Articles by: "Charlotte Ricca – Independent Media Reporter"

New AI-powered search from AP upends content discovery

June 8, 2023 Charlotte Ricca – Independent Media Reporter

The Associated Press (AP) has launched an innovative artificial intelligence (AI)-powered search experience, which it says will enhance the efficiency and accuracy of content discovery for AP Newsroom users.

The global news agency believes that the new search functionality represents a significant shift in the discoverability of photos and videos that align with users’ search criteria. Unlike metadata-based searches, the AI-powered tool is able to understand descriptive language and generates search results based on the user’s description. It can also identify specific moments within an entire video clip, regardless of its length.

This opens up new possibilities for users, allowing them to easily pinpoint precise moments of interest in videos, even if they haven’t been tagged or captioned.

Dramatically improved results

Traditional searches for visual content depend entirely on descriptive information, which means many visual assets are difficult to find.

“AP’s visual archives stretch back to the beginnings of photography, comprising tens of millions of photos and videos” explains Paul Caluori, the AP vice president of global products. “Across that history and volume, the amount and kind of descriptive information varies widely, and sometimes information is not as complete as we’d like it to be.”

However, the AP’s new AI-enabled search is able to recognize elements within photos and videos and “understand” more specific search terms and concepts to find those elements.

“This yields some dramatically improved search results and we are very excited to make this available to our customers,” says Caluori. “We believe it will speed their searching time, get them more useful results and ultimately help them be more successful with their projects.”

The search engine driving the new technology is NOMAD™, developed by MerlinOne, a software company specializing in AI applications for visual objects. NOMAD™ is the result of four years of in-house advanced AI effort, and the developers say it is the first such tool that understands natural language and concepts.

AI pioneer

This is far from the first time AP has used AI. It was one of the pioneering news organizations to leverage this technology back in 2014 and issued a guide to using AI in the newsroom in 2017. At the AP, the Business News desk took the lead in the use of AI to automate articles covering corporate earnings and sports. This undertaking not only enabled the brand to to experiment with new projects, it positioned AP as a thought leader in the AI space, inspiring other news organizations to embrace the technology.

So, while generative AI has captured much of the limelight since ChatGPT’s 2022 introduction, NOMAD™ is a purely visual AI search technology that builds upon the APs long standing use of AI.

Addressing common concerns

With AI moving so quickly, it is easy to anticipate that this technology will become the new normal for other agencies in the future. But what of the negative impact of AI-powered search engines, in terms of job losses? As media mogul Barry Diller recently told Time magazine, artificial intelligence (AI) could be as “destructive” to news publishers as free online news was in the early aughts.

However, unlike the threat of Generative AI, Caluori states that when it comes to their new search engine, “nobody is losing a job over this.”

“Our journalists search our archives every day and this tool will make it easier for them; it improves the usefulness of our archives to people both inside and outside the AP.”

Another concern around the use of AI is algorithmic bias. Consumer Reports has just released a series of videos, called BAD INPUT, in partnership with the Kapor Foundation which explore the biases present in algorithms and data sets, and the harm they can cause, particularly within communities of color.

David Tenenbaum, CEO of MerlinOne, has led their machine learning efforts for the last seven years. He explains that issues of bias center around the content sets used to train the model. If they are small and exclude crucial data (in this case faces representing all genders and races in equal proportions) bias is certain. On the other hand, if you use a huge training set, reflective of our world, the probability of bias is greatly diminished.

“Recognizing the danger that bias can creep into any system that uses a small, unbalanced training set, NOMAD was trained on over a billion images in a collection that is highly reflective of the world we all live in,” says Tenebaum. “No AI system will ever be perfect, but with millions of searches done, we have not had a single complaint about biased results.”

New normal

AP initially launched the service in a beta mode on its self-serve site, for customers who have access to its ecommerce service for photos and video. The AI search facility is now being rolled out to all customers over the next couple of weeks.

With an ever-expanding archive that adds new content every minute from around the globe, AP’s visual collection consists of over 60 million photos, catering to the needs of professional image buyers and commercial customers alike. The enhanced search tool is designed to make much more of this content discoverable. With NOMAD™ for Video, editors can find a short clip in just a few seconds, freeing up time to focus on high-impact journalism.

Additionally, new ecommerce capabilities improve the AP Newsroom experience for non-subscription customers. With streamlined self-serve licensing and pricing models, users can easily license images and video, including for ad hoc usage.

Caluori described the AI-powered search as a “real sea change” in content exploration and discovery within the AP’s vast archives.

“Want to see a fragment of Winston Churchill in a garden feeding birds? You can find something that specific using natural language, rather than typical one or two keyword searches that yield many unuseful results. The ability for customers to find very specific moments within a video or just the right photo is a powerful key to our archives.”

Diversity, Equity & Inclusion | Featured Post

The PPA makes a push for shared best practices in DE&I efforts

March 23, 2023 Charlotte Ricca – Independent Media Reporter

Diversity, equity, and inclusion (DE&I) are three words (or letters) that are increasingly seen and heard in the media industry. According to recent research from Reuters Institute a third of respondents feel that ethnic diversity and gender equity are the most important priority in terms of improving their newsroom’s diversity.

As a result, media businesses large and small – from legacy media to start-ups – are working on strategies to create an inclusive workforce, which reflects and represents the diversity of the population. They are also focused on creating more inclusive content that reflects and represents the diverse needs of their readers.

However, it is this very diversity that the media is trying to embrace, which can create silos within the industry. With such a broad range of content, consumed in a variety of ways, the industry is increasingly divided. As a result, rather than sharing best practice, there is a lack of communication and collaboration between different businesses.

Fragmented landscape

This is one of the challenges facing Sajeeda Merali who took over as chief executive of the PPA (Professional Publishing Association) in September 2021. She came into the role following senior sales director and commercial roles at Incisive Media, Euromoney and The New Statesman Media Group.

“There are so many different types of businesses in the ecosystem it has created a fragmented landscape,” says Merali. “So when I first joined the PPA we spent a lot of time trying to pin down what links them together. And it all comes down to content.

“Whether they are large multinational consumer titles, B2B publishers, or special interest independent titles, is about creating trusted content, in different formats, on different platforms for different communities. That’s what brings this diverse membership together.”

In a bid to ensure the UK publishing industry is serving all of these communities, and championing diversity and inclusion, the organization set up the PPA ED&I Working Group. Its aim is to share best practice with current members and also encourage a more diverse membership.

“There are some really interesting publishing brands coming up through ranks, who are serving niche communities,” says Merali. “We are actively doing more to attract these micro publishers in order to engage with them in the ED&I sphere.”

Its inaugural initiative was to invite all media publishers to participate in what it claims was the first survey industry-wide survey of workplace diversity and inclusion. A total of 5,786 people took part, from 44 different companies.

“The report provided us with essential data to better understand the barriers and challenges faced by different groups,” states Merali. “By bringing our industry together with this landmark survey, we can provide a snapshot of our workforce and create meaningful actions to support and improve current ED&I initiatives across the industry.”

Other research, such as the aforementioned study by Reuters and the BBC’s 50:50 Project, are also collating and using data as the foundation of actionable change.

Future leaders

One imminent action by the PPA is to launch a “Next Gen Board” that will help shape the future of the industry. The board will consist of 15 members aged under 30, from diverse backgrounds, and with a minimum three years’ industry experience.

“We want to literally create a seat at the table for the diversity we have across the landscape,” explains Merali. “Plus it’s a great opportunity for young and aspiring talent to gain board experience and work alongside some of the best in our business. The PPA Next Gen Board is creating a pipeline of future leaders.”

This collaborative effort of sharing best practice will benefit publishers of all ages and backgrounds. Older members will gain from the new board’s experience and knowledge of diversity, while the PPA Board will gain first-hand experience of operating at board level, with the support of industry mentors.

“Traditionally, there has been a lack of access to information across the industry,” explains Merali. “This is why we need a variety of voices and role models. Otherwise it just becomes a protest. We need to bring everyone with us on the journey, by making people comfortable with discussions around these topics.”

“Through all the different platforms we are using we can reach over 85% of the UK population. We can use the power of our collective network to shape the narrative in the industry.”

It is by using the industry’s collective power, gathering data and sharing best practice, that the publishing industry can cultivate an environment of inclusivity and fundamentally shift representation within the media.

Weather Channel and Consumer Reports reveal the power of the subscription bundle

January 19, 2023 Charlotte Ricca – Independent Media Reporter

Subscription fatigue is a major concern for media brands, as top performers consolidate their market position, while new challengers vie for audience attention. Add to that the current economic downturn, and media businesses are rightly concerned about churn rate and revenue. According to recent research, two out of every three people surveyed have canceled at least one service in the last year.

To combat subscription fatigue, media brands need to focus on providing clear value propositions and high quality content, as well as giving consumers more flexibility and control over their subscriptions.

“We have identified two pain points for consumers,” says Sheri Bachstein, CEO of The Weather Company and GM of IBM Watson Advertising. “The first is managing tons of subscriptions in multiple places, and the second is the cost of those multiple subscriptions.”

Innovative bundling solution

One solution is subscription bundling, which can help lower both pricing to the consumer and investment from the brand. Bundling is most viable and financially rewarding when a brand is part of a larger media portfolio, such as Disney or Apple Services. However, not all businesses have such clout.

The Weather Company has come up with an innovative solution by developing a platform that enables bundling across media portfolios. “We are striving to disrupt the subscription economy by going across media companies that aren’t traditionally connected,” says Bachstein.

These bundled subscriptions are another way for the Weather Channel to provide additional value, by aligning with brands that help people make more informed decisions in their daily planning. One surprising collaboration is with ratings organization Consumer Reports.

“The Weather Channel helps consumers make daily decisions about their day, and Consumer Reports does the same thing, by offering valuable information and services. So it was a very natural fit,” explains Bachstein. “I expect we will see more collaborations like this in the future, but it is certainly one of the first.”

This latest bundle helps consumers access the latest weather along with news, ratings or shopping information in one location. Other partnerships include USA Today, MightyNest Shop and TripAdvisor Plus.

A compelling package

“It’s unusual to have different companies together, offering discounts on a bundle, but our partners are carefully chosen,” states Jason Fox, VP Chief Digital Officer at Consumer Reports. “Both the Weather Channel and Consumer Reports are highly trusted, non-partisan organizations, so we compliment each other well. You could call us ‘post partisan’ as we represent the larger demographic of society and we are proud of that.”

As a non-profit organization, subscriptions make up the bulk of Consumer Reports’ revenue. Therefore, Fox says it’s critical to bring their product to a new audience, while creating a more compelling package for their current customers in order to reduce churn,

“The average U.S. consumer is willing to take out between five and eight subscription services,” Fox explains. “The likes of Netflix, Disney Plus and larger media companies, such as The Wall Street Journal and New York Times take the bulk of this, so we are fighting for remaining slots.”

In addition to driving subscriptions numbers, Fox says the bundle with the Weather Channel is part of their wider growth strategy. “It’s about brand awareness and getting our name out there as a leader in the space,” he says. “While this is an ancillary benefit, and not the main reason for this partnership, it’s an important part of our growth strategy.”

Bachstein agrees that partnering with businesses who share the same mission and values helps strengthen their brands overall, while leveraging their audiences. “I honestly can’t think of a reason to not bundle,” Bachstein states. “You extend your reach, extend the brand and extend your direct to consumer relationship. And if the technology is already built for you, as it is with the Weather Channel, then it’s a win win.”

Subscription innovation

So, what should media executives be thinking about when evaluating the opportunity to bundle?

“It’s important that both brands complement and trust each other,” says Bachstein. “You don’t want to share a competitive space, you should be adjacent verticals, with shared values and orientations. That’s the sweet spot. To use cable channels as an analogy, you want to have a portfolio approach that offers a value proposition to your consumers.”

Value is key in the current climate. Statista predicts that by 2025 there will be 1.5 trillion subscriptions in the US alone, with the average person spending $1k a year on subscription services. However, consumers increasingly want more value, more advanced features and a more premium experience.

“At a high level it’s really important for a company to think about subscription innovation,” says Fox. “It’s one thing is to set up a paywall, but anyone can do that. It’s about what makes you distinct from others. I really believe that in the world of commoditised content if you are not offering something special it will be a hard sell to create a meaningful subscriptions business. This idea of coming together and offering something greater than we can do individually, is really powerful.”

Featured Post | Innovation

Inside Fox News’ winning podcast strategy

December 1, 2022 Charlotte Ricca – Independent Media Reporter

In an era of fragmented, news-hungry consumers, it’s become increasingly challenging for brands to cut through the noise and reach their target audience. New competitors and new strategies have forced established players to reassess their businesses and take action. This has resulted in new partnerships, products, and strategies that are yielding exciting results.

One strategy that is gaining traction is podcasting. According to a Pew Research Center survey conducted in July 2021, around a quarter of U.S. adults (23%) say that podcasts are how they get news, at least sometimes. One of the most successful brands in this space is FOX News, whose audio network is currently number 11 in Podtrac’s list of top publishers.

Launched earlier this year, FOX Audio Network combines all of FOX’s leading news, sports and entertainment podcasts into a diverse portfolio that aims to capitalize on the collective power of its large audience. With a catalog of more than 40 on-demand news podcasts, the network delivered record high numbers in 2021, with nearly 180 million unique downloads and 29.9 million unique listeners. A growth of 18% and 15%, respectively, from the previous year.

Interestingly these numbers run counter to research from Reuters, which found that news fatigue is setting in. Less than half (47%) of the Americans in the sample were very, or extremely interested in news, compared with 67% in 2015.

“Post Covid our podcasts are still showing year on year growth, in terms of unique listeners and downloads,” says John Sylvester, Vice President of FOX News Audio.

Two-pronged attack

So what is Fox News Audio’s strategy to keep its audience engaged in a world that may just be tired of news in general?

“We take a two-pronged approach to our news podcasts,” explains Sylvester. “First, we aim to satisfy the needs of our listeners by taking an ‘anytime, everywhere’ approach across multiple platforms. FOX News Audio continues this journey. So whether they are working out, or walking a dog, our podcasts make sure they are staying connected.

“Second, we provide a full gamut of information in the news space. This includes hourly news updates to longer news podcasts, such as FOX News Rundown, which is a deep dive into the news story of the day. There is also weather, business, tech – every need is covered, throughout every aspect of their day. FOX News Audio offers a total solution.”

Their strategy is bolstered by a loyal fan base. Fox News averaged 1.4 million total viewers in July of this year, and was the only basic cable network to exceed the one-million viewer benchmark. It also has the largest audience among 25-54 year olds, averaging 200,000 total demo viewers and 281,000 during primetime. This demographic is coveted by advertisers, and also the key demographic for podcast listeners, making their podcasts a highly attractive marketing tool.

“We create every type of content for every type of advertiser out there,” says Sylvester. “By creating the FOX Audio Network we have provided a unique opportunity for them to reach our broad and loyal podcast audience.”

Perfect brand extension

The network’s advertising is managed by its advertising sales team. However, in a bid to maximize its potential FOX has teamed up with Megaphone, which hosts all content. Since its launch in 2015, Megaphone has been one of the leading podcasting platforms, and in March last year it was acquired by Spotify. With its publishing and monetization tools, the platform better empowers FOX Audio Network to monetize, measure and maximize FOX’s podcast content.

One of those tools is a service called Megaphone Targeted Marketplace (MTM) which tracks listener behavior and pairs it with Nielsen Media Research Segments, to insert targeted ads into podcasts. This innovative technology has seen a backlash, however, as audiences have balked against tracking. As a result, certain blocklists have added Megaphone to them. This means listeners cannot play podcasts if they use certain privacy tools and tracker blockers.

However, Sylvester says dynamic ad insertion hasn’t been a problem in Fox Audio Network’s podcasting space. Their revenue is still heavily driven by advertising, which is built on the loyalty of their audience.

“Our podcasting platform is the perfect brand extension for FOX News fans, and they trust our news and content,” says Sylvester. “We offer a best-in-class product, with a fair and balanced perspective.”

Unlike the viewability challenges often associated with digital video, satellite TV, and cable, these advertisers can rest assured that the vast majority of consumers actually listen to ads on their favorite podcast. An impressive 80% of listeners tune in to all, or most of every podcast episode they start. Furthermore, almost half of these ‘super listeners’ believe that podcast hosts actually use the products/services mentioned on their podcasts. Advertisers are making the most of these engaged listeners by creating relationships with podcast hosts and onboarding them to their service or product.

Trust also comes from the careful selection of the podcast host. While it may seem obvious, many brands neglect the importance of having a clear host for their podcasts. Ideally, brands should consider a host who has industry expertise, can speak to the target audience, and can bring something unique to the table. Bringing in established names, such as Bret Baier, Will Cain and Martha MacCallum, is another key element of FOX Audio Network’s strategy, to attract and retain big audiences.

“Podcasting is a very intimate experience,” says Slyvester. “Our audiences connect with the host on either a daily or weekly basis, which creates trust. They learn to understand their ideology, and rely on them to bring them interesting, relevant content.”

Multi-channel approach

According to Sylvester the main challenge FOX Audio Network faces is to “distinguish yourself and your brand from the robust content out there.” Aside from creating varied, quality content, Sylvester says the key to growing and monetizing your audience is to expand into a multi-channel marketing strategy.

“It’s vital to look at all platforms out there and create monetization levers across all of them,” he advises. “We have partnered with satellite radio, terrestrial radio, audio apps, smart speakers, and more to make sure we really are everywhere, anytime. It’s all about creating multiple areas of monetization opportunities.”

Given that more than half of Americans (56%) say they never get news from podcasts, Sylvester believes there are still opportunities for growth for this nascent industry. One exciting growth area is with video podcasts, which offer a great way to differentiate a brand and attract new audiences.

“We are starting to utilize video as part of our podcasting strategy,” says Sylvester. “Video gives us the opportunity to populate the social media space, so it’s another way to market our podcasts and reach that 56% which is not yet listening. It’s often when consumers discover a podcast on video platforms, such as YouTube or TikTok, that they are then converted to subscribers of the podcasts.”

Certainly, FOX News benefits from its massive audience numbers and the significant investment it is making in its audio strategy. But there are lessons to be learned for organizations of all sizes and at different phases of audio experimentation. Their audio network provides a useful example for brands trying to navigate the ever-growing podcast landscape and reach their target audience in a unique way.

Fox News has done an impressive job of leveraging its brand power to expand into the podcasting space. Indeed, the network has managed to replicate some of what has made it so successful in prime time, while also carving out a unique space for itself in this new medium. Their podcast strategy raises the network’s profile, which helps it grow its overall audience while deepening brand loyalty for existing ones.

Diversity, Equity & Inclusion | Featured Post

The gender gap in media is still wider than you think

September 27, 2022 Charlotte Ricca – Independent Media Reporter

When it comes to the representation and visibility of women across all media platforms, the industry still comes up short. That’s what The Status of Women In the US Media 2021, a report by Women’s Media Center (WMC), — an organization founded by Gloria Steinem, Jane Fonda, and Robin Morgan — found. Among the U.S.’s top five Sunday news shows more than two-thirds of the guests were men, and most of those guests were white men. While research into gender representation in prime-time broadcast and cable news, print, digital, and wires found that women told only 41% of stories, and just 15% of sports stories.

“This report will help to hold news media accountable for the persistent inequalities in media,” said Steinem in the report .“ Women must be visible and powerful in all aspects of media if American society is ever to be a real democracy.” While the struggle continues, strides are being made — thanks, in part, to top down initiatives.

The gender gap is closing — slowly

According to the Global Media Monitoring Project, things are slowly improving globally. However, the numbers make the U.S. media look like a beacon of hope in terms of inclusion and equality. Between 1995 to 2020, across 120 nations, the number of female news sources and subjects increased from 16% to 24% in newspapers, 15% to 24% in radio news, 21% to 26% in TV news, and 25% to 27% online.

Coverage during Covid-19 was particularly startling, with WMC reporting women comprised just 5% of experts in science, technology, engineering and math, and a third of people quoted in 146,867 articles about the pandemic, in the likes of The New York Times and USA Today.

“One productive step forward would be for media companies to release employment numbers by gender, race, and position,” said Julie Burton, President and CEO, in WMC’s report. “This transparency would allow comprehensive tracking of progress or regress for diverse women in the workplace. We recommend that managers and editors establish standards that require producers, bookers, and journalists to make sure the experts interpreting news stories include representative numbers of women and people of color to ensure that stories are told with authenticity and accuracy.”

Driving diversity with data

The WMC has a database for this exact purpose. SheSource connects journalists, bookers and producers with more than 1,000 female, media-friendly experts in a number of fields, ranging from politics to technology. It is these experts that a growing number of media organizations are seeking out and putting center stage. The BBC launched its 50:50 Project in 2016 to push for gender parity in its content using a data-driven methodology to monitor its content. What started in one newsroom has become a global initiative, used by 150 external partners, spanning 30 countries. These include the Financial Times, Australia’s ABC News and Times Radio, as well as partners in academia, conference businesses, law, public relations and the corporate world.

“It is well established in the BBC and we have got 750 teams filling in spreadsheets every day of every month,” says Miranda Holt, 50:50 External Partners Lead. “It’s very empowering to content makers, because it’s about what you can control. For example, we don’t count politicians or people in the news, but we do count the number of women we interview about that news. It’s about collecting data to effect change.”

In the most recent Impact Report report in March 2022, 61% of all BBC teams reached 50% representation of women in their content. While external partners (of whom 70 out of 145 shared their data) showed a 73% improvement in female representation, after one year of sharing data.

Bloomberg’s New Voices is another successful initiative, which has already made significant strides in amplifying the voices of women. Since launching in early 2018, outside guest appearances of women on Bloomberg Television have increased from 10% to 26%. The program has also provided media training to over 180 women all around the globe, who have gone on to appear more than 530 times on Bloomberg Television, as well as other media outlets.

Equity at every level

Another way to ensure gender equity in content, is to ensure equity in content creators. If the newsroom doesn’t reflect society, the content it produces isn’t likely to either. Even though women outnumber men in journalism programs and colleges, they become the minority voice soon after entering the workforce. On average, women represent 41.7% of newsroom employees and produce 37% of reports. Furthermore, men account for 69% of all newswire bylines published by the Associated Press and Reuters, 63% of prime-time news anchors or correspondents, and write 60% of all online news.

Emma Tucker is the first female editor of the Sunday Times in 100 years and says she is all too aware of the impact her newsroom has on its readership. “We are very conscious of the need to diversify our newsrooms,” Tucker says. “It’s a work in progress, but we are aware of it. For example, we encourage applications from as broad a pool as possible to our graduate and apprenticeship schemes and we are making strides there. We know that if we want to grow our audience and build new cohorts of Sunday Times subscribers, we need to produce content that matters to a more diverse audience.”

Holt agrees it makes good commercial and economic sense to increase female representation in the newsroom and beyond. While 50:50 is about content and not about content creators, it naturally has a knock-on effect.

“The BBC has set new targets for the end of 2023 for our workforce to aim for 50% women representation, 20% Black, Asian and minority ethnic, 12% disabled and 25% from lower socio-economic backgrounds,” explains Holt. “These figures are based on the demographics of the UK, and as the national broadcaster it’s the people of the UK who pay for BBC content, so we have to represent them. And senior leaders are being held to this.”

Leadership is at the heart of a recent report by Reuters Institute, which analyzed the gender breakdown of top editors in 240 major online and offline news outlets in 12 different markets, across five continents. The results are shocking with women representing just 21% of the 179 top editors, despite the fact that, on average, 40% of journalists are women. The good news is that the U.S. and U.K. appear to be flying the flag for female leaders in the media, as half or more of new top editors appointed there in the last year were women.

Closing the pay gap

Not only are there fewer female reporters, they also earn less than their male colleagues, according to the WMC report. At the Associated Press there is a pay gap of $15,000 between white, male journalists and black, female reporters, while female reporters on the LA Times take home $14,334 less than their male counterparts. Similarly, at the New York Times, for reporters with annual salaries of $150k or more, only 36% are women. Working at the Washington Post? Women can expect to be paid 86 cents for every dollar white men are paid.

However, there are exceptions. Walt Disney Co. has just released data on employee earning by race and gender for the first time, revealing that women earn 99.4% of men. However, as Natasha Lamb, a managing partner at Arjuna Capita who put forward the proposal for the report, points out: “Disney is stepping into an elite group that are showing leadership on pay equity.” Transparency, it seems, is still a rarity rather than the norm.

While we should applaud these organizations working toward gender equity there is still much work to do. One reason could be that leaders in news media across the world believe their organizations already do a good job in terms of gender diversity, and therefore do not collect or make available data about their diversity. Or they don’t even have anyone formally in charge of this vital process.

But this has to change. Greater transparency is key, with media companies releasing employment numbers by gender and position. While creating new talent strategies to support and promote women in media, will ensure the “pipeline” excuse is buried deep underground, once and for all. According to Katica Roy, the founder and CEO of Pipeline Equity, these strategies should include hiring, pay, promotion, performance, and potential.

Representation leads to engagement

The word “engagement” is constantly used in media circles, but you can’t engage with your audience without representing the diversity of their communities. “Ultimately, any company that creates content should be thinking about how they appear to the external world, and how they represent society fairly,” says Holt. “This leads to diversity in the workforce at every level in a dynamic way, by identifying people, progressing people, and retaining those people. Only then can the media and its content truly reflect and represent women. Only then we will truly have gender equity.”

Advertising | Featured Post

The battle for cross-platform measurement has created the perfect storm

April 14, 2022 Charlotte Ricca – Independent Media Reporter

Measuring viewing habits is nothing new in the media industry. However, the shift from traditional TV to streaming has sent the U.S. industry into a tail spin, with 86% of buyers demanding cross-platform measurement. The only thing that everyone can agree on, it seems, is that everyone is confused.

According to Innovid CEO Tal Chalozin, “the biggest frustration in cross-platform measurement is that it’s so hard to understand.” This, from the man who whose company was the first to receive Media Rating Council (MRC) accreditation for its OTT ad impression tracking in 2018.

The problem is that there are multiple new currencies and measurement tools emerging, as the TV industry attempts to blend media platforms and devices, and provide a comprehensive and deduplicated view of media consumption.

Jon Watts, managing director of the Coalition for Innovative Media Measurement (CIMM), describes the industry’s current situation as “messy, but exciting”.

”The biggest change in measurement is that we no longer just use panel data as currency,” explains Watts. “Most TV is consumed in a connected environment and those devices create data about viewing habits, which compliment what panels do. Setting up a currency based on a representative panel is complex enough. But it has got more complex due to the increasingly fragmented audience.”

A storm is brewing

The shift from traditional TV to streaming was accelerated by Covid-19. OTT media revenue is expected to reach over $210bn by 2026, more than double the $106bn generated in 2020. As a result, ad spend on CTV in also on the rise and predicted to hit $19.10 bn in 2022, accounting for 5.6% of total media ad spend.

With the growth of streaming came the inevitable rise in providers. These days, 49% of US households subscribe to at least three streaming services.

“This fragmentation of audiences combined with big data and changing market dynamics has created the perfect storm of craziness,” says Nathalie Bordes, EVP Measurement for Marketers at Association of National Advertisers (ANA). “Traditional measurements are being challenged, so there is room for innovations and new approaches.”

These innovations come amidst criticism of Nielsen (rececntly acquired for $16bn) over its inability to adapt to consumers’ shift to streaming.

“Some would argue it’s a lazy monopolist, who has not done enough to evolve their measurement services,” states Watts. “For at least 15 years the industry has been trying to encourage competition and dislodge Nielsen from the market.”

However, complaints about Nielsen’s measurements aren’t limited to streaming. Confidence in its legacy TV measurements has also been shaken due to accusations of undercounted audiences during the pandemic. As a result, the MRC pulled its accreditation of Nielsen’s national and local TV ratings, which has opened the door for new solutions:

“Nipping at their heals are a new breed of providers, which are slowly gaining traction with alternative approaches to measurements based on TV data,” says Watts.

Measurement independence

Nielson’s counterattack is Nielson One, which is due to launch December 2022. Meanwhile, NBCU has taken a clear stance against Nielsen’s ratings monopoly and has been working with the industry in a bid to create “measurement independence.”

NBCU selected iSpot as its partner in January and they teamed up for a test run at the 2022 Olympic Winter Games and Super Bowl LVI. In addition, the media giant has struck up a number of partnerships with the likes of Comscore, DoubleVerify, and Innovid. NBCU also plans to use iSpot’s data as its national currency for ad buys at this year’s upfronts.

“We must move away from how things have historically been and move towards a future of optionality and interoperability,” Kelly Abcarian, NBCU executive vice president of measurement and impact, told Ad Exchanger.

iSpot claims it can measure audiences for streaming and linear on a second-by-second basis and in real-time. Measurements include ad impressions, incremental reach/frequency and deduplication. Abcarian, who joined NBCU in 2021 after nearly 16 years at Nielsen, says these new metrics will give advertisers more accurate and effective data about their campaigns.

Greater transparency

Deduplication is another challenge of cross-platform measurement as big data provides information on what was watched, but not by who. Simulmedia’s CEO Dave Morgan alleges that 90% of what is claimed in the market about deduplicating audiences isn’t true. However, Morgan cites NBCU as one of the companies “doing really well,” alongside ViacomCBS and Disney. He also has high hopes for Nielsen One and Comscore.

One of the key problems is that media measurement continues to be siloed by different platforms and metrics. A more transparent system is needed, where advertisers can see where their dollars are being spent – and where they can be saved. According to research by TVSquared, more than 90% of U.S. buyers said transparency of metrics across linear and streaming channels was critical in order to devote ad spend to converged TV.

“We need an apples to apples comparison, so we can compare the same person watching on one platform or another,” says Chalozin.

This is what the entrepreneur is hoping to achieve following Innovid’s acquisition of TVSquared. The Scottish company tracks more than 100 million households around the world and more than 75 CTV platforms. Chalozin says TVSquared adds linear TV capabilities to their arsenal, which will provide a complete view of consumer viewing habits, with a currency-grade measurement.

Aside from technological issues, a cultural shift needs to happen in which broadcasters, platforms and marketers work together. This seems to be what NBCU is trying encourage by working with the industry to create a measurement framework for all.

NBCU is not the only major media brand creating collaborations. Disney has been testing new measurement solutions with nearly 100 vendors, and recently named Samba TV as its first official measurement partner. WarnerMedia is also testing with iSpot.tv, Comscore, and VideoAmp.

No single currency

Nielsen has been the industry standard for decades, allowing networks to see how they stacked up against one another. Without a single agreed-upon currency, it is more difficult for advertisers to decide where to allocate their budgets, and for networks to prove their worth.

CIMM is doing their bit to help the industry navigate their way through these turbulent times. The coalition is conducting a deep dive study into the different methodologies of currency-grade provider to find the most effective solutions.

Bordes believes multiple currencies can work, as long as they are fully transparent and the measurement solutions are accredited. “Measurement systems needs to be reformed and there needs to be innovation,” he says. “But the processes must be validated in order to create transparency. We want measurements that go beyond the silo.”

Accreditation throws up yet another challenge in the industry. In 2019, the MRC produced cross-platform measurement standards, but three years later no providers have been accredited using the guidelines. There are companies in the audit process, including Videoamp and ComScore, but as Chalozin states, “people need to believe that you do what you say you do”.

Test and learn

According to Chalozin, another essential cog in the wheel of cross-platform measurement is the buyer. The industry needs their approval – and money.

“Solutions are coming in, but we can’t yet define success,” he says. “In order to say a measurement works we need our customers to agree on a chosen currency and trust how it’s measured. We need to have money flowing on both sides.”

“NBCU put their money where their mouth is by creating a new framework. But the Olympics was a test event, and not as large scale as full blown TV. We have yet to see a solution that can conduct business at a large scale.”

The pros of different currencies is that it has created a more competitive environment which stimulates innovation and drives down profit margins. The downside is, with no established truth state, the industry is in a state of flux as new providers and partnerships barter over solutions. Until cross-platform measurement is solved, the true revenue potential of today’s multiplatform viewing will not be realized. The opportunity is there, as is the level of experimentation.

“We are in test and learn stage,” says Watts. “Come back in five years’ time, when things have settled down. I believe there will be small number of large providers, offering slightly different, but effective, cross-platform measurements.”

Featured Post | Innovation

The rise of NFTs comes with unanswered copyright questions

February 22, 2022 Charlotte Ricca – Independent Media Reporter

Non-fungible tokens (NFTs) have dominated the headlines of late. Whether Kanye West is dissing NFTs, or Jimmy Fallon is hyping them, hardly a day goes by without a big news story related to virtual property. While the splashy headlines are fun, there is increasing attention on the copyright implications of NFTs. With a growing number of digital publishers looking to cash in, it has become evident that there is misunderstanding around ownership and copyright issues of this burgeoning technology.

“The whole premise of NFTs is that they are unique. But while the token might be unique, it doesn’t mean the item attached to it is,” explains Andres Guadamuz, a Reader in Intellectual Property Law at the University of Sussex in the UK, who wrote a paper on NFTs and copyright.

“Blockchain is public, so anyone can download and view the item for free,” Guadamuz adds. “But these issues are nothing new; they already exist online. You can easily copy and paste an image on the internet.” With this in mind, it is important for publishers to be cautious, and consider the same digital rights management issues that have been a part of digital publishing since its inception.

“The digital rights management aspect might prove to be an important part of NFTs,” says Guadamuz. “But the potential for copyright infringement could have a more immediate effect on the development of NFTs. Given the hype that exists about the technology, as well as the prices that are being paid for NFTs, there is considerable scope for legal action in this area.”

So, while Doug Shapiro claims “NFTs represent a massive financial and strategic opportunity for traditional media companies,” they may also represent a massive headache.

What does it mean to own an NFT?

Each NFT has a unique identifier, with metadata recorded in a public ledger, including who originally minted the NFT and who owns it. The NFT can only have one official owner at a time, and no-one can modify the record of ownership or copy and paste a new NFT into existence.

However, the blockchain is unable to store the actual underlying digital asset. That means when you buy an NFT, you are only buying a link to the item – not the item itself. Aram Sinnreich, professor and chair of the communication studies division at American University, explains, “Mostly, what you ‘own’ is the exclusive right to transact that little entry in the ledger.”

He adds, “For instance, owning an NFT of a song doesn’t mean you own the song — unless the prior owner of a song also wrote a contract saying ‘whoever buys the NFT also owns the song itself.’ In which case, why not just buy the song, and skip the NFT part?”

He does have a point. According to Sinnreich there are two kinds of people buying NFTs: “gullible people and scam artists.” One of the key drivers behind the NFT phenomena is scarcity, because each one is supposed to be unique.

“A creator can write a song, and everyone can listen to it, but the NFT is sold as a unique version of the work, digitally signed by the author,” explains Guadamuz. “NFTs are therefore seen as collectors’ items and not property of the original itself. However, there is practically no ownership transfer involved in NFTs.”

NFT copyrights and wrongs

Confusion about what you own when buying an NFT is further muddied by the aforementioned copyright concerns. The buyer of an NFT doesn’t necessarily acquire its copyright. Similarly, if you already own an original work of art, photo, or song “off chain,” it doesn’t mean you have the right to sell it as an NFT.

This confusion has led to a number of high-profile disputes. An NFT of a Jean-Michel Basquiat drawing was withdrawn from auction on the platform OpenSea, after the late artist’s estate confirmed the seller did not own the license or rights to the work – even if they did own the original piece of art.

Miramax accused Quentin Tarantino of violating the company’s copyright and trademark, when he minted NFTs based on “Pulp Fiction.” More recently, a website called HitPiece was accused of selling iconic songs as NFTs without the artists’ permission.

The sellers of the NFT of Basquiat’s “Free Comb with Pagoda” claimed the transaction would “memorialise ownership” of the physical drawing, as well as “reproduction and IP rights that will be sold to the highest bidder in perpetuity.” While some parts of the law surrounding NFTs remain uncertain, there is no question that NFTs do not have the power to overrule existing copyright protection. Only the lawful copyright holder can transfer the reproduction rights.

Caution: Copyright questions abound

“NFT is a smart contract, but it doesn’t include copyright,” says Guadamuz. “So, you can claim you own the original link, but not the original artwork – unless the copyright transfer is explicitly stipulated.”

According to Sinnreich, one of the reasons NFTs don’t include copyright is because “they are not creative works, and don’t warrant copyright. They’re also not derivative works, so they don’t infringe on copyright.”

Guadamuz adds, “The issue is that an NFT is just code with a link; I don’t even need to have a copy of the work.”  

But to confuse matters more, Guadamuz says, “However, most NFTs actually do link to a copy of a work, and that copy could be infringing. So, I could mint an NFT of a picture I don’t own, and I would upload a copy of it to the intermediary, say OpenSea. In this case I am infringing, not by the minting of the NFT, but by uploading an infringing copy to a website, where it is publicly available.”

The bottom line is: The same copyright laws apply to digital art as to physical works of art. The fact that the work has an ownership certificate in the form of an NFT doesn’t change the rules. In publishing, this means ensuring you have permission from the creator of the original content before minting an NFT of their work.

Publishers may be keen to get a piece of this very profitable NFT pie, while the market is booming, but it pays to be cautious and careful when it comes to copyright.

What the Hot Pod acquisition signals for Vox Media

September 23, 2021 Charlotte Ricca – Independent Media Reporter

There is no doubt the media industry can be pretty cutthroat. Publishers are always looking for new ways to generate revenue and compete with big tech, which dominates the digital advertising market.

Increasingly, media companies are diversifying revenue through subscriptions. So, when news broke that Vox Media acquired the Hot Pod newsletter, many focused on the fact that this would be The Verge’s first paid-for product. But there’s more to it. This is a story of friendship, partnership, trust, and serendipity – all of which form a strong foundation for growth.

According to The Verge’s editor-in-chief, Nilay Patel, the idea to acquire Hot Pod came about because it’s founder Nicholas Quah decided it was time to move on. Quah took on a full-time position as a podcast critic on Vulture, a Vox Media title, and was ready to shut down the baby he’d birthed back in 2014. But Patel had other ideas.

“Rather than just shut down Hot Pod, I suggested Nick sell it to Vox,” explains Patel. “It was an ideal opportunity. We like Nick. We like Hot Pod. And Nick knows us, he knows our work, and he trusts us with the product that he built. It seemed like the natural home for Hot Pod. I’m not sure a paid product on Verge would have happened otherwise. The pieces just fell together.”

Learning curve

This new acquisition, which increases Vox Media’s growing arsenal of brands, wasn’t purely philanthropic – after all, they have a business to run. Patel says The Verge team had been thinking about moving into paid product for some time. It was all about finding the right product, at the right time.

“Nick’s legacy Is strong. So, we have the right product and the right audience” says Patel. “This will help us learn how to deal with a paid product, without the challenge of having to build the product as well and verify two things at once.

“We have a lot to learn, but we are looking at this as a test. When we have more experience in this area, we can create new paid products down the line.”

Another key piece in the puzzle was Ashley Carman, senior Verge reporter, who will take over as lead writer of Hot Pod. Carman is a respected name in the industry, thanks to her essential reportage of podcasting and audio.

“Ashley turns up in Hot Pod all the time, as she is one of the best podcast reporters,” says Patel. “Plus, she has worked with Nick in the past, so there is a lot of inbuilt trust and the audience know her. This means the transition should be seamless, which is another potential risk that is lowered. We wouldn’t have done this deal without her.”

Value proposition

Trust is a word that comes up time and time again when talking to Patel. It’s clear that this is one of the reasons The Verge has amassed a loyal audience of over 50 million. That and the fact it delivers award-winning content – for free. Content across all of Vox Media – including The Verge, Recode, Polygon and more – has been free to access since its launch a decade ago. (Though about a year and a half ago, they began soliciting reader contributions to help support their journalism.) The company merged with New York, which does have subscription-based brands, in 2019.

The combined media organization boasts a roster of fan favorites, reaching audiences obsessed with tech, gaming, music, food, lifestyle and – of course – the city that never sleeps. It has also been building up its roster of newsletters and a formidable slate of podcasts. The Hot Pod acquisition adds another brand with deep insider knowledge that fans trust, which the company believes they will pay for.

“We have a very large, free audience at The Verge. And we are proud of that” says Patel. “They will continue to be well served with free content. But in addition, we will offer Hot Pod, which is a great product.

Vox plans to keep the subscription price for the newsletter at $7 per month. However, it is offering paid current subscribers a three-month subscription to New York magazine, which Quah also works for. So, what does Patel think The Verge audience will make of this new paid-for product?

“We realize you can’t just charge for more stuff. You have to charge for content that is useful and valuable. We think Ashley can deliver a lot of value that is worth paying for.”

Growth plan

Patel says they have a load of new ideas for Hot Pod, such as reviews of software and services that the podcast industry runs on, more features, and a broader focus on technology – rather than just podcasting. But first they plan on managing the transition in a way that ensures the audience feels “cared for.”

“Over time we will make changes, with a focus on improving user experience,” he explains. “Hot Pod is already a must read. We want to make it a definitive must read.”

“Verge has a huge team, with 70-plus people in the newsroom behind us. So, we can bring new, exciting things to Hot Pod. But before we start instituting change, we are going to prove we deserve the audience and their money.”

Open ecosystem

After all, bigger isn’t always better. Sometimes taking an independent, trusted product and giving it big backing turns out to be the beginning of the end. Hot Pod’s new host, Carmen can attest to that. One of her recent investigations offered some insights into ways this can take shape. She took a look at how podcasting’s big bad boy Joe Rogan was faring after signing a $100 million exclusive deal with Spotify. Carmen cleverly tracked indicators on social platforms and found that Rogan’s influence has actually decreased since joining the podcasting giant.

Until now podcasting has largely been the domain of independents and creatives using open platforms to distribute and market their work. But the big tech companies know there’s money there and they have arrived in force.

“At The Verge we don’t actually think that dynamic is good, which is sympatico with the Hot Pod audience and what Nick’s ethos was,” says Patel. “There is a vibrant, open eco system of creators that makes the internet and our culture what it is.”

Once again, it’s all about building trust with your audience – and not just attracting big names or making changes for a fast buck. “So much of what is good about podcasting is the democratic access to distribution. And, as distribution channels become more tightly controlled, we will see aggressive ways of pushing back.”

“For us, the story is the push and pull between what people like and what the platform companies want to do, and how they do it. And Ashley is very focussed on that story.”

Meanwhile, the company will take its first crack at a subscription product amidst a newsletter (and podcasting) boom. And with its latest acquisition, Vox Media continues to experiment and innovate – while focusing on supporting creators, quality journalism, audience engagement – and trust all-around.

Game on: How younger consumers’ behavior shapes media usage

July 15, 2021 Charlotte Ricca – Independent Media Reporter

When it comes to media consumption, consumers have never had it so good. From streaming services to social media, movies to music and video games, to a variety of linear TV channels, options abound. With so much choice, comes inevitable competition for the providers, as they try to court the consumer. So how can media and entertainment brands form meaningful relationships with audiences? According to the latest Digital Media Trends survey it’s all about understanding generational trends – in particular Generation Z, who could cause the next wave of disruption.

The 2021 survey, which was conducted by Deloitte’s Technology, Media & Telecommunication practice, found that Gen Z demonstrate strikingly different preferences. Other research—and experts—back this up. Let’s take a closer look.

Video games

Boomers love streaming video while Gen Z is obsessed with gaming. The group, aged 14-24, place video games as their number one entertainment activity (26%). That’s followed by listening to music (14%), browsing the internet (12%), and using social media (11%). Only 10% of Gen Z said that watching TV or movies at home was their favorite form of entertainment.

“For the first time since we started this survey, Gen Z did not pick watching movies or TV shows as their favorite media. It was gaming,” says Kevin Westcott, Deloitte’s Vice Chairman and U.S. Technology, Media and Telecom Leader. “Obviously there was quite a bit of growth during the pandemic. Gaming is a social activity and a way to stay connected. However, video games were already significantly growing before Covid-19. It will be interesting to see if these preferences persist now that lockdown rules are relaxing in the U.S.”

With the dominance of video entertainment being challenged, media companies need to take a more diversified approach. Publishers should experiment with different storytelling techniques on social platforms, and gamification is a great place to start.

“If a media brand isn’t in the games business, they need to look at how they can make things more engaging,” says Westcott. “Gen Z are looking for more participation and this is where transmedia could help. By utilizing a range of platforms, the audience can interact with content and influence it, rather than just watching it.”

*Source: Digital Media Trends, 15th edition*

Social media

Beyond connecting with the world, social media is a common gateway for consuming a wide range of media content. Although all generations use social media, consumption varies depending on age. According to the Digital Media Trends survey, Gen Z and Millennials both rank listening to music as their main activity on social media. However, Gen X prefer to consume news. The second most popular activity on social media for Gen Z was gaming. For Millennials it’s watching TV shows and movies.

News

Interestingly, despite these social media usage trends for news, 50% of Gen Z still rank social media as their preferred way to get news, while only 12% select news from network or cable TV. Boomers are the opposite, with 58% getting their news from network or cable TV, and just 8% using social media.

According to a report by Flamingo, commissioned by the Reuters Institute for the Study of Journalism at Oxford University, younger audiences differ from older groups in terms of what they want from the news. Young people are largely driven by progress and enjoyment, which translates into what they look for in news. As such, they want news to feel easy and accessible. That means creating formats that are native to mobile and social platforms, as well as including these ideas on their own websites.

The report, entitled How Young People Consume News, also suggests that the news media need to change the way they report the news. This includes tackling issues such as stereotypes, diversity and negativity. It should also influence how news brands present themselves and their content on third party platforms.

Commercial media

A report by the Institute of Practitioners in Advertising (IPA), called Making sense. The commercial media landscape, found similar disparities with the way different generations spend their time on commercial media. Ages 16 to 34 spend 53% on a smartphone or tablet and just 22% on a TV. Conversely, those aged 55 and above spend 53% of their commercial media time on TV and just 14% on a smart phone or tablet.

“The way to drive engagement in younger audiences on broadcast TV is to ensure content is available across multiple platforms,” explains Simon Frazier, Senior Research and Marketing Manager, IPA. “Younger audiences are always media multi-tasking, which is a challenge for media. But broadcasters that tie in with a variety of touch points and blur lines between entertainment and reality enjoy good engagement and a good commercial performance.”

Content

According to a report from VICE Media, in partnership with Ontario Creates, Gen Z is redefining how content is being discovered, consumed, and shared. Three quarters of respondents (75%) report that original content is important to them. Music, video streaming and video games are the top paid services, while cable or satellite TV subscriptions don’t even make it into the top five for Gen Z.

This younger demographic also wants more diversity. Half say that there is a gap in gender diversity, sexual identity, and ethnic representation.

*Source: Gen Z: The culture of content consumption*

Along with good content, they want ease of discovery. Gen Z were born on social platforms so they play an important part of their content discovery. YouTube is their number one content source, with Instagram a close second, followed by Facebook, and Snapchat. TikTok is also gaining popularity. Gen Z tends to like content on social platforms that is transparent, with few barriers between the creator and the audience.

“With new voices and new platforms entering the media landscape by the minute, the competition for young people’s attention has never been greater,” said Julie Arbit, Global SVP of Insights, VICE. “Combine that with a young generation that has never been hungrier for content or savvier about how to access it and you have a whole new approach to content consumption. Understanding this new mindset is essential for anyone who is trying to reach this young audience.”

Subscriptions

The VICE study also found a massive 90% of Gen Z are willing to pay for content if it offers better quality (61%), better experience (56%), and more convenience (50%). Only four in 10 said they wanted an ad-free environment. However, with consumers losing income due to the Covid-19 pandemic, Digital Media Trends noted an increase in churn rates, across all generations, in the past 12 months.

“During the pandemic, churn across streaming more than doubled,” says Westcott. “We call it ‘hit and run’. So, they join for the hit show and then leave to join another service.”

“Instead of focusing on adding new subscriptions, media providers need to shift their focus to long term subscriptions. And the way to do that is to broaden their range of content, and offer exclusive, original, high demand TV series, plus games and music.”

Advertising

Despite the growth of subscription-based services, IPA reports that 63% of 16 to 34-year olds spend their time using platforms that are commercially funded by advertising.

“This represents huge opportunities for reaching this audience through commercial media,” says Frazier.

In the same group, four out of the top five commercial media properties are socially driven. These findings were backed up by Digital Media Trends. They found that social media influencers and ads on social media are the two most persuasive channels influencing younger generations’ buying decisions. They also typically liked ads on social media more than ads in streaming video content and other channels. On social media platforms, 62% of Gen Z and 72% of Millennials would rather see ads personalized to their likes and activity than generic ones.

Growing convergence

Despite these differences, there is a growing convergence of behavior across several generations of consumers, as younger age groups influence older audiences.

*Source: Making Sense: The Commercial Media Landscape*

“Ten years ago, we did a study on Millennials,” says Westcott. “We thought, as they aged, they would become more like us. But that didn’t happen. Instead, they have influenced older generations, who are now behaving in similar ways. The only way they really differ is that 26% of Gen Z rate gaming as their favorite entertainment, verses just 10% of Gen Z and 3% of Boomers.”

It is this preference for gaming that could challenge video as the leading form of media consumption across all generations. However, according to the IPA report, there was a significant drop in the correlation between how younger and older generations consumed commercial media during lockdown 2020.

It found just an 8% similarity between 16-34-year-olds and 55+ during lockdown 2020. This was down from 21% before the Covid pandemic and 58% in 2015.

“What is clear is that the lockdown has undoubtedly reinforced the dominance of key media for the different audiences and exacerbated the differences,” says Frazier.

So, while media companies may still be video-first, it seems that younger generations are moving away from this platform. The question is, are media brands and advertisers prepared to follow suit?

Featured Post | Innovation

How NBCUniversal turned the Olympic postponement into multiplatform gold

July 1, 2021 Charlotte Ricca – Independent Media Reporter

Covering any Olympics is a monumental challenge. But broadcasters of the Toyko Games face challenges like no other in history. Few are feeling it more than NBCUniversal (NBCU) and its parent company Comcast, which hold rights to the Games. The announcement that Tokyo 2020 would be delayed until 2021 due to Covid-19, hit the media across the business – from advertising revenue to the launch of Peacock, its new streaming service.

However, just as the athletes are coming back stronger from a season off, NBC says this extra year has left them fully prepared for the challenge ahead. It recently announced plans to present 7,000 hours of Olympic coverage, making the 17-day affair the “biggest media event ever.”

“We have spent the better part of the last 14 months learning how to do things differently,” Pete Bevacqua, Chairman, NBC Sports Group, said in a recent press event on the network’s coverage plans. “Those skills … will absolutely apply themselves as we tackle what should be, I think, one of the most interesting and special Olympic Games ever.”

Olympics everywhere

Part of this new, improved package involved working up with other platforms to ensure that people can watch what they want, when they want. In addition to Comcast’s X1 pay-TV platform, partners like Roku and Apple TV will feature Olympic dashboards, which will guide viewers to the Games. NBCU has been working directly with a range of platforms to develop content that fits with the needs of their audience, given the specific delivery channel.

The network has also created strong partnerships with Google Search and Google OneBox. Many people will decide what to watch by going to Google, and NBCU is prominent in the Google OneBox with viewing information and highlights. And, significantly, NBCU will do a major programming push on Peacock, to help build audiences for the streamer. The company also recently announced that Peacock will launch on Amazon Fire TV and Fire tablets.

Peacock will feature new daily live shows and dedicated Olympics channels, as part of its Tokyo Olympics destination, which goes live on July 15. The streaming service currently has around 42 million subscribers. Matt Strauss, Comcast Chairman, Direct-to-Consumer and International, is “very optimistic” that the Olympic coverage will bring a new, larger audience. However, Strauss says the company is not prioritizing premium subscriptions as part of the Olympic push. Instead, the focus on ensuring that consumers check out the free, ad-supported, basic tier of Peacock.

The rights stuff

In addition to the 7,000 hours of content, across a plethora of platforms, NBCU will also flex the fact that it negotiated exclusive rights to the Olympics until 2032, which cuts out rival networks. The deal, which covers all media platforms, including free television, subscription TV, Internet and mobile rights, is valued at $7.65 billion.

What this means is, NBCU has rights across every platform – even those that have not yet been developed yet.

“We have the most complete set of rights of any sport that we have on any of our networks and that any network really has,” says Mark Lazarus, NBCU’s chairman of television and streaming. “Essentially, every technology known today or to be invented between now and 2032. That gives us the ability to try new things and to experiment. That’s what we’ll be doing across the platforms.”

“Our job is to pick the best platform for each piece of content, while trying to take the incredible reach that the Olympics have, the incredible reach that the NBC broadcast network has, and put it on the biggest stage.”

Twitch hit

One new partnership they are particularly excited about is Twitch. The collaboration will feature programming tailored to the Twitch community. This includes highlight studio shows, game-ified pre-Olympic activations, Olympic athlete interviews, and Olympic-themed gaming competitions.

“The way that people consume traditional sporting events is changing,” says Michael Aragon, Chief Content Officer at Twitch. “They no longer want to simply spectate. They want to be as close to the action and athletes as possible. We’ve seen this first-hand with the growth of our sports community on Twitch, as viewers tune in not only to watch their favorite athletes but to also take part in pre- and post-game interviews and virtually connect with other fans from around the world.”

Friends and family

Covid not only saw the Games postponed, 12 months, it has also put a stop to any international travel to Tokyo. This means friends and families of the athletes won’t be able to support in person. Plus, the audiences at big events will be capped at 10,000 people, or 50% capacity, whichever is smaller. This means there is even more pressure on the network to provide a ‘real’ experience for those that can’t be there.

This new challenge led to the creation of a new “Friends and Family” production unit, that will capture the reactions of loved ones back home.

According to Molly Solomon, Executive Producer, NBC Olympics and GOLF, the work and thought put into the Tokyo Games, during the pandemic, means they are going to be the “most meaningful Olympics of our lifetime.”

“After everything the world has gone through, as we begin to emerge from this pandemic, the world coming together is an incredibly impactful experience,” she says.

“We really have put together the most ambitious coverage plan ever. We’ve also adapted to the changing consumption habits. Our goal was to be everything for everyone. It’s our most coverage we’ve ever had.”

Featured Post | Innovation

Do recommenders deliver more value to audiences – and the bottom line?

May 27, 2021 Charlotte Ricca – Independent Media Reporter

There are a number of reasons why legacy media faces fierce rivals in digitally native media – such as Netflix, Spotify, and Stitch. However, a critical competitive differentiator could be the fact that many of these brands are committed to delivering accurate, actionable recommendation systems.

Recommendation engines aren’t just about recommending content to your readers, according to Michael Schrage, a research fellow at MIT Sloan School’s Initiative on the Digital Economy and author of Recommendation Engines. They are platforms that facilitate online interaction. When designed well, they help organizations rethink how they can get more value from their data. They also offer more value to their customers.

“The biggest mistake media companies make is they think they are in content business. But they are the data business – and their data management sucks,” states Schrage. “While they won’t be able to rival Netflix, they still can engage with their communities so much better. It’s not just about how to tell a better story, it about how we can learn from people who read our stories and engage with them.”

Evolving engines

Recommendation engines, or recommenders, are nothing new. Amazon founder Jeff Bezos spoke about the value of recommenders back in 1998. He said that they offer an “opportunity to develop very deep relationships with customers.”

The good news is that, while they were once a feat of extraordinary technological effort, machine learning is changing that. In fact, it’s the ease with which they can be built, applied and utilized that makes them the most exciting and valuable applications of machine learning right now.

“The big difference now is that anyone can build a recommendation engine,” states Schrage. “They are cheaper, faster and better than ever. Plus, the underlying algorithms have moved away from simple correlations to much deeper and richer analytics, around diversity and relevance. As a result, the levels of sensitivity and specificity of recommenders have improved. And they keep learning how to get better.”

Virtuous cycle of engagement

That is the key to well-designed recommenders. The more people use them, the more valuable they become. And the more valuable they become, the more people use them, creating a virtuous cycle of data with audiences. However, according to Schrage, legacy media often miss this vital opportunity to improve both customer insights and engagement.

“These organizations treat recommendation engines as a sales tool. But they need to understand how to use their data and turn it into virtuous cycle,” says Schrage. “And the low-hanging fruit is advice and recommendations.”

In other words, recommendation engines are more than a UX differentiator. When effective, they enable organizations to build customer lifetime value (CLV). The former is transactional, while the latter embraces a longer-term view.

Increasing retention

“It’s the difference between ‘always closing’, and a salesperson who wants to forge a relationship,” says Schrage. “The question is: Do you treat customers as ‘one offs? Or do you seek to use data-driven advice to get people to come back and explore, while also building brand credibility?”

Reader regularity is a key factor in preventing churn. The industry has long been concerned about unengaged subscribers. Recent research reinforced this concern when it revealed nearly half of digital subscribers to local news outlets are ‘zombie’ readers who visit a site less than once a month. These customers are far most likely to cancel their subscriptions than are frequent visitors.

The study also found that personalized, local content is a key factor in retaining subscribers – which is where recommenders play a big part. One great example of this is with the Dutch newspaper, NRC. After personalizing its newsletter, using an AI tool, 22% more readers demonstrated habitual reading behavior. However, there is a lot more to recommendations than personalization.

While recommendations can be personalized, it’s not the only – or the best – option. Personalized recommenders require large amounts of data on users, which a system won’t have with new visitors, or those that don’t sign up. This can cause what is commonly coined ‘cold start’ problem. This occurs when a recommender system cannot draw inferences, due to a lack of information. Another problem with personalized recommenders is the potential for bias, which can be a particular problem for news sites.

Automated customization

This was a concern for the non-partisan news organization POLITICO Europe, when it launched Pro Intelligence in 2019. Pro started as a pure news service. However, it bought the start-up Statehill in 2018, so that it could build out a one-stop shop for policymakers. The platform, which accounted for 60% of POLITICO’S income in 2020, now offers news, analysis and relevant, external information within a single dashboard.

Every piece of content on the Pro platform features recommendations, from legislation to court cases, and press releases to news from the editorial team. However, the algorithm doesn’t require user input to customize the experience. Instead, it employs an auto-tagger, which uses key words, dictionary mapping and natural language processing. [Editor’s note: An in-depth look at this is available to DCN members.]

“We don’t have the engineering capabilities in our organization to dedicate to a personalized algorithm. And we’d probably be too afraid to introduce it, in case of bias,” said Karl Laurentius Roos, Director Technology Development. “But our auto-taggers mean we can surface news and data automatically, which has a real impact on the end user’s productivity and understanding.”

Pushy algorithms

Pushing news, via email or mobile notifications, remains POLITICO Europe’s most effective way to integrate their services into their users’ day. However, Roos and his team are currently building products that will pull the user into their ecosystem.

“If we can enable user access to pull more content themselves, we’re increasing the product utility and value captured each time a user accesses our content,” said Roos. “For us this translates into connecting news with data and wrapping it seamlessly across our desktop and mobile experiences.”

According to Schrage, other media brands doing a good job with their recommendation systems include the Wall Street Journal, Dow Jones, Bloomberg and Pocket. However, not everyone agrees that recommenders are beneficial to business. Slate built Myslate in 2015, which worked on personal recommendations, based on users telling them what they wanted, rather than machine learning. After an initial experiment, the online magazine decided that keeping the infrastructure running wasn’t worth the amount of reader minutes it generated.

“For the recommendations to work we needed to ask them to sign up, which added friction to the experience,” explains Greg Lavellee, VP, Technology at Slate. “But I’m not convinced that recommendation systems are worth it. People tend to personalize their own experience. They know where they want to go on the site. They find the content they want – you don’t have to shove it in their face.”

Culture shift

Try telling that to the likes of Jeff Bezos, Reid Hastings, and Katrina Lake. Nonetheless, media brands may be concerned they don’t have the capabilities, budget or data to build a successful recommendation system. However, Schrage says the issues aren’t necessarily technological or financial, they are organizational and cultural. Recommendation systems don’t just require an IT upgrade, they require a rethink of business fundamentals.

“Legacy media have had the sh*t kicked out of them by companies that literally didn’t exist 10 or 15 years ago,” he states. “It’s because the tech giants have committed to using data to learn. They take good design, good data and good recommendations seriously.

“This is what other media brands need to emulate in order to bridge the digital divide.” In fact, he says that media companies need to learn how to leverage customer’s behavioral data to drive value and grow business. “Algorithmic plagiarism is essential to future health of legacy media.”

Featured Post | Innovation

New Economist Group digital product puts customer experience at its core

April 29, 2021 Charlotte Ricca – Independent Media Reporter

Launching a new product during a global pandemic could be classed as a bold move. However, given its customer-centric approach, The Economist Intelligence Unit (EIU) team knew the time was right. “The feedback from our clients was they didn’t want things at EIU to change. But they wanted to navigate our products more easily, so that they can compare information at speed,” EIU’s Chief Digital Officer, Sharon Cooper told DCN.

Launched this month, EIU Viewpoint integrates EIU’s subscription-based services into a unified digital platform. It combines the EIU’s expert insights and analysis with forecasts and proprietary data to offer clients a 360-degree view of the world, encompassing politics, policy, and economics. “Before, these were separated, so clients might only have one aspect,” says Cooper. Now EIU has integrated them under one umbrella product. This allows them to provide “a more nuanced perspective of the world and the forces shaping it.”

However, EIU Viewpoint wasn’t launched in response to Covid-19. It launched in spite of it. “We had to deliver Viewpoint remotely, with every single person working for home. We didn’t miss a beat.” She says that “It’s testament to the global nature of our business, as we have over 650 analysts in 130 countries. It was also our ability to pivot quickly, but not lose sight of the thing we needed to deliver for the client. We stayed focused on our end goal. But were flexible to the changes brought about by Covid.”

Customer-focused approach

A customer-focused approach is at the heart of EIU, which was created back in 1946, in response to the needs of The Economist’s readers. They wanted to know how to better run their business in a challenging and changing post-war environment. Today its team of economists, industry specialists, policy analysts, and consultants help businesses, financial firms, academics, and governments understand the shifting global landscape.

It’s a business model that clearly works. EIU revenue increased by 1% for the six months ending 30 March 2020. And The Economist’s circulation revenues rose by 6%. EIU Viewpoint hopes to build on these figures by combining EIU’s award-winning political insights, policy analysis and economic outlooks, with curated forecasts and proprietary data.

Critical analysis

This global view includes forecasts for the global economy, daily insights, and country economics. It also incorporates political analysis, medium- and long-term forecasts, macroeconomic datasets, and proprietary ratings and rankings. But what makes Viewpoint’s offering unique is the editorial team.

“Anyone can access the data we produce. But our key differentiator is our analysis. It’s a critical part of what we do” says Cooper. “EIU Viewpoint isn’t a news business, it’s a forecasting business. We are saying what will happen as a result of the news. EIU Viewpoint allows clients access to our editorial team’s thinking. We try and contextualize the news for each of our clients.”

Creating a platform that offers such a tailored user experience had it challenges, as their clients range from industry experts to total amateurs. “Bringing this context to life and making it simple to navigate was the toughest part of the build,” says Cooper. “We had to ensure lots of different types of users could navigate the same system and get all their questions answered in a consistent way.”

Preparing for opportunities

The product is a great example of how listening to your audience and responding to their needs adds value to a brand. The Economist is a well-respected title that offers news. EIU is a trusted resource that explores the impact of that news. The two go hand in hand to offer an independent and authoritative voice, which has resulted in loyalty and high levels of engagement with some of the biggest brands in business.

“Our content is about looking forward and thinking ‘what does this mean for our clients?’” explains Cooper. “There might be 101 things that happen in a day. Rather than just giving a bunch of facts, we weave them together to make a comprehensive overview of a country and how its changing.”

As a result, EIU has been able to guide their customers during the toughest times over the past 12 months. This includes providing a “huge amount” of additional data, to help with risk management and forecasting. The EIU also built its own Covid tracker, which looks at when the global economy will get back to pre-pandemic levels. It also reports on vaccine rollouts and how they impact the economy.

“It’s all about preparing for opportunities and helping our clients understand the whole market” says Cooper. “There are different models for different countries. We think about each one, in terms of what is happening today, what this will look like tomorrow, and what this means for our clients.”

EIU Viewpoint manages to hit that sweet spot that all media are trying to achieve: identifying opportunities for customers that translate into revenue opportunities for their own business. By working closely with their clients, EIU has become an integral part of their business. Thus, its clients have a “strong commitment” to the brand.

“If you look at most big banks, NGO organizations and governments around the world, you will find EIU at the heart of them,” Cooper says. “We believe Viewpoint will consolidate this relationship. It will help both our clients and the Economist Group plan for the future in order to operate effectively and profitably.”