Prior to the pandemic, Funko predominantly sold offline through retailers and online through third-party suppliers. When the pandemic hit, the brand, needed to find alternative routes to market. With lockdowns disrupting traditional retail, Funko pivoted towards ecommerce.
Historically reliant on third-party retail sales for their European revenues, the decision was made to launch a direct-to-consumer (D2C) solution.
Our core goals were:
Help Funko grow [NET] new website customers
Establish sales in three European markets (UK, Germany, Spain)
Achieve a positive ROAS delivering a multiple return
Getting our strategy right would be crucial, and to do so we would need to adopt a fully informed and data-led approach, both with regard to targeting the consumer and pinpointing accurate attribution.
Equally, we knew that paid media would initially provide the bulk of Funko’s site traffic, with an underlying need to establish organic traffic as quickly as possible. With thousands of SKU’s appealing to hundreds of different fans, our approach initially focused on the UK market, followed by Germany and Spain, with further European expansion thereafter. One key consideration here, and for any brand embarking on D2C was establishing the reason to buy direct.
Funko’s retailers were already selling a number of their SKU’s online, many with their own USP, be it free delivery, lowest price, range of other brands etc. The focus prior to embarking on its own ecommerce site was defining why to buy the brand direct.
This consideration was compounded by the brand’s additional lines of distribution; not just from the perspective of defining a compelling proposition to the shopper, but because of assessing the risk of competition with retailers who stocked its products. Continuing to nurture retailer relationships was important, as was being cognizant of the risk of competing with them for the same shopper. Subsequently we’ve been really strategic to try and avoid everyone bidding on the same keywords, ultimately driving up the CPA and diluting Funko’s ROI as well as their volume with third parties.