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What are the marketing costs for the following 10 mattress brands: Leesa, Saatva, Brooklyn Bedding, Keetsa, Helix Sleep, Bear Mattress, Purple, Ghost bed, Loom & Leaf, Cocoon by Sealy?
Hello! Thanks for asking Wonder about the marketing costs for Leesa, Saatva, Brooklyn Bedding, Keetsa, Helix Sleep, Bear Mattress, Purple, Ghost bed, Loom & Leaf, and Cocoon by Sealy.
In short, after searching extensively through financial reports, news articles, and advertising industry portals, I’ve determined that the information you requested is not publicly available because most of the companies in question are privately-held and not obliged to share their financial data. Also, many of these companies are very young and appear to have limited advertising and marketing budgets. However, I was able to learn that many of the companies you are interested in rely heavily on word-of-mouth, positive reviews, social media, and online marketing efforts to promote their mattresses. Below, you will find the results of my research, along with my methodology.
METHODOLOGY
I began my research by determining if any of the companies in question were publicly held, as those would be the only companies with available financial statements. The only public company on the list is Sealy, which was acquired by Tempur-Pedic in 2012. However, aside from compensation data for their top marketing executive, details related to their marketing budget were not available in their public financial statements. Also, Loom & Leaf is a brand owned by Saatva, rather than being its own company. Then, I began searching for news articles that might make some mention of the marketing or advertising spend for these companies. I also looked for any news references to advertising agencies of record for these companies. Despite an exhaustive search, I found little specific data on how these companies use their marketing dollars, but I have provided as much detail as possible. Since the granular detail you requested is not available, I chose to forego the requested spreadsheet and provide an overview of the information I found below.
SEALY
The only public company in your request, Sealy was purchased by Tempur-Pedic in 2012 for $242 million, becoming Tempur Sealy. That year, Sealy spend $30 million on a new advertising campaign to promotes its new Optimum gel bedding and its flagship Posturepedic brand.
Tempur Sealy's 2014 advertising spend was approximately $327 million. Their 2015 proxy press release notes that Sealy's advertising spend from 2004-2011 was only "$99 million on direct advertising," while Tempur-Pedic spent over $750 million during the same time period.
Sealy's 2016 financial statement does not offer details on the company's advertising or marketing spend, but it does provide compensation data for its EVP and Chief Marketing Officer Jay Spenchian, whose total compensation package is worth $2.4 million.
While it does not provide any figures, a January 2016 article at Fibre2Fashion states that Tempur Sealy plans to "significantly increase advertising commitment to support each of its powerhouse brands; Tempur-Pedic, Stearns & Foster and Sealy." The plan entails an increase of "more than one billion media impressions" over the previous year. It will also triple the 2015 media impressions and for Tempur-Pedic. Celebrity endorsements are also part of the expenditure.
LEESA
A Bloomberg article makes a subtle reference to Leesa's lack of advertising, stating, "David Wolfe, founder and CEO of Leesa, isn’t even spending much on marketing at the moment." Leesa's content marketing partner Taboola published a blog post it which it states that it helped Leesa develop a plan for reaching their potential customers by using predictive analytics, which helped them target and capture visitors to their site. The plan resulted in "a 5.7x return on ad spend over just seven months."
According to referral partner Referral Candy, Leesa leverages positive reviews from users, as well as unbiased reviews from mattress industry experts, to target their advertising spend to boost customer referrals. ReferralCandy offers three pricing structures with the highest being "$195 per month or 1.95% of referral sales," so determining exactly how much Leesa might pay for this referral program is difficult to assess, but they would pay at least $2,340 per year at the monthly rate.
Leesa's agency of record is R2G Group, but details on their spending with the company was not publicly available. Their advertising campaign includes :30 and :60 second TV spots and focuses on mattress innovation and technology, as well as social media.
Leesa is also incorporating email marketing, generating revenue from the 2.4% of online traffic it sees directly from its email campaigns. DemandJump suggests that Leesa's 300,000 visitors generated from email marketing could account for as much as $2 million in revenue.
SAATVA / LOOM & LEAF
A Fortune article notes that Saatva has relied heavily on "word-of-mouth recommendations and stellar online ratings that highlight the company’s commitment to customer service," which have assisted the company's skyrocketing sales. The company's chief marketing officer and cofounder Ricky Joshi notes that many larger companies spend more on advertising than their products, while Saatva leverages glowing reviews from sites like Google, PriceGrabber, and Goodbed. Saatva, along with many next-generation mattress companies, are "highly invested in advertising on Facebook and social media in general."
BROOKLYN BEDDING
John Merwin, CEO of DreamFoam Bedding, which owns Brooklyn Bedding states in an interview with CPC Strategy that his company also leverages positive customer reviews in their advertising efforts, noting the the company does "a lot of advertising on Facebook and Instagram."
KEETSA
I found virtually no information on Keetsa's advertising or marketing efforts. One blog post suggests the company does no advertising, but I believe that post may be a few years old. However, I've also found several references suggesting that Keetsa's advertising is "greenwashed," claiming a degree of eco-friendliness that is not accurate. However, after an exhaustive search, I found no other useful references to Keetsa's marketing efforts.
HELIX SLEEP
Founded in 2015, Helix Sleep is a relatively young startup and doesn't appear to have a hefty advertising budget. However, it recently raised "$7.35 million in sequence A funding," which board member Jordan Hitch says the company will use for hiring, manufacturing, and advertising and marketing efforts. According to DemandJump, Helix Sleep is earning 1.3% of its total online traffic through email marketing, which has proven a significant revenue generating source.
BEAR MATTRESS
According to a Forbes article, Bear Mattress founder Scott Paladini depends largely on positive customer reviews, as well as "digital radio ads and podcast advertising to spread the word," as part of his limited advertising efforts. He began the company by sending samples to mattress review websites to bolster sales. Bear Mattress, which was founded in September 2015, is a one-person operation, but Paladini is considering hiring staff. Apparently, Senior Marketing Manager is one position for which he is currently hiring. According to the Forbes article, he does have contracts with public relations and digital marketing firms, but financial details were not available. Paladini also focuses on mobile first advertising, noting that half of his sales come from phones or tablets, and 85% of online visitors are on mobile devices.
PURPLE
Purple has successfully used video marketing to promote its brand. Its main video ad, which is designed specifically for online dissemination, has garnered over 1.3 million YouTube view, 6.5 million Facebook views within a few weeks. According to an article at DemandJump, Purple has also done well with content marketing, seeing a strong boost in their organic search engine results over the course of 2016.
GHOSTBED
A company press release states that GhostBed was the first Chicago-based advertiser for Wrapify, a car wrap advertising company. The article does not provide any financial details, but it states that the campaign will last for 36 months and will feature 50 wrapped cars with GhostBed messaging. An article at PRWeb states that the company has expanded this advertising partnership with wrapped cars in New York and South Florida, but no dollar figures are offered. However, another article notes that GhostBed planned to spend more than $1 million on the Wrapify platform by the end of 2016.
The aforementioned press release also mentions that GhostBed is a Cubs CBS Radio Network partner. But again, no financial data was disclosed. However, the partnership "will include joint promotion and marketing throughout the CBS Cubs Radio Network including their publication VineLine, and will feature game day commercials, live ID billboard and exclusive sponsorship of the Cubs pitching change in game feature in the broadcast."
An article at Facebook Business quotes Marc Werner, CEO and founder of Nature's Sleep and GhostBed, as saying, "Facebook has become the primary channel for our marketing efforts. Whether we are launching new products, talking about a customer’s experience or simply adding valuable content to our Page, it would be impossible to replicate the same effectiveness on any other channel." The article states that GhostBed's ongoing Facebook campaign, which began in December 2015, has enjoyed:
• 5X return on carousel ad spend
• 2.25X lower cost per lead compared to previous Facebook campaigns"
ADVERTISING RECOMMENDATIONS
• Leverage SEO and content marketing to increase organic search results.
• Implement email advertising for remarketing and lead generation.
• Use native advertising, via news websites and blogs, to drive traffic.
SUMMARY
To sum up, specific details on the advertising and marketing spend for the requested mattress companies proved largely elusive; however, many of these companies are very young and rely heavily on word-of-mouth, positive reviews, social media, and online advertising.
Thanks for using Wonder for your research needs! Please let us know if we can be of further assistance.