The Big Story: DTC Principles Come To Big Brands

The Big Story is a podcast featuring a roundtable of AdExchanger editors talking about the biggest stories from the past week. It is available wherever you subscribe to podcasts.

In 2019, US digital ad spend will finally hit the milestone we all knew it would reach: It will surpass traditional ad spend, according to eMarketer.

Congrats to digital!

And especially to Amazon, whose share of the advertising cake is expected to grow from 4.5% last year to 8.8% this year – a period in which Google, Microsoft and Verizon will all decline, while Facebook is projected to flatten out.

This week on “The Big Story,” we’ll talk about the growth of digital and Amazon, in particular: why it’s succeeding and what it must do to grab even more precious, precious spend.

We’ll also look at a curious case of Kellogg’s, an old-school brand that’s top of mind every morning when you’re heating up those Pop-Tarts. Kellogg’s recently launched two new health products – a smoothie bowl and a something-biotic cereal.

But instead of traditional wide releases, it did so iteratively, pushing out the products in select channels and tweaking them based on live customer feedback.

In other words, Kellogg’s is bringing real DTC principles not just to marketing and advertising, but also to product development. Releasing an unfinished product like this would once be unthinkable for an incumbent brand.

Kellogg’s isn’t the only legacy company bringing some DTC to its R&D. Verizon is also giving it a shot with its Visible carrier plan.

To hear more, grab a bowl of cereal and tune in to this week’s “The Big Story.”

 

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