New article: “The Pivot to Owned Commerce”

1. First, the pivot to video. 📽️
2. Then, the pivot to podcasting.🎙️
3. Now, the pivot to subscription. 🖊️

Where will media companies pivot next?

The answer is in the thread below 👇

perell.com/blog/owned-com…
Media companies will pivot to “Owned Commerce.”

Here’s the bitter truth: subscription will only work for a small number of differentiated media companies.

Most media companies don’t have the culture, the personnel or the brand affinity to pursue a subscription model.
What is "Owned Commerce?"

Owned commerce is more than t-shirts and hoodies. Media companies will launch, acquire and license new brands that speak to their target audience.

The publishers of TODAY are the commerce companies of TOMORROW.
Benefits of Owned Commerce:

1. Publishers with organic reach can launch products without paid media.

2. With native shopping experiences, brands can scale fast with relatively low investment.

3. Diversified revenue streams, decreased business risk, and higher revenue multiples
Why is now the time for Owned Commerce?

Advertising costs.

1. Advertising on Facebook became 70% more expensive between 2017 and 2018, while ad spend on Facebook grew 40% during Q2 2018.

2. Cost per click on Facebook is growing 23% month-over-month and 85% year over year.

📈
“Sizable, loyal audiences will be of the most coveted products over the next decade.” - @web

Media companies who pivot to owned commerce have one sizable advantage over traditional DTC players: they know how to connect with their audience better than product-first DTC companies.
Data-savvy, audience aware publishers are armed with a treasure trove of expertise.

They know what types of content people resonate with, what kinds of products people interact with and the frequency with which they do both.

Boom.

There's your competitive edge.
Successful media companies will follow “The Netflix Approach”

1. Create a trusted brand
2. Gain early revenue traction by selling other companies’ products
3. Collect data
4. Create owned products based on data insights
5. Sell those products to your audience
6. Improve products
Here’s the takeaway: Content and commerce are converging.

Publishers who appeal to owned audiences will win the upcoming pivot to owned commerce.

The full roadmap is outlined in this post (co-written with @austin_rief).

Enjoy!

perell.com/blog/owned-com…
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to ᴅᴀᴠɪᴅ ᴘᴇʀᴇʟʟ ✌
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!