Are you looking to take your Direct-to-Consumer (D2C) marketing to the next level? With so many different strategies out there, it can be challenging to know where to start. That’s why we reached out to top experts in the field to share their insights on effective D2C marketing strategies you can implement today. Whether you’re a seasoned marketer or just starting, these 8 D2C advertising tips from seasoned experts are sure to help you take your business to the next level.
1. Read this before you start running ads
By: Kunal Harisinghani, VP of Growth, FlapKap
Before you even think about running ads, there are a few things you need to understand. First, you need to know if your brand is ready for performance marketing ads. The answer lies in your numbers. You need to understand two key metrics: average order value (AOV) and profit margin. Your ultimate goal from performance ads is to get returns higher than your profit margin before ad spend.
Therefore, you need to calculate your break-even ROAS (Return On Ads Spend). Breakeven ROAS = 1 / Profit Margin. Understanding AOV is also critical, as it impacts your cost per acquisition (CPA) and fluctuations in AOV can impact your profit margin and breakeven ROAS.
It’s important to note that AOV and profit margin are not static metrics. They can change over time, so it’s crucial to keep track of them and adjust your strategy accordingly. For example, if your AOV drops, your CPA will likely increase, which means you’ll need to adjust your ad spend accordingly. By keeping a close eye on these metrics, you can ensure that your performance ads are generating a positive return on investment.
2. How D2C brands can determine their advertising budget
By: Ryan House, VP & Head of E-commerce, Tasseo
Determining your D2C advertising budget can be challenging. The first step for every brand should be to establish the channel-level goal for your DTC channel. Every brand has different growth and profit goals, as well as different cash situations. Some have multiple distribution channels, while others are DTC only. But in my experience, distribution channel goals should be oriented around contribution margin. The key is to establish a DTC channel-level goal, as this will determine how much you should spend on advertising.
Once you’ve established your DTC channel-level goal, you can start to think about how to allocate your budget across different channels. It’s important to remember that not all channels will be equally effective for your brand, so you may need to experiment with different approaches to find what works best.
It’s also important to keep in mind that your advertising budget will need to evolve over time. As you grow and scale your business, you may need to adjust your budget to reflect changing goals and market conditions.
3. A 90-day DTC ads playbook
By: Nigel Thomas, CEO, Alpha Inbound
Looking for a playbook to help guide your DTC ads strategy? Nigel Thomas, CEO of Alpha Inbound, has put together a comprehensive 90-day playbook that can help you get started.
The playbook includes three main stages: research and prep, testing, and scaling. During the research and prep phase, you’ll focus on identifying your target audience, and their pain points, and creating video content that addresses those pain points. In the testing phase, you’ll launch ads and track metrics to identify what’s working and what’s not. Finally, in the scaling phase, you’ll increase your ad budgets and expand your product offerings.
The key to success with this playbook is to approach it as a process. It’s not a one-size-fits-all solution, and you’ll need to be willing to experiment and adapt as you go.
Day 0-30 – Research & Prep:
-Pick 1 product
-Find 1 specific group of people
-Figure out this group’s pain points
-Find UGC creators within this group
-Shoot 9 videos focused on 3 pain points
-Build a landing page expanding on pain points
Day 31-60 – Test, Test, Test:
– Launch ads on FB or TikTok
– Track metrics from click to purchase
– Figure if you have a content or conversion problem
– Shoot more videos around pain points that convert
Day 61-90 – Scale Vertically then Horizontally
– Increase monthly ad budgets by at least 20% MOM
– Keep looking at ways to maximize your AOV
– Pick a new product that overlaps the first
– Repeat the above process A-Z
4. 3 Tips to Lower Facebook Ads CPA
By: Jordan West, E-commerce Investor, and Podcast Host
When it comes to lowering your Facebook ads CPA, there are three things to keep in mind:
- Focus on A/B testing. Test different types of content, such as video lengths and image vs. GIF-style videos, to see what resonates best with your audience.
- Don’t get caught up in targeting. Facebook has sophisticated targeting capabilities, so you don’t need to spend a lot of time focusing on this aspect of your ads.
- Separate campaigns by placement. Different placements on Facebook can have different impacts on your ads’ performance, so it’s important to treat each placement as a separate advertising platform.
By keeping these tips in mind, you can optimize your Facebook ads and achieve a lower CPA.
5. Growth Doesn’t Come from a Better Performing Evergreen Ad
By: Taylor Holiday, CEO, Common Thread Collective
Many brands make the mistake of focusing too much on creating a better-performing evergreen ad. While it’s important to have a strong ad that resonates with your audience, growth actually comes from creating “moments” that drive urgency and create novelty.
One way to do this is by designing a marketing calendar that creates an imperative for purchase for the customer. This might include product drops, collaborations, promotions, or cultural moment creation.
Another way to create “moments” is to focus on your customers’ pain points and create solutions that address them. By doing this, you can create a sense of urgency around your product that resonates with potential customers.
The key takeaway is that your ad account is simply an amplification engine for your marketing message. By creating moments that drive urgency and excitement, you can achieve sustained growth for your brand.
6. The Role of Personalization in D2C Advertising
By: Emily Weiss, Founder & CEO, Glossier
This is one of the most crucial D2C advertising tips where most D2C brands lose out on. Personalization has become an increasingly important aspect of D2C advertising. By tailoring your messaging and offers to individual customers, you can create a more engaging and relevant experience that drives conversions and loyalty.
One way to personalize your advertising is through targeted email campaigns. By segmenting your email list based on customer behavior and preferences, you can deliver more targeted and relevant messaging that resonates with your audience.
Another way to personalize your advertising is through dynamic product recommendations. By analyzing customer behavior and preferences, you can create personalized product recommendations that increase engagement and drive sales.
The key to success with personalization is to use data to inform your approach. By analyzing customer data and behavior, you can create more targeted and relevant advertising that resonates with your audience and drives results.
7. The Importance of Influencers in D2C Advertising
Influencer marketing has become an essential part of D2C advertising. By partnering with influencers who have a loyal following, you can tap into a highly engaged audience and increase your brand’s reach.
When choosing influencers to partner with, it’s important to look beyond the number of followers they have. You want to find influencers who have a genuine connection with their audience and can authentically promote your brand. It’s also important to set clear expectations and goals for your influencer campaigns and to measure their success based on engagement rates, conversions, and other key metrics.
In addition to partnering with influencers, you can also leverage user-generated content (UGC) to build your brand’s credibility and increase engagement. By encouraging your customers to share their experiences with your products, you can create a community around your brand and drive user engagement.
8. The Power of Video in D2C Advertising
Video has become a critical component of D2C advertising. By creating video content that showcases your products and tells your brand’s story, you can engage your audience and increase conversions.
When creating video content, it’s important to keep it short and sweet. Attention spans are short, so you want to grab your audience’s attention quickly and deliver your message in a concise and engaging way. It’s also important to optimize your videos for mobile, as many users will be watching on their smartphones.
Finally, don’t be afraid to experiment with different types of video content. You can create product demos, testimonials, behind-the-scenes footage, or even animated explainer videos. By trying out different approaches, you can find what works best for your brand and audience.
Check out our other blog on AI Personalized Video Marketing to learn more!
These are just a few of the many effective D2C advertising tips and marketing strategies out there. By implementing these tips from seasoned experts, you can take your marketing game to new heights and see real results for your business.
Remember to approach your marketing strategy as a process, and be willing to experiment and adapt as you go. With the right approach, you can achieve sustained growth and success in the D2C space.