The Unbundling Effect

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In this newsletter, you’ll find:

👀 Why “Unbundling” Can Sometimes 10x Your Revenue

📊 Reddit & Pinterest Hit Record Growth in Q4

🚀 Ad of the Day

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👀 Why “Unbundling” Can Sometimes 10x Your Revenue

Bundles are the holy grail of AOV growth, right? Well… what if I told you unbundling could be an even bigger revenue unlock? Stay with me.

The Psychology Behind Unbundling Wins

Consumers love options. But they also hate commitment. Traditional bundles force them to buy everything at once—which sounds good in theory but can create hesitation. Enter strategic unbundling: breaking up bundles into standalone must-haves and then reintroducing them as irresistible upsells.

Here’s the mind-blowing part: people are willing to pay MORE for the same products if they feel in control of their choices. By splitting up a bundle into individual items, you shift the purchase psychology from “Am I willing to spend $99?” to “Which of these products do I want most?”—a decision that gets them through checkout faster.

 How to Unbundle for Maximum Profits

1️⃣ Turn the “Take-It-All” Bundle into a “Build-Your-Own” Option

Instead of a rigid $99 skincare bundle, offer a “Create Your Routine” experience—letting customers pick from individual products. Then, show them how bundling saves them 15% (but now they’re emotionally invested in their picks).

Why it works: This subtle loss aversion nudges customers to spend more while making them feel they’re in charge.

2️⃣ Sell the Star Product First, Then Upsell the Extras

Instead of selling a 3-product coffee kit, lead with your best-seller—say, the premium French press. Then, after checkout, hit them with the perfect match: “Your new French press deserves the perfect grind—grab our fresh-roasted beans at 20% off now.”

Why it works: The commitment to the first item makes the complementary upsell feel like an investment, not an expense.

3️⃣ Price Perception Hack: Sell Separately, Then Reintroduce the Bundle at a Premium

Split a 5-product haircare set into standalone products at slightly higher prices. Then, drop a “VIP Set” bundle at a “discount” that actually makes you more money than the original bundle.

Why it works: The anchoring effect makes the bundle look like a steal—even when it’s priced higher than before.

Final Takeaway: Unbundling Isn’t About Selling Less—It’s About Selling Smarter

Customers don’t just tolerate unbundling—they accept it as the new normal when positioned strategically. Next time you’re thinking about a bundle, ask yourself: Would my customers spend more if they had the illusion of choice? More often than not, the answer is a revenue-boosting YES. 

📊 Reddit & Pinterest Hit Record Growth in Q4
Insights from Social Media Today

Both Reddit and Pinterest posted strong performance in Q4 2024, with record-high user numbers and revenue growth, driven by international expansion and evolving ad strategies.

The Breakdown:

• Reddit’s Daily Active Users & Revenue Surge - Reddit’s DAU hit 101.7M, up 39% Y/Y, with 46% international growth leading the charge. Revenue jumped 71% Y/Y to $427.7M, with US revenue at $347.7M and international revenue climbing to $80M. However, all user growth came from outside the US, where it actually lost users.
  
• Pinterest’s MAU & Revenue Break Records - Pinterest reached 553M MAU, adding 16M users in Q4, with significant growth in Europe after stagnation. Revenue soared 19% Y/Y to $1.2B, but the majority still comes from the US ($900M), while international markets remain under-monetized.
  
• Global Expansion & Ad Innovation - Pinterest is improving ad tools and AI-powered discovery, while Reddit’s machine translation (MT) drove 40-50% of its international growth. Both platforms see increased advertiser engagement, with Reddit Pro boosting ad conversions and Pinterest Performance+ improving targeting.

Both platforms are diversifying beyond the US, but challenges remain in monetizing international audiences. Reddit’s AI-driven ad targeting and Pinterest’s shopping-focused search tools could drive further advertiser interest.

🎥 Ad of the Day

What Works:

"Balancing hormones?" immediately addresses a widespread concern, making it highly relatable for those struggling with hormonal imbalances.

"We have a sip for that." cleverly connects the product's function with the act of drinking, making it feel effortless and enjoyable rather than medicinal.

Highlighting 300,000 customers and a 4.8-star rating alongside doctor recommendations reinforces credibility, making potential buyers feel confident in the product.

What Could Be Better:

Visual Distraction: While the glass straw is unique, it slightly overpowers the main message. A clearer focus on the drink or packaging could have enhanced brand recall without overshadowing the ad’s core promise.

Broader Insights:

Subscription-Based Retention Play: The 15% OFF SUBSCRIPTIONS callout isn’t just about a discount—it nudges consumers toward a recurring purchase model, increasing lifetime value.

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