Direct-to-consumer advertisers say that Facebook ads are getting more expensive and securing space is getting more competitive.
But Facebook’s new public ad transparency tool reveals just how hard it is for these brands to pull back on Facebook ads.
Indeed, even as brands like BarkBox and Brooklinen experiment with TV advertising, Facebook ads continue to do the heavy lifting in acquiring new customers.
Unlike big brands, direct-to-consumer marketers are focused on driving leads and sales and have to justify any ad spend with strong results.
Facebook ads are getting more expensive. And the more direct-to-consumer brands there are looking to build their companies through social media, the more competitive buying Facebook ads becomes.
But for DTC brands, there’s no quitting Facebook.
Indeed, even as more direct marketers like Casper, Brooklinen, and Hims are using subway, TV and even out-of-home ads to avoid Facebook’s increase in ad prices and getting squeezed out of the newsfeed, they’re still spending big on Facebook.
“Facebook works and for DTC brands, Facebook works pretty well,” said Mike Duda, managing partner at Bullish, an agency that creates advertising and invests in direct-to-consumer brands and startups. “There’s no one way to build a brand but I would say Facebook has to be a serious component of any traditional advertising.”
Unlike big brands that have massive ad budgets allocated towards TV advertising that is aimed at increasing brand awareness, DTC brands tend to have smaller budgets solely focused on direct-response tactics like getting someone to buy something or to sign up for a service.
And Facebook and Instagram’s advertising products that create sophisticated audiences through retargeting and lookalike modeling are particularly good at accomplishing that goal, say execs.
Facebook ad inventory is getting costly
According to several DTC brands, prices have increased in recent months as Facebook clamps down on fake accounts and misinformation to favor quality advertising.
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Source:: Business Insider