The results are in from Roku’s annual survey of Roku viewers who are also direct-to-consumer (DTC) shoppers.
In this three-part blog series, we’ll break down the data and discuss what it means for DTC advertisers, what it says about DTC marketing, and how DTC brands can use TV streaming to acquire new customers and increase the lifetime value of existing ones. In part one, we’ll dive into the demographics and preferences of Roku DTC shoppers and discuss what those insights mean for DTC brands.
Our results are based on a 15-minute online survey of 4,254 Roku customers between September 29th and November 15th of 2021. Survey participants were recruited from customer emails.
Who is the Roku DTC Subscriber?
Just like in 2020, Roku DTC shoppers in 2021 skewed younger, female, and cordless.
Roku Internal Survey Results, November 2021Q4: Have you used any direct-to-consumer (DTC) products or subscription services (i.e. FabFitFun, Dollar Shave Club, HelloFresh, BarkBox, Peloton, Bombas, etc.) in the past year? Q24: Have you shopped on a DTC marketplace (e.g., Etsy, Mercari, Poshmark, the Real Real etc.) in the past year?51% of Roku DTC shoppers were between the ages of 18-45, and 93% were under 64. Female viewers outnumbered men 51% to 46%, with 1% of viewers identifying as non-binary and 3% preferring not to say.¹ Not surprisingly, this same age range was more likely to be cord-cutters or cord-nevers, with 70% of DTC shoppers falling into this category.
Here are four key findings from our research:
1. Cord-Cutters love DTC shopping.
Our 2022 insights exposed a strong link between cord-cutting and DTC shopping. Among Roku subscribers who were also cord cutters, 40% said they planned to purchase a new DTC product or service in the next six months.² Considering 70% of Roku DTC subscribers fall into the cord cutter category, that is a substantial audience.
Much like DTC consumers, cord-cutters care about convenience, good deals, and saving money. More on that in the next installment of this series.
2. DTC popularity increased among Roku viewers in 2022.
Roku users continue to lean more and more into DTC products and services
This year saw an 85% increase year-over-year in the number of Roku users who have bought a new DTC product or subscription in the past year (up from 37% in 2021, 20% in 2020).
Considering that this year saw an easing of pandemic-related restrictions and lockdowns, the continued rise in DTC shopping proves that consumers crave the ease and convenience of DTC brands, even when in-store shopping is an option. DTC’s popularity continues to rise as people go back to work and brick and mortar locations reopen their doors.
Roku users are engaged with and excited about DTC brands. 37%³ of viewers surveyed said they had purchased one or more DTC products or subscriptions in the past year. What's more, 60% of Roku users have used more than one DTC product or service in the past year. Clearly, this is not a winner-takes-all category – Roku users are more than willing to subscribe to multiple services or products, so the opportunity for DTCs is big.
3. Food & Beverage was the top DTC category for current and potential customers.
The top three DTC categories Roku users currently subscribe to are food & beverage, music & streaming, and beauty.⁴
The top DTC subscription categories Roku users are in-market for are food & beverage, home, and pets. Brands in these spaces should take note of this opportunity.
4. DTC marketplaces were popular this year.
39% of Roku DTC subscribers shopped at a DTC marketplace (e.g., Etsy, Mercari, Poshmark, The Real Real) in the past year.⁵ So, not only are Roku users shopping DTC products and signing up for DTC services, but they are also doing their shopping on DTC marketplaces. They are leaned into DTC across the board.
TV streaming audiences present fresh opportunities for DTC brands.
Our 2022 insights should be encouraging for DTC brands looking to reach key target demographics and connect with a receptive audience. Cord-cutters and young viewers overlap nicely with core DTC demographics, and our numbers indicate that DTC customers tend to be interested purchasing/subscribing to multiple DTC products.
In our next post, we’ll look at the discovery process for DTC viewers and how brands can use our insights to optimize creative for that process. Want to stay updated? Subscribe to email updates from Roku Advertising.
¹ Roku Internal Survey Results, November 2021: Have you used any direct-to-consumer (DTC) products or subscription services (i.e. FabFitFun, Dollar Shave Club, HelloFresh, BarkBox, Peloton, Bombas, etc.) in the past year? Q24: Have you shopped on a DTC marketplace (e.g., Etsy, Mercari, Poshmark, the Real Real etc.) in the past year?
² Roku Internal Survey Results, November 2021: How likely are you to purchase a new DTC product or subscription service in the next 6 months?
³ Roku Internal Survey Results, November 2021: Which of the following best describes the changes, if any, you made to your DTC products or subscription services during the past year?
⁴ Roku Internal Survey Results, November 2021: What kind of DTC products or subscription services have you used in the last year?
⁵ Roku Internal Survey Results, November 2021
