As the digital advertising landscape continues to evolve, Direct-to-Consumer (DTC) brands are facing new challenges in targeting and attribution. The advent of Apple’s AppTrackingTransparency (ATT) initiative has severely limited the ability of DTC brands to efficiently target ads and attribute sales, especially on social media platforms like Facebook. But there’s no need to despair – with new strategies emerging, DTC brands can still achieve growth and success in the current environment.
Retail Media Search: A New Performance Ad Play
As DTC ad dollars shift away from Facebook and towards other channels, retail media search is emerging as a new performance ad play. DTC brands can effectively buy sponsored product ads on retail media networks (RMNs) to drive sales growth. RMNs like Walmart Connect and Roundel (Target) offer cost-effective opportunities for DTC brands to deliver improved ROAS. With Amazon’s ad marketplace becoming increasingly competitive, exploring alternative RMNs is a wise strategy for DTC brands looking to grow their sales and audience.
Retail Media Off-Site Ads: Efficiently Growing Brands
DTC brands can use demand-side platforms (DSPs) like Amazon DSP and The Trade Desk to efficiently reach valuable audiences outside of retail media networks. These offerings help DTC brands grow brand awareness and measure attribution simultaneously. By reaching existing brand and category buyers, DTC brands can build a loyal following while driving performance. Utilizing these off-site ads on DSPs can help DTC brands keep up with the evolving digital landscape and achieve growth in new ways.
Streaming TV: Effective Means of Growing Brand Sales
While pricier than other ad formats, streaming TV offers an effective means of growing brand sales. The recent expansion of ad-supported connected TV (CTV) inventory on networks like Hulu, Peacock, and Disney+ provides DTC brands with an opportunity to drive branding and performance simultaneously. While these ads often carry high CPMs, the rapid increase in supply should create near-term opportunities for high-growth brands with adequate marketing budgets. With the rise of streaming TV, DTC brands have a new avenue to connect with audiences in innovative ways.
TikTok: The Time is Now
As social media continues to play a key role in the growth of DTC brands, TikTok is emerging as a platform with tremendous potential. While other brands are still figuring out their creative and data-driven marketing strategies on the fast-gaining platform, now is the time for DTC brands to lean into TikTok ads. As a digitally native vertical brand (DNVB), utilizing TikTok can help you reach a new audience and build brand awareness in a fun, engaging way. Don’t wait – the clock is ticking to figure out TikTok and establish your brand’s presence on this exciting platform.
Innovation and Adaptability: Key to DTC Success
As the digital advertising landscape continues to evolve, DTC brands must stay innovative and adaptable to achieve success. By exploring new channels like retail media search, off-site ads, streaming TV, and TikTok, DTC brands can connect with audiences in new and exciting ways. While the traditional DTC growth playbook may be limited, embracing new strategies and taking calculated risks can help your brand achieve growth and success. Remember, the key to success is not just in the platform you choose, but in the way you tell your brand story and engage with your audience. So go forth and innovate, and achieve greatness in the evolving digital landscape!
