- 14 October 2021 08:52
Publishers and Brands name Commerce Content as a revenue driver
Two new reports from impact.com show brands with at least 20 content publisher partners are 2X as likely to see increased revenue and publishers expect revenue from commerce content to grow by more than 50%
impact.com, the leading global partnership management platform, today released two new research reports that reveal key drivers for commerce content and the massive revenue opportunity it presents for digital publishers and brands. Commerce content, published by independent media organisations, allows readers to understand the goods and services promoted by an editorial team.
The reports found that brands with at least 20 content publisher partners are twice as likely to see increased revenue with 65% of brands saying commerce content was an important strategy this year and 40% expect to increase budget in this channel. Meanwhile publishers expect revenue from commerce content to grow by more than 50%. “Driven by evolving consumer preferences, coupled with the diminishing measurability and trackability of ad success, commerce content is commanding a larger share of marketers’ budget,” said impact.com CEO, David A. Yovanno. “This, in turn, opens up unprecedented revenue growth opportunities for digital publishers.”
Commerce Content’s Benefit to Publishers
Impact.com and FORTUNE brand Studio’s report “Commerce content providers and the new digital paradigm” which was conducted with 200 publisher executives from Australia, the US, UK and Germany found that 57% of respondents expect revenue from commerce content to grow by at least 25% each year and one-quarter of them expect an annual growth rate of more than 50%.
Nearly eight out of 10 respondents believe that commerce content will contribute to a larger portion of their publishing revenue in the future and 90% expect online direct-to-consumer sales to grow. They are already seeing solid ROI from their content programs, with 45% of the respondents citing higher total revenue, 41% seeing improved cash flow and 34% having realised increased profit margins.
In addition to revenue gains:
• 45% of digital publishers say that it makes their own brands more recognisable to the public;
• 40% say that their digital content keeps their audiences more engaged and 36% believe that it expands their audiences;
• And more than one-third of respondents say that these relationships have improved because they provide links or offer incentives for directing readers to the brands’ websites.
Commerce Content’s Benefit to Brands
impact.com also conducted a survey of 168 brand users around the world between February and April 2021. The report, “The State of Commerce Content in 2021,” found that 56% of brands work with 10 or more content publishers and that product reviews are the most common format of commerce content, with 86% of brands saying they use it. New product announcements and comparison shopping articles followed closely behind, at 75% and 71%, respectively.
The rise in commerce content has been seen in a variety of ways and it’s clear that it will continue to become a major part of marketing plans with 65% of brands saying it will be part of their marketing strategy for the coming year. As more consumers seek trusted information, brands have an opportunity to prioritise commerce content and not only rebuild lost trust but also to grow revenue and audiences. Additionally:
• Investing in commerce content has benefits. Brands with at least 20 content publishers are twice as likely to see increased revenue than when working with five or fewer.
• Brands in the retail vertical are more heavily invested in commerce content than brands in other verticals. In fact, 53% of retail brands said commerce content would receive increased budget this year (13% above average).
• Brands benefit from increased brand awareness (73%), improved customer acquisition (55%), and revenue growth (49%).
• Product reviews (86%) and new product announcements (75%) are the most common content formats that brands use.
• Commerce content fits into the typical partnership compensation model — given that 83% of brands pay on cost per action (CPA).
With the partnership economy growing, the only way to have a mutually beneficial relationship depends on trust. It’s for this reason that commerce content has become such a major part of the partnership ecosystem and a way for publishers and brands to create a reliable partnership with consumers. To learn more about how impact.com can drive your commerce content programs through their partnership management platform and growing partnership economy, visit impact.com.
# # # ABOUT impact.com
The leading global partnership management platform, impact.com has been transforming the way enterprises manage and optimise all types of partnerships—including affiliates, influencers, commerce content publishers, B2B, and more—since its founding in 2008. The company’s powerful, purpose-built platform helps brands, and publishers and agencies build authentic, enduring and rewarding relationships with consumers by providing visibility across the entire consumer journey. impact.com users are able to aggregate, orchestrate and optimise the total value of the entire mix of partnerships with ease and transparency – driving growth and creating new value for consumers. To learn more about how impact.com’s technology platform and partnerships marketplace is driving revenue growth for global and local enterprise brands such as Canva, Westpac, Big Red Group, Coles, Uber, Shopify, Lenovo, eBay and Booktopia, visit www.impact.com.