ON NEW MUTUALISM AND MEDIA

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.

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.

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

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.