Is “stop advertising” really a strategy that will work for DTC brands?

The bad news keeps coming for DTC brands.

An article on MarketingDive notes that the latest data from Edison Trends shows that consumers have pulled back dramatically on most online spending. Even accounting for a surge in sales tied to essentials like groceries, the numbers are bleak:

Overall “direct-to-consumer brand week-over-week spending fell 7% on average between March 2 and March 22. Comparatively, the average week-over-week increase for these brands from Jan. 6 to March 1 was 1%, according to the data.

Understandably, many experts now advise DTC companies to cut costs wherever possible: including in advertising. 

“It’s a double edged sword, of course, because if you advertise less, you are likely to not drive as many sales,” Wedbush analyst Seth Basham told MarketingDive. “But since there’s much less demand right now … people aren’t going to chase sales that don’t exist.”

A better way for DTC brands?

At <intent>, however, we’re advising clients to take a different approach. We do not believe it’s wise to entirely cut digital advertising at this time. We believe it’s time to adopt more sophisticated methods of digital advertising.

In particular, we suggest our clients use state-of-the-art methods based on machine learning to predict in real time which consumers belong to that increasingly smaller group of likely conversions.

If a DTC brand can tell who is, and who isn’t, likely to buy, that brand 

  • won’t waste money advertising to people who won’t purchase. 
  • will spend money on people who intend to buy

Don’t trust us. Test us

Look. We get it. No brand wants to spend money on new software in a market like this. 

So we won’t ask you to.

We’re offering you access to a 90 day free pilot of a product we call <intent> Target. <intent> Target activates our user value predictions to optimize Google and Facebook bids based on how likely a user is to buy. Our partners have seen an 80%-180% increase in retargeting profit since working with us.

No payments are due until after your 90 day test and you’ve decided the product works.

Interested? Drop us a line at predict@intent.com

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