DTCs have become bigger and richer, and with this comes the desire to gain more power and wealth. During the initial growth of DTCs, Facebook and Instagram are their best friends, helping them connect with their core audience and build a strong group of fans. However, as DTCs seek growth, they will have to explore new ways to gain customers if their customer base expands.
With increased budgets comes a greater ambition. Brands like Away, GetYourGuideAnd Rental runway All of them have recently achieved the Unicorn position (over US $ 1 billion), and many other DTCs are in the back, with huge valuations, growth levels and rising revenues.
With this continued growth, brands will want to expand their customer base, realizing that there is a big budget to grab here, some big players are about to be inhaled. So what are the key options for DTCs looking to increase their spread?
– Youtube: Although search is already huge for DTCs, Google sees the YouTube site, which just formed DTC board, As a great way to engage rival brands. The Board aims to discover the priorities of DTCs in terms of audience targeting, advertising priorities, and types of advertising products, with the conclusion that DTCs are focused on leading new customer acquisitions, subscriptions and purchases. With this knowledge, we expect to see a wide range of products designed to enhance performance metrics.
– Television Industry: If you want to reach a wider audience, there are a few better channels than TV. What's more, the likes of NBCUniversal, CBS and Viacom are looking forward to partnering with more DTCs, Which was previously avoided due to the lack of an appropriate budget. While DTCs account for only 3% (US $ 2 billion) of television advertising spend in 2018, the number of these brands that show ads on national television in the United States Almost doubled in the past two years. These men do not just take time periods during the day And Habito An announcement in the middle of Game of Thrones, a guide to their intentions and interest here.
– snap chat: Facebook and Instagram are not the only social platforms that play DTC. Ads demonstrate the story of the Snapchat discovery Great blow with DTCs. here they are Branded tile formats that appear in the feed next to known offers and publishers, allowing DTCs to display their product portfolio. They also measure consumer intent by encouraging viewers to click to view products, and play according to the nature of performance-oriented DTCs.
Reconcile the DTC
After the DTC Board recently reached YouTube, it concluded that the DTC brands are looking for ways to drive new customers, subscriptions, and purchases, which platforms are best positioned to help them do so, and take a large part of the new DTC funds into the process ?
TV and DTC can be soul companions
Perhaps the TV is the best to take over this budget. Perfectly suited for the shoe, DTCs are looking to increase their reach, with NBCUniversal, CBS and Viacom reaching a very diverse audience with socio-economic levels, age, gender, type and interests that vary from program to program. You will find DTCs, many of which still do not have traditional brand budgets, this data is priceless, as they look to target new customers, without wasting money on those who will never have an interest in the product. By guaranteeing the safety of the brand associated with the purchase of the TV (the precise content to be announced), the TV is a very attractive display of e-commerce with this type of budget.
If there is a thorny point in the growing relationship between DTCs and television, it will be a budget. In the UK alone, the last episode of Game of Thrones attracted 3.2 million viewers at 2 am, with another 500,000 viewers watching the next day. In the United States, 13.6 million people were arrested. Advertising exposure here will give brands The price of slots will be huge. Habito is a well-established company, with more than £ 24 million raised in less than five years and more than 100 employees, so they can afford this type of placement (if not regularly). The smaller DTCs of Habito will struggle to do this. Game Of Thrones, however, is a special case with ridiculous viewing numbers. While some DTCs will be priced from the most expensive slots, connected TV and on-demand services (even linear television, though sharply reduced) provide more opportunities for smaller DTCs looking to expand their reach through television.
YouTube has been hampered again by brand safety
YouTube will also be a useful tool for DTCs. The fact that it's an online channel means that ads on YouTube will make more purchases than TV ads, where consumers can simply click and buy the page with just a few clicks. Like television, YouTube also has a variety of audiences, and with the launch of their DTC board, there will be some ad formats specifically designed to fit the DTCs in sight. The case, as it has been for years, is the safety of the brand. Google recently said that YouTube May not be 100% safe brand, A statement that will cause DTCs to worry with tight budgets. It is not an attractive proposition to spend years trying to craft a picture of the brand in a deliberate way, and only harm it by putting it next to harmful content. If you enter DTC brands into YouTube, you're likely to search for them Buy directly from high quality content publishers. The problem here could be the budget again, as the rising demand will certainly drive up the price if DTC reaches out to premium publishers.
Snape's lack of diversity may hinder it
The Snapchat ad will provide a location next to the well-known and high-quality publishers, providing the opportunity to click on the ad, view the clipboard, then move to the DTC site and make a purchase. In addition, the price of ads compared to Instagram ads (from $ 2 to $ 4, versus $ 10-16) is enough to make DTCs considered Snap ads as a tool to increase purchases. The problem is that when it comes to social shopping, Instagram is owned, with the possibility of making a purchase without leaving the application. For brands with a tougher budget, Snap is a great option, but if you want more purchases, it's best to focus on Instagram. The Snapchat utility as a way to expand the audience is also limited. Number of DAUs Fell from Q1 2018 to Q4 2018, and while this trend was reversed in Q1 2019, Only 17.5% of the Snapchat audience exceeds age 35, With 58% under the age of 25. Unless you're trying to attract a younger audience, Snap seems to be not the solution to your expansionary dreams.
Options DTCs that are seeking new customers for their extensive brands. In addition to those mentioned, channels such as OOH will be huge to expand access. While television is definitely the best option, the right choice depends on your budget and the audience you're trying to reach. With the continued growth of DTCs, experimentation will be vital to finding the appropriate acquisition channel for the individual company.