Gen-Z, Millennial Opps: Zappos loses CMO amid significant spend increase (Score 40)

Sales Lead: Zappos recently parted ways with Ginny McCormick, who became its first CMO in April 2022.

• Zappos hasn't disclosed details about McCormick's departure or plans for the future, but we will keep you updated as we learn more.
• The company will likely:
  • Need additional marketing assistance in her absence
  • Shift strategy
  • Continue increasing spend
  • Conduct agency reviews
• Target demographic: 
  • Gen-Z and millennials

Additional spending insights:

• Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
  • YTD spend: Zappos has spent approximately $2.6m on digital ads YTD, almost double the approximately $1.4m spent by this point in 2022.
  • YTD data: So far this year, the company has earned ~343.8m digital impressions via Facebook (72%), Instagram (17%), YouTube (10%), desktop display (1%), and mobile display (1%) ads.
  • Last year: Zappos spent roughly $4.3m on this channel in 2022, again almost double the roughly $2.5m spent in 2021.
• Additional channel insights  
  • The company utilizes Google Ads and search marketing along with OOH, local broadcast, print, radio, digital, Facebook, Instagram, TikTok, and online video (via Youtube.com, Youtube IOS, and Youtube Android) ads.

Additional agency insights:

• Opportunity: A new CMO may seek new agency partners for Zappos, so reach out soon to be top-of-mind at the time of hire.
• Current agency roster:
  • ​​​​​​​In-House: Media
  • Mightily: Media, creative, and social AOR
  • MullenLowe Boston: PR AOR
  • Collectively: Media, creative, social, and digital agency partner
  • barrettSF: Creative agency partner
  • HAPI: Creative agency partner
  • Saatchi & Saatchi : Digital agency partner

Insight Sources: Digital spend insights estimated by Pathmatics; additional channel insights estimated by Vivvix.