According to the esteemed UK publication Marketing Week, the primary media trend for 2019 is growth of owned media monetisation in ecommerce. Zenith predict it will add around $100bn of new money into the global advertising market next year. If it follows a similar path to the one it took in China, it could account for 18% of global ad spend by 2027. The author continues “there is a huge revenue opportunity here for the platforms, and a whole new way for brands to reach customers at the point of purchase”.
Welcome to the party Marketing Week.
Great that owned media monetisation is getting the recognition it deserves. Since founding Sonder 3 years ago to address this very trend, we have seen phenomenal change in the way retailers have been able to reframe themselves as effective media channels for suppliers. The penny is starting to drop all around the world, that if you have customer trust, media channels and proximity to purchase, you are more powerful than any traditional media business.
We see it from suppliers too. Many are now redirecting media budgets out of traditional media channels and into retail media because they are seeing the results. One premium consumer electronics brand saw click-through-rates double and a 10% increase in online sales by advertising on a retail ecommerce website versus ads on traditional media sites.
‘Huge revenue opportunity’ is a reality too, not just an hopeful prediction. We see annual owned media revenues of between $10M and $300M across categories like Retail, Telco’s, Travel and Finance. If your organisation deals with partners and suppliers which see value in your customers, then you’re in business.
A recent white paper entitled The Fresh Start Effect, identified the first few days back after a holiday as the some of the best days of the year to make effective strategic decisions. So take advantage of the slightly clearer January diary and give some thought to how you could leverage your owned media further in 2019.