Over the last decade, brands were able to acquire new customers efficiently and at scale through savvy Facebook, Instagram, and Google ad campaigns. For an entire generation of digital-first direct to consumer brands, their entire business model relied on the ability to use hyper-targeted social media ads to drive low cost conversions. Over the last several years, this playbook has effectively become obsolete, for several key reasons:
- Updates to Apple’s privacy policies have significantly handicapped marketers’ ability to collect and employ user data for ad targeting and attribution across channels like Facebook and Instagram.
- The digital media landscape has become highly fragmented. People are spending time on more digital touchpoints than ever, so consolidating marketing efforts within Facebook and Google ecosystems are missing opportunities.
- Competition has increased. Many consumer categories have been saturated with businesses that are hard to differentiate.
- The uncertain economic climate of the last few months has finally begun to compel consumers to be more cautious and selective with their discretionary spending.
For nearly 10 years, growth marketing became nearly synonymous with performance media. This playbook is no longer sufficient. Winning brands must amplify key brand differentiators and deliver on brand promise across all customer touchpoints – paid, earned and owned. The landscape has changed and brands will need to adapt with new winning strategies that focus on the following key pillars to scale in 2023 and beyond:
Brand Positioning & Market Fit
Refine and amplify brand value propositions to distinct customer segments across the entire acquisition flywheel in order to command price positioning, strengthen differentiation, and reduce friction in customer acquisition.
Discoverability & Authentic Storytelling
You can no longer buy your growth efficiently. Demand will be created through content that highlights brand differentiators and aligns with customers’ core values.
Optimization Of Diverse & Fragmented Customer Journeys
We are spending time across more digital channels than ever, from TikTok to the Metaverse. Brands must optimize their finite resources to engage their customers’ in the most value-driven environments.
Maximizing 1st Party Data In Media
Sophisticated paid media strategies now rely heavily on complex media mix models, clean rooms, and leveraging first-party data for personalized messaging. Campaigns that don’t include these elements deliver significantly lower ROI.
Advanced Loyalty & Retention Strategies
As acquisition costs increase, brands must implement data-driven strategies to extract more value from existing customers across the entire customer lifecycle.
Consumers have more options for where they shop than ever before, and preferred sales channels often become habitual behaviors. Brands must diversify and optimize distribution channels across DTC and third party marketplaces earlier in their lifecycle to meet customers where they shop.
To learn how Direct Agents’ strategists can help your brand develop a winning 2023 strategy, reach out to email@example.com.
Jackson Richards, VP of Strategy, Direct Agents