Hims and Hers: The Digital Marketing Powerhouse
Hims and Hers is growing incredibly, fueled by one of the most aggressive digital marketing investments I’ve seen. Today, we’re diving into the digital marketing playbook Hims and Hers uses to generate such insane growth. But first, let’s look at some numbers. At the time of this analysis, the last reported quarterly revenue was $41 million, setting a run rate of around $1.2 billion a year in sales. Even more impressive is that the business is growing profitably, with revenue up almost 80% yearly. Think about it: $400 million a quarter, growing at 77% annually. And they’re doing this profitably, having made $76 million in that quarter. Got your attention?
Alright, so how are they pulling this off? The secret sauce: they’re investing almost half of their revenue in marketing. That’s right, not just half their profit, but half their revenue. In the quarter, they generated $400 million and spent $182 million on marketing. They spent more than half of their revenue on marketing a year prior. So you’re probably thinking, “If our business spent half of our revenue on marketing, we wouldn’t be profitable.” Yet, Hims is doing it because their marketing activity is profitable. They put money in and get more out, allowing them to scale aggressively.
Website and Value Proposition
Let’s start with the Hims website. If you’re driving $2 million of traffic per day to a site, it better be decent. The site is simple but effective, built for an audience that already knows the Hims proposition. The simplicity works because of their brand awareness, drawing users straight into their treatment sections, where they undergo a consultation process. The form delays lead capture, making users feel invested, which reduces bounce rates.
The site is essentially a typical e-commerce site with product category pages funneling visitors to product pages. Interestingly, the site layout is mobile-first. The images are large, which seems unwieldy on desktop but makes sense on mobile. This mobile-first approach is particularly smart given the increasing shift towards mobile shopping. As more consumers turn to their smartphones for purchasing decisions, a mobile-optimized site ensures that Hims meets their customers where they are. This strategic design choice not only enhances user experience but also maximizes conversion rates, as mobile users can navigate the site effortlessly.
Search Strategy
The Hims blog, dubbed “Good Health,” is driving around 1 million visitors per month, targeting high-quality keywords. The posts are crafted works of art, reviewed by medical professionals, and embed CTAs for consultations directly within the content. They also use a topic cluster approach, focusing on high-level topics like hair loss with subtopics like “What is a Widow’s Peak?” This strategic content marketing approach not only caters to a wide range of consumer queries but also positions Hims as a trusted authority in the health and wellness space. By providing valuable, medically-reviewed content, they build trust with their audience, which is crucial for a brand in the healthcare sector.
Hims needs a ton of backlinks to rank well, and they’ve got them from high-authority sites like Apple and Healthline. Their organic search strategy is a major traffic driver. Backlinks from reputable sites act as endorsements, boosting their domain authority and ensuring they rank high in search engine results pages (SERPs). This is crucial in a competitive market, as higher rankings lead to increased visibility and, consequently, more traffic. Their ability to secure such backlinks is a testament to the quality and relevance of their content, as well as their strategic outreach efforts.
Paid Search
Hims spends approximately $500,000 per month on desktop paid search ads. A lot of this budget defends their brand name against competitors. Interestingly, they spend less on mobile traffic, suggesting the conversion rate isn’t worth the bid on mobile search terms. This nuanced approach to paid search reflects a deep understanding of their customer journey. By focusing on desktop ads, they target consumers who are more likely to convert in that environment, ensuring a higher return on ad spend (ROAS). Defending their brand name is also a crucial strategy to maintain market share and prevent competitors from siphoning off potential leads.
Paid Social and Video
Hims’ social and video ad strategy is intriguing. Using tools like Ad Clarity, they track how much is spent on ads. Most of their budget is on well-produced video ads rather than UGC-style content. They test various ad creatives to see what works. Although they’re spending heavily on platforms like YouTube and TikTok, their organic content isn’t performing as well. Despite this, their core offering is a winner. It’s competitively priced, and they understand their audience, speaking directly to them. Their branding is strong, and the website is designed to capture leads seamlessly.
Video marketing is a powerful tool for Hims, as it allows them to convey complex information in an engaging format. By focusing on high-quality video ads, they effectively communicate their brand message and product benefits, capturing the attention of potential customers. Additionally, their willingness to experiment with different creatives demonstrates a commitment to optimizing their advertising strategy. This iterative approach ensures that they are constantly learning and improving, ultimately leading to more effective campaigns.
Hims is a master at leveraging content and search, investing heavily in website content, and reaping the rewards through traffic and conversion. Their ad spend is massive, with loads of creative testing and backing winners. Most importantly, once they found a profitable model, they scaled aggressively. This ability to scale is a key differentiator in their growth strategy. By continually reinvesting profits into marketing, they create a virtuous cycle of growth, where increased brand awareness leads to more customers, which in turn fuels further investment in marketing.
What sets Hims apart is their holistic approach to digital marketing. They seamlessly integrate various channels, from organic search and content marketing to paid search and social media advertising, creating a cohesive strategy that maximizes reach and engagement. Their success lies in their ability to adapt and evolve, responding to market trends and consumer behavior with agility and precision. As a result, they have established themselves as a formidable force in the digital marketing landscape.
So, are you ready to ramp up your marketing strategy like Hims? If you’re interested in creating a content strategy that mirrors theirs, check out this Preparing For Secure Retirement Essential Steps Turn Worries Into Confidence to get started. Emulating their approach requires a commitment to innovation, experimentation, and customer-centricity. By prioritizing these elements in your marketing strategy, you can unlock new opportunities for growth and success.
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