But even as Wunder2 grows from its ecommerce roots, Facebook remains the company’s primary source of customer growth and media inventory.
“When we’re setting up retail programs, most of that demand is created by our digital-first presence,” Malinsky said.
Selling in brick-and-mortars has given the opportunity to expand its digital targeting parameters – all through Facebook, Malinsky said. It added location-based targeting to send deals or messages to potential customers in a geofenced proximity of stores carrying Wunder2.
Targeting ads to customers in stores has also proven effective. “It’s the kind of product that has a very strong customer connection on Instagram,” he said. Often people are about to point a camera at themselves.
Store transactions this year accounted for about 25% of all sales, which Malinsky said will remain well below the share driven by ecommerce even as the startup grows its retail footprint moving forward.
“Facebook plus Instagram is an environment where we understand how to find our consumer, explain our product and define the customer journey from curiosity to purchase,” he said.
Large CPG companies are being forced to heavily invest in expensive media like television because they aren’t seeing the scale they need to drive store sales from online platforms, Malinsky said. “That’s a big advantage, because our audience’s attention is online and can be reached more effectively than on television.”