Dive Brief:
- The New York Times Company acquired both The Wirecutter, a product recommendation website, as well as its sibling The Sweethome, as reported by the Times.
- According to the newspaper publisher's CEO Mark Thompson, the product recommendation sites embody “the same standards and values that are the pillars of our own newsroom.”
- The Wirecutter is focused on gadgets and electronics while Sweethome is focused on products for the home. The revenue model for both sites is affiliate commissions when visitors clickthrough to e-commerce sites like Amazon to make a purchase.
Dive Insight:
Similar to many traditional publishers, the Times has been taking steps to meet the digital challenge that's hit the newspaper and media business, and is finding new potential revenue streams like The Wirecutter and Sweethome as part of that adjustment. The Times had a previous editorial relationship with The Wirecutter, and founder Brian Lam will stay on as an advisor.
Newspapers have traditionally reviewed popular consumer electronics but sites such as The Wirecutter address how digital is compressing the path to purchase, with consumers increasingly interested in going from research to purchase on the same site. The deal could also potentially open up new opportunities for advertisers looking to reach consumers across the newspaper's traditional digital properties as well as the recommendation sites.
Earlier this month, the venerable publisher announced it was phasing out banner ads in favor of a proprietary native ad format across all its digital properties on desktops and mobile devices. In August, the Times announced another acquisition, marketing agency Fake Love, which focuses on virtual reality and augmented reality marketing efforts. The publisher had previously announced a 7% year-over-year drop in display advertising revenue, and Thompson said the company was heading toward a “digital 2.0” future.
