Content & Commerce:
A New M&A Battleground
Key Highlights
Global e-commerce revenue is expected to reach$5.5 trillionin 2022, with20%of all global retail sales expected to take place online
Rapid growth in U.S. affiliate marketing spend to$9 billiondriving$70 billionin e-commerce sales
Publishers actively focusing on acquisitions to diversify beyond traditional ad & subscription revenues, deepen vertical reach and accelerate growth
Private Equity increasingly seeking to build exposure to the sector with a focus on building scaled platforms, organically and through aggressive buy and build strategies
Content is Driving Commerce
Content
Publishers produce content around transactional topics, but do not capture the purchase
Commerce
Retailers power transactions, but have limited insight into consumer intent and behavior
Large and Growing Addressable Market
Addressable Market Overview
- E-commerce continues to take a larger share of overall sales
- Performance based digital ad spending has been the leading digital ad model representing 67% of spending in 2021
- The retail sector comprises 50% of total performance marketing spend but accounts for 75% of total revenue generated by advertisers
- Performance based marketing reigns supreme as it enables retailers to pay the publishers when a specific action is completed, making it easier to measure, track and attribute success delivering tangible ROI and reducing risk for the retailer
- 16% of all online orders are generated through the affiliate channel
Right now, commerce is the hot, hot thing
Neil Vogel, CEO, Dotdash Meredith
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