From Adweek · Mark Stenberg · · 2m
Content-to-Commerce Publishers Struggle, Outdoor Life Offers AI Fix
Outdoor Life's AI platform aims to solve content-to-commerce failures seen at Food52 and Hodinkee.
In brief
Outdoor Life's AI platform aims to solve content-to-commerce failures seen at Food52 and Hodinkee. Outdoor Life, a publisher that drove $20m in sales last year, plans to use AI to boost commerce revenue after struggling with affiliate commissions. Originally reported by Adweek.
Content-to-commerce model fails
Content-to-commerce publishers like Food52 and Hodinkee collapsed after The Chernin Group's bet unraveled, costing hundreds of millions.
Outdoor Life sold to eFormed Ventures
Recurrent sold Outdoor Life to eFormed Ventures on Oct 7 for an undisclosed sum, keeping all 10 staff.
eFormed's AI platform Resonance
eFormed plans to use AI to tailor product recommendations and pricing based on seasonality, location, and shopping behavior.
Outdoor Life's sales performance
Outdoor Life drove over $20 million in purchases last year but only earns 14-15% affiliate commissions.
Amazon cuts affiliate rates
Amazon halved its affiliate rates this spring, reducing Outdoor Life's potential revenue.
eFormed's retail expertise
eFormed brings retail veterans like Scott Blackwell, formerly of Beretta and Remington, to fix editorial-retail friction.
Past failures in content-to-commerce
The Chernin Group's model failed at Food52, Hodinkee, and The Pro's Closet, costing hundreds of millions.
Outdoor community size advantage
The outdoor community is five times larger than golf, with consistent product replacement needs.
Inventory risk management
eFormed blends owned inventory with partner retailers' stock to track sell-through and gross margins.
Capital constraints
eFormed's lean team and family office backers suggest modest capital but unknown patience from investors.
Traffic challenges
Outdoor Life's website traffic grew 19% year over year through April but the search ecosystem is shrinking.
Trust issues
Publishers face pressure to favor high-affiliate-rate products over tester preferences.
eFormed's learning from past
eFormed has tested Resonance on Field & Stream's storefront since January, achieving triple-digit growth.
The irony of the deal
Recurrent spent three years moving away from commerce and sold its most commerce-friendly brand to a commerce-focused buyer.
eFormed's future hopes
eFormed hopes AI tools and focused ambitions will succeed where others have failed without pandemic interference.
At a glance
Outdoor Life, a publisher that drove $20m in sales last year, plans to use AI to boost commerce revenue after struggling with affiliate commissions.
