Digiday Research: Commerce is now a revenue stream for a majority of publishers
To stay on track during the bumpiest stretch of last year’s pandemic, lots of publishers were forced to focus on simple revenue tactics. Even as things began to open back up, it led to more and more publishers at least giving affiliate commerce a try for the first time, according to Digiday+ research.
In early July, Digiday polled 126 publisher professionals about how their companies make money. The survey presented a list of revenue sources and asked respondents to indicate how much of their revenue came from each, using five options that ranged from “none of our revenue” to “an extremely large portion of our revenue.”
More than 60% of respondents said that commerce represented at least a portion of their revenues, up from around one third just six months earlier. That leap nearly matches a similar one recorded six months earlier, when the share jumped from 18%.
The survey marked the third time Digiday has asked its research panel these questions; it previously asked them in the first quarter of 2020, and the third quarter of 2020 prior to that.
While the respondents — and the exact number of them — in each sample was not identical over time, their composition was similar; in all three samples, Digiday received at least 30 responses from publishers that generated less than $10 million in revenue per year, 30 responses from publishers that generated between $10 million and $50 million, and 30 responses from publishers that generate more than $50 million per year.
To be clear, most of the revenue coming in from commerce remains small. More than half of the respondents who said they generated at least some revenue from commerce in Digiday’s most recent survey described it as a “very small portion” of their revenues. That share remained nearly identical six months earlier. Just 21% of the publishers that make money from commerce — and 13% overall — described it as at least a “large” portion of their revenues.
That 13% was much smaller than the percentages of respondents who described things such as subscriptions (23%) or branded content (32%) as at least “large” portions of revenue.
Commerce was one entry on a short list of emerging or incremental revenue streams that grew for publishers during the first half of this year. While the pandemic’s unique set of circumstances significantly accelerated lots of digital consumer behavior, it seems to have had a less-than-ideal effect on publishers’ revenue diversification efforts.
How social media managers are coping with the Twitter debacle
Twitter – once a stable and trusty workhorse for social media strategists – now resembles the most wildly unpredictable social platform in the marketing arsenal.
‘A big reset in 2023’: After Big Tech’s mass layoffs, job candidates face intense competition
Recruiters report that 'we've never seen a market quite like this' as tens of thousands of employees flood the market.
Member ExclusiveMedia Buying Briefing: Which media will buyers turn to in a soft local market in 2023?
Traditional media including broadcast and print are expected to be hit hard by revenue losses. What will save local from a deeper downward trend next year will be local ad spending on digital, digital out-of-home (OOH) media and connected TV.
SponsoredWhy cookie deprecation is deflating performance and inflating costs for advertisers
With the full deprecation of third-party cookies on the horizon, advertisers and publishers are navigating a challenging and quickly evolving landscape. The sunset of the third-party cookie continues as usage and lifetimes fall. Their deprecation is preventing brands from effectively measuring the effectiveness of media campaigns in real-time at highly granular levels. As the industry […]
Inside one media company’s strategy to monetize the Fifa World Cup
Soccer media business Footballco has spent most of 2022 trying to make hay while the sun is shining.
Publishers continue to evaluate cost-cutting in Q4, with economic and budgetary pressures mounting
The wave of cost-cutting measures in Q3 is still flowing into Q4, with publishers under pressure to keep expenses down at a time of continuing economic uncertainty and budget planning.