DTC Television Advertising

Goals

To find four case studies of Direct-To-Consumer (DTC) companies who have successfully added television advertising to an already established online advertising presence, in order to understand the possible correlation between TV spending and search queries, online view, and web traffic, and overall evaluating the influence TV advertising has on the success of such DTC companies.

Early Findings

  • According to a report from the Video Ad Bureau, direct to consumer companies have increased their spending on TV advertisements by 60%, up to $3.8 billion in 2018.
  • As a separate category, these companies added $1.4 billion to the TV marketplace in the year 2018.
  • Using data and analytics, these companies are determining which marketing approaches result in actions from website visits to sales.
  • The percentage of growth in TV spending by these companies shows that the TV has an ability to increase sales for these companies, with the VAB report revealing how those DTC companies have either now started advertising on TV, increased their spending for TV marketing, or have witnessed growth in revenue and value.
  • VAB has also began running a campaign on TV of its own that features DTC companies that have increased their business through TV advertisements. These commercials feature John Foley, Peloton founder and CEO, and Jerry Hum, the Touch of Modern co-founder and CEO.
  • Touch of Modern is a digital direct-to-consumer brand that oversees men’s products for more than 16 million professionals that utilize the platform. Company growth had stalled in 2018, until an initial TV campaign showed promise, and they partnered with a Minneapolis-based TV advertising agency known as Marketing Architects® to redesign and upscale their TV campaign, resulting in accelerated revenue growth. CEO Jerry Hum states that TV advertising has gone from an initial experiment to the companies primary means of marketing, with $15 million invested.
  • According to Ad Age Studio 30, the senior vice president of direct marketing for WarnerMedia Ad Sales stated the company has advertising opportunities for DTC brands across varied platforms and brands including TNT, CNN, TBS, Adult Swim, truTV, and Cartoon Network.
  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

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