Issue No. 209: Amazon wants to dress you

Amazon has a much richer dataset of user intent and purchase data to target users than FB or Google. They already dominate product search today and I would bet that Amazon can be the disruptive force to challenge AdWords. Their flywheel is second to none.

– Anthony Soohoo

This was a good quote. Though focused on eCommerce, 2PM covers online publishing and advertising for this reason. Big or small, the brightest eCommerce groups borrow from the brightest in media and vice versa.

Here is a great smaller-scale example: MindBodyGreen ramps up eCommerce.

Amazon’s growth as an eCommerce company is tied to its growth as a publisher. As such, Amazon’s advertising business will eventually thrive as Bezos has invested in streaming, digital magazines, and owning most of our consumer lives. The intent to buy is a powerful indicator of success and stateside, it’s harder to find a place with more consumers willing to spend money than Amazon.

Their advertising platform will eventually disrupt Google’s Adwords and Facebook’s Newsfeed for this very reason. Whereas “eyeballs” determined the last 25 years of tech growth, cart conversions will determine the next 25 years. The great digital businesses understand that this is the foundation. Amazon and Alibaba are building commerce-driven ecosystems where eyeballs and clicks aren’t enough. Retailers have no choice but to reward them for sales efficacy with higher margins, increased leverage, and more ad spend.

While there are only a few corporations that will achieve Amazon or Alibaba’s magnitude, there is an estimated 35-40% of the global market (2020) that will be available to younger businesses that cultivate a community of well-intentioned, connected, and entertained buyers.

 See more of the issue here.

Issue No. 205: That’s one way to get clicks.

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That’s a lot of selling up there. And apparently, it works.

Goop’s Elise Loehnen would be a very interesting coffee meeting. Prior to serving as the VP of marketing & creative services for Shopzilla, she was editor at the following publications: Lucky Magazine, Conde Nast Traveler, and Seek. She has been the Head of Content at Goop for three years. She seems to have made  quite the profitable jump from pure journalism to lifestyle content (albeit with a strict editorial policy).

The most well-positioned sellers (large or niche) are the ones where its consumers are focused and eager to buy. The more unapologetically focused the brand is on its demographic, the more effective the pitch. Take it from Los Angeles’ Eckhaus Latta, who’s never seen more attention than they have today (very NSFW).

As a media group, Goop isn’t far behind Eckhaus on the unapologetic appeal curve. And it seems to be working wonders for its audience.

So here are the fundamentals of the Goop operation:

  • The editorial site is hosted on WordPress
  • The eCommerce operation is cloud-based (Shopify)
  • Ads are optimized by Dynamic Yield.

The group achieves 1.2M monthly uniques and does a rumored $4M per year in higher margin eCommerce and another $2M in lower margin affiliate sales. In short, the site is built to sustain on a niche following:

When you’re a Goop-ert (what Goop newsletter devotees call themselves, I would think), your days are likely filled with a packed schedule of facial and vaginal steaming, several hours of vegetable chopping and zoodling, followed by an evening of sipping alkaline water out of a wine glass while cradling a jade egg in your perineum. It’s an exhausting life, but a full one, and yet still—something’s off. According to Goop, that something isn’t caused by the crushing sameness of everyday wealth; it’s actually due to to a vitamin deficiency.

Joanna Rothkopf, Managing Editor of Jezebel
Paltrow and her team seem to be getting closer to making the Goop product a cashflow positive community. They are breaking the rules of commerce and journalism and making new ones in real time. The Goop-ert’s aren’t mad about it.

See more of the issue here.