Two DTC Startups Balance Paid and Organic Marketing

By Lauren Mitchell 30/05/2026 2 min read 50 views

Two direct-to-consumer startups, Ernesta and Tractive, are navigating the same challenge: how to balance paid and organic marketing in a tough economic climate. Ernesta, a made-to-order rug brand founded in 2022, operates in a saturated market where competition is fierce. Tractive, a pet-tracker company launched in 2012, battles a different hurdle—raising awareness for a category most U.S. pet owners don’t even know exists. Both companies shared insights during a May 21 panel at The Lead, moderated by Modern Retail, revealing strategies tailored to their unique industries.

Ernesta’s president, Alan Smith, described the rug market as one where customers take time to decide. Custom-sized rugs, priced between $300 and $2,000, require extensive consideration. Prospective buyers often consult design assistants, request samples, and use virtual sizing tools. This slow conversion process means Ernesta can’t rely on aggressive performance ads alone. Instead, the brand focuses on building long-term relationships, prioritizing brand equity over short-term discounts.

Smith emphasized the importance of education in Ernesta’s marketing. Collaborations with interior designers and creators help showcase how rugs fit into different spaces. However, the brand avoids mass gifting products to influencers, as its made-to-order model limits such tactics. Balancing content for different audiences remains a challenge. The brand continues to refine its approach to reach new segments effectively.

Tractive’s approach contrasts sharply with Ernesta’s. The pet-tracker company’s business model relies heavily on recurring revenue. Bleiman, the company’s executive, highlighted that the model ensures long-term profitability. The company also faces challenges in educating consumers about the value of its subscription-based services. This requires consistent messaging across all customer touchpoints.

The company has leaned on niche creators to expand its reach. Partnerships with influencers in the pet care space have helped introduce the service to new audiences. However, maintaining these relationships requires ongoing investment. The company is also exploring new channels to increase brand visibility without compromising its core values.

The company has expanded its partnerships to include both online and in-store experiences. Collaborations with pet retailers have allowed it to demonstrate the product’s benefits firsthand. This hybrid approach has proven effective in building trust with skeptical customers. The company plans to scale these efforts in the coming months.

Looking ahead, both companies are investing in technology to enhance their offerings. Ernesta is developing AI tools to personalize customer interactions, while Tractive is exploring new features to improve user engagement. These innovations aim to create more seamless experiences for customers. The focus remains on delivering value while maintaining long-term sustainability.