D2C Brand REPORT

The D2C Brand Awareness Report

By failing to understand how aware different audience groups are of them, Direct to Consumer (D2C) brands could be missing out on important opportunities to accelerate growth and differentiate themselves.

Armed with the right data, brand managers and marketers can make the right decisions for their business and future success. We measured how 62 D2C brands are performing in terms of brand awareness in the US, finding widely varying results across different audience segmentations.

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What This Report Explores

The direct to consumer report from Latana explores brand awareness levels for different key audiences. Why? D2C brands have grown rapidly online but have relied primarily on digital marketing for that growth. In fact, 98% of such brands believe that they must invest in paid media, but this isn’t a sustainable means of growth. Oversaturated markets are pushing up Customer Acquisition Costs (CAC) to a level that is difficult for companies to sustain. As a result, these brands are now incorporating tactics from the traditional big brands.

D2C companies are beginning to focus more on the top of the funnel by building widely known brands. We see that especially as more and more TV campaigns from D2C brands are hitting our screens. But for brands who are used to getting instant results with paid campaigns, how is D2C going to be able to measure success?

The gold standard is brand awareness. Brand marketers know that this is the most important KPI to track if they want to measure success. They know that if they achieve a high level of brand awareness, it will accelerate growth, decrease CAC and improve retention further along the line. Most importantly, these brands are aware that an investment into brand awareness is an investment into the long-term growth of their business. 
In this report we’ll analyse how well these disruptive D2C brands are growing brand awareness. But why is this even important? Well, whichever brand can grow enough to win at brand awareness has a good shot of leading their industries in the long run. However, not all awareness is valued equally, as some audiences are much more attractive to D2C brands than others. 

It is more important that brands choose the right audiences to market to and track how their brand awareness is performing among those audiences. Therefore, not only will we look at general brand awareness levels for 62 US-based D2C brands, we will also look at how they perform for the following key audiences:
- Frequent Instagram users who care about brand
- Early tech adopters who live in the three largest cities
- Environmentally conscious consumers with a high level of education

The report will look at how some of the most exciting D2C brands are currently ranking for brand awareness across the D2C marketplace in the US, and provide:
- An overview of D2C brand awareness for the general US public
- Differences in brand awareness levels based on important audience segmentations
- The top ranking brands within different industries

Some Insights:

- Brand awareness levels vary significantly for brands, depending on the audience. For example, Parachute Home is the top homeware brand for frequent Instagram users who care about brands, with a brand awareness level 9% higher than the general population.
- Glossier tops the cosmetics and hygiene brands for frequent Instagram users who care about brands.
- D2C mattress companies (Casper, Leesa, Tuft & Needle) are performing very well amongst the environmentally conscious and highly educated group.
- D2C brands, with the exception of Dollar Shave Club and Hello Fresh, all see significant increases in brand awareness amongst early adopters.

Some Examples:

D2C Brand Awareness for Food & Drink

D2C Brand Awareness  for Cosmetics & Hygiene

The Direct to Consumer Brand Awareness Report

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