The Rising Trend of E-Commerce in Morning Television
In recent years, viewers of popular morning news and talk shows have noticed an increased emphasis on sales pitches during the segments.
Indeed, programs like NBC’s “Today,” ABC’s “Good Morning America,” and “CBS Mornings” have integrated shopping segments more prominently into their content.
These shopping interludes often utilize QR codes displayed on the screen, directing viewers to specific e-commerce sites for easy purchasing. Remarkably, these programs often retain 20% or more of the revenue from sales generated through these transactions.
Typically, these segments feature a knowledgeable contributor or expert showcasing an array of household goods, fashion items, or personal care products, all presented alongside a familiar host whose endorsement lends credibility to the offerings.
While the hosts generally refrain from direct selling, their endorsement serves as a powerful catalyst for consumer trust.
Such segments are not limited to morning news shows; they have become ubiquitous in talk shows and syndicated programming, including “The View,” “The Jennifer Hudson Show,” “Entertainment Tonight,” and “Inside Edition.”
Local television stations are also embracing this trend, having formed partnerships with brands seeking greater visibility beyond traditional 30-second commercials.
Brian Meehan, co-founder of Knocking, a Connecticut-based e-commerce consultancy, remarked, “This could be the salvation for media if they focus on it adequately.”
While such assertions may seem somewhat exaggerated, there is an undeniable urgency as television networks grapple with the swiftly evolving media landscape.
The advent of streaming has siphoned audiences away from conventional television, resulting in dwindling advertising revenues.
Since 2022, advertising expenditures on broadcast and cable television have plummeted by 23% and are forecasted to drop to $51 billion by 2025.
The rise of viewers opting to bypass or eliminate cable subscriptions further diminishes the financial support stations receive from pay TV providers.
Consequently, both networks and television stations are compelled to implement severe cutbacks in their news departments to preserve profit margins.
The daytime syndication market has also suffered considerable downturns, with NBCUniversal opting out entirely and discontinuing programs such as “Access Hollywood” and “The Kelly Clarkson Show.”
While networks are reticent to disclose earnings from these shopping segments, which typically span four minutes, insiders indicate that revenues have soared into the eight-figure range.
Bill Hague, executive vice president of media research firm Magid, noted the increasing inclination among TV stations to integrate these segments as they seek to fill additional hours dedicated to local news programming, rather than syndication.
“Why invest in syndicated content when you can reach the same audience while generating more revenue?” he posed, emphasizing that audience research indicates consumers do not perceive these practices as diminishing newscast quality.
Jeff Rossen, a former consumer correspondent for NBC News, has recently promoted online shopping deals for Tegna’s local stations, witnessing robust sales—likely bolstered by the trust he built as a journalist.
NBC has conducted research indicating that 94% of “Today” viewers trust the product endorsements featured on the program, underscoring the significance of authority in shaping viewer perception.
Morning shows have long enjoyed the flexibility to blend hard news with entertainment and lighter segments, which may explain the current lack of opposition to this commercialization trend, given the precarious situation facing the television industry.
Andrew Heyward, a former president of CBS News who now consults for television station groups, remarked, “If facilitating the purchase of a quality blender helps finance an investigative reporter, then I have no objections.”
Consumers have grown accustomed to editorial content serving as a gateway to online shopping. For instance, The New York Times receives a share of the sales generated through its Wirecutter product review platform, while the Los Angeles Times links its book reviews to Bookshop.org, earning commissions on transactions.
According to the Department of Commerce, e-commerce now constitutes 21.8% of total retail purchases in the U.S.
The history of direct selling through traditional media dates back several decades. In 1978, a Clearwater, Florida, radio station auctioned off 112 electric can openers from an advertiser unable to afford commercial time, which ultimately led to a show called “Suncoast Bargaineers.”
In 1982, the concept evolved into what became the Home Shopping Network, originally launched as a local cable outlet in Tampa by Bud Paxson.
This platform ultimately invited celebrities to market their product lines—a strategy now occasionally mirrored by morning shows.
Candi Carter, from Cistus Media, which oversees e-commerce for Tegna, noted that audiences have long adapted to seeing products featured within programming, tracing back to Oprah Winfrey’s celebrated “favorite things” segments.
“Brands seek visibility,” said Carter. “They avoid product integration fees while benefiting from the resultant sales.”
Broadcast networks have previously experimented with direct selling models. Notably, NBC co-owned ShopNBC, a cable channel, in the 1990s.
However, the true mastery of this approach came in 2010, with NBC’s “Today” rolling out “Steals and Deals,” a segment that has since expanded to include over 30 contributors and more than 350 shopping segments annually, now accessible across various digital platforms.
In parallel, ABC kicked off its own shopping segment in 2011, naming it “Deals and Steals.” This initiative has since evolved to include daily features across both “GMA” and the afternoon’s “GMA 3” and “The View,” under the stewardship of contributor Tory Johnson.
Meehan recollects that the primary challenge in launching these segments at ABC lay in clearly communicating to viewers that the network would benefit from the arrangements.
“It came down to legalese stating that ‘ABC may receive promotional or financial consideration,’” he explained.
CBS News, historically discreet in ventures that could tarnish its journalistic integrity, became the final traditional network to adopt e-commerce, initiating its segments in 2022 amidst plummeting ad revenues following COVID-19 lockdowns.
This development came as parent company Paramount sought improvements to its financial standing ahead of a potential sale.
Dubbed “Shop CBS,” these segments now air multiple times weekly on both “CBS Mornings” and “CBS Saturday Morning,” emerging as essential revenue streams for a beleaguered news division.
Resistance among producers and on-air talent diminishes once they grasp the financial benefits of e-commerce, according to insiders.
While ABC and NBC manage their own e-commerce arrangements, CBS partnered with Knocking to shape its segments.
This collaboration involves forging partnerships with product suppliers seeking in-program exposure, providing on-air talent for pitching alongside network hosts, and developing transaction-handling websites.
Although network correspondents participate in these segments, they do not engage in direct sales. CBS News emphasized that talent and producers must evaluate products before they are featured on-air, allowing for genuine enthusiasm in their presentations.
Meehan recounted a moment when “CBS Mornings” co-host Nate Burleson enthusiastically described the sensation of a massager, saying, “Ooh, wow, this feels like real human hands”—a reaction entirely unscripted.
Even so, programs risk their credibility by promoting these products; any customer dissatisfaction could deter viewers. Therefore, Knocking strives to mitigate such risks by accepting returns for up to six months post-purchase.
“A negative experience can adversely affect the featured product and the broadcaster,” Heyward cautioned. “All stakeholders share an investment in maintaining honesty and ensuring a positive user experience.”
Source link: Latimes.com.
