Blue Apron is making an advertising comeback. The direct-to-consumer meal-kit company Blue Apron is investing again in marketing after falling sales and stagnant subscriptions in HTML1.
In April, the New York City-based company made its first move, rolling out national 15 and 30-second spots across linear and connected television as well as online video in an effort to build up brand awareness and stand out in the crowded meal kit marketplace.
The brand’s rebound effort is due to $82 millions worth of investments made by Blue Apron in order to drive brand growth, according to a news release. Blue Apron’s marketing spend increased 68% year-over-year, reaching $21 million by the end of last year.
” We are in a financial position to spend in marketing the right way, efficiently but smartly and really build back that top of-funnel consciousness,” stated Dani Simpson, Blue Apron’s CMO. She also said that the brand is focusing on video advertising to increase that awareness. “[Last year] was really leading up to a moment when we can invest with a full-funnel multimedia approach in our brand. We intend to continue .”
It’s not clear what Blue Apron’s advertising spend looks like. Simpson declined to give details. Blue Apron spent $5 million last year on media, a decrease of the $8 million spent in 2020,, according to Kantar. In 2019, Blue Apron spent just shy of $500,000 on media. These numbers don’t include social media spending as Kantar doesn’t track them.
The DTC drastically reduced its marketing spending in 2019, to recover from a significant financial loss. As previously reported by Digiday . Digiday reported that part of the DTC’s recovery plan included “only spending money on acquiring clients that it can make back the money it spent in order to acquire them within one-year.”
Linear is one of two key components of the DTC brand’s new marketing strategy. This brand seeks to increase brand awareness. Blue Apron currently has 15- and 30-second spots, produced by Brooklyn-based agency Quirk Creative, boasting Blue Apron’s recipes and convenience. According to the brand, they aim to reach customers who have never tried meal kits.
“There is also a resurgence in the question of where else we can be talking,” Simpson stated. TV, when you talk about awareness, gives you the greatest reach, national reach. That’s basically .”
In the past few years technological advances have made digital advertising measurable, attributable and a viable channel for Blue Apron’s revamped marketing campaigns, according to Simpson. In addition to video advertising, the DTC is exploring direct mail, programmatic and content partnerships with publishers like BuzzFeed and Food52 this year. The Facebook ad manager shows that the brand has both static and paid video ads.
According to Simpson, Blue Apron has the financial resources to rebuild its marketing strategy. It will be focusing on brand awareness and media mix diversification.
” This is not a pilot to see if the brand campaign works,” she stated. “The channels are a pilot to see what’s the right mix and what’s th