A recent report by Interactive Advertising Bureau (IAB) forecasts a worrisome future for big-name brands. As IAB’s CEO Randall Rothenberg puts it, “Big brands are being nibbled to death.” The reason for their downfall? Direct-to-consumer companies. They’re taking over, and taking down big corporations in the process. “Brands are fighting—and losing—a war on multiple fronts, and unlike previous battles, throwing in more ad dollars won’t save them,” Adweek says.
Read below for how direct-to-consumer brands are dominating the marketing scene:
Digital brand-building: D2C brands are constantly developing one-on-one relationships with consumers in order to create a loyal customer base, something that ad dollars simply cannot buy.
Product design: By creating an individualistic experience, brands such as Venmo are using product design as a marketing strategy. “They’ve built sharing as a core feature right into the product experience. Splitting a dinner check or chipping in for group getaway has never been more fun and easy.”
Putting data to use: Brands are taking their own social media data and using it as a tool for relationship developments. “Another critical benefit of social sharing is that it creates invaluable troves of first-party data. It’s the new social currency in today’s digital world, and the winners and losers will be determined by those who embrace and prioritize data capture.”
To read more, head over to Adweek.
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