The one who can spend the most, will win in the long-term.
Forget about making a profit on ads at this level ($1MM+). If you want to scale aggressively, you have to play the long-term game.
That means running ads aggressively only to break even (and even lose some money), and recovering in the back-end with emails, promotions, and retargeting campaigns.
Competition is fierce at this level, but this is the game the biggest eCom brands in the world are playing. They are here to build a long-lasting brand, not to profit from transactional purchases at the front end.
At this level, everyone has an airtight funnel, they have a proven offer that sells, their marketing is polished, their customer support is robust and responsive, and they have a diverse chain of suppliers to minimize the threat of production issues.
That’s why they’re at the level that they are and making tens of millions of dollars per year.
If you can successfully acquire a new customer and generate repeat sales, you’re going to win it’s that simple.