Many DTC marketing budgets have found continued success in lower-funnel, sales activation messaging. These CPA (Cost per Acquisition) marketing tactics pick the lowest-hanging fruits and provide rapid growth at nominal costs. Unfortunately, these low-hanging eventually fruits dry up and the DTC brand is left scrambling for incremental consumers. To have long-term success, DTC brands must transition to a mixed marketing approach before they run out of easy conversion. This means taking a page out of CPG marketer’s book and begin building a brand.
CPG brands that integrate brand awareness and brand-building messaging through cross-channel advertising are better positioned for long-term success as they can reach more of the total potential marketplace. DTC brands are typically hesitant to invest in brand building, as measuring ROI on this type of marketing can be difficult. However, transitioning from direct media channel attribution, which is typical for DTC brands, to viewing a more holistic cross-channel contribution doesn’t have to be complicated. A marketing mix model (MMM) can provide a comprehensive solution, and doesn’t require PII or a hefty investment. MMMs can work for both CPG and DTC brands by providing insights into marketing efforts’ impact on sales and brand building.