Member Brief No. 1: Linear Commerce

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What is the ‘Law of Linear Commerce’? Linear Commerce is a core tenet of 2PM’s understanding of an evolving commerce ecosystem. It is the prioritization of audience. Product manufacturers often outsource demand generation. Brands, that are ahead of the curve emphasize their audience’s growth as much as they do their physical product’s manufacturing. Likewise, digital media publishers that follow these principles will prioritize organic and loyal audience growth over SEO or PPC-driven commodity clicks.

This member brief is designed exclusively for Executive Members, to make membership easy, you can click below and gain access to hundreds of reports, our DTC Power List, and other tools to help you make high level decisions.

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No. 257: Snap Inc. and eCommerce

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Snapchat, Nike, Darkstore and Shopify teamed up to pre-release the Air Jordan III “Tinker” on Snapchat with same-day delivery. There are a few implications to consider here.

In the United States, eCommerce is dominated by consumer search. Product discovery still lags behind. Amazon continues a tried and true discovery mechanism that is currently outsourced to digital publishers (in exchange for affiliate revenue). But a hole in the discovery ecosystem remains. So, leave it to the embattled media company known for discovery to attempt the leap.

Benedict Evans on Twitter

Amazon is Google for products, but we have no Facebook for products.

Perhaps Snapchat is attempting to lean into this role? There might just be a product market fit.

Snapchat’s push into eCommerce is a long time coming and it couldn’t happen at a more appropriate time for the Los Angeles media company ($SNAP). Here’s what Jason Del Rey noted about the the partnership between Shopify and Snapchat for Nike’s Jordan brand:

Over the All-Star weekend, Nike hosted a special concert in Los Angeles, the host city of the game. Attendees were guided to use the Snapchat camera to scan a code displayed on a basketball-hoop backboard to view the new Air Jordan III “Tinker” sneaker in the app.

Guests were then able to purchase the sneaker right within Snapchat with the help of technology from the e-commerce software company Shopify. And most of the kicks were delivered to customers on the same day, thanks to a logistics startup called Darkstore.

@DelRey, Recode (read here)

May 2016’s 2PM Issue No. 46 was entitled “Snapchat, the eCommerce Giant.” It was titled as such because it featured a now-noteworthy article by Maya Kossoff that preceded much of the conversation that you will read about Snapchat’s recent experiment with Shopify and the Jordan brand.

The ability to buy tickets without leaving Snapchat is the biggest coup for Snapchat and Twentieth Century Fox, which placed the ad buy, and it suggests the company is making serious moves toward expanding into the e-commerce space.

@MeKosoff, Vanity Fair (read here)

Snapchat’s potential to combine advertising campaigns with ease of purchase sets itself apart from Instagram who has yet to develop a partnership with Stripe or Shopify. I was excited about that direction before Snapchat focused on their Spectacles campaign. But even with Spectacles, Snapchat began honing the ideas that we’re now seeing.


Here’s what I wrote in 2PM Issue 191 (2017): 

The most successful marketing campaign that Snapchat has led in the last two years wasn’t through traditional advertising, it was through traditional retail and eCommerce. […]  There is a virtuous cycle in modern digital media and eCommerce that shouldn’t be ignored. Consumers want to go where they are influenced to act. And advertisers would be smart to create content in those same spaces.


 

With Jordan, Snap is dipping its toe into the possibility of monetizing just about anything via app-integrated sales channels. Snap openly classifies itself a camera company, rather than a social media app. That’s why it’s explored products like Spectacles, which turned sunglasses into a video camera. And while right now, Snap is only selling one limited edition sneaker drop for Jordan through a live event, it’s easy to imagine Snap leveraging the close relationship that its 187 million daily active users have with its camera to any number of third-party brand partners.

Mark Wilson, Fast Company (read here)

Facebook has done a marvelous job of iterating around Snapchat’s original ideas, all but trouncing the high flying Snap, Inc. Only time will tell if this flavor of content x commerce is another one of those ideas that we’ll find reimagined for Instagram.

Read more of the issue here.

No. 256: Man of the Woods

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Justin Timberlake for Pendleton

DNVB / Media / eCommerce: (1) Justin Timberlake is one of the most talented musicians on earth and he wants to perform well into his 40’s. (2) The music industry continues to evolve and only the savviest artists are appropriately navigating streaming’s economic limitations.

Consider these two assessments when framing what Man of The Woods is all about.

Timberlake is a savvy businessman. So when the initial imagery for his Man of The Woods album released, it was easy to joke a bit about how blatant the merchandising promotion appeared to be. The irony of my earlier tweet was that Timberlake’s evolution is unquestioned. He’s also capable of playing a longer game than most other artists because of his previous, outsized successes.

Web Smith on Twitter

Timberlake and Bruno Mars have identical skill sets. One figured out how to evolve and the other one is making native ads for Filson.

Here’s the Timberlake career arc in a nutshell. Mr. Biel has been that rare and consistent success over three decades of changing music, his outlandish pop-fashion, and mostly-poor haircare decisions. He’s traversed the impossible terrain of American musical evolution:

  • Mickey Mouse Club Member (Ages 12-15)
  • N’SYNC lead (Ages 15-22)
  • Hip hop-infused pop star (Ages 22-33)
  • Jay-Z approved R&B artist (Ages 33-36)
  • The beginning of his latest phase (Ages 37-on)

To better understand Timberlake’s newfound interest in American heritage brands, consider that he is proudly from Tennessee and he was always inspired by the music of the region.  Continue reading “No. 256: Man of the Woods”