Made-to-order rug brand Ernesta and pet-tracker Tractive are both emerging direct-to-consumer companies. But each has a unique challenge, when it comes to navigating paid and organic marketing.Ernesta, which was founded in 2022, is operating in a crowded and high-consideration category, with “many, many companies that sell rugs,” said Alan Smith, the brand’s president. Meanwhile, Tractive, which was founded in 2012 and runs on subscriptions, has been fighting for larger category awareness for years, said Andrew Bleiman, evp of North America for Tractive. “Ninety-five percent of pet owners in the United States do not know the category of GPS trackers exists,” he said. “We face this huge challenge.”
Both Ernesta and Tractive are trying to boost their customer bases and grow their businesses at a time of larger macroeconomic uncertainty. Consumer confidence in the U.S. hit a record low in May amid the U.S.-Iran conflict, and higher gas prices could deter some shoppers from making discretionary purchases, like home decor. At the same time, marketing costs are skyrocketing, making reaching customers at various points in the conversion cycle more difficult. Smith and Bleiman, offering two different playbooks, shared how they’re approaching marketing spend during a May 21 panel session at The Lead, moderated by Modern Retail.
