DTC advertising: moving from social to television

A few days ago I wrote about "revisiting DNVB terminology" because we were seeing Facebook emerge as the new middleman (aka "CACs are the new rent") with acquisition costs having risen dramatically in the last 18 months. Cue LeanLuxe's newsletter highlighting a Digiday article about direct-to-consumer brands switching to television advertising.

Interestingly the story begins with HelloFresh, a Rocket-originated company from Berlin, Germany, that alongside Blue Apron introduced meal kits in the US (and Europe). Rocket Internet properties have historically introduced television spending quite early. This was a response to the European online audience only scaling to a certain point, but also because performance marketing experts at Rocket (and now Project A) are world-class multi-attribution specialists and were able to e.g. time online ads with television commercials, making use of second screen advertising to lower the media break issue (i.e. how do you get people to go to your site when they've seen the TV ad? A: on the device they're holding in their hand). 

Overall we're seeing much more interesting tactics in traditional media. Television is certainly performing, but so are podcasts (how many mattresses can a person buy?) and outdoor (metro, billboards, buses). Up to this point I've very rarely seen radio or print work, but that's not to say that they can't. If you can do organic - word-of-mouth, community, guerilla - that's obviously preferable to all paid tactics.

Facebook's response to DTC brands deemphasizing them due to cost has been to push "conversion" audiences versus optimizing for clicks, as well as Instagram video (stories, but also its new longform content). It will be interesting to see how this plays out.

My favorite DTC brand build on television remains MyPillow, which reportedly makes 25,000 pillows a day in its own factory. The Mike Lindell founder story is as American dreamy as it's possible to be. Tragic and wonderful.