Casper Sleep has been one of podcasting’s biggest advertisers during the last several years as the online mattress company leveraged scores of live-read ads to promote its brand. Now as the company prepares to go public, newly filed documents with the Securities and Exchange Commission reveal just how much Casper has been putting toward marketing. The company says between Jan. 1, 2016 and Sept. 30, 2019 it spent $422 million on marketing. And as Casper was gearing up for the IPO, it also increased its spending on marketing. During the first nine months of 2019 it spent $113.9 million on marketing compared to $92.7 million during the same period in 2018, a 23% increase.
“The success of this strategy has helped us build our brand into a household name and created a large and highly engaged consumer following,” Casper tells potential investors in the filing. It points out it now has 31% aided brand awareness, according to the YouGov BrandIndex. That translated to an estimated 49 billion earned media impressions based on media mentions of Casper, including about one billion from social media chatter. And while many spoofed Casper’s ubiquitous presence on social media, the company says 80% of its engagement or mentions were positive.
A big reason Casper has spent so much on podcast ads and other forms of marketing is because it relies on buying other company’s products and then reselling them at a profit. Casper tells investors it wants to start manufacturing more of its own products, something that could mean it wouldn’t need to funnel so much of its profits back into marketing. But marketing has also allowed the company to grow. Casper said for every dollar it spends on marketing it receives nearly three dollars in revenue. The company had $357.9 million in revenue in 2018, up from $250.9 million in 2017. It had $312.3 million of revenue through the first nine months of last year, up 20% from the same period in 2018