Thinks Out Loud: E-commerce and Digital Strategy
The platforms sending you customers today are systematically making themselves indispensable… and charging you more for that privilege every quarter. Organic channels are down 20–30% for many companies, across a wide array of industries. For many companies, paid channels are up 40–85%… or more. The businesses absorbing this shift aren’t “failing companies” making “bad decisions.” They’re led by competent marketing teams following a playbook that used to work, slowly trading margin for traffic while their revenue numbers give them no reason to look closer.
Today’s episode is Part 1 of a 3-episode series on what it actually costs when you don’t own your customer and what you can do about it.
Key Insights for Strategic Leaders
In this episode, Tim Peter breaks down:
Related Episodes
Tim Peter has written a new book called Digital Reset: Driving Marketing Beyond Big Tech. You can learn more about it here on the site. Or buy your copy on Amazon.com today.
Past AppearancesRutgers Business School MSDM Speaker: Series: a Conversation with Tim Peter, Author of "Digital Reset"
Free DownloadsWe have some free downloads for you to help you navigate the current situation, which you can find right here:
Contact information for the podcast: podcast@timpeter.com
Technical Details for Digital ResetRecorded using a Shure SM7B Vocal Dynamic Microphone and a Focusrite Scarlett 4i4 (3rd Gen) USB Audio Interface.
Running time: 18:16
Transcript: The Real Cost When You Don’t Own Your Customer — Part 1 of 3Organic channels are flat to minus thirty percent year over year. Paid channels are up forty percent or more, often a lot more. I talked with a business the other day that saw organic traffic plummet by over forty percent, and even more importantly, their revenue fall by more than thirty percent.
Even some businesses I know who are having great years, we’re seeing the same story hold true. One client of mine is having a massive revenue growth this year. They’re up over twenty-five percent year on year. They’re just paying for more of that revenue than ever before.
Big Tech gatekeepers are closing the gates.
As I talked about here on the show a couple of weeks ago, Google recently reported its most profitable quarter ever. Meta reported revenue growth of thirty-three percent. Amazon’s advertising services group grew twenty-two percent year on year, and over the last twelve months, it’s generated revenue of over seventy billion dollars. Almost all of these Big Tech gatekeepers’ growth was driven from companies like you.
Hell, Meta even acknowledged that their price per ad grew twelve percent in their most recent earnings call. None of these companies are admitting that they’re charging more on earnings calls. They’re bragging about it.
In many cases, not only are companies I talk with paying more to folks that they’ve worked with for years, they’re often paying for traffic and conversions that they never had to pay for before. Look at the continuing growth of metasearch for hotels. That has eaten into organic search in a big, big way. Similarly, the increasing budgets for paid social and creator partnerships have largely taken the place of...