Whilst reading a recent article within the Search Engine Journal (written by their lead news writer Matt Southern) some interesting findings were recorded.
This report was recently released looking at direct-to-consumer (D2C) marketing in 2019. This data was accumulated by a report delivered by Yotpo in partnership with Magento and is titled ‘The State of D2C Marketing in 2019’.
Out of the eleven acquisition channels posed, the report found that SEO is in second position for most brands. One specific question asked, “what are your top 3 acquisition channels?” the respondents replied:
- 61%– Social media
- 51%– SEO
- 50%– Direct traffic
Paid search was in fourth place with 26% of the vote and having a bricks and mortar presence through physical stores were a distant fifth place response at 18%. The following chart shows the actual results;
The data amassed in the report is based on a survey conducted from March to April 2019 with responses being received from 512 separate eCommerce and marketing decision-makers.
There was another interesting question posed to these eCommerce and marketing decision-makers, what is their top priority for 2019? 35% of D2C brands said web traffic is their absolute priority in 2019.
Web traffic actually ranked as the fourth most important Key Performance Indicator behind the respondent’s conversion rate, new customers, and e-commerce sales. This is an interesting fact as these three all require web traffic in order to be generated.
Paid Search and Social Media
When it comes to paid search, specifically Google Adwords then 47% of D2C brands say they will be increasing their ad spend throughout 2019.
The report also found that the spend on Google Shopping ads is also up with some 32% of D2C brands saying they will be spending more in this area.
As this report shows, a significant number of eCommerce and marketing decision-makers within D2C brands are in the process of increasing their spend in social media and importantly, in paid social media ads. In particular, 49% are now spending more on Instagram ads and 52% are spending more on Facebook ads. This is interesting as many brands now find paid social more cost effective than Google Adwords.
Once again ad spend is up amongst these D2C brands in nearly all areas except traditional advertising such as print, outdoor, TV, and radio ads. This shows that digital visibility is by far the strongest revenue generator for many businesses of all sizes.
It is interesting that every year these figures increase however, most business owners think reports like this only target larger corporations. In this ever more competitive world this is now simply not the case. Localised advertising targeting specific niches will without doubt generate return on investment and therefore smaller owner managed businesses should now maximise this as a significant route to market.
For more information on what is required to drive this area of advertising then please email us here at Pure Digital on firstname.lastname@example.org