Report: Global DTC brands embrace TV
October 29, 2021
As TV investments surpass pre-pandemic levels around the world, international data shows how both direct-to-consumer (DTC) brands and online giants are increasingly embracing TV to get their message across.
The Global TV Group, the grouping of TV companies and sales houses’ trade bodies in Europe, the US, Canada, Australia and Latin America, has released a new topical update of its Global TV Deck with figures from 15 markets across the globe.
The compendium shows how from 2015 to 2020 the total TV spend more than doubled for DTC brands, companies that sell their product or service directly online to end customers without involving third-party retailers, wholesalers or other parts of the traditional consumer supply chain.
Figures show that:
- Digital-native, direct-to-consumer brands invested nearly $5 billion in US TV advertising during 2020, more than double what the category spent only four years ago.
- DTC brands in France have increased their TV spend by a third from 2017 to 2020.
- The number of DTC brands advertising on Brazilian TV increased nearly ten-fold from 2016 to 2020.
- DTC brands are already active on the German TV ad market which continues to grow, built on the success of over 200 companies utilising TV.
The collected data also reflects that FAAAM (Facebook, Apple, Amazon, Alphabet (Google’s parent) and Microsoft), recognise TV as a valuable means of driving growth and use it more than ever to communicate.
Collectively, the five major tech companies would rank as the #1 TV spender in the US. The data also shows that accumulated TV spend of the FAAAMs ranks them collectively as the second-largest advertiser in Germany and Canada, and among the three largest TV ad spenders in the UK.
The collected figures underline this rise in investments to be a reality in the different markets (such as France, Italy, Spain and more), with the tech giants consistently listed in the top 10 of largest TV advertisers.
Sean Cunningham, President of The Global TV Group and CEO & President of the VAB, commented: “In their DNA, DTC brands and major technology companies are data-driven and laser-focused on what will drive outcomes. It’s no surprise then that they are some of the biggest TV spenders globally as their investment continually enables them to meet and exceed full-funnel business KPIs.
Katty Roberfroid, Director General, egta, added: “The meaningful insights gathered by the Global TV Group strikingly showcase that companies of all shapes and sizes embrace TV to catapult their brands to fame. Brands born on the Internet and online giants alike put their trust and ad dollars in our medium – and this new compilation of industry-audited data allows us to look beyond our boundaries and see that this trend holds true across the globe.”