Is This the Beginning of a DTC Comeback?: State of the Industry

Summary

This video discusses the impact of recent sales events like Prime Day and new advertising trends in e-commerce. It covers how Prime Day performance dipped but recovered quicker than expected, with insights into Amazon's muted reporting. The focus then shifts to the rapid rise of AppLovin as an emerging ad network, showing massive growth in mobile and game-based advertising. Brands are leveraging this platform to scale quickly, with some exceeding traditional ad platform performance. The video also teases an in-depth DDC Index report offering valuable insights for advertisers looking to capitalize on this emerging trend.

Takeaways

• 😀 Prime Day 2024 saw a dip in performance, but it was not as severe as expected, likely due to positive economic sentiment and increased discounts.
• 😀 Amazon did not release detailed metrics for Prime Day 2024, signaling that while the event broke sales records, it wasn't as monumental as previous years.
• 😀 Some brands reported that the summer Prime Day event felt bigger and more prominently marketed compared to the October event, which went largely unnoticed by some consumers.
• 😀 AppLovin, a new mobile ad platform, has seen explosive growth in a short period, with brands rapidly adopting it for their e-commerce advertising campaigns.
• 😀 The DDC Index team is preparing a comprehensive special report on AppLovin, analyzing its performance, growth, and impact on e-commerce businesses.
• 😀 Over the past six months, there has been massive growth in consumers discovering and purchasing products through mobile app ads, particularly on AppLovin's platform.
• 😀 AppLovin’s rapid adoption is evident, with over 100,000 orders already attributed to its ads in just five months, demonstrating the platform’s potential.
• 😀 Some brands have exceeded their Meta (Facebook/Instagram) advertising budgets by utilizing AppLovin, achieving scale quickly by repurposing existing ad assets.
• 😀 AppLovin’s advertising format allows brands to use vertical video assets from Meta, which can easily be uploaded to AppLovin’s ads manager, driving faster adoption.
• 😀 The DDC Index report will include detailed insights into AppLovin’s effectiveness, including survey data, click data, and demographic insights to provide a full view of its potential.
• 😀 The DDC Index is offering subscribers access to the upcoming AppLovin special report for free with a subscription, or they can purchase the report separately for a higher price.

Q & A

How did Prime Day 2023 impact e-commerce sales in October compared to previous years?

Prime Day 2023 caused a drop in sales, but the decline wasn't as steep as expected. The performance in October rebounded more quickly than in 2022, likely due to positive economic sentiment and increased discounts.

What specific sales trends were observed in October following Prime Day 2023?

Sales dipped significantly right after Prime Day, reaching a low point between October 19 and 26. However, recovery was faster compared to the previous year, and sales did not maintain as low as they did after Prime Day in 2022.

Why was there ambiguity in Amazon's reporting of Prime Day 2023 sales?

Amazon did not release detailed sales numbers for Prime Day 2023, which was unusual since they typically share data that reflects record-breaking performance. The lack of transparency led to speculation that Amazon's growth may not have been as significant as expected.

What was the perceived difference in visibility and marketing of Prime Day 2023 compared to the summer Prime sale?

Many individuals, including the hosts, felt that the summer Prime sale had more noticeable marketing and visibility. The October Prime Day felt less marketed and, in some cases, was missed by consumers who were unaware of it.

How did Prime Day 2023 compare to previous years in terms of consumer spending outside Amazon?

During Prime Day, consumers spent approximately $7 billion online outside Amazon, showing that independent sellers on Amazon and other platforms saw significant activity. However, the full impact of these sales is still unclear due to Amazon’s lack of detailed reporting.

What is AppLovin, and why is it important for e-commerce businesses?

AppLovin is a rapidly growing mobile ad network that focuses on in-app and mobile game advertising. It's important for e-commerce businesses because it offers a new way to reach consumers, with massive growth and potential for driving sales through mobile channels.

What kind of growth has AppLovin experienced over the past five months?

AppLovin has seen massive growth, with over 100,000 orders attributed to its ads in just the past five months. The speed of its growth has been described as unprecedented, with brands seeing rapid results.

How do brands compare AppLovin's performance to that of Meta (Facebook)?

Some brands are exceeding their Meta ad budgets by using AppLovin. Additionally, when comparing first-click and last-click attribution, the performance of AppLovin ads is showing similar or better results compared to Meta's platform.

What advantages does AppLovin offer for advertisers looking to scale quickly?

AppLovin allows advertisers to easily transfer existing ad assets from platforms like Meta, using similar ad formats (e.g., vertical videos), which enables quick scaling. Additionally, AppLovin offers ad credits and a managed service to help accelerate adoption.

What can e-commerce brands expect from the upcoming DDC Index Special Report on AppLovin?

The DDC Index Special Report will provide in-depth insights into AppLovin's performance, including click data, survey results, and demographic data. Brands will gain valuable insights into how this platform is impacting sales and how they can leverage it effectively for their advertising strategy.