Facebook Ads Signal Success

Moiz Ali, founder of Native Deodorant (acquired by P&G), shares his perspective on Facebook advertising and its crucial role in direct-to-consumer (D2C) business success. His conviction in Facebook's value as an advertising platform influenced his investment decisions during market downturns.

Key Points:

• Facebook Advertising Thesis:

  • Best D2C businesses are entirely dependent on Facebook advertising
  • Companies that diversify their ad spend across platforms (YouTube, TikTok) typically perform worse
  • Exception: Brick and mortar businesses

• Investment Conviction:

  • Maintained strong belief in Facebook stock during market downturns
  • Based conviction on direct observation of 25+ ad accounts continuing to spend on platform
  • Viewed Facebook stock price drops as buying opportunities, not selling signals

• Market Understanding:

  • "If you're entirely dependent on Facebook, you're going to have a better outcome than if you think your business lives and dies by YouTube ads"
  • Companies claiming ad diversification often can't effectively leverage Facebook, the "biggest advertising engine in the world"
  • Success comes from mastering Facebook rather than spreading efforts across multiple platforms

• Personal Experience:

  • Built Native Deodorant's success largely through Facebook advertising
  • Direct experience managing ad accounts informed investment decisions
  • Used practical business knowledge to identify market mispricing of Facebook stock

This perspective shaped both his operational approach in building Native Deodorant and his later investment decisions in Facebook stock during market volatility.