More than a year out, the ripple effects of Apple’s AppTrackingTransparency (ATT) feature are still being felt in the digital advertising world.
And no company has been rocked by the changes more than Meta. In early 2021, Meta captured over a third of D2C brands’ share of ad spending. But ever since ATT took effect, Meta’s share has been on the decline.
Who’s picking up the slack? Google. (Though Google itself is losing share to Amazon ... but that’s a conversation for another day.)
TikTok is also benefiting from Meta’s backslide. In the second quarter of 2022, D2C brands spent 231% more advertising on the platform (totaling $30 million) than a year ago, per Triple Whale.
The bottom line: D2C brands have their work cut out for them as their profits are squeezed from all sides. The key to success lies in finding a balance between D2C and wholesale strategies.
Brands must maintain their relationships with customers through a seamless shopping experience and loyalty perks while also filling in the gaps with wholesale partnerships to reach new customers wherever they are.
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