The Growth Opportunity DTC Brands Shouldn’t Neglect
Marketing Land | February 5, 2019 - Act one of the direct-to-consumer revolution upended traditional marketing and distribution models as we knew them, and now all eyes are on the next phase of growth for these DTC darlings. Initial signs indicate that these challenger brands will be seeking new growth outside of the digital playgrounds on which they grew up (i.e., Google and Facebook).
As Terry Kawaja pointed out at LUMA’s annual Digital Marketing Summit, DTC brands have reached an inflection point that requires them to make a substantial shift to maintain growth. Likely pivots will include expansion into out-of-home advertising, physical retail and — most notably — television. In other words, these traditional brand disruptors are about to start looking a lot more like traditional brands.
Now that the low-hanging fruit at the bottom of the funnel is becoming harder to come by, DTC brands have been quick to shift focus to offline channels that are harder to measure. But what about the remainder of the open (and naturally measurable) web that these disruptors have yet to tap? Many DTC brands are missing out on an opportunity that’s right in front of them, where the assets used to create sponsored social posts can easily be repurposed to extend a brand’s reach across premium websites. The emergence of content-based ad formats paired with advanced buying platforms suggests DTC brands might not want to overlook digital as a path for additional scale quite so quickly.