
"Fast-forward to today and the original DTC wave has since dissipated. Digital and social customer acquisition costs are much higher, driving traffic is more competitive, direct-to-consumer is no longer a differentiator, and venture capital has significantly dried up now that money is no longer dirt cheap. It would seem that the large brands and the rest of the market have closed the last remaining ad arbitrage opportunities-or have they?"
"There is a new ad arbitrage opportunity, but it is driven by a cultural gap, not a knowledge gap or adoption differential. In the evolving landscape of modern advertising, "woke" culture has led to a notable reluctance, and dare I say fear, among big companies to advertise on conservative channels. This phenomenon presents a remarkable opportunity for savvy advertisers willing to stray from the pack."
Direct-to-consumer ecommerce rose in the early 2010s with digital-first brands disrupting incumbents. Over time higher digital and social customer acquisition costs, fiercer competition, and reduced venture capital eroded the original DTC advantage. A new ad arbitrage emerges from a cultural gap: many large companies avoid conservative media and social channels because of "woke" culture concerns. Conservative channels therefore offer lower CPMs and highly engaged audiences, creating cost-effective advertising opportunities. Brands may build bespoke conservative brands or advertise on conservative outlets to exploit lower media prices and reach underserved, attentive audiences amid increasing partisan divides.
Read at The Drum
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