"If you look it from an ROI point of view, the cost of paid social has gone up so substantially over the past few years while the effectiveness is down trending,"
"We don't think the equation makes sense any more."
"We don't have a customer problem. We like to invest dollars to build our brand, but paid social isn't brand building."
Skims, a four-year-old brand valued at $3.2bn, is expected to report over $400m in sales for 2022 and added more than 2 million new customers that year. The business built awareness through Instagram and TikTok but is reducing reliance on paid social and traditional performance marketing due to rising costs and declining effectiveness. Marketing investment is shifting toward brand-building channels, with a heavier media mix in out-of-home advertising supplemented by connected TV and paid influencer campaigns. A recent billboard campaign across New York and Los Angeles featured high-profile customers with a combined social following above 27 million. CEO Jens Grede brings agency experience, having co-founded Saturday Group and worked on major celebrity campaigns.
Read at The Drum
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