Rise of DTCs Shows Power of Combining Linear and Digital Campaigns

Maegan Buckler  | 

If we’ve written a lot lately about direct-to-consumer (DTC) ad trends, it’s because of how dramatically these “disruptor” brands are transforming 21st century marketing. From shutting up the ‘TV is dying’ camp with massive investments in the medium, to forcing incumbent brands to move out of their tradition-bound comfort zones, to underscoring the absolute necessity of multi-channel campaigns, DTCs’ efforts to expand their audiences and manage costs are resonating throughout the linear and digital worlds.

Cribbing From Each Other’s Strategies
According to a recent eMarketer report, TV ad spend by DTCs—companies that built their businesses almost exclusively online—has almost doubled since 2016. Citing Video Advertising Agency research, eMarketer details DTC practices noting that 120 DTCs spent $2 billion on TV in 2018—and 70 of the 120 were using TV for the first time. At the same time, behemoth brands and TV stalwarts such as P&G are going digital to get their creative everywhere and also to fight DTCs’ (increasingly successful) attempts to erode their marketshare. These twin forces are making multi-channel marketing a mainstay and presenting advertisers with a multitude of new imperatives. Here are a few.

New Realities Require a New Approach to Asset Management
As DTCs and incumbent brands take pages out of the other’s playbook, they are producing more creative for more destinations than ever before. Brands that can manage these assets all in one place, with permissions-based access for every team and person involved in the campaign, are carving out new competitive advantages by moving more rapidly on campaign execution, eliminating reputation-damaging formatting errors and preventing costly Talent & Rights violations. Our AdBridgeTM creative asset management platform was purpose-built to address all of these issues and offers the massive scale, efficiencies of automation and stellar customer service that today’s brands need to stand out in an increasingly crowded and competitive marketplace.

Changing on a Dime to Stay on Top
As brands embrace the multi-channel outreach that ensures they are always in step with both shifts in consumer behavior as well as an ever-changing media environment, they need assurances that they can evolve their media strategies in response to rapid changes in the media environment. Digiday, in its coverage of DTCs’ gravitation to the tried and true traditional, points out that reach is not the only reason that brands have to constantly evolve the media mix. For DTCs, the move to “fuddy duddy” channels such as TV, radio and print is also a reaction to rapid and significant increases in Facebook’s and other social channels’ CPM rates, which, for Facebook at least, are double what they were a year ago. Given how quickly demand—and hence prices—can change, advertisers need a creative asset management platform that will allow them to diversify their marketing mix at the speed of today’s media. Extreme Reach addresses this necessity. Every day we ingest 2,500 new creative assets into AdBridge, which is connected to every TV destination and digital publisher and provides critical Talent & Rights management.

Accepting that the advertising and media universes are always changing will help brands be open to new marketing opportunities without scrapping the fundamentals of getting closer and closer to customers. And choosing the right digital video ad serving and linear TV distribution platform will ensure that brands are technologically positioned to execute on a dime.

Recommended Posts