SEMPL20 - DENNIS YUSCAVITCH, VP of Global Product Marketing, Outbrain
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Digital First
Branding Bonding
How Digital First Brands are changing
the marketing landscape.
Dennis Yuscavitch
VP, Product Marketing
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Reference Guide
Traditional Brands:
Legendary, Indirect
Digital First:
Direct Brands, Born Digital
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Most Incumbents Lag the Direct Brand Revolution
Direct-to-consumer selling
We are selling some
products to the consumer
We are not selling any of our
products directly to the consumer
We are selling a significant amount of our
products to the consumer
We are exclusively a direct to
consumer business
53%
38%
7%
4%
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Growth continued but shifted from few incumbents
to thousands of start-up brands
Traditional Brands: Digital First Brands:
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Store Economy Digital Economy
$2 Trillion retail
97% in-store
1992
The Shift is Apparent
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$5 Trillion retail
14.7% out-of-store
2017
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Traditional Brands: Direct Brands:
Major Touchpoint
Is Through
Retail Locations.
All digital channels
all the time.
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Traditional Brands: Direct Brands:
Amazing creative
and insights.
Great creative
combined with
experimentation
and measurement.
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“What [traditional] CPGs lack more
than anything is actionable
consumer data,” says Brian Cohen,
head of digital integration at marketing
agency Catapult. “A DTC engine
allows them to collect insights
directly.”
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Traditional Brands: Direct Brands:
People work their way
up the organization.
Brand
Manager
Come from consulting,
finance, and other
data-driven sectors
Entrepreneurs
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Source: IAB
Digital First Brands
ConsumerDigital First
Brand
Product
Services
Identity
Community
DATA
Analytics
Programmatic
Storytelling
Retailing
Measurement
Fulfillment
Stack
Payment processing,
inventory
management, order
fulfillment
Data Stack
2nd, 3rd party
data, analysis,
reporting and
planning
Production
Stack
warehousing,
logistics,
packaging
Attention
Stack
SEO, social
media, content
marketing
In 2014 entire craft brewing industry (farm to consumer) contributed $55.7B
Annual growth over craft beer industry in the past 5 years: 18.8%,
Typically craft beer brewer produces less than 2 million barrels each year.
ADD ICONS
Creative & Insight to Experimentation and measurement enabled by social media platforsm
Functional – does the product work?
Symbolic – did it show others I’m not an idiot?
Emotional - makes me feel good?
Transparent and authentic – do you have ppl that can connect with audience?
One big difference in this approach is how DFB leverage influencers and micro-influencers.
Orators not customers- want ppl willing to tell your story (bulletproof).
Micro-influencers to help with authenticity and this is why digital first brands aren’t just e-commerce companies and they have the gross margin to prove it.
Brands are doing these things today, DFB are doing them faster with more touchpoints and more data as part of the new digital first brand economy
Production is warehousing, logistics, packaging.
Attention is SEO, social media, content marketing
Fullfillment is payment processing, inventory management, order fulfillment, return processing
Data stack – 2nd and 3rd party, analytics, reporting, planning
Idea – does it meet the 6 criteria for great
Is it a billion dollar market?
Is it growing?
Is purchase frequency hgh
Currently dominated by few incumbents?
High gross margins?
Limited product innovation in the category which means marketing is the differentiator
Germany/Austria/Switzerland spend for DFBs is about 60% of revenue
We’re seeing spend of $10MM+ per quarter in select markets
US - 136 with spend YTD (506 accounts/records classified in total)
Spend - about ~$10 million per quarter so ~$40 million per year (~15% of spend)