LiveIntent, the people-based marketing platform that says it reaches 250 million logged-in people each month via its 2,500 brands and publisher partners, announced new data suggesting that direct-to-consumer (DTC) brands who are advertising enjoy higher click-through and conversion rates on mobile inventory than they do on desktop. LiveIntent conducted the study by examining dozens of DTC brands running marketing campaigns with LiveIntent, which reaches 250 million verified people monthly in email and beyond.
LiveIntent found that the click-through rate (CTR) for DTC brands is 3x higher on phones than on desktop, and the conversion rate (click-throughs that result in actions such as purchasing an item) for DTC brands is 50% higher on phones than on PCs.
Mobile not only increases clicks and conversions but also keeps costs down. The data showed that DTC brands have a 25% lower cost per conversion (CPC) on mobile inventory relative to desktop computers.
According to data from Commerce Next and Oracle, 78% of DTC companies have increased their marketing budgets from 2018 to 2019, a rate “dramatically” higher than traditional brick-and-mortar retailers. As DTCs ramp up spend, mobile will be a key investment opportunity for them. Mobile is so effective that brands spent $69.9B on mobile in 2018, according to the IAB, up 40% from the previous year. Digital ad revenue, in general, soared to $107.5B in 2018, meaning that mobile made up more than half of budgets.
In terms of content, ads for DTC products perform best in consumer-focused publications. Specifically, newsletters that are about shopping tips, travel news, or general news perform the best for DTC brands looking to find audiences, driving 5x higher conversions and clicks for DTC brands.
Additional findings include:
- DTC performance is up. DTC campaigns are performing much better this year as compared to previous year, with 25% more clicks and 35% more conversions this year.
- Women respond best to DTC advertising. Women respond with 2x more clicks and conversions as compared to men.
- iPhone is better for DTCs. iPhone performs much better, 3x more clicks and conversions compared to Android.
- DTCs for shoes and beauty perform best. Alcohol and education perform worst. The brand category “Shoes” and “Beauty/Cosmetics/Personal Care” perform the best with 2.5x more clicks and conversions as compared to average. The brand category “Alcohol” and “e-Learning” perform the worst with 10x lower clicks and conversions compared to average.