Why do D2C brands need to evolve in digital marketing to avoid overspending on ads?

Dharmender Khanna – Vice-President of D2C, India- AnyMind Group, writes about how D2C brands need to plan out their digital marketing strategy in a way that will target the audience without overspending

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Why do D2C brands need to evolve in digital marketing to avoid overspending on ads?

Dharmender Khanna

Digital marketing has played a pivotal role in e-commerce, revolutionising brands' customer outreach. With the expansion of social media and the internet, D2C brands, particularly small and mid-sized, can build brand recognition, accelerate product sales, and attract and engage target consumers like never before. As a result, many direct-to-consumer brands have been moving their businesses online. 

The digital marketing landscape is growing rapidly, with new trends emerging every day and savvy D2C marketers adapting to stay ahead of the curve. Marketers are leveraging new methods to spend their marketing budgets more efficiently, necessitating a distinct digital marketing approach. 

Many brands are going beyond the direct-to-consumer to a digital-to-consumer marketing approach to evaluate ROI meticulously. Brands are taking advantage of digital transformation opportunities and optimising ad expenses. 

Why do D2C brands need a different approach to digital marketing?

D2C brands with niche product offerings need to think carefully about how to market themselves. They can't just rely on organic growth. Instead, they need to plan out their digital marketing strategy in a way that will target the audience without overspending. 

Digital marketing channels have evolved to target niches and hyper-segments. Brands can now place highly targeted ads that show up for only a small audience segment who would be willing to buy their products. It also means that brands must be strategic in their digital marketing efforts on social media ads, website content, and email marketing. They must ensure their spending is well balanced and not focussed on only one channel alone.

How to avoid overspending on ads?

To avoid overspending in digital marketing, brands must establish a baseline and track their expenses. When brands fly blind, they cannot evaluate what is and is not working for them, making it difficult to expand their business. 

Here are some ways D2C brands can up their ad game to succeed in the digital marketing arena:

Focus on alternate channels 

D2C brands should focus on and test different content-driven and paid marketing channels like Google AdWords, Facebook Ads, SEO, organic search, social media campaigns/ads, email marketing, etc. They must be strategic in their approach from the beginning and know how much and where they should spend to reach their target audience via ads. 

Instead of focusing primarily on paid advertising, brands can invest in email marketing. They can keep the target audience informed of the brand's latest collections, exciting offers, ongoing and upcoming events, etc. Data analysis can help brands better understand their potential consumers and buying behaviour. Consistency in evaluating, segmenting, and reaching out to consumers can help brands build good customer relationships wherein customers can relate to the brand better.

Advertise differently

To expand their direct-to-customer business, brands must use the most effective digital marketing tool. They should consider advertising differently and building a story for their brand instead of advertising the old-school way.

They need to reach out to more customers to become a people's brand. This way, social media advertising, paid search, mobile, and video advertising can help immensely. It can make their brand more popular among the customers, amplifying the chances of generating higher revenue. More than ever, a splendid creative advertising campaign can boost their D2C brand growth in the current social media era. 

For example, with influencers' support, Sugar Cosmetics has built a culture around its offering and maintained a visual identity optimised for instant brand recall. It has managed to create a committed and growing consumer base. Its recent ad campaign, "The only guide you need!" drew the attention of thousands of people.

The brand used user-generated content (UGC) to provide authenticity while increasing engagement and reach. Furthermore, it delivered educational content that resonated with consumers. Rather than simply advertising the product and describing its benefits, the ad demonstrated how and where to apply various cosmetic products to the face. 

Revamp the website

A website is the soul of D2C brands, and in the D2C industry, ignoring website performance and aesthetics may cost them dearly. For instance, customers like to shop at stores with appealing products, lavish ambiance, and fast service. Similarly, brand websites should be engaging, convenient, and swift. 

Therefore, brands constantly need to revamp their website with recent layouts, themes, and enticing services. Improving their website's speed and performance can lead to an increase in conversion rates.

Focus on product distinction

With the advancement of digital advertising, brands and their offerings play a much more crucial role than ever. Product differentiation makes their product or service stand out from the competitors, improving brand loyalty, revenue, and growth. Focusing on the consumer is a smart way to begin when it comes to successful product differentiation. Brands need to answer, "What do customers want?" - i.e., focus on their needs, preferences, buying behaviour, and likes and dislikes.

Bottom line

The advent of D2C brands and digital marketing transformation has necessitated changing brands' digital marketing strategies. They can no longer expand their business only through word of mouth or organic search traffic. Instead, they need to ensure they're spending their marketing budgets wisely and targeting their audience with relevant ads through the right channels. 

(Disclaimer: The opinions expressed in this article are those of the author. The facts and opinions appearing in the article do not reflect the views of and we do not assume any responsibility or liability for the same.)

digital marketing D2C brands ads advertising Marketing AnyMind Group D2C brands Dharmender Khanna