Target to partner with DailyCandy.com for website content
Jun 2nd 2009 8:30AM
Updated Dec 4th 2009 1:36PM
Like most retailers, Target (TGT) has a huge e-commerce website. The site serves as an online store, and it also helps people find store locations and get descriptions of items they may want to buy when shopping at an actual Target store.
Aside from products and prices, most retail websites don't have much content. Target means to change that through a relationship with DailyCandy.com, a website owned by Comcast (CMCSA) that features, among other content, clothing reviews for young women.According to The Wall Street Journal, the reason for running the DailyCandy.com features is so that the retailer can sell adjacent advertising space to marketers who want to reach Target.com visitors. The paper writes that "Target recently started selling ads on its site and says it uses the revenue to offer perks to its customers, such as free shipping, without cutting into profits."
The new program may make Target a modest amount of money, but the retailer has to be concerned that it will distract customers from their original reason for visiting the site, which is usually to shop and often buy something. Any distraction could cut into that behavior, thereby undermining e-commerce revenue.
Sometimes when a business is a success, it is best left alone. Target has one of the largest retail websites in America. It would be better off just to leave it at that and not threaten its core business.
Douglas A. McIntyre is an editor at 24/7 Wall St.