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. 252: 10 to Observe in Content and Commerce

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She who controls supply and demand will rule the internet. Publishers are recognizing that they must become whole ecosystems to thrive and commerce is a key component (again).

The ‘content and commerce’ movement was supposedly dead when Ben Lerer (Thrillist) and Jason Ross (JackThreads) chose to part ways. With this failure (hint: it really wasn’t a failure), it emboldened many in publishing to proclaim that commerce didn’t work.

Across newsrooms, from coast to coast, many publishing executives ignored investing in eCommerce between 2014-2017. Affiliate marketing teams were prioritized over ad sales teams and as a result, well-written articles went from literary showcases to collages of products to purchase.  As ad sales continue to dwindle and affiliate sales remain on shaky ground, many of the healthiest digital publishers had a paradigm shift of sorts:

  • How do we gain independence from platforms like Facebook?
  • How do we hedge against falling ad sales and a weakening affiliate market?
  • How do we foster community within our readership?

For many non-subscription and subscription digitals alike, merchandising has been used to address each of these questions. By building community, publications become a destination. Digiday covered this phenomenon, “The story behind that New Yorker tote bag.”

The must-have signifier of urbane sophistication in 2017 wasn’t Yeezys or torn jeans. It was a tote bag that The New Yorker gives to new subscribers.

The bag itself isn’t new — it’s been a gift the glossy has given out since 2014 — but thanks to Donald Trump and an iconic design, the bag became a hit. The magazine’s marketing department has distributed over 500,000 of them to new subscribers and existing ones, who soon started asking for bags of their own.

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