ExchangeWire have invited hundreds of thought leaders to share their thoughts on what next year will hold, across a range of topics. By now, if you haven't heard the term 'DTC' at every corner, you should probably try to work out why. Whether challenger brands, DNVBs (digitally native vertical brands), or heritage brands looking to diversify, 'Direct-to-consumer' will be one of the biggest trends to look out for in 2019, and our industry experts are certainly bullish on its prospects.
DTC brands use first-party data as a challenger
"These ‘DTC brands’ can fight large, traditional brands on fronts that have been slow to move on such as eCommerce and performance marketing. Notably, they possess something many brands, particularly CPG, lack - rich, first-party data. This data enables them to better understand current and future consumers, optimise the buying experience, and maintain dialogue. They can do more with less, and grow faster.
"When traditional brands talk about promotion on Amazon, they call it advertising. Brand promotion within a Walmart store is called shopper marketing. DTC brands see these as one and the same – the ability to reach a consumer in the physical or virtual aisle – and represents a seismic shift in structural and executional approach."
Liam Brennan, Global Director of Innovation Programmes, Mediacom
CPGs need to watch out
"The key is to start small before gradually scaling to build a community, all facilitated by intuitive interfaces which can compete on the design-front. By investing in such experiences, and a product that meets the needs of the consumer, traditional CPG brands can become legitimate rivals to the challenger – or digitally native - brands nipping at their heels."
Alex Hamilton, Head of Innovation, Isobar
Those owning 'mass personalisation' are winning
"This clearer landscape has made the challenger brand more powerful, as bigger brands struggle to remove their own, once advantageous, protection barriers, in order to be agile, and as ‘mass personalised’ as the modern consumer expects. Brands like Monzo, Uber, Deliveroo, Netflix, and Amazon are all operating in this new world with a greater understanding of the consumer, and a willingness to tailor their product based on that data, and as a result, they are the beneficiaries."
Dino Myers-Lamptey, Managing Director, MullenLowe Mediahub
A clear brand vision
"Deliveroo, Monzo and Uber had it easy – they shook up their respective sectors by revolutionising the way we behave. In 2019, the companies that survive will have a clear brand vision that runs through everything they do. As for the high street, it must adapt or die, as it faces a potential future of food, cafes and corner stores.
Simon Wright, Managing Director, Greenwich Design
DTC leveraging CTV
"Connected TV is appealing both from a brand-building strategy and a direct marketing play that can drive measurable ROI. In fact, across the board, advertisers are investing in connected TV and a recent survey we conducted of 140 buyers found that 70% are planning to spend more on connected TV in 2019. Demand will continue to rise as more advertisers see the effectiveness of advertising on connected TV."
Mark Zagorski, CEO, Telaria