Majority of brands plan to invest more in Facebook ads

As more direct-to-consumer (D2C) brands are beginning to focus on mobile and digital commerce channels to reach consumers, research by commerce marketing company Yotpo shines light on the top marketing verticals and trends based on 500 eCommerce and marketing leaders at D2C brands.

Among the top priorities of D2C brands are eCommerce sales (60%), customer acquisition (54%), and conversion rates (53%).

However, these priorities tend to differ according to company size with brands under $5 million in annual revenue more focused on revenue growth, whilst larger companies (over $100 million) aiming to optimise their marketing efforts.

In an effort to boost their customer acquisition, the majority of respondents (52%) plan to increase their investment in Facebook ads, compared to 18% planning to invest more in Amazon ads.

Findings were different depending on company size with smaller brands relying more heavily on social media citing Instagram Ads at higher levels of investment. Meanwhile, mid-sized brands are attracting customers via social media but also through SEO and direct traffic. Increased spending with Google Ads and Shopping Ads are among their plans.

Larger brands focus more on SEO and direct traffic channels for acquisition compared to social media. However, Facebook dominated at the largest investment channel for increased ad spend (63%).

“In the D2C approach, the website is both the brand and the store: story, mission, style, products, transaction, and service. Unlike the limitations of physical stores, eCommerce can give businesses access to a wider and global base of potential customers. Additionally, the lower overhead can provide the resources for businesses to persist amidst changing market conditions,” explained Tomer Tagrin, CEO & Cofounder of Yotpo.

Almost 73% of brands said they had implemented customers reviews as a feature on their website.

Small brands were more advanced and included customer photos and videos, whilst larger brands are somewhat underinvested when it comes to reviews (68% versus 73% of industry average).