Digital Marketing Strategy of Hims and Hers

Introduction

• Hims and Hers is experiencing rapid growth, driven by aggressive digital marketing.
• Revenue at the time of filming was $401 million for the quarter, approximately $1.2 billion annually.
• Notably, the business is profitable, with $76 million in profit reported.
• The key strategy is investing nearly half of their revenue into marketing.

Marketing Investment

• In a quarter, they generated $400 million revenue, spending $182 million on marketing.
• Their marketing investment is profitable, allowing for aggressive scaling.
• Initially, heavy investment led to losses, but now results in repeat purchasing and profit.

Four Key Marketing Areas

1. Website and Value Proposition

• The website is simple, targeting users who are already aware of the brand due to significant marketing.
• Focuses on consultation processes and delaying lead capture to increase engagement.
• Designed primarily for mobile users, indicated by its layout and imagery.
• Content-rich with blogs and guides targeting high-quality keywords for organic search.

2. Search Strategy

• Organic search drives significant traffic through well-crafted blog content.
• Utilizes a topic cluster approach, targeting high-level and subtopics around key products.
• Strong backlink profile from reputable sites enhances search rankings.

3. Paid Search

• Approximately $500,000 per month spent on Google paid search in the US.
• Focuses on branded keywords to prevent loss to competitors.
• Minimal investment in mobile search ads, likely due to conversion rates.

4. Paid Social and Video

• Utilizes tools like SEMrush and AdClarity to analyze and optimize ad spend.
• Large investment in video ads, surpassing social and display ads.
• Uses well-produced brand-focused ads rather than typical user-generated content (UGC).

Areas for Improvement

• Struggles with organic video content on platforms like YouTube and TikTok.
• Despite significant ad spend, organic growth on these platforms is limited.

Key Takeaways for Replicating Success

• Core Offering: Competitive pricing, clear target audience.
• Website Design: Focus on capturing customer details and funneling to treatments.
• Search Optimization: Extensive content investment, leveraging backlinks.
• Ad Spend: High budget, creative diversity, and thorough testing.
• Aggressive Scaling: Once a profitable model is found, scale aggressively.

Conclusion

• Hims and Hers has successfully leveraged a comprehensive digital marketing strategy to achieve significant growth and profitability. The company’s approach offers valuable insights into large-scale, effective marketing practices.