AllGear Digital Partners with Backcountry to Expand Retail Media Reach

What's Happening?

AllGear Digital, an outdoor media company, has announced a new partnership with the retailer Backcountry to expand into retail media. This collaboration will allow AllGear Digital to sell and manage ad inventory across Backcountry's ecommerce platform, sharing in the resulting revenue. The partnership, signed in September and set to launch by November, marks a significant move in the outdoor category, as it is one of the first formal collaborations between a media company and a retailer. AllGear Digital aims to leverage its strength in content and advertising, while Backcountry focuses on its retail capabilities. This alliance provides a blueprint for publishers seeking innovative ways to expand audience reach amidst declining referral traffic from search and social platforms.

Why It's Important?

The partnership between AllGear Digital and Backcountry is significant as it represents a shift in how media companies can generate revenue. By entering the retail media space, AllGear Digital can tap into commerce outcomes rather than relying solely on impressions. This move is particularly important as referral traffic from traditional platforms declines, offering a new revenue stream grounded in direct consumer engagement. For Backcountry, the partnership provides an immediate entry into the retail media business, which typically takes years to develop. This collaboration could set a precedent for other media companies and retailers looking to form similar alliances, potentially reshaping the landscape of media and retail advertising.

What's Next?

The advertising capabilities on Backcountry will be rolled out gradually, starting with standard display ads and expanding into more advanced retail-media formats. AllGear Digital is on track to see its ad business grow significantly, with projections of up to 70% additional ad-revenue growth next fiscal year. As the partnership develops, it may attract more outdoor brands seeking to reach consumers at critical points in their purchasing decisions. This could lead to further collaborations between media companies and retailers, expanding the reach and effectiveness of retail media networks.

Beyond the Headlines

This partnership highlights the evolving nature of media and retail collaborations, where media companies can extend their influence deeper into the commerce funnel. By working with category-specific retailers, media companies can offer advertisers valuable consumer insights and experiences that retail networks are eager to capture. This approach may become increasingly attractive as media companies face platform volatility and compressed margins, prompting them to explore alternative growth channels.