Hasta La Creative!

Fresh off the stage Friday, after giving one of the more provocative talks at the Association of National Advertisers’ annual “Masters of Marketing” conference, investment banker Terry Kawaja of Luma Partners joined Ad Age to break down why he’s bullish on the direct-to-consumer trend.

“This is one of the biggest changes going on in marketing,” he says, “Despite struggles of traditional marketers to achieve growth, here’s a category of relatively young startups in a relatively short period of time with relatively little capital that are garnering double-digit market share away from category incumbents that have been building brand equity, brand loyalty for decades.”

When pushed on whether some of these direct-to-consumer marketers the more famous of which include the likes of Airbnb, Uber, Casper and Dollar Shave Club are actually profitable, Kawaja says it’s still early. “It takes a while until you get to the profitability, but the key thing is you look at the unit economics and that looks strong,” he says.

Continue reading at AdAge.com