of keyword bidding? Or does CPA actually mean conversion/sale and the path

by beager 9y ago

That is a staggering CPA vis a vis product cost. Is that just based on the congestion of keyword bidding? Or does CPA actually mean conversion/sale and the path to close is very difficult? I feel like Amazon could swoop in with a competitive offering and obliterate the competition, if marketing and acquisition were the only barriers to success. They've also got a lot of distribution infrastructure they can leverage, which seems like another large hurdle. What competitive barriers can companies like Casper or Eve put up? Can they put up any? And how should that affect inclinations toward IPOs and valuations? Anecdotally, I've only ever seen Casper marketing on the NYC subway. Never anywhere else. I enjoy the creative, but have no inclination to buy the product, neither now nor the time that I will need to buy a new mattress.

mistermann 9y ago
Amazon is scary, startups can develop a new product and spend millions on consumer education and establishing a market, working out kinks, etc, and once it's proven Amazon can simply swoop in and dominate the market (almost any market with their breadth and network advantages).
ojbyrne 9y ago
Or Ikea.
SOLAR_FIELDS 9y ago
Part of the success of Casper is the lack of choices - this is briefly touched on in the article. They seem to want to take the Apple approach - offer few choices and do them right, charging a healthy premium along the way. I don't see any competitive advantage that Casper offers beyond that - Amazon and WalMart have similarly lax return policies as Casper without the premium. I can likely get the same quality mattress at one of the two above retailers for slightly above half-price of the equivalent Casper offering. I do see Casper billboards in Austin in the Domain, which is a mid-to-high tier shopping center where the demographic skews younger. I've also heard ads on podcasts. So they are advertising, though it doesn't seem like they are targeting the typical channels for a mass audience, but rather are marketing to the younger demographic.
kingbirdy 9y ago
Casper seems to advertise heavily in the podcast and music space - I hear their ads constantly on spotify, podcasts, etc

by beager 9y ago

mistermann 9y ago

Amazon is scary, startups can develop a new product and spend millions on consumer education and establishing a market, working out kinks, etc, and once it's proven Amazon can simply swoop in and dominate the market (almost any market with their breadth and network advantages).

ojbyrne 9y ago

Or Ikea.

SOLAR_FIELDS 9y ago

Part of the success of Casper is the lack of choices - this is briefly touched on in the article. They seem to want to take the Apple approach - offer few choices and do them right, charging a healthy premium along the way. I don't see any competitive advantage that Casper offers beyond that - Amazon and WalMart have similarly lax return policies as Casper without the premium. I can likely get the same quality mattress at one of the two above retailers for slightly above half-price of the equivalent Casper offering. I do see Casper billboards in Austin in the Domain, which is a mid-to-high tier shopping center where the demographic skews younger. I've also heard ads on podcasts. So they are advertising, though it doesn't seem like they are targeting the typical channels for a mass audience, but rather are marketing to the younger demographic.

kingbirdy 9y ago

Casper seems to advertise heavily in the podcast and music space - I hear their ads constantly on spotify, podcasts, etc