* It seems we have now grown up enough to use something like correct grammar in our acronyms ... in this latest abbreviation 'to' has replaced the juvenile '2'. Hurrah. Bring on BTB and BTC.
In the mid 1990s predictions were that the Interweb would see all shops closed by the turn of the new century. With UK online stuck at around 25% of all retail sales and at only 8.5% in the USA [half of that with Amazon] this has proved not to be the case.
The cause of this 'failure' can be found in the concept of the chain, or channel, of distribution, where products are rarely sold directly from the manufacturer to the end user. Instead, groups of manufacturers and food processors supply retailers ... who, in turn, offer buyers a whole range of products under one roof. This means the manufacturers, who have no expertise in selling to the end user, can get on with what they are good at - manufacturing - and the retailers can get on with what they are good at - retailing to the end consumer [more on this later].
So ... whilst some folk might order groceries from, say, Tesco.com - they would never spend several hours ordering a tin of soup from Heinz.com, bread from Warburtons.co.uk, carrots from somefarmsomewhere.co.uk and so on and so on [that's a potted history of retailing by the way]. However, for some manufacturers, it can make sense and we are now seeing some manufacturers selling direct to consumers. This being the case - and here lays the lure of DTC - as there is no middleman to take their slice of any income, there is more profit to be made.
Take Adidas, for example, who are reportedly closing some shops to concentrate on DTC e-commerce. However, Adidas have a massive range of products that constantly updates and changes and so it would be impossible to get all of their products into one store - even their capital-city-centre 'flagship' shops. Indeed, go in any sports shop [there aren't that many] and you will find a representation of the Adidas range - mainly the best selling/lower value stuff [think: SportsDirect, FootLocker and, yes, Adidas Outlet]. But if you want those latest EQT BBALL shoes forget it, they're not there. Or if they are on the high street, it's not in your size or that unusual colour you want. They are not produced in sufficient numbers [part of their 'premium' appeal] to supply every shop in the world with every colour in every size]. So ... the brand keeps the SportsDirects of this world supplied with 'common' - in several senses of the word - product lines [as well as discontinued products for fashion laggards] and sell the niche [i.e. low volume/high profit] stuff online. That makes sense. Note however, that moving a major brand towards BTC doesn't come cheap. To develop its offline elements of its online sales - logistics and infrastructure - Adidas is reported to have budgeted 900m Euro in 2018 alone. Which kind-of suggests that over time the sports apparel brand is looking to move more of the 'common' sales online. Whether this will meet the buyer behaviour of that market segment remains to be seen.
When teaching the chain of distribution, the traditional example of selling direct to the consumer is the farmer who sells fruit and vegetables to the passing public from their farmyard. The modern day equivalent in successful DTC would be wine - which has far easier logistics to fresh vegetables. More commonly, however, the DTC concept is applied to manufacturers whose sales are online only. The most successful of these invariably manufacture and sell few, or even single, products - making sales and marketing less complex. The apparent success of several mattress manufacturers supports this notion [e.g. Eve, Simba and Casper - though note that the latter has announced plans to open 200 physical stores in the US], as does the number of websites from which men can order shaving supplies direct from the manufacturer [e.g. Harry's, Shavekit and Dollar Shave Club - the latter being purchased by Unilever for 1bn dollars in 2016] and beauty products [e.g. Glossier]. Interestingly, these examples for DTC come from opposite ends of the 'frequency of purchase' chart. The shaving provisions being delivered on a monthly or even weekly basis, beauty products as and when required and mattresses being a rarely sought product [10+ years is, apparently, the norm for mattress replacement].
A further opportunity is for manufacturers to sell some - or even just one - of their products direct-to-consumers. This is particularly the case if the product is fixed [i.e. one size/colour/etc] and small enough to be delivered through a letterbox. An example of this is pharmaceutical giant Pfizer, which - on the back of a decision that it can be sold in pharmacies without a prescription - started selling Viagra direct-to-consumers. Naturally, this was supported by TV adverts for the erectile dysfunction medicine. Compare this with the complexity of pharmaceutical marketing faced by Pfizer for the rest of its product range.
An interesting development of the 'new' DTC is that most of the marketing is developed in-house with little, or no, use of outside agencies. This flies in the face of the concept of the chain of distribution which states that the manufacturers pass on the marketing and sales of their products to others [marketers/retailers] so that they can get on with the manufacturing. This state of affairs seems to have developed because the manufacturers have their own ethos or personality which works well as a marketing tool. Essentially, these manufacturers have their own in-built brand. Almost by definition, because they have broken the rules of [the chain of] distribution their owners tend towards the maverick and don't take themselves too seriously. Hence, this is reflected in the mode of marketing of the most successful of the new wave of DTC brands - which is best developed in-house where employees are part of that personality.
However, there are also examples of DTC quoted by evangelists of the concept that - in my opinion - don't really count as being DTC because the product is, by its nature, a repeat order of an offline purchase - contact lenses, for example.
Of course, some industries lend themselves to DTC - and so have been revolutionised by the Internet. Insurance, air travel and hotels for example ... though the latter is likely to be via a booking site [e.g. Booking.com] and insurance through a price comparison site [e.g. MoneySuperMarket.com] - and so is not really direct to the customer. Similarly, any manufacturer that sells to the end user via the likes of Amazon or eBay is not DTC - the third party website is a channel of distribution [though, as retailers take ownership of products before selling them - it is not always the case that eBay and Amazon act as retailers].
DTC ... or just e-commerce?
A further caveat to 'what is DTC?' is that the concept is all about manufacturers selling direct to consumers. I wonder just how many of the much-heralded-by-the-press/industry examples are actually manufacturers of what they sell. For example; the aforementioned Casper [a darling of the DTC evangelists] is - according to Wikipedia - a privately held, U.S.-based, e-commerce company that sells sleep products online. As far as I can tell, they do make the mattresses ... but what about the accessories - pillows, pillows, sheets etc? And do those shaving suppliers actually make all of the products they sell - or do they buy them in?
Or is this another instance where non-marketers in digital marketing have hi-jacked a concept which they don't really understand and created their own 'revolutionary' concept of marketing? Of course this 'new' concept of marketing is one that none of us traditional - that means marketing-educated - folk would never have dreamed of because we are too old and not able to move with the times? And it seems I'm not the only person who thinks this way ... see what the influential Tom Goodwin (Google him up if you don't recognise the name) has to say in The unlikely secret to direct-to-consumer success.
Furthermore, the Manufacturer Model - where ' ... income is generated by selling goods direct to the end user, so reducing the dependence on channels of distribution' is one of David Rappa's 1998 list of online trading business models. The list was not only insightful back then, it has stood the test of time well.
However, Rappa didn't conjure his list from thin air. He would have been aware of history's success stories of selling direct to consumers originally through magazines or brochures - Sears is the obvious example. There were also 'DTC' sellers who adopted the Internet when it came along, Dell is the best example here ... although Dell did, and still do, sell mainly [direct] to business users - which is B2B.
A final comment would be that, in line with my conviction that in marketing,
digital isn't the only option, it is noticeable that the examples of DTC quoted in this article all use significant amounts of TV advertising. It would appear that to be successful in selling their product direct to consumers online, manufacturers must use offline marketing to drive consumers to those websites. There's a certain irony in that.
* UPDATE April 2019: DTC razor brand Harry's strikes retail deal with Boots.
* UPDATE October 2019: As more DTC companies are bought by brand names, and as most DTC companies have Venture Capital funding, and as most [all?] DTC companies don't seem to make a profit [for no profit, read: massive losses] many commentators are drawing the conclusion that the goods were deliberately sold at a loss on each item in order to build sales and so make the companies attractive to potential buyers - and by selling to a major brand the investors all make a nice return. Ethical? You decide?
* UPDATE January 2020: Outspoken marketer Mark Ritson speaks out against DTC, see The story of Casper shows there is no DTC 'revolution'. Also, it would appear I'm not the only person who is sceptical about this DTC malarkey. Read this excellent debunking of a book that eulogises the practice ... Barons of Crap.
* UPDATE March 2020: two and a half years after it launched, DTC trader Brandless closed down.
* UPDATE April 2020: another similar opinion on DTC ... Why All the Warby Parker Clones Are Now Imploding.
How to cite this article:
Charlesworth, A. (2018). Direct-to-Consumer - DTC. Retrieved [insert date] from AlanCharlesworth.com: https://www.alancharlesworth.com/DigitalMarketing/direct-to-consumer
This page was first published in July 2018 ... but it may have been updated or amended since then.
CHAPTER 4 SEARCH ENGINE OPTIMIZATION
further reading ...
If you check the bio of the author of Comparing SEO to PPC you will see she is not new to search engine marketing - and so her opinion carries some weight. Note how the articles differentiates SEO from advertising on search engines ... just as I have done in this book - and as I have done since advertising on search engines started.
If you really want to get your head around how Google works, make yourself comfortable and read Google’s Search Quality Rating Guidelines.
These search commands for Google are useful for people searching on Google - but are included here as they can also help search engine optimizers in determining where keywords/search terms can be placed within a site.
Ignore the headline of Half Say Advertising is Important in the Buying Decision – top in the list of shopper’s important purchase information sources is search engines.
If you’re serious about understanding SEO We’ve crawled the web for 32 years: What’s changed? is a must read. Its author, Mike Grehan, worked from the North East of England in the early years of the web and we shared the stage at numerous events telling owners and managers about the Internet and how it was going to change business. From the same author, and also well worth a read is The origins of E-A-T: Page content, hyperlink analysis and usage data.
How Google Trends works is an interesting background on Google Search. Similar in nature in that it offers a background in how search engines developed is What we can learn from past and present Google algorithm updates.
The Open Secret of Google Search is an interesting read on the search giant.
The issue of Why you should invest in branded keywords even if your company ranks #1 on Google has folk who argue for both side of the debate – this one is in favour.
Around the time that the book was going to print a story that Google exec suggests Instagram and TikTok are eating into Google’s core products search and maps made the rounds of SEO commentators. One such response included some different types of search which might be used on social media, see - Nearly 40% of Gen Z prefers using TikTok and Instagram for search over Google. However, Millennials Are Increasingly Using Various Methods to Search for Things Online gives a wider, and more revealing. picture – note that there is no mention of ‘prefer’ as stated in the headline above. Are 40% of Gen Z shunning Google for TikTok? Not exactly is an update [Jan 2024] on the concept.
Personal research into this matches findings by others – we’re talking about ‘lifestyle’ searches only [e.g. “lively bar near me” or “how to apply X brand of makeup"], and mainly female users. I can appreciate that watching a series of short videos of local bars might be easier than reading about them. So - message to bars attracting younger clientele ... encourage customers to post videos on TitTok.
Google is trying to reinvent search — by being more than a search engine.
Just to show that SEO is ongoing - Google helpful content system update rolling out now (December 2022 update).
Welcome to the age of social SEO: how to maximize visibility on TikTok searches.
Google ranking signals: A complete breakdown of all confirmed, rumored and false factors.
ChatGPT has some roles to play for the digital marketer - perhaps the most common/useful will be in SEO, so here's An SEO’s guide to ChatGPT prompts and AI Chat and Keyword Research.
5 Website Performance Benchmarks from Q4 2022 offers some [slightly] different stats to the chart - on website traffic sources - shown in chapter 4, but the issues are generally the same. The 5 key issues are:
1. More Than 1 in Every 3 Sessions Encounters Friction
2. Page Load Speeds Impact Bounce Rates, Page Views
3. Mobile Widens Traffic Share Lead
4. Paid Search Traffic Converts Better Than Paid Social Traffic
5. Desktop Still Boasts Far Higher Conversion Rates Than Mobile
I've included Google releases March 2023 broad core update and Google removes several search ranking algorithm updates from its ranking systems page simply as a reminder that search engines change their algorithm on a regular basis.
Is click-through rate a valuable SEO metric?
I make it clear in the book that I consider SEO and PPC ads to be different things. SEO vs. PPC: Differences, pros, cons & an integrated approach offers a different view - although it also can be read as supporting my opinion.
Brand Visibility Is the New SEO ... caused by AI, apparently.
EXERCISE: Byron Sharp purports that ‘ ... paid search is not advertising (which has as its main job building mental availability). Search is like shelf space. It’s to improve purchase availability.’ Samuel Scott offers more detail, saying that ‘Display on retailer, broker, and review sites is the same as paid search. Paid and organic search are forms of distribution, not parts of promotional marketing communications. Basically, you are getting your product put on Google, Amazon, and others' store shelves like when you pay a store to put your juice in the juice aisle. Same for getting listed on sites like G2. This is fulfilling existing demand and having physical availability. Advertising is about creating more demand and having mental availability.’ Going back in time, when I first got involved in the use of the Internet for business purposes [in 1996] I was frequently asked where the new communication medium sat with regard to the 4Ps ... and I said it was part of distribution. My opinion wasn’t supported by many – any, even – but it seems I may have had a point.
What's your opinion on the views of myself, Sharp and Scott?
50% of product searches start on Amazon includes stuff from this and other chapters - well worth a read. Note that it's from the US, so the stat in the title might not apply to you.
Organic search could be the moat your brand needs is a kind-of strategic view of SEO using quirky analogies - in general, I agree with its basic premise, not least because it syncs with my opinion.
I'm not a fan of SWOT analysis ... just use the issues raised in SEO SWOT analysis: How to optimize where it counts as a kind-of to-do list.
Another example of why SEO is a full time job is Google to fix link report in Search Console. And another... Google releases August 2023 broad core update.
Why are publishers losing traffic from Google? is about online news - but much of is relevant to other kinds of website.
To understand the present and the future - take a look at the past ... Google’s Florida update: 20 years since the SEO ‘volcanic eruption’.
The AI-powered Google apocalypse is heading for your brand is from December 2023 ... who knows how true it will turn out to be?
Google confirms a search ranking bug where sites disappear from search results over the weekend is an example of what is a fairly common problem - if your website relies on search engines for visitors [and so, business] this can hit income.
The Periodic Table of SEO Elements has been around for a few years - this is the 2024 version.
A concern with using third parties - eg Google itself - for SEO purposes is that the third party can change its operating model ... Google is shutting down websites made with Business Profiles is one such example.
And the changes keep on coming ... Google releasing massive search quality enhancements in March 2024 core update and multiple spam updates.
Who Sends Traffic on the Web and How Much? New Research from Datos & SparkToro.
Consumers' online information sources - search remains top.
You can file Small review site lost 91% of its Google traffic to affiliate-focused SEO content under 'don't put all your eggs in one basket' - relying on Google is not a good strategy for a business.
6 unpopular SEO opinions you need to consider raises some interesting and accurate points. But here's a thing I allude to in the book. The first four points are much the same as I - and others - were teaching [or is that 'preaching'] back around 1997 ... that's before the author of the article left school.
The end of May 2024 saw big news about Google's algorithm HUGE Google Search document leak reveals inner workings of ranking algorithm, here's Google's reply ... Google responds to leak: Documentation lacks context - and Unpacking Google’s massive search documentation leak is a review of the happenings. Only time will tell how big a story this was.
As I allude to in the book, I think that knowing what is being searched for in this research is vital to make it relevant ... the what might dictate where the search is started, Also, note above the article which states that 50% of product searches start on Amazon - where does that fit into Almost Half of Gen Zers Opt for Social over Google for Search?
Is The Google Maps pin scam: A new Google Business Profile threat common? I doubt it - but I've included this article because keeping track of scams like it is an example of why SEO is a full time occupation.
Which Topics Are Gen Zers Searching for on Social Media?
In all aspects of digital marketing new terms come and go. I wonder GEO will stay the course, or disappear like so many others? See What is generative engine optimization (GEO)?
Again, it never stops ... Google August 2024 core update rollout is now complete.
Google updates crawl budget docs for large sites with differing mobile and desktop pages and links ...Google said it is best practice to have all links present on both mobile and desktop versions. I would ask; why on earth would you have different differing mobile and desktop pages and links? Maybe another example of non-marketers in marketing? [see chapter 3]
ThatLong-tail keywords: Target lower-competition phrases and attract qualified visitors has been published by [one of] the world's major SEO websites suggests that some folk are not aware of the issue. I and others were writing about it 25 years ago. Ho hum.
I've included How to fix the ‘Page with redirect’ error in Google Search Console simply as an[other] example of some of the stuff that competent SEOs need to know.
Another reminder that SEO doesn't stand still ... Google quietly updated the News and Discover manual action policies.
Although Google’s search market share drops below 90% for first time since 2015, it's still got 90% of the market so me talking about Google so much in the book is still valid.
Another example of the problem of [potentially] putting all your marketing eggs in one basket ... Google bug cause reviews to drop out of local listings.
59% of Americans click on brands they know in Google results: Survey ... also, nearly half of Americans trust organic results more than paid results and Google remains the most trusted source for information.
And again, again, it never stops ... Google March 2025 core update. And rules change as well ... Google Ads policy update.
In the book I mention the importance of E-A-T, 14 ways Google may evaluate E-A-T is a good guide … but it also shows that SEO isn’t as easy – or quick – as some folk would have you believe.
More on the subject ... E-A-T auditing: How to level up your credibility game
Naturally, just days after the book was published, this happened ... Google doubles up on E with updated search quality raters guidelines (E-E-A-T) - and here's another article, this one with more details ... How Google may identify and evaluate authors through E-E-A-T. And nearly a year later ... Debunking common Google E-E-A-T misconceptions.
The two parts of E-E-A-T Google hasn’t told you about.
Barry Schwartz's list of what is NOT a Google search ranking factor.
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ZERO-CLICK
[April 2023] There is a lot being said about AI-developed content and its impact on SEO - well here's my take. I think that impact will be on zero-click with searches producing more and more SE-developed content ... and that content will be produced by LLMs which will reproduce the content of websites. Furthermore, those websites' owners/publishers will not be compensated [via links] by the search engines.
In the book I suggest that Google was holding the zero-click percentage at around 50% - welllllll, I missed later data from the same researcher that proposed that figure upped it to 65% - around two thirds. In 2020, Two Thirds of Google Searches Ended Without a Click – although note that the research on which this was based does not include the CTR paid links to Google sites.
Google isn’t the only guilty platform to see the value of this strategy; see; Zero-Click Content: The Counter-intuitive Way to Succeed in a Platform-Native World.
More on zero clicks - with Google search study: 25.6% of desktop, 17.3% of mobile are zero-click offering some very different stats to those listed in the book. That said, the research seems to be a bit different. One thing about this research, however, is that the CTR on ads is less than 2%. That seems very low to me.
Nearly 60% of Google searches end without a click in 2024.
As per my comment at the beginning of this section ... 75% of Google AI Overview links come from top 12 organic rankings.
Ex-Google exec: Giving traffic to publishers ‘a necessary evil’ is an article on zero clicks which doesn't use the term.
--------------
Another innovation from Google to keep you on Google - Google Maps adds new store location feature, Locator Plus, Reserve with Google integration, new analytics and more.
A Small Business Guide to Google My Business ... I think there is a reasonable argument that for many small businesses, this could be their web presence.
I’ve included the biggest mystery of Google’s algorithm: Everything ever said about clicks, CTR and bounce rate here as an example of how no one really knows how the Google algorithm works. As if it counts ... I’ve always thought that CTR counted, making it easier to stay in the top spot on a SERP than get to it.
Another version of How Important is The Top Search Result on Google? to the chart shown in the book.
Nothing that's really new in 16 reasons why your page isn’t ranking on Google but it's always good to have a list.
Keyword Research for Product Content
The Search Before the Search: Keyword Foraging.
I’ve put How to do a competitive analysis for local SEO in this section [where local search is covered] but it is relevant to other sections also.
What do you think the Most Searched Consumer Brands in the world in 2022 are? I’m not surprised [I’ve been around a while] but the why still amazes me.
The case of the stealth Google-bomb is about the role of domain names in SEO. You should know most of it if you're to work in SEO. It also kind-of confirms the value of keywords. Find out more about domain names.
YouTube SEO: How to find the best traffic-generating keywords.
Yes, SEO Keywords Remain Important.
SEO: Targeting the Long Tail for More Sales.
Here's a nice - and simply - tip SEO Signals from SERPs.
What Is SEO Writing? How to Be a Better SEO Writer is included in this section as its focus is SEO. However, although it is a reasonable guide to the practice, the article could also be in the section on developing website content and also content marketing. It also offers an insight into the skills, time and application required to get the job right.
I could have put How to attract your ideal customers with quality content in the later chapter on website development, but as it has a SEO focus, I’ve included it here.
Google doesn’t want your AI-generated SEO spam content.
Given the nature of much of this site [this page, for example] Outgoing links: Are they beneficial for your site or not? is something I've taken notice of over the years.
SEO content writing vs. content writing: The key difference.
An SEO’s guide to understanding large language models (LLMs).
This was true in 1996 ... seems it's still true now - 85% of titles feature keywords in Positions 1-5 of Google.
I think this issue - Does HTML structure matter for SEO? - is more important than many folk realise. One thing not covered in this article is that the search engines dislike pages that don't adapt for mobile devices. I found this out for this site and had to accept a PC format I didn't really to meet the mobile requiement.
How to audit your site’s backlink profile Auditing your backlinks is a process that should be part of your regular SEO routine. Here's a guide on how to do it.
I've included How to outsource link building: Benefits and tips to follow not just for the advice it contains, but as another example of the specialized jobs that are out there.
Links are not a top 3 Google Search ranking factor, says Gary Illyes ... 'I think they are important, but I think people overestimate the importance of links'.
Does guest blogging still work for SEO? Pros ... cons and best practices.
SNIPPET
Smile please - Colgate's oral health website
I’m not sure which section using the amazon search engine as marketing belongs in – but as Google may well pick up the Amazon listing, I’ve put it here. Obviously, it’s not for everyone, but for some it could be a really good idea.
Here are a few articles on links that are a bit old - but they will tell you all you need to know. If you take the time to read them all you will come to appreciate that not only is serious link building a strategic concern, but it is very time consuming. However, on the strategic side of things, you will note that some of the suggestions go beyond link building eg developing a competition on your website to encourage links - the competition itself might be considered as a marketing tactic in its own right. In other words, SEO should be a key aspect of the organization's marketing strategy. 50+ More Things Every Link Builder Should Know, 4 Ways to Wash Away The Link Building Hate, 5 Pieces Of Content: 25 Link Ideas, Link to my awesome content, please!, How To Attract Killer Links For E-Commerce Sites and 10 Questions To Ask When Creating A Link Building Campaign does answer some of the basic questions on the issue, and so is useful - however, some of it does seem just a bit creepy to me. Not sure it's the type of job I would enjoy doing every day :)
How to gain value from broken backlinks is perhaps for more serious SEO - but it shows that effective SEO is a full time occupation.
I have to say that I didn't realise this was so big a thing ...‘Link in bio’ platforms: Which is best for SEO?
GO ONLINE *page 91*
Two of the best SEO guides are Search Engine Land‘s Guide to SEO and Ahrefs’ The Beginner’s Guide to SEO.
Enterprise SEO: Lessons from 20 years in the trenches
I’ve put
9 roadblocks to SEO success here rather than in earlier sections because, effectively, it is about strategic SEO.
How to manage and edit your Google Business Profile from Google search.
1 million URLs: How to pivot your SEO strategy when you reach enterprise level
11 enterprise SEO challenges and solutions
How to plan and budget for enterprise SEO
I didn’t mention Negative SEO in the book, but it deserves a mention. I’ve put it in this section as although all websites are susceptible to it, only major websites are likely to be victims. 6 types of negative SEO to watch out for explains what it’s all about and Negative SEO Disavow Lists lets you know the basics.
How one company’s rebrand and domain name change led to SEO disaster details how getting this wrong can mean the end of a business - but in this example the organization failed to follow advice and guides that have been around since the turn of the century.
How to choose an enterprise SEO platform - what you need to know in choosing the right enterprise SEO platform.
7 tips to turn Google’s Search Essentials into strategy covers the key issues.
I could have put SEO and website design: How to build search engine-friendly sites pretty much anywhere on this page - but it's most relevant here.
Beyond SEO: Embracing the future of organic search optimization.
10 simple steps to analyze your brand SERP and build an effective digital strategy is very good ... but remember it is for a brand name - not all key words [though some of the tips could apply to general keyword issues].
Cross-border SEO for Same-language Sites.
I've put How to fix a huge traffic drop after rebranding here as I think
re-branding comes under 'enterprise SEO' ;-)