By Adam Sherman, Managing Director, Air Business Group
With the shift in consumer trends driving print sales and ad revenue down, it is no secret that publishers are looking for new ways to generate income. One response is to develop a retail (and in particular etail) offering to build on their brand equity and secure future revenues.
It seems to me that while advertising may not
be bringing value to consumers, they are looking for more product information
not less. On one hand the Internet Advertising Bureau UK says that at least 22%
of adults use an ad blocker. But according to Retailing
Today, over 80% of
consumers are researching online before
making a purchase.
The possibility to put offers into the right
context within editorial or selling extended editorial content such as books,
DVDs or brand merchandise are two of many options publishers have to leverage
their brands and content.
By bringing value to both readers and publishers, comtent (commerce-related
content) is already a profitable source of revenue for publishers looking to
exploit their brands. Daily Mail cruises are reported as having an annual
revenue in excess of £5 million. Men’s Health have launched a range of supplements, MH Vitamins, endorsed by professional sportsmen and Time Inc. UK have recently launched
Powder. And with 74% of women saying they want to buy items they have seen in a
magazine or an app, Vogue, Harper’s Bazaar and Cosmopolitan have introduced
shoppable content.
However, eCommerce presents particular challenges as well as
opportunities. Whether publishers are offering single product sales, branded
merchandise or rewards from a loyalty programme, there is still a need to
physically deliver these products. Publishers thus need to consider both
domestic and international fulfilment and distribution solutions.
My experience working with eCommerce clients as well as publishing ones
has reassured me that the importance of having a trusted distribution partner
cannot be overemphasised. Time and time again I hear from new etail clients how
late deliveries, careless product handling, poor returns management and limited
parcel traceability from their previous suppliers have caused serious damage to
their brands’ reputation. Of course, this reputation can be saved - something I
have seen first-hand with our clients. But such damage does take a lot of time
and investment to undo. Therefore, my one piece of advice for publishers
branching out into the eCommerce market would be to invest time and careful
attention in getting your logistics solutions right the first time round to
avoid damage-limitation later.
You don't have to take my word for it when I say that Air Business can really deliver for etail businesses. As one of our eCommerce clients, Yours Clothing have said: "working with Air Business has helped us to identify significant cost and labour
efficiencies that deliver a positive ‘return on investment’. Their advice and
guidance on cross-border eCommerce has helped us to streamline our operations
and re-deploy operational staff to front-line activities"
As an industry, we are witnessing the early stages of retail and media convergence;
a trend which, I believe, will continue to gather pace. As this new market
matures, interesting and profitable opportunities to build on the heritage of
your media brand are there for the taking. In terms of distribution, you have a
partner in Air Business with the expertise to help you grasp these new opportunities.
With 30 years’ experience in publishing and as a long-term strategic partner of the PPA, we are committed to the industry and its future. Having also worked with eCommerce customers, we are uniquely placed to support publishers as media and retail move closer.
With 30 years’ experience in publishing and as a long-term strategic partner of the PPA, we are committed to the industry and its future. Having also worked with eCommerce customers, we are uniquely placed to support publishers as media and retail move closer.
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