Brief:

• The advertising click-through rate for direct-to-consumer (DTC) brands was three times higher on mobile than on desktop computers, while the conversion rate was 50% larger, per a study that email marketing platform LiveIntent shared with sister publication Mobile Marketer.
• Mobile platforms also help to keep costs down for DTC marketers, whose cost-per-conversion from mobile is 25% less than from desktop. Among mobile platforms, iPhones deliver three times as many clicks and conversions than Android devices. Women respond to DTC ads with two-times more clicks and conversions than men.
• The performance of DTC campaigns has improved since last year, with 25% more clicks while conversions have risen 35%. Among product categories, footwear and beauty performed the best with 2.5 times more clicks and conversions than average, while alcohol and e-learning had one-tenth of the average engagement, per LiveIntent.

Insight:

DTC brands have aimed to disrupt product categories ranging from mattresses to shaving products to clothing with the promise of better values, quicker shopping, exclusive merchandise or more personalized customer service. These brands have a reputation for embracing out-of-the-box thinking in their marketing strategies as they seek to compete against bigger brands. LiveIntent's research suggests that mobile advertising delivers better results for DTC brands than desktop platforms, and should be prioritized to drive clicks and conversions economically. The finding come as 78% of DTC companies have increased their marketing budgets this year from 2018, compared with only 60% of traditional retailers, per a study by Commerce Next and Oracle.

As DTC brands continue to grow, they are starting to extend their advertising reach beyond digital channels. Last year, broadcast TV saw a 60% increase in media spending to $3.8 billion among DTC brands that sought broader growth after making initial investments in social media campaigns, per a survey by the Video Advertising Bureau. Consumer acceptance of DTC brands support these trends, with about two-thirds (64%) of internet users saying that 20% or more of their total purchases will be through DTC brands in the next five years, per YouGov data cited by the VAB.

The demographics of mobile users line up with consumers who are most likely to shop from DTC brands. Eighty-four percent of DTC shoppers are under age 54, and they are also likelier to have a household income of more than $75,000, per a separate IAB report. The popularity of smartphones has led to 48% of people ages 18 to 29 and 36% of people ages 30 to 49 to say they go online "almost constantly," compared with only 28% of the general population of U.S. adults, per a survey by Pew Research Center. Almost all (92%) mobile internet users go online every day, while 32% said they use the internet almost constantly.