ON NEW MUTUALISM AND MEDIA

It’s increasingly difficult for brands to earn media. A growing number of them are reporting on the compounding effects of a loss of revenue due to decreased affiliate sales. This will force more brands to redirect resources to other forms of creative marketing.

For a number of years, media and commerce operated in a mutualistic manner. For a time, sites like Amazon, Target, and Walmart needed product demand and digital publishers would provide that demand for a percentage of each sale made. It was a win / win. Media could monetize its traffic in new ways and brands could advertise without upfront costs.

Advertising spend is down, non-essential affiliate marketing is on life support, subscription strategies are nascent, and direct-to-consumer commerce is a rarity. Media is being forced to evolve, once more. And so are brands.

With a decrease in discretionary spending and a shift away from non-essential goods, there’s been a redefinition of luxury.

Amazon doesn’t need publishers for demand generation any longer.

It took less than 30 days for Amazon and other top marketplace retailers to punish its media partners. With historic levels of organic demand, there is a diminished need for media-driven traffic.