Finding additional revenue streams is important for retailers. Companies are finding it harder to meet consumers’ expectations through the traditional models. Bringing in revenue through new ways can help propel brands to the next level. One path that some retailers are exploring is content monetization.
Content monetization is the act of making money off of content that you create. The world of content monetization is changing thanks to developments in technology and advancements in digital advertising. Previously, monetization was done primarily by third parties; however, platforms like Instagram and TikTok are opening up premium features to allow for seamless checkout experiences. Here are a few ways that retailers in particular are monetizing content in innovative ways.
Personalized Content Experiences
Consumers today expect brands to know what they are looking for. They want the brand to understand their concerns and anticipate their needs. This is a big ask for retailers, especially in a crowded marketplace with everyone fighting for customer loyalty and retention. However, the sheer amount of data available to businesses makes it easier to pinpoint audiences and specific demographics. Brands can leverage this data to create tailored content and messaging for different sets of audience profiles.
Amazon is a great example of delivering personalized content experiences. Amazon Prime members who log into their account will have a different homepage based on their recent purchasing history and search results. This customized page includes product recommendations, enticing consumers to buy more from the retailer. Netflix also delivers personalized content derived from users’ watching history; the streaming service may recommend a new comedy to someone who recently viewed a romantic comedy in its entirety.
One way that brands like Amazon and Netflix are achieving these personalized experiences is through commerce media. A form of digital advertising leveraging first-party transaction data, commerce media knows what consumers are buying during their purchase journey. The data is aggregated, providing companies with a comprehensive view of consumers’ values and interests. With these insights, retailers can build advanced targeting and ensure their content messaging is reaching the right consumer at the right time.
Live Shopping Streams
Nearly 60% of consumers prefer shopping online as opposed to visiting a brick-and-mortar store. But just because the majority of consumers like to shop from the comfort of their own homes doesn’t mean they aren’t looking for an engaging experience. Live shopping streams, sometimes referred to as Livestream social commerce, is a modernized version of the QVC live television shopping method. Products or services are displayed as brands or influencers “go live” on platforms like YouTube, Instagram, or Facebook. Users can purchase directly from the platform without having to visit the brand’s site.
Live shopping streams are a form of content monetization as they allow for purchases as the live stream is occurring. And because the video is “live,” many browsers feel a sense of urgency to purchase immediately. This is especially true if the retailer is offering a specific discount or promotion for those tuning into the video.
A live shopping stream turns shopping into a collaborative experience where users can engage directly with the brand and other consumers. This is a benefit to retailers as they can answer questions in real time. Brands with more complex products can host product demonstrations, taking viewers into how the product works and explaining the benefits of it. Retailers that frequently use love shopping streams as a source of content monetization are also building a sense of community. Consumers will begin to form bonds with the brand, increasing loyalty and retention.
Subscriptions
Consumers want premium content. They want to be part of an exclusive, limited-access community. And, of course, they want it in a convenient, easy-to-access, and managed way. For these reasons and more, subscription-based models thrive for both buyers and retailers. Consumers are given content tailored to their individual needs while brands gain a better understanding of their loyal fans.
Subscriptions are a growing category in the business world and are expected to grow to over $2 billion by 2028. With revenue stability, subscription-based e-commerce models allow companies to be more agile and flexible in their offerings. They can experiment more to test what their most dedicated consumers like before bringing it to the masses.
There are plenty of examples of successful subscription models. One is Thrive Market, an online grocery store selling organic and healthy products. This members-only subscription model means that customers must first sign up for a monthly or yearly membership before buying from the brand. Subscribers also have access to blogs and recipes, many of which highlight Thrive Market’s product offerings.
Subscription-based models can also include exclusive access to content like product reviews, roundups, webinars, and other personalized recommendations. Brands that can capitalize on generating subscriptions for their goods and services in addition to their content are positioning themselves well.
Conclusion
Content monetization isn’t a new concept for retailers. However, there are more possibilities due to new tools and platforms that enable retailers to explore how they monetize content in new ways. Personalized content, live shopping streams, and subscription-based models are just three examples of newer methodologies. Retailers should continue to explore and experiment with various content monetization strategies to stay ahead and set themselves apart from competitors.
