Our approach helps unlock new revenue streams for retailers and helps marketers reach the right audiences. It's advertising done better.
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Introduction:
On the "The MarTech Matrix" podcast, Greg Stellato, co-founder of M3, discussed the significant challenges facing specialty retailers and advertisers and how M3’s solutions address these issues. Hosted by Sean Simon, the episode offers valuable insights into the evolving landscape of retail and advertising.
Retailers' Struggles:
"Retail margins are thin, conversion rates are low, and traffic acquisition is high," Greg explained. These factors hinder profitability and growth, pushing retailers to seek alternative revenue sources.
Advertisers' Dilemma:
Advertisers face a cluttered and often ineffective advertising landscape. Consumers experience ad fatigue and ad blindness, training themselves to ignore repetitive and intrusive ads. This makes it harder for advertisers to create meaningful connections with their target audiences. "It’s a race to the bottom for cheap reach, and there aren’t many premium opportunities left," Greg noted.
Using Retailers as a Proxy for Context:
M3 uses specialty retailers as a proxy for context, providing advertisers with access to engaged, dedicated audiences in trusted environments. "We're using these retailers as a proxy for context, offering premium, brand-safe spaces," Greg explained. This allows advertisers to place their brands in front of dedicated customers, ensuring higher visibility and impact.
Eliminating Common Ad Issues:
M3 offers a premium advertising experience with no auto-refresh ads and 100% share of voice. By trading brand equity with established retailers, advertisers benefit from the trust and loyalty these retailers have built with their customers. "Advertisers get a brand-safe, premium experience," Greg noted.
Conclusion:
M3 helps specialty retailers find new revenue opportunities, supporting their growth and sustainability, while giving advertisers access to valuable, dedicated audiences in trusted environments. This approach not only helps businesses survive in tough times but also thrive and reinvest in their growth.
Listen to the Full Discussion:
For more insights, listen to Greg Stellato on the "The MarTech Matrix" podcast, hosted by Sean Simon.
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E-commerce has opened up incredible opportunities for retailers to directly reach customers. However, alongside the benefits, challenges arise, most notably the low conversion rates.
Typically, only about 2% of web traffic converts into purchases. This begs the question: What about the other 98% who browse but don't buy? They represent a significant investment in marketing, site development, hosting, and more—investment that, traditionally, hasn't been monetized by retailers.
At M3—short for "Make Merchants Money"—we see this as a substantial missed opportunity. Co-founder Michael Cassidy shared the philosophy behind our name and approach:
We intentionally started with the name M3 because it felt very authentic. It felt a little cheeky and put a stake in the ground—we have conviction on this idea, and it's really about monetization for retailers.
M3 is pioneering a new monetization channel specifically for e-commerce retailers to tap into the 98% of traffic that doesn’t convert—by facilitating brand advertising and sponsorships on their sites. During a recent episode of the Taking Inventory podcast, Michael elaborated on the rationale behind focusing on this often overlooked segment:
The data I keep going back to is that the average e-commerce conversion rate is 2%. Focus on the 98% who don't buy a thing, who don't put a dollar in your pocket. Yet, you spend money, time, and effort getting them there and keeping them there. You have to monetize that investment.
Podcast host James highlighted the parallel between our model and successful strategies used by mobile app developers:
This more than anything reminds me of just mobile app developers, something that they've known for years—if you're going to pay to get people to download your app, only a very small percent are going to convert to purchase something. The rest have to be subsidized through advertising.
Consider the scenario of shopping for luggage on sites like Tumi or Samsonite; you are likely a traveler. Airlines, hotels, rental car companies, and more would jump at the opportunity to place brand messages in front of this qualified audience. This potential extends across all e-commerce verticals. Michael Cassidy noted the timely relevance of M3's model:
This isn't a novel idea, but it's an idea that's prime for this point in time with inflation, COVID pulling sales forward, rising ad costs, Amazon's marketplace dominance, and overall pressures on being a retailer.
By unlocking this new revenue channel, M3 empowers retailers to convert window shoppers into a lucrative revenue stream. We package this offering as a premium, high-touch branded solution rather than direct response ads, ensuring a seamless integration that respects the retailer's environment and enhances the shopper's experience.
Michael Cassidy's successful track record and the positive reception from retailers signal a promising horizon for M3. As podcast co-host Daniel remarked:
This is your third act, Mike, and the first two went pretty well, so it's a little hard to bet against you at this point.
We're excited to help this vision become a reality for e-commerce retailers.
Listen to the Full Podcast
Want to hear more insights from Michael on the genesis of M3 and the future of brand commerce? Check out the full episode of the Taking Inventory podcast:
The online advertising industry is a data-driven beast, but here's a truth bomb: a lot of that data is riddled with deception. Take cookie stuffing, a sneaky tactic where fraudsters inject tracking pixels into ads, stealing credit for conversions they didn't earn. Cookie stuffing is just one example of a much larger problem: data deception.
Data deception throws a wrench into the entire online ad ecosystem. Here's why:
While human ingenuity can combat data deception, it's like trying to patch a leaky dam with chewing gum. Here's why:
The AdExchanger article highlights this perfectly. According to Jerome Dangu, co-founder and CTO of Confiant, advertisers are misled by inflated traffic data: "So, if an advertiser or an affiliate platform were to look at the data, they would see they have many visitors from thetop3.com and a good amount of conversions," Dangu said. "But what we see at Confiant is that the number of [valid] visitors is essentially made of traffic that is bought on Taboola for very cheap." This inflated traffic creates the illusion of a successful campaign, but the reality is that the conversions are coming from a cheap, low-quality source.
This quote exposes the flaws in relying solely on clicks and conversions as metrics. By focusing on manipulated data, advertisers are missing the bigger picture and potentially wasting their budget.
Let's face it, the whole "last click gets the credit" mentality in attribution is outdated and easily manipulated by data deception. Cookie stuffing is just one example. We need to move beyond these flawed models and consider a more comprehensive view of ad success.
Here's how:
By challenging the attribution fallacy and focusing on a more holistic view of ad success, we can move away from a system easily gamed by data deception.
Data is a powerful tool, but it can't be the only factor in online advertising. By recognizing data deception, employing human ingenuity, and focusing on a more user-centric approach, we can create a more transparent, effective, and ultimately less frustrating online advertising experience for everyone involved. Let's work together to build a better ad ecosystem!
Introduction:
In an episode of the "Marketecture" podcast, M3's CEO Mike Cassidy discussed the challenges retailers face and how M3 offers new solutions. Hosted by Ari Papparo and Eric Franchi, the episode provides valuable insights into the retail industry and digital media along with their hottakes on the Walmart-Vizio acquistion.
The Retail Challenge:
Retailers are under pressure from several fronts, including competition from giants like Amazon, rising customer acquisition costs, and changing consumer behavior. Mike Cassidy highlighted these issues, stating the need for alternative revenue sources for retailers to stay afloat and thrive.
M3's Mission:
M3 aims to introduce an additional revenue stream for retailers. "There's another revenue stream for retailers. There's another way for these companies to make money," Mike Cassidy explained. This approach helps retailers leverage their existing assets - their audience, brand, and digital presence - beyond just selling products.
Beyond Traditional Sales:
Cassidy pointed out that while big players like Amazon and Walmart benefit from retail media, smaller retailers and merchants often miss out. M3 addresses this gap by enabling these businesses to earn from non-endemic advertising, turning their online spaces into profitable platforms.
Conclusion:
M3 is on a mission to help retailers navigate the digital market's complexities by providing them with a new way to generate revenue. This initiative not only helps businesses survive in tough times but also thrive and reinvest in their growth.
Listen to the Full Discussion:
For a deeper understanding of how M3 is changing the retail landscape, listen to Mike Cassidy's discussion on the "Marketecture" podcast, hosted by Ari Papparo and Eric Franchi.
At M3, our mission is straightforward: Make Merchants Money.
Our approach helps unlock new revenue streams for retailers and helps marketers reach the right audiences. It's advertising done better.
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