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    1. Home
    2. DMS Insights: Digital Advertising News
    3. Many Brands Launched Subscription Strategies During The Pandemic -- Should You?

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    Many Brands Launched Subscription Strategies During The Pandemic -- Should You?

    Published Date November 6, 2020

    In 2020, ecommerce became the darling of shoppers who needed safe, efficient ways to shop, and brands that needed to meet new consumer behaviors while scaling sales. Meeting the demands of going digital in 2020 requires quick thinking, smart advertising strategies and alternative revenue options, with subscriptions becoming a more scalable and popular option for many brands. In a recent study, “The State of B2B Subscription Commerce in the New Normal,” 69% of companies reported “that they have accelerated digital plans or launched new projects.” 

    Brands And Consumers Find Benefits From Subscriptions As Ecommerce Grows

    Many consumers are clamoring for subscriptions, making subscription products and services smart digital options for brands that want to reach more consumers and capitalize on ecommerce revenues. Companies that sell meal kits saw big upticks during the pandemic while consumers were cooking at home instead of going out. And, many CPG brands, like Pepsi, launched direct-to-consumer (DTC) offerings that are likely to include a subscription option eventually. 

    Most Companies Offer Some Sort of Subscription Product Or Service

    The “The State of B2B Subscription Commerce in the New Normal” study found that 95% of companies have some sort of subscription offering, but there are distinct differences between the kinds of companies that embrace subscription options. For example, 86% of companies with subscriptions are less than 10 years old, and 79% of companies with subscriptions have yearly revenues of more than $500 million.

    These distinctions likely indicate that many start-ups and younger brands embrace the subscription trend. And, alternatively, that big, successful brands can capture a share of revenue from subscriptions without it impacting their bottom line very much if it goes south, allowing for experimentation. As ecommerce continues to surge and consumer behaviors shift, brands that are willing to leverage subscription offerings with existing customers, or take calculated risks to reach new audiences, may find themselves in better positions now and in the future.

    Subscription Services Have Been Resilient During 2020 As Online Use Grew

    The 2020 edition of the Subscription Economy Index found that while some businesses have seen sales decrease, “subscription businesses actually expanded at a rate of 12%.” And, while ecommerce may be the star this year, services, like streaming and publishing, have seen success during the pandemic, which highlights the move to more online use for so many consumers. “Some of this [subscription] growth is being driven by the digital media, streaming and publishing services industries, as many consumers who are social distancing seek outlets that can help them stay entertained and abreast of news developments,” found PYMNTS latest Subscription Commerce Tracker, “especially those related to the current health crisis. The New York Times witnessed 14% growth in its most recent quarter, with its total number of subscribers reaching a record 5.7 million.” 

    Brands of all types are looking to scale revenues and subscribers during a time when the economy may be more volatile. And, across sectors, from CPG to streaming, subscriptions provide digital solutions cognizant of the dominance of ecommerce and changing consumer behaviors. Subscriptions bring value and convenience to consumers, and they offer digital advertisers first party data about their customers and future opportunities to target and increase engagement. 

    Seeking New Ways To Maximize Your Customer Acquisition?

    Digital Media Solutions (DMS) is a technology-enabled, data-driven performance advertising solutions provider connecting consumers and advertisers. Contact DMS today to learn how our first-party data asset, proprietary technology and expansive digital media reach can help you scale your customer acquisition results.

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