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Good morning,
Here’s what you’ll find in today’s DTC:
🧑🎤 Think You Know Zillennials?
Learn how they differ from other generations.
👜 Luxe Du Jour’s Growth Story
Scaling a luxury resale empire.
📉 AppLovin's Rise and Stall in DTC Discovery
AppLovin’s rapid growth is slowing.
🎣 Hooked But Not Buying?
Why a high hook rate can be misleading.
You’re reading this newsletter along with new subscribers from: Trader House, Bioniq, and Wayfair. 👋
📈 Ready To See Your Shopify Brand Grow? Here’s How To Skip The Growing Pains
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Between tariff turmoil, rising shipping costs, and supply chain disruptions, having an operations partner that will evolve with you has never been more important.
Growth without the growing pains is possible.
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💡 How Zillennials Differ from Gen Z and Millennials
Is your brand targeting Zillennials?
This age group overlaps with younger millennials and older Gen Z members.
Although they share similar characteristics to these age groups, they also have some key differences in the way they shop.
If Zillennials overlap with your target audience, then understanding their shopping preferences is key to unlocking success. 🔑
Here’s insights into Zillennial’s shopping habits:
The takeaway?
Zillennials have a digital-first mindset but are very price-conscious.
👉 Running ads on social media that emphasize pricing and setting up referral programs can help, as can creating a Deals page to appeal to cost-conscious consumers.
Ecommerce brands should tailor their marketing strategies towards Zillennial preferences to make an impact.
💸 Your Ad Dollars Aren't Working Like They Used To—Here’s How to Fix It
Rising CAC. Dropping ROAS. Ad fatigue everywhere. 😓
Every DTC brand is feeling it right now. Your customers are tuning out traditional ads. The problem isn't your product. It's how you're reaching people. 👈
Today's consumers don't trust ads. They trust recommendations from real people. 💁♀️
Micro-influencers—authentic voices with engaged, niche audiences—are talking directly to your ideal customers in a way your ads simply can't.
But finding and managing the right influencers is a mess.
Endless searching. Messy spreadsheets. No clear ROI tracking. 😵💫
This is exactly why SARAL exists.
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💰 Tech Giants Ramp Up AI Spending
Companies like Microsoft, Amazon, and Meta are projected to spend $371 billion on data centers and computing resources for AI this year, a 44% YOY increase.
By 2032, that amount is estimated to rise to $525 billion.
🎧 Scaling a Luxury Resale Empire: Luxe Du Jour’s Growth Story with Tammy Phan
Tammy Phan, CEO and founder of Luxe Du Jour built a multi-million dollar luxury resale marketplace that allows customers to shop, sell, rent, and restore authentic designer handbags—all without traditional venture backing or early paid media.
In this podcast, we cover:
👉 You can listen to the full episode with Tammy here.
🔎 AppLovin: A New Product Discovery Platform?
This portion of DTC Newsletter is brought to you by DTC Index, your go-to source for performance and consumer behavior insights. Twice per month, we’ll share key takeaways from our latest report.
DTC Newsletter subscribers get $50 off their first report—use code DTCNEWS at checkout.
For the past few months, The DTC Index has been closely monitoring AppLovin, an ad platform that’s driving major product discovery among older audiences.
In an earlier report, Varos found that purchases from AppLovin ads were shifting significantly older, with nearly 80% coming from consumers over 55.
Our data shows that total daily orders powered by AppLovin peaked around BFCM—not surprising—but given the platform’s major growth, we kept watching.
And by major, we mean discovery jumped 0.6% in just six months, as we reported in November. That rapid growth kept us interested.
But since then, discovery on the platform has been tapering off quickly.
AppLovin Attribution Survey Data
In June, 0.04% of attribution surveys showed that customers were finding brands via AppLovin.
That scaled to 0.36% in October, 1.37% in November, and has been slowly declining since.
In January and February, approximately 1% of DTC orders were attributed to AppLovin. However, with the recent allegations, more brands are dropping this platform for ads.
Don’t worry, we’ll keep watching and reporting on AppLovin in The DTC Index Report.
Want more? The next DTC Newsletter dives into these trends more. Subscribers get $50 off their first report—use code DTCNEWS at checkout.
⚡ QUICK HITS
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📰 NEWS
🌐 IN THE SOCIAL SPHERE
Your hook rate is solid but are you receiving attention from the wrong audience?
This is a valuable metric but can also be misleading.
Make sure you are hooking in the right audiences which will convert into paying customers.
🎉 CELEBRATE THIS!
🌸 Mar 29: Pillow Fight Day, Cherry Blossom Tree Day, Pita Day
✏️ Mar 30: Starbucks Day, Laundry Folding Day, Pencil Day
🎨 Mar 31: Crayon Day, National Prom Day
😂 Apr 1: April Fools' Day, Sourdough Bread Day, Children’s Book Day
🥜 Apr 2: Walking Day, Peanut Butter & Jelly Day
🌯 Apr 3: Burrito Day, Chocolate Mousse Day, Tweed Day
🥕 Apr 4: Vitamin C Day, Carrot Day, Ramen Noodle Day
📅 EVENTS
Google Cloud Next 25 - Google Cloud Next '25 is a large-scale event showcasing Google Cloud's latest technologies and solutions. Attendees can expect to learn about advancements in areas such as artificial intelligence, machine learning, and data analytics.
🗓️ Apr 9-11, 📍 Las Vegas, NV 💰 Free - $2,099
AI Expo - AI Expo is a series of events focused on artificial intelligence and its applications across various industries. The event includes presentations, workshops, and demonstrations showcasing practical AI applications.
🗓️ Apr 18, 📍 Austin, TX 💰 $29
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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.
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