Did you know that brands with a strong online presence can increase their revenue by up to 20%?
According to a study by Deloitte, brands with a strong online presence can see an increase in their revenue by up to 20%. In today’s fast-paced digital landscape, a robust online presence is not just optional for brands—it’s essential. As consumer behavior continues to shift toward online shopping and social media engagement, brands that prioritize a digital first strategy in their marketing are reaping significant rewards.
This article delves into the rise of digital-first brands and explores how their online presence is transforming them into market leaders. With Insights from Launchmetrics, we’ll uncover key strategies, real-world examples and the overall impact of digital dominance on market value. Whether you’re a marketer, a business owner or just curious about the digital revolution, keep reading to learn how to harness the power of online presence.
In this article you’ll learn…
The Importance of a Digital Brand Strategy
In the digital age, a strong online presence is non-negotiable for any brand aiming to lead its market. Recent studies measuring Media Impact Value® (MIV®) using data from the first half of 2024 (S1 2024) confirm that brands with a robust online presence experience higher customer engagement, loyalty and ultimately, increased sales. But what does this really mean?
First, let’s break down what MIV really is.
What is MIV? MIV is a proprietary algorithm developed by Launchmetrics that assigns a monetary value to the media coverage, social media posts and influencer marketing efforts of a brand. MIV considers factors like reach, engagement and influence, providing a comprehensive understanding of a brand's media performance across different channels. In simpler terms, it’s a way to quantify the impact and value of your brand’s presence across digital platforms.
Now, let’s take a closer look at how some brands have used their online presence to become market leaders.
Pretty Little Thing: Revolutionizing Fashion Digital Marketing With Influencer-Driven Social Media Impact
For instance, Pretty Little Thing—a trend-driven fashion leader known for its affordable, stylish clothing and commitment to empowering women—has expertly harnessed the power of social media to elevate its MIV to an impressive $209 million through 20,400 placements. By staying ahead of fashion trends and engaging with a diverse audience, the brand has solidified its position as a dynamic force in the fashion industry.
Pretty Little Thing has strategically amplified its digital presence by partnering with influencers across various tiers, from macro to micro. An analysis of their Share of Voice (SOV) by MIV reveals that influencers contribute a substantial 44% of their overall media impact, with the remaining buzz coming from Pretty Little Thing’s owned media channels.
One standout example of this strategy is their collaboration with Marsai Martin. This particular placement achieved a remarkable $548k in MIV, demonstrating the significant value that high-profile influencers can bring to a campaign. Marsai’s involvement not only boosted the campaign’s media impact but also added a layer of authenticity and relatability, thanks to her strong connection with her audience. Her influence extended beyond just numbers, as her personal brand aligned seamlessly with Pretty Little Thing’s image, enhancing both reach and engagement.
Nasty Gal's Digital Triumph: Elevating MIV by 9% Through Strategic Fashion Digital Marketing
Nasty Gal, a digital-first brand, has established its reputation through savvy social media strategies, unique content and a distinctive brand voice that resonates with its audience. In the first half of 2024, the brand's Owned Media MIV reached $13.3K, reflecting a 9% increase from the second half of 2023. This growth highlights Nasty Gal’s successful efforts to strengthen its online presence.
One of their standout Instagram posts features Miley Cyrus at the Grammys, wearing a vintage Bob Mackie outfit originally donned by Cher in the 1970s. This post had a potential reach of an impressive 4.71 million people and generated $166K in MIV.
Additionally, 48% of Nasty Gal’s media impact comes from owned media, underscoring their ability to create and promote effective content, and their emphasis on fostering a fan base. This emphasis on a Voice-centric approach has enabled the brand to excel in specific online niches and build a loyal customer base.
Fashion Digital Marketing Triumph: How American Eagle Boosted Online Revenue by 19%
American Eagle offers a compelling example of a brand that has adeptly shifted from a traditional physical retail model to a robust digital presence. Once renowned for its strong brick-and-mortar footprint, American Eagle has now embraced online marketing and digital engagement with notable success. By seamlessly integrating e-commerce with innovative digital strategies, the brand has significantly bolstered its online visibility.
In the fourth quarter of 2023, American Eagle reported a 19% increase in total digital revenue compared to the same period in 2022. This growth highlights their effective transition to a digital-first approach, reflecting the broader shift toward online shopping. The brand's strategic adaptation to the digital landscape has driven substantial e-commerce growth, demonstrating their successful evolution in the digital era.
Success Stories of Shifting Focus to a Digital Brand Strategy
American Eagle's e-commerce growth is further supported by their digital initiatives: investing heavily in enhancing their website, mobile app and online shopping experience. By focusing on user-friendly navigation, personalized recommendations, and seamless checkout processes, they’ve made online shopping more convenient and attractive to their customers.
Additionally, American Eagle’s omnichannel strategy integrates their physical stores with their online presence, offering features like “buy online, pick up in-store” (BOPIS) and ship-from-store options. This approach not only improves customer satisfaction but also boosts their overall e-commerce performance.
Social Media Influence: Another critical aspect of American Eagle's digital success is their strong presence on social media platforms, which has been a driving force behind their online traffic and brand awareness. In S1 2024, American Eagle achieved 1,745 influencer placements, contributing $17.3 million to their MIV, reflecting a 6% increase from the previous period. This indicates the growing importance of influencer marketing in their overall strategy, helping to amplify their reach and engagement. Additionally, in the first half of 2024,, the brand achieved a significant 88% increase in Partner placements compared to the second half of 2023 (S2 2023).
This impressive growth highlights the effectiveness of their digital-first strategy. key Partners, such as e.l.f. Cosmetics and Lifestyle stores, played a crucial role in driving this success, featuring prominently among the top placements. These collaborations not only amplified the brand’s reach but also reinforced their commitment to leveraging strategic partnerships in the digital landscape. This surge in Partner placements showcases the brand’s ability to adapt and thrive in a rapidly evolving online environment.
Strategies for Building a Dominant Digital Brand Strategy
So, what can we learn from these digital-first brands? Here are some key strategies that have helped them establish and maintain a strong online presence:
Social Media Engagement: Actively engaging with customers on platforms like Instagram, TikTok and Twitter is crucial for building a loyal community. Pretty Little Thing’s frequent collaborations with influencers are a prime example of how social media can drive significant traffic and sales. With 44% of their MIV generated by influencers, the brand’s influencer tier mix plays a pivotal role in their digital success.
Content Marketing: Creating valuable and consistent content is essential for maintaining audience engagement. Nasty Gal excels in this domain with their blog, social media content, and newsletters, all significantly contributing to their Media Impact Value (MIV). With 48% of their media impact stemming from Owned Media, Nasty Gal demonstrates the importance of controlling your brand’s voice and message through your own channels to build loyalty.
E-commerce Optimization: A seamless and enjoyable online shopping experience is critical to retaining customers and driving sales. American Eagle’s user-friendly website and mobile app are excellent examples of e-commerce optimization in action. Their focus on customer satisfaction through an optimized digital experience has played a crucial role in their online growth.
Omnichannel Integration: American Eagle’s successful integration of their physical stores with their online presence has been instrumental in driving e-commerce growth. Features like BOPIS and ship-from-store options create a seamless shopping experience that bridges the gap between online and offline channels.
Voice-Centric Approach: A key differentiator for these brands is their commitment to a Voice-centric strategy. They focus on crafting a comprehensive 360-degree approach that leverages various tactics and strategies across the entire marketing funnel. By maintaining a consistent and authentic brand presence across all digital channels, they ensure their messaging and engagement strategies align seamlessly—whether through high-tier collaborations with influencers or celebrities to build awareness or through owned media and user-generated content to foster loyalty among existing fans and customers. This unwavering focus on a cohesive brand voice is what elevates their performance in the digital landscape.
Mastering Digital Presence: Strategies for Market Leadership
Digital-first brands like Pretty Little Thing, Nasty Gal and American Eagle demonstrate that a strong online presence is crucial for market leadership. By effectively engaging on social media, creating consistent and valuable content, optimizing e-commerce platforms and adopting a Voice-centric approach, these brands have set themselves apart as leaders in the digital space.
As the digital landscape continues to evolve, brands that innovate and prioritize their online presence will lead the market. What digital strategies have you found most effective for the brands you follow? Share your thoughts in the comments below!
Don’t forget to explore our other articles on digital marketing and brand influence. Visit the Launchmetrics Insights page to learn how you can analyze your strategies and those of your competitors to fine-tune your efforts and achieve success. By leveraging these insights, you can stay ahead of the curve, adapt to emerging trends, and ensure your brand remains competitive in a rapidly changing environment.
Whether you’re looking to build awareness through high-tier collaborations with influencers or celebrities, or foster loyalty among existing fans and customers through owned media and user-generated content, Launchmetrics Insights provides the tools and data you need to make informed decisions. Dive into our resources and discover how you can elevate your brand’s digital impact today.
By Leah Faye van Niekerk
Leah Faye is a Content and Social Media Intern at Launchmetrics, with a deep passion for writing and content creation. Creativity is embedded through her work, supported by a background in fashion, marketing, and business. Leah is dedicated to contributing to her team’s success and enhancing the brand’s presence.