DTC Brands are Embracing Physical Advertising Lately. Here's why 🧐

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📆 Monday, 23rd October 2023

Hi, and welcome to Growth Espresso - Your one-stop destination for 👏 everything 👏 DTC.

Today, we discuss an emerging trend in the DTC world which is - increased spending on outdoor advertisements 💸 

In a bid to capture the shelves of your nearest physical stores, DTC brands are pumping in $$$ on out-of-home advertising (OOH) as reflected in GroupM's midyear forecast of 12.7% growth in OOH ad revenue reaching $36 billion by the end of 2023 🚀 

But what's driving this change? And more importantly, should you jump aboard this physical ads hype train?

Here are 5 key insights which cover everything you need to know about this trend, coming right up👇️ 

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…Now coming back to the OOH advertisements in the DTC world

Increased DTC Investment

DTC brands are allocating more of their budgets to OOH advertising. Some are even diving into this space for the first time, while others are boosting their OOH efforts. DTC brands are recognizing the value of diversifying their advertising strategies. By allocating more budget to OOH advertising, they aim to explore an untapped market and reach consumers beyond the digital space.

Many brands have discovered that OOH advertising allows them to tap into a different demographic and engage with consumers who may not spend as much time online. While some brands had previously hesitated to invest in OOH advertising, they are now witnessing its effectiveness in boosting brand awareness and driving foot traffic to their physical retail locations.

The Quest for Real-Life Visibility

Brands like Knix, Athena Club, Omnilux, and Maëlys have entered the OOH realm to explore new avenues for reaching consumers beyond the digital realm. The move to OOH advertising reflects a desire among DTC brands to connect with consumers in the physical world. It's about making their presence known in everyday life.

These brands believe that the combination of online and offline visibility creates a more well-rounded brand image, which resonates with consumers. OOH advertising also aligns with the concept of 'omnichannel marketing,' where brands strive to be present across various platforms to create a holistic customer experience.

Supporting Retail Expansion

DTC brands that are entering physical retail stores see OOH advertising as a vital tool to support their in-store presence. By being present outside stores, they elevate their brand's tangible visibility. As DTC brands expand into physical retail, the competition for shelf space intensifies. OOH advertising provides an opportunity to stand out and draw consumers into the stores.

For brands like Curie, Le Mini Macaron, and Tower 28 Beauty, OOH advertising serves as a bridge between their digital presence and the in-store experience, creating a seamless journey for consumers. The goal is to ensure that when consumers encounter these brands in-store, they already have a degree of familiarity and trust, which can significantly impact purchase decisions.

Hyperlocal and Targeted

OOH advertising offers the ability to be hyperlocal and precisely target areas around stores, making it a perfect complement for retail openings and existing stores. DTC brands recognize the power of hyperlocal targeting, allowing them to reach potential customers in the immediate vicinity of their retail locations.

This highly targeted approach ensures that advertising efforts are not wasted on unlikely audiences to visit the store. OOH advertising can be tailored to match the specific demographics and behaviours of local populations, further enhancing its effectiveness.

It is working!

Brands like Curie, Le Mini Macaron, Tower 28 Beauty, and Maëlys have reported positive results from their OOH campaigns, including increased site traffic and better sales figures. These brands have witnessed early signs of success, with spikes in website traffic and sales during and after their OOH advertising campaigns. The ability to attribute these positive outcomes to OOH advertising reinforces the belief in its effectiveness as a brand awareness and customer acquisition tool.