NBCU Uses PayPal to Help Drive TV Audiences to Online Store
Will legions of remote viewers start to think of their decoder or broadband hub as a kind of shopping cart?
NBCUniversal has entered into a partnership with PayPal which it says will facilitate and accelerate the relatively new concept of buying items suggested by TV shows, as part of a growing bid by the Comcast-owned media conglomerate to generate new revenue. at a time when the solicitation business TV advertising is changing.
After launching e-commerce efforts earlier this year on its cable network Syfy and in October on Spanish-language broadcaster Telemundo, NBCUniversal now intends to use a PayPal payment system to help consumers purchase products. in a market of over 60 retailers who will be able to report the products to various appropriate forums across its media holdings. As part of this agreement, PayPal will highlight the gift guides available online on Bravo, E !, NBC Sports, Syfy, Telemundo and “Today” and in TV segments available during programs such as “LatinX Now”, “Un Nuevo Dia,” “En Casa con Telemundo,” “SyfyWire After Dark” and “Daily Pop” on E!
“Our mindset is that we want to open NBCU as a new storefront for retailers of all kinds, and give them access to sell direct to passionate fans,” said Josh Feldman, executive vice president of NBCUniversal and responsible for marketing and advertising creation, in an interview.
More and more media companies skilled in the field of transmitting dramas, comedies, news and sporting events to viewers hope to exploit the new interactivity available through mobile and broadband technology and create industries. very different activity from those that originally helped them develop. Fox Corporation, for example, has formed Fox Bet, a mobile sports betting partnership operated in conjunction with Flutter Entertainment, the parent company of popular online betting platform FanDuel, which it hopes will inspire viewers to get more involved in sports matches and even live news events.
NBCU’s technology allows consumers to make purchases through links found in social and branded content or by scanning a code that appears onscreen with a smartphone, an action that takes them to a online shopping portal. line where they can make a purchase. Seeing the product highlighted during a TV moment is expected to inspire viewers to look for a way to close the deal.
Developing an e-commerce business could give the business a different line of cash, as advertisers put a new emphasis on streaming video hubs, which traditionally show fewer ads than their linear TV counterparts. Like other television companies operating during the coronavirus pandemic, NBCUniversal faced a difficult ‘initial’ ad sales negotiation in 2020 that offered lower anticipated ad engagement volume than in previous years. “We ended up slightly higher on price, slightly lower on volume,” said Jeff Shell, CEO of NBCUniversal, speaking on a recent call with investors, noting that recent ad sales were motivated by “instability and decline”.
The e-commerce business joins activities overseen by Linda Yaccarino, president of global advertising and partnerships at NBCU, who has been tasked with creating a new data strategy for the large media company. Tracking purchases of goods over media networks and windows would give the company a new flow of consumer information that could aid in this initiative.
Participating companies include Our Place, a maker of kitchen utensils, and Koio, a maker of luxury leather sneakers. NBCU’s Feldman believes some NBCU talent may be involved as well, particularly in the case of reality show attendees who have branched out to sell their own products. Craig Conover of the Bravo “Southern Charm” series sells pillows and other products through his Sewing Down South, which will also participate in the shopping adventure.
Executives believe consumer acceptance of this new shopping technology will be “accelerated” by the pandemic, Feldman said. The company estimates that retailers, consumer product marketers and direct-to-consumer businesses spend more than $ 50 billion on commerce enabled by social sites such as Google, Amazon and Facebook. Marketers allocate more than 40% of their advertising budgets to these sites, which some NBCU hopes to capture.
Not all NBCU programs are suitable for shopping, says Feldman. He expects the company to keep shopping prompts away from its news programs on NBC, MSNBC and CNBC, and to be wary of placing shopping prompts in content aimed at consumers. children. “You’ll never see that in ‘Nightly News’ with Lester Holt,” Feldman says. “We are looking for the right brand at the right time. “