Articles by: "Michelle Manafy, Editorial Director – DCN"

As the industry increasingly incorporates subscriptions into diversified revenue strategies, media companies need to take a fresh look at their subscription cancellation processes. Not only do customers expect streamlined cancellation processes, smart companies conceive of cancellation as a critical aspect of an effective retention strategy. And all companies must be aware of changing regulations around facilitating the cancellation process.

In a new INMA report, Using Subscription Cancellations to Retain News Customers, Robert Skrob (author of the book Retention Point) cancelled subscriptions with 14 of the world’s largest English-language news media publishers in one week to experience and analyze their processes.

Using these experiences, Skrob outlines which companies are making it simple to cancel, which ones are making it difficult, and which ones offer lessons worth learning. With specific examples of what they’re doing right and what they could do better, Skrob offers an insightful look into the experience of subscribers as they try to cancel, which will help media companies design processes that leave audiences with a positive impression or – even better – convince them not to leave.

Building a retention-based cancellation process

Through his work, Skrob has found that many media companies have not developed the kind of cancellation process that is designed for retention. He finds that cancellations are an often-neglected aspect of the media business, relegated to accounting or administration. He suggests moving this function to the marketing department as an aspect of subscriber-retention.

Many media companies have created complex or opaque cancellation processes designed to dissuade unsubscribes. The effectiveness of this approach is the subject of some debate. However, the FTC has proposed the “click to cancel” rule, which would require companies to allow consumers to cancel their subscriptions in the same way, and just as easily, as they subscribed in the first place. So, whether companies like it or not, it’s time to develop easy cancellation processes that may actually improve retention.

While many types of subscription-based businesses have pushed back on this requirement, Skrob believes that there are tactics that can be incorporated to reduce the likelihood of churn. For one, companies can do a better job of communicating the benefits and value of subscription to audiences. For example, The Financial Times includes a “before you go” message which outlines exactly what subscribers lose when they cancel. The Telegraph cancellation process also includes a page that demonstrates the value of the exclusive subscriber benefits and explains what the subscriber will lose after cancellation.

Giving would-be cancellers an offer to stay increases retention, according to Skrob. He finds that upsells work better than downsells in terms of recurring revenue. He also suggests that, if you don’t have an upsell, that you consider offering a lower-priced subscription tier to retain customers.

If a customer does in fact cancel, it is important to send them a confirmation of cancellation so that they know that they’ve completed this step successfully. However, even this confirmation should be viewed as an opportunity to reengage. This, as well as communicating transparently their remaining subscription benefits and duration of subscription until cancellation is finalized, works towards building trust. And that trust will pay off as you work to regain them as a subscriber.

Case studies and a case for improved cancellation strategies

Based upon his research, and case studies examining the best (and some not so great) practices from the media companies’ processes he investigated for the report, Skrob makes a solid case for investing marketing time and energy into your subscription cancellation processes. Yes, this can positively impact subscription retention and revenue growth.

However, the report also builds out the connection between these processes and improving audience trust – something the media industry has struggled with for some time. As Skrob explains, creating cancellation processes with skill and integrity can grow trust for your brand. Cancellation management is a critical piece of subscription growth which in turn will enable your media company to invest more in the products you deliver, and help grow a sustainable media industry.

Perspectives

DCN’s must reads: week of January 25, 2024

January 25, 2024 Michelle Manafy, Editorial Director – DCN

Here are some of the best media stories our team has read so far this week:

Variety | As Paramount, WB Discovery and Others Weigh M&A Options, Is More Consolidation Really the Answer to Hollywood’s Profit Problem? (13 min read)
The New York Times | Billionaires Wanted to Save the News Industry. They’re Losing a Fortune. (6 min read)
NBC | States turn their attention to regulating AI and deepfakes as 2024 kicks off (3 min read)
Wired | Most Top News Sites Block AI Bots. Right-Wing Media Welcomes Them (5 min read)
Bloomberg | Streaming Pirates Are Hollywood’s New Villains (7 min read)
The New York Times | I Am Going to Miss Pitchfork, but That’s Only Half the Problem (5 min read)
World Economic Forum | Defending truth (45 min view)

Perspectives | Uncategorized

DCN’s must reads: week of January 18, 2024

January 18, 2024 Michelle Manafy, Editorial Director – DCN

Here are some of the best media stories our team has read so far this week:

The Guardian | Back UK creative sector or gamble on AI, Getty Images boss tells Sunak (4 min read)
Journalism.co.uk | Trust is not a “useless metric” – we just need to understand it better (4 min read)
PressGazette | While New York Times litigates over AI, many media companies will liquidate – US Congress warned (1 min read)
404 Media | Google Search Really Has Gotten Worse, Researchers Find (3 min read)
Adobe | Using TikTok as a Search Engine (5 min read)
The New Yorker | Is A.I. the Death of I.P.? (25 min read)
The New York Times | A Few Words About Netflix’s Success: Vivid. Snappy. Tags. (6 min read)
Reuters | Five things news media can do to respond to consistent news avoidance (21 min read)

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Perspectives

DCN’s must reads: week of January 11, 2024

January 11, 2024 Michelle Manafy, Editorial Director – DCN

Here are some of the best media stories our team has read so far this week:

The Verge | The web is filled with content designed for Google, not humans. (29 min read)
Digiday | How media execs are bracing for another year of ad turmoil while finding the bright spots (7 min read)
Bloomberg | OpenAI In Talks With Dozens of Publishers to License Content (2 min read)
MIT Technology Review | What’s next for AI regulation in 2024? (9 min read)
The Verge | OpenAI claims The New York Times tricked ChatGPT into copying its articles (3 min read)
The Washington Post | AI’s future could hinge on one thorny legal question (9 min read)
Reuters Institute | Journalism, media, and technology trends and predictions 2024 (52 min read)
NAHJ | The Damned Pipeline: U.S. News Industry’s Broken Parity Promise (5 min read)
Spectrum IEEE | Generative AI Has a Visual Plagiarism Problem (26 min read)

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Perspectives

What media tech execs are focused on in 2024

January 3, 2024 Michelle Manafy, Editorial Director – DCN

The past several years have seen media companies accelerate their revenue diversification, though. We’re also witnessing an increased pace of innovation and spirit of experimentation. That, coupled with crumbling cookies and proliferating privacy regulation means the media marketplace looks much different than it did just a few years ago.

We reached out to some of our supporter partners here at DCN and asked about the biggest trends, challenges, and opportunities they see as we start off the new year. (DCN supporter partners are companies that do business with premium publishers and are aligned with principles of quality and trust.) Below, these media tech leaders offer their perspective and insights on what’s ahead.

Industry trends to watch in 2024

Transformation of the advertising ecosystem

In 2024, we’ll see the rise in importance of premium publishers. Cookie deprecation, fraud, and “reject all” are forcing a rethink of how digital advertising works. This creates a massive opportunity for premium publishers that invest in creating quality content and a quality brand to build closer connections with advertisers. And as more spend goes to premium publishers, they can invest more in quality content, creating a virtuous cycle. The result will be a higher-quality open web.

The industry is coming to the realization that advertising without third-party cookies will be better than advertising with them. The industry will be forced to find an alternative in 2024, so we’ll finally see an advertising ecosystem that works for those who bring value, where publishers remain in control of their data and revenue, advertisers maximize spending and build their brands, user experience improves, and consumer privacy is respected.

—Aly Nurmohamed, COO, Permutive

The ad market has been on shaky ground in 2023, but the New Year brings new opportunities. Cookies finally fading into the sunset will negatively impact third party data signals in Open Auction. This provides tremendous opportunity for publishers that can offer differentiated first party audiences at the scale that advertisers desire.

Buyers will need to go to publishers directly so that they benefit from these trusted audience signals. As Open Auction revenues dip, publishers will need to invest in direct sales, which takes money and effort. Ultimately this will drive revenue growth beyond previous levels so it’s critical to remember that disruption may be uncomfortable in the short term, but it drives innovation as well.

—Chris Guenther, COO, ArcSpan Technologies

With the increase in media consolidation and ad class types, many media companies now represent multi-faceted and valued inventory. As a result, they find themselves maximizing the value of tried and true blue chip inventory, such as premium CTV, but also emerging platforms and media, such as podcasts and non-linear derivative video.

With unequal market demand around these varied inventory types, one of the biggest opportunities in 2024 will be leveraging the power of data targeting and audience segmentation as a vital equalizer for this mass of supply currently undervalued by the market.

—George Blue, Head of Publisher Partnerships, Equativ

The impact of AI innovation

AI is disrupting the media industry in an extremely impactful way. And, due to the many opportunities it continues to present, we can expect it to spawn its own industry in 2024. This new sector will take the form of not only new products, but of bolder innovation brought on by elevating AI specialists to the business’s leadership. Expect to meet plenty of newly elected AI officers, and for dedicated AI consultancies to emerge on every show floor. Additionally, the new AI industry will emerge into two tiers of service: specialist AI tools, trained on an organization’s owned data, and generalist AI tools that are less sophisticated and more user friendly. The former will bring the greatest value to a business, providing them with a competitive edge for the industry at large.

—Alexandra Theriault, Chief Growth Officer, Lotame

It’s hard to overstate the impact AI will have on society and publishing. Many media companies are experimenting with using AI currently. In 2024, we will see this tech weaving its way into the day-to-day. I am excited to see how our industry’s use of this technology expands. AI introduces opportunities throughout publishing – from content creation to optimization of distribution and advertising.

—Todd Krizelman, CEO, MediaRadar

When it comes to news reporting, the greatest opportunity in 2024 lies in leveraging AI and other technology to streamline processes aimed at discerning user preferences. This involves identifying user needs, pinpointing the optimal timing for news consumption, and determining preferred formats such as mobile-optimized content, short story formats, live blogs, graphs, and video imagery. By harnessing AI, newsrooms can strategically allocate their resources, focusing on creating stories that not only garner increased media attention but also foster increased audience engagement, commitment, and brand loyalty.

—Naomi Owusu. CEO and Co-Founder, Tickaroo

We’ll see AI-driven solutions that can analyze vast amounts of data to deliver more effective and efficient advertising campaigns. This will not only enhance the user experience but increase the ROI for advertisers. With increasing concerns over privacy and data security, developing innovative solutions that balance personalization with privacy will be crucial.

—Simon Klein, Global SVP Supply, Teads

Privacy, please

Moving forward, we’ll see a focus on passing data between buyers and sellers in a way that respects users’ privacy. Programmatic infrastructure has been built today for buyers and sellers to trade on user IDs. As privacy moves front and center, buying and selling ‘cohorts’ of users will become the norm, and innovation will come from making the best use of cohorts to drive advertiser outcomes.

—Aly Nurmohamed, COO, Permutive

AI has the potential to greatly improve efficiency, personalization, and discoverability while expanding the accessible market for publications. However, it will be interesting to see how these tools evolve and are used in practice as we navigate moral and privacy concerns that come with the technology.

—Todd Krizelman, CEO, MediaRadar

I am going to be an unabashed optimist here and say I am most excited for a national privacy law, mostly because our current path is unsustainable. According to the IAPP US State Privacy Tracker, as of Dec. 1, 12 states have passed comprehensive privacy laws, nine states have active bills in committee, 14 states have inactive bills, and 15 states have not introduced a privacy bill. It’s a mess. How are publishers, media buyers and intermediaries supposed to operate in this environment? Let’s stop this madness and introduce a national privacy law that works for all sides of the industry and consumers.

—Richard Murphy, President, Alliance for Audited Media

This year, it’s personal

In 2024, a major innovation set to redefine user engagement with newsrooms is the continued evolution of personalized updates across digital news sites. Following the lead of social media channels and search engines, this advancement allows readers to receive tailored content based on their preferences and behaviors. Newsrooms have begun to embrace this trend, delivering more precisely curated content, and the sports sector has already demonstrated the power of granular customization.

Looking ahead, we can expect even more sophisticated algorithms and machine learning, enabling platforms to provide an increasingly seamless and enjoyable user experience. This hyper-personalization not only enhances engagement but also opens new possibilities for businesses and content creators to connect with their audiences in unprecedented ways, shaping a more relevant and engaging digital landscape in 2024.

—Naomi Owusu. CEO and Co-Founder of Tickaroo

In 2024, harnessing the power of artificial intelligence and machine learning to offer highly personalized and engaging ad experiences while respecting user privacy will be critical. I’m particularly excited about the potential of CTV. CTV is revolutionizing TV advertising by allowing for personalized and interactive ad experiences, tailored to viewer preferences. This personalization enhances viewer engagement and ad campaign effectiveness.

—Simon Klein, Global SVP Supply, Teads

Experiment to excel

While interest in advertising on streaming platforms is growing, marketing budgets are not expected to increase in 2024. This means intensifying competition. To remain competitive and attract viewers, traditional publishers are likely to feel more pressure to innovate and experiment.

In the broadcasting world, we are already seeing novel ideas and formats from players such as Channel 4 and NBCU’s Peacock. Ad breaks, ad load, and programming are being reshaped and refined. Broadcasters are testing dynamic adverts and are decluttering content to balance campaign impact with quality viewer experience.

The outcomes of these experiments will shape the future of premium video. Thus, today’s challenges may soon give rise to exciting opportunities for both media companies and advertisers — all thanks to the experimentation we will see in 2024.

—Virginie Dremeaux, Vice President, Marketing and Communications, International, FreeWheel

A major innovation that I anticipate in 2024 is the increased integration of augmented reality (AR) and virtual reality (VR) into digital advertising. These technologies are poised to transform the way brands interact with consumers by offering them immersive and interactive experiences. Imagine a world where consumers can virtually try on clothes or test products in a simulated environment before making a purchase. This not only elevates the consumer experience but also opens up new creative avenues for advertisers to engage with their audience.

—Simon Klein, Global SVP Supply, Teads

Ad spending across retail media properties and audiences is expected to reach $45 billion in 2023, creating an opportunity for publishers who can bridge content and commerce to capture a healthy piece of that growing spend. In 2024, we expect to see publishers in a strong position to compete with retail media as they introduce shoppable moments into the user experience and build out libraries of commerce-powered content to fuel full-funneled shopper journeys.

Because media companies have direct – and highly trusted – relationships with their audiences, they make natural merchandisers, having incredible power and editorial insights to curate products and experiences for their customers with the goal to maximize sell-through for advertising sponsors. Sure, retailers may have a lot more experience pushing products but as they build out their advertising offerings, they also build the case for commerce media where publishers will shine.

—Kevin Boyrivent, Director of Product Strategy, Supply Solutions, Criteo

Revenue remains the top priority for 2024. But when it comes to advertising, publishers will need to continue to experiment, innovate, and invest in their infrastructure. Publisher-controlled contextual will be key to unlocking greater monetization opportunities in 2024. These signals will be far more sophisticated than the current contextual signals provided by third parties that are high level and frequently inaccurate. Dynamically created advanced taxonomies that support a publisher’s data strategy will offer more granular and relevant contextual signals. This will ultimately allow publishers to offer more effective advertising options that can only be accessed via a direct relationship.

After a challenging year for the industry, conversations have highlighted for us that publishers have a clearer sense of priorities and opportunities for 2024. Publishers are going to invest smartly to enhance their data assets to support use cases across advertising, product experience and content creation. It will be exciting to see how that drives new revenue growth and puts the sector in a better position to help advertisers achieve their KPIs and their users to have great experiences.

—Chris Guenther, COO, ArcSpan Technologies