How Direct-to-Consumer Companies Think About Measurement

. March 12, 2019

In this exclusive DAC interview, Terry Kawaja, Founder & CEO of LUMA Partners, explores how hugely successful direct-to-consumer (DTC) companies are disrupting entire categories with a fundamentally different approach to data, measurement and analytics.

Video Trascript

Terry Khawaja: My name is Terry Khawaja. I’m a founder and CEO of Luma partners. We are an investment bank, specialized investment bank that focuses at the intersection of media, marketing and technology.

New brands, young companies startups really have garnered double digit market share against their category incumbents who have been building brand equity for decades. I tried to unpack what’s behind this and as it turns out, it’s a fundamentally different approach to data and measurement than their traditional marketing brother.

Instead of thinking about ad spend, they think about results. All of their media is done on a performance basis. So there is no placement of ads on the basis of impressions or CPM, nor are they spending money using broad demos like in television.

What they’re doing instead is they’re getting very precise. It’s not spray and pray, they know who their customers are. They’re using first party data intermediaries like CDPs, who can holistically give them a snapshot of who is in their customer funnel across all channels and allow them to deploy their marketing initiatives on a multi-channel basis.

They can holistically track the journey of the customer from media message to consideration, to conversion and ultimately to follow up. Virtually every vertical has been disrupted by these direct to consumer brands that are taking a fundamentally different approach to the equation and it’s paying off.

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Category: Basics, Brand, Case Studies, Data, Impact, Strategy, Videos

About the Author ()

Daniel Kehrer is Executive Editor of the ANA Data Analytics Center (DAC), a leading voice of thought leadership and education in marketing measurement, data and analytics. He is also the Founder of BizBest Media Corp. and previously headed marketing at MarketShare LLC, an advanced marketing analytics technology company.

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