Publishers and brands have named commerce content as revenue driver

David A. Yovanno, Chief Executive Officer, impact.com

impact.com, the leading global partnership management platform, released two new informative research reports that reveal essential drivers for commerce content and the massive revenue opportunity these present for digital publishers and brands.

Commerce content, published by independent media organizations, allows readers to understand the goods and services promoted by an editorial team.

The reports released 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% expecting to increase budget in this channel. 

Meanwhile, publishers expect revenue from commerce content to grow by more than 50%. 

David A. Yovanno, CEO of impact.com had the following insights.

“Driven by evolving consumer preferences, coupled with the diminishing measurability and trackability of ad success, commerce content is taking a larger share of marketers’ budget.”

“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 had the following highlights.

“Commerce content providers and the new digital paradigm” which was conducted with 200 publisher executives from major economies such as Australia, the US, UK and Germany.

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%. 

Eight out of ten respondents believe that commerce content will soon contribute to a larger portion of their publishing revenue and 90% expect online direct-to-consumer sales to grow.

The report shows solid ROI from their content programs, with 45% of the respondents citing higher total revenue, 41% improved cash flow and 34% increased profit margins.

The report also showed these additional benefits to publishers

  • 45% of digital publishers say that it makes their brands more recognizable to the public.
  • 40% say that their digital content keeps their audiences more engaged and 36% of the survey respondents also believe that the digital content expands their audiences.
  • 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 conducted a survey of 168 brand users globally from February to 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 to gauge customer input.

The report also found that brands also rely on new product announcements and comparison shopping articles as options, at 75% and 71%, respectively for commerce content.

The recent rise in commerce content has been seen in a variety of forms and it’s clear that it will continue to become a major jigsaw of marketing plans with 65% of brands saying it will be a major part of their marketing strategy for the coming year.

As more consumers seek trusted information, brands have an opportunity to prioritize commerce content and not only rebuild lost trust but also to grow revenue and audiences.

The report also showed these additional benefits to brands

  • 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 reported that commerce content would receive an increased budget this year (13% above average). 
  • The report showed that brands also benefit from increased brand awareness (73%), improved customer acquisition (55%), and revenue growth (49%).
  • Furthermore, product reviews (86%) and new product announcements (75%) are also still among the most common content formats that brands use. 
  • Finally, the report showed that commerce content fits into the typical partnership compensation model, given that 83% of brands pay on a cost per action (CPA).

With the partnership economy growing, trust is the only way to have a beneficial relationship.

It’s for this reason that commerce content has become a major part of the partnership ecosystem and a way for publishers and brands to create reliable unions with consumers.