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A new set of digital winners is emerging amid the market turmoil of 2022. Using our forecasts, we showcase how ecommerce, social media, fintech, and more are being transformed.

Companies with D2C channels鈥攂rands, publishers, media networks, and retailers鈥攚ant to leverage that data for targeting, personalization, and attribution. The challenge is that first-party data is often limited in scale, outside of giant walled gardens, and it still needs to be matched with other online and offline data sets in a privacy-compliant way. Data clean rooms.

Market turmoil and shifting client demands are forcing US asset managers to evolve their products and services. Asset managers need to overcome their lack of digital maturity to deliver personalized products and an enhanced client experience.

Even consumer packaged goods (CPG) brands that long relied on wholesale distribution and name-brand recognition to drive sales (rather than direct-to-consumer relationships) are getting in on loyalty programs. General Mills, for instance, launched Good Rewards in July 2022, powered by Fetch Rewards. The program covers dozens of brands and requires uploading images of grocery receipts.

Their latest results from the holiday quarter beat expectations that was led by healthy international growth and a really renewed emphasis on their direct-to-consumer channels, their stores, while cutting back on wholesale expansion.

Discovery鈥檚 Q2 2022 earnings call, CFO Gunnar Wiedenfels said the company plans on 鈥渋mplementing an HBO Max distribution strategy aimed at wide availability as opposed to D2C only distribution.鈥� This comment came after Bloomberg reported that Warner Bros. Discovery was negotiating with Amazon to bring HBO Max back to Prime Video Channels. Netflix鈥檚 Investment in Original Content Is Paying Off.

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Gen Z consumers of beauty and skincare products are most attracted to brands for their pricing (48%), samples (46%), and sustainability (44%), according to Bolt. Pricing is a bigger influence for older consumers, cited by 61% of those ages 18 and older.

I will say that there is a notable discrepancy between the approaches of small, independent, maybe D2C type brands and larger more heritage and tradition bound enterprise or legacy brands. If you have several generations of dos and don'ts in your brand guidelines, or you employ multiple creative agencies, you're a lot less likely to let this technology just spit stuff out willy-nilly and deploy it.

In this era, we're moving out of this era of tons of D2C and back into marketplaces, or I should say more into marketplaces. I'm going to take our last spice level and our last prediction, if you guys don't mind. I have a prediction as well. This is medium maybe to spicy.

After years of dealing with skepticism from decision-makers, this generation of direct-to-consumer and digitally native brands鈥攑articularly those hungry for measurable growth鈥攊s giving the channel a try. The affiliate space is far more complex than ever before. Advertisers are becoming publishers, and social, video, and shopping platforms are all angling for a way into the mix.

Ross, they also announced Disney and therefore ESPN that a direct-to-consumer ESPN streaming service will launch in the fall of next year, 2025. That will include personalization features and also access to sports betting platform, ESPN BET. Obviously there's ESPN+, but that doesn't contain all the content that the traditional cable version of ESPN has. But this new standalone version will.

Direct to consumer. Offer banking products and services through traditional distribution channels that the FI owns, including digital and omnichannel. Embedded while retaining a brand presence. Embed banking services in another experience but retain the bank鈥檚 branding. This might be in a co-branded experience or as part of a marketplace strategy, such as distribution through a third-party super app.

Google has consistently reported that retailers and D2C brands are the largest year-on-year contributors to growth for its ad business so far in 2022. The CPG industry will remain the second largest spender ($37.13 billion), although growth will be sluggish. CPG鈥檚 spending increases will come in under the national rate for the next several years.

Brand: Mejuri (direct-to-consumer jewelry retailer). Campaign: Black Friday 2021. Toronto-based jewelry maker Mejuri tested Dynamic Showcase Ads (DSA) on TikTok for Black Friday and Cyber Monday in 2021. The format enables custom video ads tied to merchant product catalogues and contains a link to purchase off-platform.

Chewy in particular, like I don't have the ins and outs of Chewy's business in front of me right now, but they're a D2C that's grown a lot that needs to find other places to grow, and so partnerships are a great way it can do that. Okay. So Becky, you've won over the Sharks. I'll make my pitch now.

So that's why you see a lot of DTC brands as they expand they'll eventually start advertising in linear television. And a lot of the largest tech companies in the world like Amazon and Apple, Facebook are among the largest out-of-home ad spenders each year.

The company developed its ecommerce chops through acquisitions such as online marketplace Jet.com and digitally native direct-to-consumer (D2C) menswear label Bonobos. But more recent efforts such as AR shopping tools, virtual fitting technology, and livestream shopping across social channels have yet to have broad-reaching implications.

But this started becoming quite apparent in the second half of last year that Chinese brands and manufacturers have basically learned the American D2C playbook, and are running it to great success on Meta's platforms in particular, Susan Li, Meta's CFO, said that they contributed to 10% of revenue overall in the fourth quarter. Which is not nothing. That's real, real growth.

Well, it's that Amazon is becoming a much bigger direct-to-consumer healthcare player. It's now expanding its services for Amazon Clinic, as you mentioned, video and text-based healthcare services. It's got Amazon Pharmacy, it rolled out a discounted RX pass for generic medications. So, it's really playing to the consumer in the consumer's healthcare needs.

In a quick pivot that November, Amazon launched Amazon Clinic as a D2C text-based telehealth service. That was then expanded this month to video visits, available in all 50 states. Halo wearables are no more. In April 2023, Amazon announced the end of its Halo division, including the Halo View, Halo Band, and Halo Rise.

And that going to D2C isn't necessarily the best way to achieve growth even when you have this huge, huge built-in audience through influencers. And I think that Amazon is smart by using influencers in this way. It really fits into their objectives when it comes to growing sales of essential goods and CPG products and food and beverage.