Direct-to-consumer (DTC) brands have taken the U.S. by storm, changing how people contemplate, research and buy everything from food and clothing, to beauty products and home goods. While most of these digital-native brands established themselves via targeted online marketing efforts, they’ve also become one of the fastest growing TV advertising segments.
TVSquared’s recent eBook analyzed top U.S-based DTC brands, to find which TV buy elements were delivering the highest and lowest levels of performance. DTC TV advertisers were also a hot topic at last week’s Beet Retreat in New York.
During one of the panels, aptly called “DTC Brands are Bringing New Directions to TV,” Janet Balis (EY’s Global Advisory Leader for Media & Entertainment) moderated a discussion with Brian Norris (NBCU’s SVP, DTC Ad Sales) and Frederick Lee (WideOrbit’s Director of Sales, Programmatic) on how these advertisers are shaking up TV:
- Brian acknowledged how, while DTC brands originated on social, many are looking to “scale beyond social.” He said: “They hit a ceiling, they need something a little bit bigger.” He added how NBCU is working to empower new-to-TV DTC brands, especially since “TV doesn’t get the credit that it deserves.”
- He also explained how, “over 50% of DTC brands are subscription-based.” With this in mind, it’s important for them to inspire loyalty from customers so they will continue to renew and find value from the product.
- Frederick spoke about empowering brands to have the “ability to really have the finger on the pulse” and utilize the “power of TV,” which includes reach. He also stressed the importance of optimizing mid-flight to maximize campaigns.
- Both men discussed striking a balance between art and science – making strategic, data-based decisions. They also agreed that creatives remain integral to any successful campaign.
Click here for even more takeaways from last week’s Beet Retreat.