WHAT ARE SOME EXAMPLES OF D2C COMPANIES THAT ARE ADVERTISING BEYOND SOCIAL AND SEARCH CHANNELS?

WHAT ARE SOME EXAMPLES OF D2C COMPANIES THAT ARE ADVERTISING BEYOND SOCIAL AND SEARCH CHANNELS?

Madison Reed uses traditional advertising channels such as television and radio. Below is an overview of findings, as well as an explanation of the methodology.

1. Madison Reed

  • During the COVID-19 period, Madison Reed has been reaching consumers through traditional advertising channels such as television and radio.
  • A CDMG article reported that there was an influx in the number of Sirius XM (radio) and TV ads for Madison Reed during this period. It adds that Madison Reed’s creative approach is personal, real, and powerful.
  • According to Forbes, Madison Reed’s CEO began running extra TV ads in March 2020. The company also plans to use a protion of its $128 million funding to finance TV ads.
  • According to Glossy Daily, the company also entered the men’s hair coloring market recently and is using radio and TV ads (ESPN, Fox, and CNN) to reach men.
  • According to Madison Reed’s CEO, the company is using an “in-house attribution model” to conduct exit surveys to understand how it reaches its consumers. The company is able to measure the results of its ads more precisely due to the availability of data. Essentially, the company uses traditional channels such as TV and radio because data from its exit survey shows that they reach more customers that way.
  • Just months since March 2020, Madison Reed’s sales had skyrocketed and the company expects to achieve $100 million in sales in 2020. According to a paywalled AdAge report, Madison Reed’s “in-house marketing model” helped its sales boom during the COVID-19 period.
  • Here is an example of Madison Reed’s recent TV spot.

2. Stitch Fix

  • In the first quarter of 2020, Stitch Fix invested $16 million in marketing. Its marketing efforts were mainly focused on out-of-home and TV advertisements. According to econsultancy, Stitch Fix’s TV advertisements were mainly targeted at select regions to maximize brand awareness.
  • According to Stitch Fix’s CEO, the company is experimenting with other channels since social channels such as Facebook have become very competitive. Its decision to explore channels other than social and search was also driven by the rising costs of digital marketing. Stitch Fix ‘s CEO added that they are “applying more conservatism in the way we are thinking about our marketing spend.”
  • According to Ad Council’s CEO, companies such as Stitch Fix have reached points “where the social reach isn’t necessarily incremental, and television allows them to come in with big moments and have a broad reach opportunity with their audience.”
  • While there are no publicly available results for Stitch Fix’s traditional marketing campaigns, its number of subscribers rose by 9% to 3.4 million clients by mid 2020. This would be considered a win since its reason for diversifying to traditional channels was to increase brand awareness, according to its CMO.
  • Here is an example of Stitch Fix’s recent TV spot.

Research Strategy

Our search for D2C companies that are advertising beyond Social and Search channels produced examples from recent articles by eConsultancy and eMarketer. We then identified the ones that had advertised on other channels since February 2020. Then, we provided the two with the most data points available. Notably, there was very limited data on success metrics specifically for the adverts despite searching through the companies’ communications and websites, as well as media resources and sentiments from executives. We also explored marketing-focused resources such as AdAge and AdWeek, but they did not produce any useful information. Therefore, the research team elected to provide data on their revenue and subscription increases during the COVID-19 period with the assumption that their marketing strategies may have contributed towards their performance.

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