Digital D2C Looking at Physical Retail due to Rising Paid Ad Costs

Many direct to consumer or digital brands are having to think very carefully about their advertising budget. Many are even looking at traditional brick and mortar as the cost of customer acquisition online is getting so high. Not only is paid advertising via Instagram and Facebook getting so expensive, it is also translating less into customers. Consumers are bombarded with paid ads and it is not authentic for them. The cost to acquire customers online is rising significantly, and it's at a place now where it's just unsustainable for many brands. Brands that have historically relied on traditional advertising methods are now shifting their ad dollars to online and to Facebook and Instagram. When that marketplace gets flooded with demand, it raises the price to connect with and acquire customers.