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Why DTC brand Sugarwish is dialing down its social media marketing advertising strategy

As social media marketing advertising becomes increasingly expensive and harder to track, personalized gift company Sugarwish is rethinking its social strategy reducing efforts there and adding channels like earned media and SEO.

The Colorado-based, direct-to-consumer company isnt alone, as media buyers actively search for methods to diversify their marketing mixes and move from heavy reliance on Facebook and Instagram, especially, which includes been a trend since at the very least 2020.

Whenever we consider the results on social channels from the paid standpoint, we dont start to see the results, said Stephanie Preston, vp of marketing at Sugarwish. Weren’t gaining the traction with the audience which were really seeking.

Put simply, going back half a year, paid ads on Facebook, Instagram and Twitter werent driving the e-mail and account signups necessary for customer retention. Its unclear how customer retention was impacted, as Preston declined to talk about further details.

This past year, Sugarwish spent $1.4 million on Facebook and Instagram. Up to now this season, the DTC company has spent just $501,000 on the social media marketing platforms, per Pathmatics. Also in accordance with Pathmatics, Sugarwish added media devote to desktop video advertising, spending $142,000 this season.

The foundations of Sugarwishs media mix were built on social media marketing, email marketing along with other paid media efforts. But because the company has been diversifying its technique for the last half a year, the DTC company is refocusing on channels like earned media, article marketing via its social media agency and Google search, as those channels are yielding results, Preston said.

Theres without doubt that social media marketing advertising costs have increased dramatically in the last couple of years, said Elijah Schneider, CEO and founder of social marketing agency Modifly.

We do find brands with concern around social advertising spend saying that its much less effective, however we disagree. It is very effectiveits just more costly, he said via email. Meaning, as social media marketing is still pay-to-play, brands will have to spend big to obtain before their market.

We strongly support and suggest diversifying media spend as its never best if you have all of your eggs in 1-2 baskets, he said. Also it isnt best if you spread yourself too thin (meaning spending just a little on some platforms that are a waste of money).

To Schneiders point, Avery Mencher, project manager and account associate at creative agency DIFFERENT THINGS, said many brands start to see the juice isnt worth the squeeze with regards to social media marketing ads.

Not surprisingly fatigue, social media marketing is still probably the most powerful tool at our disposal to attain many consumers, Mencher said via email.

For Sugarwish, the program would be to continue social media marketing efforts, just at a lower level than we’d historically, Preston said.

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