Top Digital Advertising Channels for Outdoor Apparel Brands between 2020 to 2023

Competitors Analyzed

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‍Key Takeaways

The winter season (Q4) saw the highest ad spends.

• Actionable Recommendations
  Put aside a big chunk of your budget for peak winter season but also take advantage of white space opportunity during the off-season.

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Brands are increasing their ad spend on TikTok significantly, with a +2800% increase YoY in 2023. 

• Actionable Recommendations
  Lululemon and The North Face are betting big on TikTok ads, which suggests they're seeing good results. It's worth your while to spend some time honing your TikTok ad game.

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Spending on OTT and Twitter ads has taken a major dive - down 68% and 98% respectively. 

• Actionable Recommendations
  Look at spending more on other ad platforms and think about cutting back on Twitter ads. Consider experimenting with OTT and if it drives great results, it could be a white space opportunity. 

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The competitive set is putting most of their ad money, somewhere between 32% and 53%, into Paid Search ads.

• Actionable Recommendations
  Set aside a good chunk of your budget for Paid Search ads and give Desktop some extra love, as it takes up 61-74% of the competitive sets’ budget.

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Facebook ads are the second biggest place for the competitive set, taking up about 15-31% of their total ad spend.

• Actionable Recommendations
  Use tactics like curated landing pages, highlighting best-selling products, and location-based ads to connect with customers.

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Between May ‘20 to Apr ‘23, the competitive set allocated $193M to digital ads. Despite some quarterly fluctuations, monthly ad spend has been trending upward. 

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Yearly ad spend has seen an YoY decrease of -11% between Apr. ‘21 - Apr. ‘22 and an increase of +83% between Apr. ‘22 and Apr. ‘23.

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There was a seasonal pattern in ad spend, with higher spending occurring at the end of Q3 and all of Q4. 

In 2020 and 2021, ad spend was the highest during the months of October and November. 

In 2023, ad spend started ramping up during July and stayed high until December 2023. 

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Q4 2020 saw a spike due to The North Face’s Paid Search & Instagram ads, and Arc’teryx’s Facebook ads.

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Higher spending occurred in Q4 2021 due to The North Face’s Paid Search ads.

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Q3 & Q4 2022 saw a spike due to lululemon & The North Face’s Paid Search ads.

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lululemon made up 51% of the $193M total ad spend amongst the competitive set at $99M. 

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The North Face had the second highest advertising budget at $58M (30%), followed by Arc’teryx (12%) with $24M between May 2020 to April 2023.

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Salomon and Burton saw the smallest ad budget, allocating $7.6M and $3.6M — making up 4% and 2% of the total ad spend, respectively.

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All brands experienced an increase in average annual ad spend between May ‘20 and Apr. ‘23. lululemon had the largest increase of +63% YoY. 

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The highest allocation in spend went to Paid Search, which accounted for 47% of the total budget, amounting to $90M. 

Following that, Facebook and YouTube were the next significant channels, with $27.5M (14%) and $25.9M (13%) of the budget allocated to them, respectively.

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Paid Search has experienced the greatest increase in yearly ad spend, increasing an average of +67% YoY.

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Facebook ad spend has been relatively stable YoY, increasing by an average of +1.8% over the three year period. 

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YouTube spending has doubled during 2023, increasing from $6.5M in 2022 to $12.8M in 2023 (+98%).

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Display ad spend decreased from 2021 to 2022 (-27%) but remained relatively stable between 2022 and 2023. 

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Instagram ad spend has been on the rise with an increase of +18% between 2022 and 2023. 

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Spending on TikTok has seen the biggest growth, with a +2800% increase in 2023.

TikTok ad spend data was unavailable until January 2022. 

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Spending on Snapchat has seen a significant increase of +2100% in 2023.

Snapchat ad spend data was unavailable until January 2022. 

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OTT has experienced a significant decrease in yearly ad spend, decreasing -68%. 

OTT data was not available until October 2021.

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Twitter has experienced the largest decline in ad spend, dropping from $6.6M in 2021 to $100 in 2022, representing an average decrease of -96% YoY.

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lululemon had the largest budget amongst the competitive set at $99.4M. 

47% of their budget went towards Paid Search ($46.4M), followed by Facebook at $15.1M (18%).

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lululemon budgeted 68% ($31.6M) toward Desktop ads, followed by Mobile ads ($14.9M).

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Paid Search Tactics

• Like New Campaign: lululemon capitalizes on consumers' growing interest in sustainable lifestyles through their "like new" campaign, which encourages a circular economy within the company. This initiative includes attractive offerings such as a trade-in program and the opportunity to purchase gently used gear.
• Tap into Emotions: By using phrases like 'every action counts when it comes to sustainability,' the copy emotionally resonates with consumers, motivating them to make environmentally-conscious choices that contribute to the planet's welfare.

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lululemon budgeted 75% ($5.8M) toward Link ads, followed by Video ads ($494K), Photo ads ($724K), and Carousel ads ($474K).

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Facebook Tactics

• Curated Landing Page: Both ads by lululemon lead to a curated collection landing page that specifically highlight the promoted product.
• Emphasis on Single Product: Each of lululemon's advertisements puts a spotlight on the promotion of a single product, with a keen visual concentration on the product itself.
• Gender Targeting: In this ad, lululemon’s mentions "made for women first", signaling that the ad is tailored to attract a female audience.  

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The North Face had the second-highest digital ad spend among the competitors, amounting to $58.5M.

53% of their budget went towards Paid Search ($31M), followed by Instagram at $8.5M (15%).

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The North Face budgeted 61% ($19M) toward Desktop ads and 39% ($12.1M) toward Mobile ads.

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Paid Search Tactics

• Free Shipping & Returns: The North Face alleviates customer concerns about shipping costs by advertising their free shipping & returns offer within the header of their ad.
• Legacy Brand: The North Face fortifies its reputation for reliability and resilience to the audience by leveraging phrases like 'over 50 years' and 'exploring since 1966', re-enforcing its long-standing presence in the market.
• Trademark Symbol: The North Face uses a trademark symbol adjacent to their brand name to guide customers to their official site.

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The North Face budgeted 46% ($3.9M) toward Story ads, followed by Photo ads ($1.9M), Video ads ($1.7M), Carousel ads ($860K), and Status ads ($162K).

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Instagram Tactics

• Culturally Relevant: The North Face's advertisements introduce their new initiative designed to provoke community-wide paradigm shifts and rethink established norms like access to exploration. This campaign is particularly timely and resonates deeply, given the considerable unrest resulting from the pandemic.
• Athlete Partnerships: This ad partners with famous climbing athlete, Alex Honnold, to inspire the audience to make their own challenge and participate in the ‘reset’.

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Arc’teryx’s spend was the third highest, amounting to $24M.

32% of their budget went towards Paid Search ($7.6M), followed by Facebook at $6.3M (28%).

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Arc’teryx budgeted $4.9M toward Desktop Paid Search (64%) compared to $2.8M on Mobile Paid Search (36%).

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Paid Search Tactics

• Free Shipping & Returns: Arc’teryx  highlights their free shipping and return policy in their ad title and description. 
• Official Store: Arc'teryx strategically positions the phrase 'official store' within their ad title to facilitate the audience's direct navigation to their website.
• Product Type Disclosure: Arc'teryx incorporates an array of product styles, such as shell jackets and insulated jackets, in their product descriptions, effectively engaging potential customers in search of specific products.

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Arc’teryx budgeted 40% ($1.5M) toward Link ads, followed by Carousel ads ($1.3M) and Video ads ($833K).

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Facebook Tactics

• Location Targeting: Both ads employ the use of location targeting into their campaigns, thereby customizing each ad to resonate with the local audience.
• Emphasizing Product Quality: By featuring the Gore-Tex logo in the advertisement's visual, the ad effectively communicates the product's premium nature and protective durability
• Photo Collage: Both ads employ a photo collage design approach in their visuals to highlight both the product and the technology.

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Salomon spent $7.6M on digital advertising. 

48% of their budget went towards Paid Search ($3.6M), followed by Facebook at $1.2M (17%).

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Salomon budgeted $2.7M toward Desktop Paid Search (74%) compared to $960K on Mobile Paid Search (26%).

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Paid Search Tactics

• Creating Urgency: Salomon specifies the sale end date to create a sense of urgency among the audience. 
• Big Discounts: The mention of '50% off' in both the title and description is used to underscore the magnitude of the discount.
• Promoting Fresh Arrivals: Salomon strategically uses a dedicated advertisement to guarantee the successful introduction of their new winter collection, drawing attention to their latest products.

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Salomon budgeted 46% ($462K) toward Link ads, followed by Carousel ads ($301K), Photo ads ($152K), and Video ads ($96).

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Facebook Tactics

• Showcasing Best Sellers:  Salomon brings their top-selling products into the spotlight by crafting a scrollable advertisement, featuring outdoor essentials that are highly favored by their audience.
• Early Promotion: Salomon initiates promotion of their Spring 2023 collection as early as the winter season, starting on February 1. This strategy caters to eager buyers, providing them with a jump-start on the upcoming season's purchases.

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Burton spent $3.5M in digital advertising. 

35% of their budget went towards Paid Search ($1.2M), followed by Facebook at $1M (31%).

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Burton budgeted $794K toward Desktop Paid Search (63%) compared to $463K on Mobile Paid Search (37%).

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Paid Search Tactics

• Brand-Product Synergy: Burton accentuates their innovative 'Step On' technology by strategically positioning its name adjacent to their brand name, thereby enhancing the recall and recognition of 'Step On'.
• Experimentation Strategy: Burton modifies only the latter part of their product title while retaining the same ad description, presumably to conduct a performance comparison test and determine the most effective advertisement.
• Easy Chime: Burton employs a catchy word play, "heel, toe, go", which aids in brand recognition by being easy to remember.

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Burton budgeted 66% ($574K) toward Link ads, followed by Video ads ($179K) and Carousel ads ($97K).

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Facebook Tactics

• Focus on Product Experience: Burton draws visual attention to their BOA Boots in their advertisement by showcasing an authentic image of the boot in use, giving prominence to the product's practical application.
• Building Excitement and Scarcity: Burton stirs anticipation for their product updates by introducing new color options and employing the phrase 'snag yours before they're gone', effectively instilling a sense of urgency and scarcity.

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Digital Advertising Data Source Caveat