Last week, Yahoo! Inc. announced that it would be acquiring Polyvore, a social shopping site and native advertising leader.
Early reports say that the move will help Yahoo expand its advertising portfolio and will work to help Polyvore continue to monetize the business. Polyvore will continue to act as a standalone company, providing great content and social shopping experiences to its millions of users.
But is this purchase a smart move for Yahoo? The RTP editorial team shares their thoughts:
Debbie Hauss, Editor-in-Chief: This partnership makes sense for Yahoo, which has been lagging behind Google for overall consumer attention. The combination of social channels and content with Yahoo’s capabilities could definitely be a win-win for both companies. The aspect of native advertising, though, is a bit uncharted. Yahoo will need to carefully consider how aggressively to move forward with its continued approach to native advertising to avoid putting off shoppers. Forbes, for example, was highly criticized for placing a native ad on a magazine cover earlier this year. It can be considered deceptive.
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Alicia Fiorletta, Senior Editor: I think Yahoo’s move to acquire Polyvore just reaffirms what we’ve been covering at Retail TouchPoints: That content and commerce are continually converging. In an era where consumers want to learn from thought leaders and peers, and see real-life use cases of products, Polyvore in my opinion can help Yahoo rethink their approach to advertising. Although my colleagues are hesitant to hop on board the native advertising bandwagon, I think the power is in the approach and in the authenticity of the advertising. For example, an effective Polyvore page developed by a retailer would include a variety of different products from an assortment of brands; not just their own products. I think that kind of approach captures customers’ attention. After all, they don’t craft outfits from one retailer alone; they pull a variety of different items from different brands. It speaks to their behaviors and preferences.
Rob Fee, Managing Editor: The motivation behind Yahoo’s purchase of Polyvore appears two-fold. First, it acquires a leader in social selling with 20 million monthly customers, which adds a new element to Yahoo’s portfolio. Second, it also acquires a native advertising specialist that will strengthen other Yahoo offerings. Polyvore’s expertise in this area could greatly impact other Yahoo offerings. Maybe it’s the editor in me that wants to keep church and state separate, but I’m not a huge fan of native advertising. To me, it feels a bit deceptive. There’s no arguing its effectiveness, though, and I’d expect that we’ll see more native advertising from Yahoo soon.
Glenn Taylor, Associate Editor: Partnering with a company to provide content for consumers, especially one that can integrate content with shopping, can go a long way from a branding standpoint. AOL, another internet company that appeared to lose its relevance after the early 2000s, managed to reinvent themselves by becoming a content hub after acquisitions such as Huffington Post and TechCrunch. Yahoo has already introduced the Yahoo Style digital magazine to its offering, so that outlet right there could potentially serve as a natural platform for Polyvore to advertise its products. While native ads are always a risky proposition, the effectiveness in connecting consumers to items they love will be the main factor in the success of the partnership.
Brian Anderson, Associate Editor: The move does seem to put Yahoo on the map in the beauty and style sections of their digital magazines, and Polyvore will be able to monetize off the partnership as a standalone platform. So I say it’s a win-win for both sides. However, native advertising is one of those areas where companies need to watch their step. Nothing grinds my gears more than realizing something that I was reading was just a product ad piece. One false move and you can turn potential customers against you. Yahoo Gemini has been working with native ads for over a year, however. So if any company were to maximize the overall ROI of this acquisition, it would be Yahoo.
How do you believe Yahoo’s acquisition of Polyvore will impact the business? Share your thoughts in the comments section below!
