Spare Me Your Sh*tty Advertising
Part of our series with L2on 09 October, 2015 at 11:10
A winner: Subscription-based retailers of CPG products, which account for three of the six fastest growing eCommerce players. In our recent Digital IQ Index®: Personal Care, we found that the replenishment model is taking over shaving: almost 10% of razor sales now take place online, and Gillette’s web traffic is plunging as Dollar Shave Club gains dominance in search.
Is Jet.com a winner or a loser? The retailer can offer massive savings: when consumers bundle products together and waive the return option, they get a 15% discount relative to Amazon non-Prime customers. But eCommerce is becoming a winner-take-all industry, where the top 10 players earn half the revenue. We predict Jet won’t succeed, but it will be bought by Amazon, earning a happy ending for investors.
This week’s biggest winner is Business Insider. German publisher Axel Springer just acquired the media platform for significantly more than Jeff Bezos paid for The Washington Post. But the publication’s advertising-based revenue model might ultimately be unsustainable.