THE MEDIA ENCYCLOPEDIA

Direct to Consumer

Direct to Consumer (DTC) is a method of direct sales that excludes intermediaries and third parties.

 

 

What is Direct to Consumer (DTC)?

Direct to Consumer (DTC) is a method of sales and marketing that excludes sales to intermediaries and third parties such as retailers and wholesalers in lieu of direct sales to consumers and complete ownership of product distribution.

 

 

What are popular Direct to Consumer (DTC) brands?

While the concept of Direct to Consumer (DTC) is not necessarily new, the Internet and access to global supply chains have created new means to deliver products to the marketplace at reduced costs. Brands such as Warby Parker and Casper are examples of popular Direct to Consumer (DTC) brands that deliver traditional products, but because they own their own distribution, can offer high quality products at lower prices than legacy competitors in their space.

 

 

What is an example of Direct to Consumer (DTC) marketing?

The ultimate quality of a true Direct to Consumer (DTC) brand is in complete ownership of the distribution of their product or service. As such, many DTC brands were founded online, and constitute digital means of distribution as their primary sales channel.

For most Direct to Consumer (DTC) brands, website serves as the singular platform through which sales are funneled, with robust advertising and acquisition funnels created to drive traffic and conversions towards this single source.

As an example, a new Direct to Consumer (DTC) brand may create their website on a popular platform such as Shopify, and then create campaigns on Facebook to drive sales back to their website.

As Direct to Consumer (DTC) brands scale, they often employ more traditional means of advertising and marketing to drive traffic, such as Print Advertising Campaigns and Retail storefronts.

 

 

THE MEDIA ENCYCLOPEDIA

Related Terms

Browse terms related to Direct to Consumer (DTC)

 

CAC

Customer Acquisition Costs

ROAS

Return on Ad Spend

SOW

Scope of Work