Millennial Digital Opps: SmileDirectClub diversifying digital spend

SmileDirectClub is working to normalize teledentistry via a digital marketing strategy, through which it's diversifying spend to mitigate risk and also chasing performance across multiple platforms. The company started out leaning heavily on Facebook but has since shifted much of the spend it allocated toward Facebook to TikTok, programmatic environments and TV. SmileDirectClub's CMO, John Sheldon, specified that the company is always looking for organic coverage, but it's also utilizing paid channels and influencers. Additionally, since Sheldon joined the company in 2018, aided awareness has jumped from 16% to over 60%, largely due to TV and connected TV (CTV).

SmileDirectClub released a campaign last month featuring testimonials by dentists and orthodontists, designed to normalize the concept of teledentistry. Of course, after teledentistry appointments, licensed doctors can end up suggesting SmileDirectClub's customized transparent teeth aligners to their patients. The ads are still running, so it may not be too late to secure last-minute ad dollars.

Telehealth, in general, took off during the pandemic, and teledentistry is slowly catching up.

So far this year, iSpot reports SmileDirectClub has allocated roughly $16.6m toward national TV commercials, up 11% from the roughly $14.9m allocated within the same 2021 timeframe. The company ended up allocating roughly $46m toward this channel last year, up 45% from the roughly $31.8m it allocated in 2020. SmileDirectClub's 2022 commercials have aired during programs such as College Football, Pawn Stars, Forged in Fire, Ancient Aliens and NCIS.

Per Pathmatics, the company has spent approximately $6.8m on digital ads YTD, less than half of the approximately $14.9m it had spent by this point last year. SmileDirectClub's estimated full-year 2021 spend, $27.9m, was down 38% from that of $45m in 2020. Since the beginning of 2022, the company has earned around 574.8m digital impressions via desktop video (55%), Instagram (25%), Facebook (17%), desktop display (2%) and mobile video (1%) ads. The majority (98%) of this year's desktop video ads have been placed site direct onto youtube.com.

As you can tell, TV spend is rising while digital spend drops notably. This is likely because SmileDirectClub is starting to focus on digital channels not tracked by Pathmatics such as TikTok and CTV. According to Kantar data, the company also utilizes radio, OOH and local broadcast. SmileDirectClub has a wide target demographic, but that target demographic does skew toward millennials.

Agency & martech readers - I don't see any glaring signals of upcoming agency reviews right now, but keep the company on your radar for future project-based work. SmileDirectClub currently has an in-house creative and copy team.