Results from a recent study by Hulu shows 73% of its viewers say they are interested in direct-to-consumer brands where they buy direct from the company vs through a middle man like a local store. More than half reported they are regular users of at least one direct-to-consumer (DTC) brands. Additionally, ad-supported, over-the-air viewers spend two times more on DTC subscription services than those who watch linear TV only. In fact, TV viewers spend $52 on average on these types of DTC brands while ad-supported video viewers (like Hulu subscribers) spend closer to $119.
Direct-to-consumer brands have boomed since the rise of the internet. Previously, retailers used mailers and other DTV brands strategies to reach consumers. Now, brands are able to eliminate the middleman and make shopping easier than ever without even needing to leave your home. The can reach consumers directly through their TVs, smartphones, and computers. Examples of these subscription-based DTC brands are ones you’ve probably heard of, like Dollar Shave Club which was recently acquired by Unilever for $1 billion, Casper and Harry’s, each valued around $750 million, and Warby Parker, the glasses and prescription lense company valued at a whopping $1.75 billion.
This study showed ad-supported OTT viewers are 5x more likely to purchase DTC brands. Results show that 52% of ad-supported OTT viewers are very likely to try new brands and products, compared to just 25% of TV only viewers.
Hulu’s study shows advertisements on their streaming platform drive website views by more than 18%.
Another case shows a DTC Brand received an incremental $298K in sales due to advertising on Hulu.
Do you use a direct-to-consumer brand? Let us know in the comments.
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