PureWow has entered the chat.
The publisher, one of two editorial titles owned by GMG, announced the launch of its newest commerce initiative on Wednesday morning, a text-to-purchase software called wowtext.
The platform, which PureWow developed in-house, allows participants to purchase products directly through text message, the latest in a series of efforts from publishers to reduce the number of steps between inspiration and transaction. It also builds on the trust PureWow has built with readers, which helped it generate $21 million in affiliate revenue in 2021, said Ryan Harwood, the chief executive officer of GMG.
“We said to ourselves, ‘Okay, our readers clearly trust us. They like the product curation; they’re buying, not just browsing,” Harwood said. “And we figured out this technology that we think changes the game and justifies, in our perspective, the decision to put the time and effort into operationalizing a commerce initiative.”
The pandemic spring-boarded commerce from a fledgling revenue line to a core business for many publishers, including PureWow. In response, media organizations have undertaken a number of efforts, such as the introduction of deferred payment plans and on-site shopping, to increase both the volume of product they sell and the margins of those transactions.
How wowtext works
To use wowtext, readers sign up and enter their payment information through the wowtext platform. Starting Feb. 23, participants will then receive a weekly text message promoting a discounted version of an editor-curated product. If interested, the text recipient can then reply with the quantity of items they would like, and the product will arrive on their doorstep within days.
Wowtext aims to attract tens of thousands of users initially, Harwood said. He declined to offer any revenue estimates.
Although PureWow has developed a growing affiliate business, selling more than 1 million individual products in 2021, wowtext will not use an affiliate model. Instead, PureWow will purchase the inventory wholesale, process the orders and ship the products itself. The publisher has already prepared the first 12 items it will offer, Harwood said.
The decision to get involved in the fulfillment process makes the venture more challenging logistically; if an item proves unpopular, PureWow will need to give it away or recirculate it in a future offering. But stepping into the role of retailer also allows PureWow to reap higher margins than it does through affiliate business. So far, two full-time staff are dedicated to the enterprise.
Wowtext will draw on its years of commerce data to inform its strategy, including what products to sell. The program will prominently feature items from the beauty, health and wellness categories, such as gua shas, facemasks and weighted blankets. Initially, all wowtext participants will receive the same promoted items, though the team is open to exploring ways to personalize the offerings.
WineText established a precedent for wowtext
PureWow drew inspiration for wowtext from a similar program, called WineText, launched by entrepreneur Gary Vaynerchuk in 2020. Vaynerchuk acquired PureWow through his holding company, VaynerX, in 2017.
WineText users receive a text message offer for a bottle of wine weekly, then can respond with the quantity they want. The venture helped convince PureWow that a text-to-purchase system could resonate with consumers, though the publisher declined to share financial information about the operation.
Despite its traction, WineText and wowtext differ in the products they sell, which could impact the success of the program, said David Cohn, co-founder of texting service Subtext and chief strategy officer of The Alpha Group. (Disclosure: I interned for Subtext in 2019.) Texting works for certain niches––BuzzFeed launched a holiday-centric texting service, and Subtext works with CNET to promote consumer electronics––but not everything, Cohn said.
“Wine makes a lot of sense because you trust a sommelier to suggest new wines to you,” Cohn said. “If a publisher can present themselves as an expert in a certain shopping arena, then their suggestions are more valuable. For example, if you were really into shoes, would you rather get weekly texts from Nike or a sneakerhead?”
Text messaging remains an untapped medium
Marketers have long heralded text messaging as the final frontier, one of the few remaining digital spaces that has proven inhospitable to commercial intrusion. However, the frequency with which people check messaging platforms and the positive associations they have with the space make it an appealing destination for marketers, Cohn said.
The medium might also enjoy a boost in popularity as internet-wide privacy changes spur marketers, retailers and publishers alike to seek out new platforms for reaching consumers and owning those relationships.
“With the new privacy changes coming from Apple and Google, all of a sudden your relationship with your audience will have to be built on something other than data tracking and retargeting,” Cohn said. “That will lead more people to look for new channels in which they can own their audience. Texting is not the only one, but it stands out.”
