Direct-to-customer businesses are spending big on advertising in 2021

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 24, 2021, 5:21 PM GMT+0

When it comes to advertising, D2C companies are increasingly sticking to conventional channels like TV. 

According to a MediaRadar report on 2,800 D2C companies, businesses are focusing ad spend on TV, digital and print. Marketing spend rose 5% to $4.34 billion during the first six months of 2021 - a 46% increase from $2.9 billion in 2019.

Ad spend on TV alone accounted for $2.7 billion in 2021. At a combined spend of $447.3 million, companies like TurboTax, UberEats, Peloton, Tonal, and DoorDash made 10% of total ad spend among D2C companies. Among all categories, retail ranked first with an ad spend share of 17%, followed by entertainment (14%) and finance (13%).

According to Todd Krizelman, CEO and co-founder of MediaRadar, big D2C companies will compete to mark their space in physical retail. Similarly, ecommerce companies will look to build more brick and mortar stores.

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