🛍 DTC Daily - Wednesday, Mar 29

💸 Report: How e-comm brands are spending on marketing this year

📰 TL;DR - A new report from Klaviyo — an SMS and email marketing app — dives into exactly where e-commerce brands are investing or pulling back in 2023. There's a lot to unpack here, but one definite trend is that marketing budgets are changing in 2023. Brands that already have large budgets are planning to spend more, while those with smaller budgets are planning to spend less.

According to the report: "This may indicate that larger brands are reallocating budget and doubling down on the strategies they know drive profit, while smaller brands are trying not to spend money they don’t have."

💡 Insight - First, shout out to Alex McPeak, who's on content at Klaviyo and caught my attention with this hot take:

She's right! If you follow e-commerce news, you might feel bombarded with conflicting information. Here, I try to sort through the noise and find the real trends. But another way to really find the truth is data, like in reports based on surveys like this one. For example, there's a big acquisition vs. retention debate right now, but the report shows that brands still want a healthy mix, with more emphasis on acquisition for larger brands. Overall I love that this report segments the data by business size. Definitely worth a read.

➡️You can read the report here...

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😬 The big e-comm bet that didn't pay off

📰 TL;DR - And that bet is livestream shopping — at least in the US. Wired took a look at the massive popularity of livestream shopping in China and how it rose to prominence during Covid lockdowns. Social media platforms tried to hustle them along into Western markets with updates like TikTok Shop in the UK. But it's been a major flop. Wired even spoke to an influencer in the UK who was able to attract brand interest, but it didn't generate sales. 

💡 Insight - Part of me still thinks someone will figure out livestream shopping in Western markets but isn't too encouraging:

The big problem seems to be getting these streams in front of the right shoppers, presumably Gen Z. But until someone makes it work, there's little motivation for anyone to invest in trying it out.

➡️You can read the article here...

 🍝 Why restaurants are starting DTC brands

📰 TL;DR - NYC-based restaurants like Momofuku and Carbone have been getting into the DTC game, and with good reason. The first obvious reason is the pandemic was really hard on restaurants — launching products was a revenue lifeline and one that will continue to deliver even as people return to dining out. Another benefit is that many followers of these restaurants on social media aren't even in NYC. With a DTC line, they can turn those followers into customers even if they never step foot in the Big Apple.

💡 Insight - Ultimately, the reasons restaurants are starting DTC brands are very similar to the reasons you may have started your own. These restaurants also happen to have the benefit of a recognizable name, or even a celebrity chef as the face. The reason DTC works for them is the same reason I think every content creator should be looking to commerce to diversify their revenue. And the reason you might consider partnering with a creator for your next big project.

➡️You can read the article here...

 🗣 Podcast ads aren't just for DTC brands anymore

📰 TL;DR - It seems like you can't listen to any podcast without hearing an ad for Helix mattresses or Athletic Greens, or another DTC brand. It's a bit of a meme in itself. DTC brands took an early, and successful, bet on podcast ads and marketers for other brands have definitely caught on. You're now just as likely to hear an ad for Molson Coors. 

💡 Insight - The good news is that podcasts are still definitely a viable place for DTC brands to advertise. This year, according to this Digiday report, podcast ads are expected to account for $2.25 in ad spend, going up to $3.53 by 2026. The bad news, which this article doesn't touch on, is I can only assume the going rate for an ad spot in a popular podcast is only going to rise. 

➡️You can read the article here...

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