When you read, “Direct-To-Consumer (DTC) TV advertising,” you might think of low production value ads playing in the darkest corners of the overnight daypart. But what and who is a DTC brand is changing. The modern DTC brand is typically under ten-years-old, born in digital or social, and disrupting legacy business. These brands are commonly VC backed with Millennials making up a large portion of their target audience.
The number of DTC advertisers has exploded in 2019. iSpot reported that in the first quarter of 2019, 103 brands had advertised on TV. By the end of the third quarter, that number has increased 81%, to 186 brands. Four brands, HomeAdvisor, Booking.com, Wayfair, and Chewy.com, now have estimated spend exceeding $100M, and to break into the top 25, brands had to spend an estimated $20M in the first nine months of 2019. Also, DTC ads are no longer just for the overnight daypart, with Booking.com as an example, airing over 28% of their ads in primetime.
iSpot believes this category will continue to grow, and we see an increase in spots, airings, impressions, and estimated spend coming in the fourth quarter.