Brown: The era of building DTC brands purely on paid ads is over
Nick Brown · 20VC: 3 Core Considerations When Investing In Physical Product Co's, Are We In A Direct-To-Consumer Bubble & Why Many Sub $100m Funds Are Moving Earlier and Earlier with Nick Brown, Managing Partner @ Imaginary · Aug 6, 2018 · at 7:08
Nick Brown, Managing Partner at Imaginary, discusses macro direct-to-consumer (DTC) brand trends and marketing strategies with Harry Stebbings.
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“I think we are in probably the end of the bubble of brands or direct-to-consumer businesses that are purely building their businesses off paid channels. And by paid channels, I mean mainly Facebook and mainly a little bit of Google. I think that era is done. The era of, I'm going to pick a category. I'm going to create the Warby Parker of X or the Everlane of Y, and I'm going to raise a bunch of capital, and I'm going to fuel the growth of that business by gaming the Facebook algorithm. I think that bubble is actually probably over.”
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