13 Aug 2013
When you think of publishers what name comes to mind? Wall Street Journal? New York Times?
What do you think the advertising budget is of the New York Times? If you were a VC, would you fund a start up whose business plan is: get publishers to pay you to advertise their product, and give you their customer list? Oh you also want to know what articles they read.
Sound ridiculous…? This is the world of Card Linked Offers. Think of Retailers as publishers, their shelf space is akin to columns in the newspaper. Starbucks is a great example of a retailer as publisher. They publish physical product (coffee) which they own and control, but also publish virtual product (music) and are a channel for advertising. This is what is behind the Google/Starbucks broadband deal.
Can you imagine asking the New York Times to fund 5% off a big screen TV? Sure they want people reading their newspapers.. but they don’t own the products they publish. The REAL opportunity is for entities to HELP RETAILERS BE BETTER ADVERTISERS. This is what I referred to in Payments enabled CRM. Google and Amazon are the run away leaders here. With Square and Amex a distant second (based upon ability to influence/reach a consumer base).
I love the potential of Social to impact Retailer as publisher. Social advertising (not published), loyalty/incentives for “connectors” and influencers, community reviews, … Facebook has enormous potential here.
Who can help retailers become better “publishers”? Big opportunities for companies that can help retailers improve in the physical channel, compete w/ Amazon in virtual channel, and join the two (mobile at center).