I've been consulting a lot for e-commerce brands lately and everyone is abuzz about rising acquisition costs across paid channels. Direct to consumer companies in particular, are looking for new outlets where they can acquire customers in an affordable way.
In this process, I got to thinking about ad networks, influencers, affiliates, and how I like the business model behind those kinds of platforms.
When I followed the evolution of those products, I realized advertisers are always looking for web real estate where they could put their ads. "What is an untapped real estate type on the web?" I asked.
Turns out, there are tons of ecommerce shop owners who are bringing in a decent amount of shoppers every month. What if I created a kind of "ad unit" that could be embedded in ecommerce stores? What would that look like and how would it work?
I figured the best solution would be to allow third party companies to "advertise" on other shops through upsells, cross-sells, and product bundling.
If the recommendations were smart and useful, everyone would win. The advertiser would get more customers, the shop owner would increase their average order size, and I would take a cut as a network.
That was it. RevSpike.com was born.