ITV has launched an online shopping tool as it attempts to recover revenues lost by a decline in traditional advertising sales. The broadcaster has released a discount code service for online shoppers that will automatically add cost-saving promotions when making internet purchases. ITV will earn commissions when shoppers use the tool, called Kerching, which is available as a downloadable web browser extension. It offers the company a new revenue stream as its traditional source of income slumps. ITV has been forced to cut hundreds of jobs after a sharp decline in advertising. Chief executive Carolyn McCall last year dubbed it the “‘worst advertising recession since the financial crisis”, though digital incomes have since begun to recover.
With Kerching, ITV is seeking to capitalize on increasingly cost-conscious consumers. It said research showed the most common reason shoppers fail to use discount codes on online purchases was because they did not know how to find them.
The Kerching tool is powered by the technology company Kindred, which ITV is also taking a stake in.
ITV said it was investing up to £8.5m in advertising space, rather than cash, for a minority stake in Kindred, which has worked with retailers such as O2 and Samsung.
The tool automatically offers discount codes when users reach online checkouts, with the code provider also receiving a small commission on sales.
Many online retailers have embraced technology that automatically applies discounts to items. Although the codes cut the price that shoppers pay, they are seen as helping to encourage sales as well as preventing shoppers from manually scouring the web to find discount codes, which often leads them to abandon purchases.
ITV said that four-fifths of shoppers already use discount codes and that a third said their use of them had increased in the last year.
A New Revenue Stream
ITV is seeking to capitalise on a trend that sees more consumers looking for ways to save money on online purchases. The company’s research shows that a significant number of shoppers are already using discount codes, and many are increasing their use of them.
The broadcaster has a long history of championing personal finance and consumer affairs through its programming, with shows such as “MoneySavingExpert” hosted by Martin Lewis. By launching Kerching, ITV is further solidifying its position as a consumer champion, offering a tool that can help shoppers find the best deals and save money on their purchases.
How Kerching Works
The Kerching tool is a browser extension that is free to use. Once installed, it automatically searches for and applies discount codes at online checkouts. The codes are sourced from a network of retailers and advertisers, and both ITV and the code provider earn a commission on sales. The tool also includes a feature that allows users to create custom discount codes, which can be used to share with friends and family.
Benefits for Shoppers and Retailers
The Kerching tool offers numerous benefits for both shoppers and retailers. For shoppers, it simplifies the process of finding and using discount codes, saving them time and money. For retailers, it provides a way to reach new customers and drive sales. The tool also helps to reduce the number of abandoned purchases, as shoppers are more likely to complete their purchases when they know they are getting a good deal.
A Strategic Partnership
The partnership between ITV and Kindred is a strategic one. Kindred has a proven track record of success in the affiliate marketing space, and its technology is used by a wide range of retailers. The partnership will allow ITV to leverage Kindred’s expertise and technology to create a successful new revenue stream for the company.
Conclusion: A Win-Win for Everyone
ITV Kerching is a win-win for everyone involved. Shoppers get access to a tool that can save them money, retailers get a new channel to reach customers, and ITV gets a new revenue stream. The launch of Kerching is a sign that ITV is adapting to the changing media landscape and looking for new ways to engage with its audience. The future of television may be changing, but the desire to save money remains a constant. ITV Kerching is a smart move that allows the broadcaster to capitalize on this trend.
