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How Best Buy adapts partnerships for AI-led discovery, with Seth Hagerty

The Partnership Economy PodcastEP 329 minAired Published

How Best Buy adapts partnerships for AI-led discovery, with Seth Hagerty

Best Buy's Seth Hagerty explains why LLMs lean on creators and affiliates as sources, and how the retailer runs creator and affiliate programs side by side.

Episode from The Partnership Economy Podcast. Summarised by the AffHouse newsroom from the full episode. How we work →

AI answer engines are pulling their sources from affiliates and creators, which gives partner programs a new role. Seth Hagerty, senior director of performance marketing at Best Buy, explains how the retailer runs affiliate and creator programs together on The Partnership Economy Podcast.

In this episode

  • The host frames the big trend: what LLMs rely on as sources is largely affiliate and partner style content, such as reviews and comparisons (13:45, 13:52).

  • Hagerty calls these "third-party citations" from creators, review sites and content sites, and says taking part in partner ecosystems is even more critical than 2 to 4 years ago (14:19, 14:42).

  • He notes that with zero-click searches, the content still influences whether customers buy at a specific retailer, and says brands will probably have to evolve how they think about it (15:00, 15:16).

  • He sees the affiliate model as inherently more conversion-oriented and creators as better for influence and discovery earlier in the funnel, working in tandem (21:32, 21:39, 21:55).

  • Best Buy stood up its creator storefront program last year, with creators paid from within its retail media model (23:26, 23:28).

  • His advice to hesitant brands: partnerships will be a foundational part of the marketing mix, not a bolt-on channel; lean in, and "you're going to make mistakes" (27:38, 28:00).

Episode from The Partnership Economy Podcast by impact.com, published on YouTube.

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