E-commerce
What’s linear commerce
Brands are producing their own media
When a brand is also a publisher, it is linear commerce. Challenger brands can outcompete bigger brands by becoming a publisher.
As per 2PML: The most viable companies across the digital ecosystem will share a common trait: established, organic audiences. Content and community are core to that outcome. For the well-executed linear commerce brands, retention rates will be high and CAC will be low. The road map is there for the brands looking for a sustainable advantage and improved optionality. Perhaps, the public and private markets will reward more of them.
Linear commerce prioritises audience before generating demand. They focus on loyal and organic audience growth over a period of months and years before launching products. Over the period the cost of acquisition is a fraction of traditional process, while the life time value is high. The publishing is the vehicle, which helps in acquiring customers. Food52 is a successful linear commerce. It publishes editorial content about food and cooking. It also sells food ingredients, food items and events to its audience.
Off-price and luxury retail are two future opportunities for linear retail. With time campaign costs on channels such as Google, Facebook and Twitter will increase as more brands bid for the ads. Thus, developing an audience becomes more important.
