As we all know, digital marketing has become one of the most important aspects of any successful business, and especially for DTC companies. With the rise of ecommerce and the increasing competition, it’s more important than ever to get your brand in front of your target audience, and that’s where paid media comes in.
Now, I’m not just talking about any old paid media – I’m talking about the future of paid media. The industry is changing, and it’s changing fast. With the introduction of AI and chatbots like ChatGPT, the world of advertising, creative, and targeting is going to be revolutionized. It’s only a matter of time before Google and Bing add it to their ad platforms, and it’s going to change the game in a big way.
So what does this mean for DTC brands?
Well, for starters, the cost of digital marketing is only going to go up. With the increasing competition, it’s becoming more and more expensive to reach your target audience through traditional channels like Google Ads or Facebook Ads.
However, this doesn’t mean you should give up on paid media altogether. Far from it! Paid media is still one of the most effective ways to reach your target audience and drive sales. The key is to be smart about it and make sure you’re reaching the right people, at the right time, with the right message.
This is where AI and chatbots like ChatGPT come in. By using AI and machine learning, you can create highly targeted and personalized campaigns that reach the right people with the right message. It can be used to segment audiences, build more robust audience profiles, personalize messaging to an individual customer, generate ad creative, test ads, and more. And by using ChatGPT, you can even automate the entire process, saving you time and money. There is a lot we can walk you through in terms of how Rareview’s clients are starting to engage in the above actions, reach out to learn more.
Now, I know what you’re thinking: “But Rob, how do I know if my campaigns are working?” The answer is simple: performance statistics. By tracking the right metrics and KPIs, you can see exactly how your campaigns are performing and make data-driven decisions to optimize them. For example, CAC, MER, and ROAS are always good to see how things are performing compared to what you are spending, but more importantly look at WoW growth on specific targeted ad campaigns across your platforms, without using blended data, you can then identify how small and subtle tweaks can affect entire campaigns.
Let’s take a look at some real examples of DTC companies that are already using AI and ChatGPT to drive sales and reach their target audience:
Dollar Shave Club: Dollar Shave Club is a classic example of a successful DTC company. They’ve been using AI and chatbots for years to personalize their campaigns and reach their target audience. By using performance statistics, they’ve been able to optimize their campaigns and drive sales, even in the face of increasing competition.
Warby Parker: Warby Parker is another great example of a DTC company that’s using AI and chatbots to reach their target audience. By using chatbots like ChatGPT, they’ve been able to create highly personalized and targeted campaigns that drive sales and reach the right people.
Away: Away is a DTC travel brand that’s using AI and chatbots to reach their target audience and drive sales. By using ChatGPT, they’ve been able to create highly targeted campaigns that reach the right people at the right time, and by tracking performance statistics, they’ve been able to optimize their campaigns and drive even more sales.
As you can see, AI and ChatGPT are already making a big impact in the world of DTC. And as the industry continues to evolve and change, it’s only going to become more and more important.
So, our advice at Rareview to all you DTC companies out there: embrace the future of paid media. Use AI and chatbots like ChatGPT to reach your target. Open up your media mix, get creative with your ads (they are supposed to be fun), get specific about your audience and focus on driving long-term growth.
To drive home the point about the impact that AI and ChatGPT will have on the industry, here are a few key industry statistics to consider:
- According to eMarketer, global digital ad spending is expected to reach $740.98 billion by 2023.
- Digital advertising continues to grow at a rapid pace, with mobile advertising leading the way. In 2023, mobile advertising is expected to account for 83% of all digital ad spending.
- The use of AI in digital advertising is growing at a rapid pace, and is expected to reach a market size of $32.3 billion by 2025, according to a report by Allied Market Research.
- Chatbots, like ChatGPT, are becoming increasingly popular for customer service and sales, with an estimated 80% of businesses expected to have adopted chatbots by 2023, according to a report by Oracle.
These statistics show that digital advertising is only going to continue to grow, and that AI and chatbots like ChatGPT are going to play a big role in that growth. By embracing AI and chatbots, DTC companies can stay ahead of the curve and reach their target audience in a more effective and efficient way.
So don’t get left behind. Embrace the future of digital advertising, and start using AI and ChatGPT to drive sales and reach your target audience today!