It should come as no surprise that direct-to-consumer (DTC) brands are a hot topic. For one thing, they’re everywhere. I can’t remember the last time I went a day without learning of a new DTC company taking the world by storm. And while most of these brands are inherently digital natives, they have been increasingly turning to TV advertising -not so much for reach (although that’s definitely a nice to have!), but more so for performance.
In TVSquared’s latest webinar, we teamed up with Matt Hultgren, VP of Analytics at Marketing Architects, to explore why DTC brands are thriving on TV and examine specific success stories within the category. TVSquared’s Head of Business Intelligence, Mark Hudson, also discussed some intriguing finds from our DTC TV Performance Benchmarks report.
While I highly recommend you listen to the webinar in its entirety, here’s a recap of 4 “aha moments” from it:
- Touch of Modern & Wag! Success Stories
Matt discussed Touch of Modern’s meteoric growth and recognition due to TV advertising. In fact, the DTC retailer was honored by the Video Advertising Bureau (VAB) – chosen as one of only two companies, among more than 300+, to be featured in VAB’s national TV ad campaign. (Check out the spot!)
Matt noted that due to the VAB’s ad with Touch of Modern, it actually, “saw an increased interest in TV, which is really, really cool in this day and age when so many new marketers seem overly obsessed with digital channels like Google and Facebook.”
He also explained how TV has positively impacted another DTC client, Wag! “TV has become one of the key pillars in their overall business model, that has helped them land over $300 million in investments.”
- Optimize, Optimize, Optimize
Matt stressed the importance of continually optimizing campaigns. While acknowledging how buying TV used to very much be a “set it and forget it model,” TV’s evolution and the advent of more data-driven insights ultimately empowers advertisers. That is, when they take advantage of these insights by optimizing and testing how all aspects of a campaign are truly performing.
He said, “When you stack one, two, three, four different big optimizations on top of each other, these optimizations now turn into a 5x-10x move [for driving response], which is really game-changing.”
- Experiment to Find What Really Works
Meanwhile, Mark delved deeper into some of the most interesting findings from TVSquared’s DTC report, which examined 18 U.S.-based DTC brands. He explained the importance of experimenting with TV buy elements, such as day-of-week and programming genre.
He stressed how advertisers cannot assume which program or network will be the best fit. Many of TVSquared’s clients are surprised to find what genres are driving response because, at times, they are not what was expected. For DTC brands, many find success with Children, Talk and Spanish Language genres. While Movies, Sports and Documentaries lagged.
- Fragmentation is an Opportunity, Not a Problem
When it came to the contentious topic of fragmentation, Matt expressed enthusiasm – recognizing that TV’s evolution equates to more opportunity!
As he said, “The more fragmented TV gets, it ultimately means there’s just more opportunities to test media, to learn and to find the different pockets that are really going to work well for specific brands.”
You can listen to the webinar in its entirety here.