Login
close
Login is restricted to DCN Publisher Members. If you are a DCN Member and don't have an account, register here.
Search

Digital Content Next logo

Menu

Articles by: "Rande Price, Research VP – DCN"

Industry-Research | Revenue

How publishers can develop a content-to-commerce strategy

For quality publishers with strong consumer relationships, a content-to-commerce strategy offers a valuable revenue diversification approach. The International News Media Association’s (INMA) new report, Content-to-Commerce Brings Revenue in Post-Advertising World, outlines key considerations, strategies and their implementations to help publishers build this line of revenue.

While ecommerce may sound straightforward, successful implementation is not easy. First, a publisher’s brand must have a purpose, a reason to exist for the consumer. It needs to be authentic, possess an emotional quality, and present a personality. If a publisher meets this high bar, then it can begin the work of developing a commerce strategy because its content connection to a purchasable product will be valuable to consumers.

The major models

The INMA report identifies three basic content-to-commerce models:

  1. Affiliate models, which send customers to an outside product link, earning the publishers a percentage of the purchase revenue.
  2. Attribution marketing, which tracks touchpoints from consumer to purchase, assigning a value to the touchpoints in the journey. If the publisher, is an effect touchpoint, they receive a percentage of revenue.
  3. Direct ecommerce, which offers company-owned products to consumers allowing for both higher revenue and higher conversions.

An integrated platform

Sweden’s Aftonbladet, a Schibsted-owned company and the largest news platform in the Nordic countries, partners with ecommerce platform Tipser. To sell products, Aftonbladet pairs its content with integrated ecommerce platform. They most often place embedded ecommerce in their features departments such as food and health. Aftonbladet made an important decision at the start not to integrate ecommerce in hard news content.

Aftonbladet recommends that publishers be completely transparent. For example, they need to communicate if they include embedded ecommerce elements in their content. An embedded ecommerce model should help build reader loyalty, not weaken it.

The content connection

Aftonbladet also creates content around ecommerce related products. If consumers search for a product of interest, it can lead to Aftonbladet’s library of content. It’s a great way to bring consumers to Aftonbladet content, connect them to products and increase overall traffic to the site.

The New York Times uses an ecommerce model with Wirecutter, which it acquired in 2016. Wirecutter is designed to help readers’ by offering them recommendations for retail purchases across multiple categories. The brand does a lot of the work for the consumer by providing product details, comparisons, and recommendations. Wirecutter Guides talk to category experts. They do the research, test the products, and find the best option in any category, then offer an unbiased recommendation.

Wirecutter maintains a reader-first mission, with a secondary focus on ecommerce. It also offers exclusive deals through their merchants and retailers. Wirecutter made an important editorial decision early on that product reviews cannot be influenced by a retail partnership. The core focus is to recommend the right product for the right consumer.

Question your approach

The INMA report identifies four key questions for publishers to address when identifying the right ecommerce model.

  1. What do your readers need that you can provide that benefits them?
  2. What’s the shortest journey to get it to them?
  3. How can you make money from doing that?
  4. How does your content lead the way?

As ever, a publisher’s primary goal must be to provide content that serves an audience. Then, they can build out an effective strategy to monetize their content and audience relationship throughout the customer’s ecommerce journey.

Industry-Research | Revenue

Publishers show digital growth amidst pandemic closures and consolidations

Digital subscriptions have helped shape a stronger business for publishers. FIPP’s latest Global Digital Subscriptions Snapshot (Q3 2020) shows that subscriptions are serving to support publishers during the pandemic. In fact, research by Press Gazette reports that during the Covid-19 crisis the largest newspaper groups in the US and UK gained more than one million new digital subscriptions. Not only are large publishers faring well but smaller, regional and specialist brands are also showing record subscriptions.

Despite positive performances in digital subscriptions, Covid-19 brings with it challenges to the industry. Zenith Media expects a 9% decline in internet ad spend this year. The agency estimates a 6% recovery in 2021, driven by the rescheduled Tokyo Olympics.

On a global front, the middle east and Africa will be hardest hit with a 20% decline in advertising revenue. Western Europe anticipates a 15% decline and Latin American a 13% decline in ad spend. The Asia Pacific, Central and Eastern Europe markets are estimated to decline by 8%, respectively. North America expects to register the smallest decline (7%) due to the large spend on political advertising this year.

FIPP Q3 findings:                                            

News publishers’ subscription growth

  • The Athletic reports 1 million subscribers as of September 2020. Unfortunately, with only a few new subscribers in Q1 2020 and cancellation of live sporting events, the company laid off approximately 8% of its staff. In addition, there were pay cuts across the company to offset expenses.
  • Caixin Media in Beijing grew subscriptions by 70%, adding 210,000 new subscribers for a total of 510,000 this year. It’s the first media company in China to place all of its content behind a hard paywall.
  • Dow Jones reports that digital revenue now accounts for 71% of total revenue, up from 63% compared to the same time period last year. Total subscriptions, across print and digital products, is at 3.8 million, driven by a 28% increase in digital subscriptions. Interestingly, 2.2 million of the Wall Street Journal’s 3 million subscriptions are digital-only. Across the entire Dow Jones group, digital subscriptions account for 67% of subscription revenues.
  • Gannett is centering their business around digital transformation. To date they are close to one million paid digital subscribers.
  • The New York Times’s added 669,000 new digital subscriptions in 2Q 2020 for a total 5.7 million digital subscriber. In fact, for the first time ever, digital revenue now exceeds its print revenue. Overall, the company’s operating profit of $52.1 million is down 6.2% compared to same time period one year ago.

Magazine closures

  • South Africa magazine closures:
    • Associated Media – company closure
    • Caxton – selling off 80 titles
    • Media 24 – closed 2 of 5 titles
  • UK magazine closures:
    • Immediate Media – closed 11 titles
    • Bauer Media UK – closed 10 titles
    • Broadly – exited New Zealand, closed 8 titles and consolidated with Australian Mercury Capital
    • PLC – closed 6 titles
    • T1 media was acquired by Future

Streaming growth

  • Netflix consistently delivers content with new productions and licensing deals to the consumer market. As of Q2 2020, there are a 193 million subscribers globally.
  • Amazon Prime Video, part of Amazon Prime, is very successful in the SVOD market. Subscribers reached 150 million globally.  The company does not break out Prime Video from Amazon Prime. The company does not provide details on active users of Prime Video. However, the Kantar Entertainment on Demand Report offers a third-party analysis SVOD users. The Kantar Q2 2020 analysis shows that Amazon Prime Video subscriptions account for 23% of all SVOD subscriptions. That marks a 14% increase from the prior quarter. 
  • China’s merger discussions between Tencent Holdings and iQIYI could establish the world’s largest streaming service with more than 231 million paying subscribers.
  • Disney+ is exceeding all expectation with currently has more than 60.5 million subscribers.
  • Apple TV+ claims 10 million subscribers. However, many subscribers are part of a 1-year free trial offer because they are users of the hardware. Further, Bloomberg estimates that about half of Apple TV+ subscribers never used the service.

The coronavirus’ impact on the advertising industry further strained publisher revenues and forced several to close their doors and others to consolidate. The pandemic also showcased the consumers’ need for trusted news and entertainment content. This need feeds into the relationship of publisher and consumer. Its why consumers value the content and are willing to pay for it.

Industry-Research

Covid-19 presents opportunities for audience-focused publishers

A life-changing event is when something happens that reshapes everything in your life. And many people see the pandemic as a life-changing event. We’ve altered our work environment, transformed our social behavior, and changed our media habits. However, according to Damien Radcliffe’s new report The Publisher’s Guide to Navigating Covid-19, some Covid-era changes will become new norms. To capitalize on these opportunities, publishers need to emphasize their audience-first focus.

Key findings:

Renewed consumer focus

Businesses across different sectors are reporting negative financial impact due to Covid-19. The most significant revenue declines to date, according to WARC, are travel and tourism (-31%), leisure and entertainment (-29%), finance services (-18%), and retail (-15%).

Within the entertainment sector, the media business is showing financial declines for the year. GroupM expects the US advertising market performance to decline 13% this year (excluding political advertising for 2020’s presidential and other elections). WARC estimates advertising growth for three specific media platforms: social media, online video and search. The hardest hit medium will be newspapers. PwC’s Global Entertainment and Media Outlook 2020-2024 report estimates newspaper advertising (print and online) in the U.K. will register a decline of 27% over the next five years Global Entertainment and Media Outlook 2020-2024 report estimates newspaper advertising (print and online) in the U.K. will register a decline of 27% over the next five years.

With a downturn in advertising, publishers see the importance of a renewed focus on the audience. By doing so, they can accelerate their efforts to establish new revenue streams to lessen their dependency on advertising — an industry imperative that has come into even sharper focus of late. Finding the right path to fulfill audience needs can help publisher identify new revenue opportunities.

Audience-first directs path to new revenue

By all reports, consumption of content increased during the pandemic. In part, working from home during Covid-19 offered the audience more opportunities to consume content. There were marked rises in internet usage and streaming video viewing. Even local news publishers are benefitting from consumer interest in information relating to Covid-19 in their neighborhood.

Further, record traffic metrics and increased subscriptions illustrate a strong and trusted relationship between publisher and consumer. Publishers are also experiencing churn improvement according to Piano, a digital analytics company. Piano’s data analysis shows that U.S. publishers’ churn rate is flat and European publishers’ churn rate declined 34%.

Unfortunately, increased media usage alone does not equate to increased revenue. However, an engaged audience, producing less churn, can help direct a path to subscriptions, new product launches, and other monetization opportunities.

Getting back to normal

Even amidst the ongoing pandemic, consumers are trying to return to some sense of normal. According to a GlobalWebIndex (GWI) survey of more than 17,000 internet users in 20 countries, consumers no longer want to see Covid-related ad messaging. Further, Pew Research reports that 71% of US consumers say they need to take a break from news about the coronavirus. A full 43% report that news leaves them emotionally drained. Consumers are seeking out new content as a pathway to escapism.

Without a doubt, the pandemic has profoundly impacted consumer media habits. The increase in content consumption and subscriptions, cannot be taken for granted. Consumer boredom and discretionary income can easily change given today’s social and economic vulnerabilities. By renewing their audience-first strategy allows publishers will be able to focus on avenues for new revenue.

Industry-Research

Despite Covid-19 setback, PwC forecasts modest media and entertainment growth

Consumer behavior was transformed by the shelter in place lifestyle during the pandemic. Stay at home policies not only impacted the way we work and shop but also how we consume media. We’ve seen significant changes in consumer media habits as well as those of media infrastructure. Closures of movie theaters and shutting down film and television productions altered our entertainment sources.

To access the effects of the coronavirus and adjust the entertainment and media (E&M) forecasts, PwC delayed the release of its annual Global Entertainment & Media Outlook. The new assessment comes with the realization that for consumers, E&M is centered in the home. It’s now more remote, more virtual and more streamed. PwC estimates that in 2020 the E&M world declines by 5.6% or $120 billion in absolute terms compared to 2019. However, they project the sector grows by 6.4% in 2021. Further, overall revenue grows 2.8% at a compound annual growth rate from 2019 to 2024.

Additional findings:

  • Overall, advertising is expected to recover slowly through 2024. Digital advertising is the important vehicle with mobile advertising revenue as its growth story. Mobile ad revenue is expected to grow at 88.4% with a 60% share of revenue.
  • Cord-cutting continues to rise especially in North America and new over-the-top (OTT) services challenge the global dominance of streaming giants. pWC forecasts the OTT market to almost double in size from $46.4 billion in 2019 to $86.8 billion in 2024.
  • Subscription video-on-demand (SVOD) revenue is expected to exceed box office revenue this year. It’s projected to rise more than twice the size of box office revenue by 2024. Related, global cinema revenues are expected to drop plunge 66% in 2020 and is unlikely to regain momentum.
  • Newspaper revenue declines continue through 2024 declining advertising revenue combined with high paper production and distribution costs.
  • Consumer magazine competition continues to increase from major tech players, magazine aggregators and digital publishers.

Covid-19 fast-tracked many new business strategies for media companies. This shift amplifies the need for media businesses to closely follow changes in consumer media behavior. The ability to pivot operations to meet consumer needs helps generate and diversity revenue opportunities.

Industry-Research

Americans are critical of news institutions. That’s not all bad

Good and honest journalism informs the public, increases knowledge, and offers a healthy dialogue on democracy. And, to hold journalists to that standard, Americans believe their wariness of the news media is healthy for society. They think it is a good practice to keep their guard up when obtaining news and information in order to help determine fact from fiction.

Recent findings from a a year-long Pew Research Center study shows that close to two-thirds (63%) of U.S consumers think it’s best if society questions the news media. Nevertheless, half (51%) of consumers are confident that journalists act in the best interests of the public. While this still leaves many consumers less confident, a full three-quarters of Americans believe their level of confidence in journalists can improve.

Trust and transparency

Accurate news information is critical for news organizations. Six in ten consumers expect the news they receive to be correct. However, more than two-thirds (69%) of consumers believe news organization try to cover up their errors. This underscores a distrust of the news media. Many think mistakes occur due to careless reporting (55%), the race to break a story (53%), and a direct intent to mislead (44%). Transparency in corrections is an opportunity to grow consumer trust. Just over half of American’s say that seeing corrections from news organizations makes them more confident in that outlet.

There’s a high correlation between consumer trust and the transparency of a news source. Trust and transparency work together offering a system of checks and balances in accountability. This Pew analysis makes it clear that consumers are concerned with news organizations’ answerability.

Close to three-quarters of consumers (72%) think that the news media does a poor job explaining their source of their money. Sixty percent of consumers report news organizations are not forthcoming about conflicts of interest. In addition, more than half of consumers think the news media lacks transparency in telling audiences how they choose their sources (57%) and whether a story is fact or opinion (55%).

Consumer connection

A personal connection with news stories often leads to positive attitudes toward the news media. Further, more than half (55%) of consumers feel that it is important to connect with their news sources.

However, 59% of Americans report that news organizations do not understand people like them. And 57% believe that their news outlets do not value them. This results in close to two-thirds (63%) of consumers lacking loyalty to their news outlets. Importantly, those who feel that their news source values them, are much more likely to think their news is accurate and to think their news outlet is transparent.

Diverse representation in the newsroom is critical today. Notably, Black adults are more likely than white adults to say different aspects of personal connections with news organizations are somewhat important. They also are far more likely to say it is important to see themselves both in news coverage and in the newsroom.

This Pew analysis highlights the value of consumers and the news media building a connection with one another. Authentic consumer criticism of the news organizations and their journalists can help better inform conversations. It allows for thorough examinations of the facts and provides assurance of truth in journalism.

Industry-Research

Covid-19’s community connection sparks engagement with local media

The Covid-19 pandemic and the work-from-home lifestyle are affecting consumers’ media consumption behavior, including engagement with local news. From streaming music to OTT viewing, multitasking with media during the work day is a definite. An analysis from Nielsen’s Remote Workers Consumer Survey shows a larger share of media time is now spent on digital and connected TV devices. The Nielsen survey included 1,000 adults who worked from home prior to and during the coronavirus.

Consumers report their top three workday activities include listening to music (AM/FM and streaming), viewing OTT content and increased social media activity.

Local news consumption

While drive time to work decreased, consumption of local news did not. In fact, news (47%) as a content category leads in viewership compared to comedy (40%) and movies (36%).

Not only did the consumption of local news via digital media increase, it also increased across traditional channels. As concerns and restrictions grew, news briefs were a daily reality in the early days of the coronavirus. Consumers tuned to local news outlets to stay informed. A separate Nielsen viewership analysis between early February and early March registered notable spikes in local news viewing.

Viewing data from Nielsen’s Local People Meter (LPM) in 25 of the largest markets showed viewership in local news increased. Most notably, viewership increased among Persons 2+(7%), among Persons 2-17 (20%) and among Persons 25-54 (10%). Clearly, local news is present in peoples’ daily routines. Increases in local viewership respectively tracked increase Covid-19 positive case levels.

In addition, a study from NewsWhip shows local news sites such as dallasnews.com, wsmv.com, wcvb.com and wndu.com rank highest in user engagement among top news and entertainment media brands. And local sites such as oregonlive.com and wfla.com rank alongside national and international news sites in top related coronavirus articles.

Quality and quantity

Consumers are also seeking out established media brands for information on the public health crisis and the economic consequences. Interestingly, the desire for virus related news and the latest facts are curbing interest in opinionated and partisan sites.

Further, supporting the Nielsen survey and viewership data is a study from Horowitz Research. The findings here show that more than half of US consumers (58%) report accessing more local news during the pandemic than before (38%). Nearly a third of consumers (29%) also report they now consume more local public radio and local/regional newspapers. The increase in local news consumptions is most noticeable among persons 18-34. More than half of this demographic (53%) report they are watching more local news since the Covid-19 crisis.

Working from home offers choice in content consumption. The change in business workplace to the work at home environment offers a new connection point in digital media. Access to local digital news sites provides a strong  community focus and serves hyperlocal needs. It also offers marketers an active environment to engage with consumers and integrate at a local level.  

Industry-Research

Consumers believe that data privacy is a human right

As we know, data monetization is big business for many companies in the digital ecosystem. It’s an integral and lucrative part of programmatic sales’ third-party ad targeting capabilities. However, most of this data is collected, sold, and used without consumer consent.

Given the steady increase in the value of data and data collection, consumers are growing ever more concerned about their privacy. In fact, a new study from KMPG, finds that nearly all U.S. consumers (97%) report that data privacy is a concern. The majority of consumers (87%) view data privacy as a human right. And, unsurprisingly, consumers worry about what companies are doing with their data (54%).

Seeking governance

In light of new regulations in place, General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S., privacy is a critical focal point in digital media. Front and center are new data protection laws to guide the online data collection process.  

Consumers overwhelmingly align with the above legislation. More than 90% agree that the data privacy rights of the CCPA should extend to all Americans. Along these lines, four in five (84%) consumers say that they are open to state legislation giving consumers more control over their data.

Importantly, Americans want companies to be transparent in their data collection and usage. They seek regulations similar to GDPR. Nine in ten respondents (91%) agree they have the right to delete personal data and the right to know how their data is being used.

Paying closer attention to online data practices

While U.S. consumers are paying more attention to how brands use their data, they also need to take steps to secure their privacy. KMPG’s research shows that consumers engage in risky online behavior. Eight in ten consumers think it’s a risk to use the same password on multiple digital accounts (78%) or to use a credit card online while on public Wi-Fi (75). Yet, more than 40%, respectively, participate in both of these activities.

Covid 19’s impact on privacy practices

The Covid-19 pandemic also presents data privacy concerns. Three-quarters of Americans are thinking more about data privacy issues during Covid-19. However, a majority are willing to share their personal information to keep others safe and to return to work faster.

Strong willingness to share personal data to safeguards others against Covid-19:

  • 89% would allow places/employers to take their temperature.
  • 85% would share their COVID-19 diagnosis with their employer.
  • 67% would share their personal location data to help track COVID-19 cases.
  • 67% would share their lifestyle information as it contributes to COVID-19 exposure with their employer.

Ad tech companies collecting online data and advertisers using it must rethink the programmatic scenario. GDPR and CCPA are important industry reset buttons, even if forcibly, toward an ecosystem of transparency. It’s the right step to renewing consumers trust.

Industry-Research

Social news consumption leaves people media-malnourished

It’s no surprise that social media is where consumers, especially young adults, get their news today. According to a new study from Pew Research Center, 18% of U.S adults use social media for political and election news. Unfortunately, this cohort lacks both the depth and breadth in terms of political news.

Politics

This study finds limited exposure to election news for those using social media as their political news source. Only 8% of consumers who receive most of their political news from social media report that they are following 2020 election news “very closely”. Both broadcast news followers and print news followers are more than three times more likely to follow election coverage closely (37% and 33%, respectively) than social media news followers.

Further, consumers who mainly use social platforms as their main source for political news appear to pay much less attention to news in general compared followers of other news sources. In fact, those who get their political news from cable TV are nearly twice as likely as those in the social media cohort to follow (“fairly closely”) election candidate news (70% vs. 36%).

Current events

This Pew report also analyzed data from previous studies, such as Pathways & Trust in Media. This provides insight into how well consumers that use social media as their main news source are informed on current political news. The analysis found that those in the social media group were among the least likely to have heard a lot about each of six current event stories. Further, they were also among the most likely to have heard no news on each of the six events.

Another analysis in this report identified 29 fact-based news-related questions in five Pew studies across the last nine months. The questions included topics on the presidential election, the economy, the political parties, Donald Trump’s impeachment, and the coronavirus outbreak. Pew’s analysis of the 29 questions shows a high correlation between the least accurate responses and consumers who rely mostly on social media for political news.

On average, 43% of social media news consumers answered correctly compared to 63% among those who rely mostly on news websites or apps and 56% among those who turn mostly to network TV. The only comparable group to social platforms are adults who watch local television (37% of correct answers).

False information

Unfortunately, consumers who rely on social media as their main source of political news are more likely to be exposed to false information. In fact, about a quarter of U.S. adults who get most of their news from social media are more likely than others to hear false information or unproven claims. With multiple conspiracy theories centered around the Covid-19 pandemic, about a quarter of U.S. adults who get most of their news through social media report that they heard “a lot” about Covid-19 conspiracy theories. In addition, about eight-in-ten (81%) report they heard at least “a little.” Hearing conspiracy theories is much higher among those who use social media than among those who use any of the other six platforms (broadcast TV, cable TV, print, etc.) for their political news

Demographic characteristics

The Pew study shows that those who rely on social media as their main source for political news tend to be less well-informed. Social media does little to help educate their users how to identify trusted news sources. Consumers need help to navigate through feeds where premium and trusted news brands are right alongside misinformation and disinformation.

Industry-Research

Uneven content policies and moderation practices: How YouTube’s standards fare

Publishers establish editorial guidelines to provide a common foundation for journalists, creators, and producers. These guidelines provide a common language to identify an editorial framework and boundaries. Guidelines are often questioned, reevaluated, and updated in a process that allows the editorial voice to evolve over time. Editorial guidelines also present a check and balance system for standards and content moderation, which in turn creates a safe space for advertising.  

Unfortunately, the editorial guidelines of social media platforms appear to be a complex maze of mixed messages. This results in unhappy content producers – given opacity around monetization of some content – and risky business for marketers.

A new research report, Tiered Governance and Demonetization: The Shifting Terms of Labor and Compensation in the Platform Economy, examines YouTube’s governance and guidelines including its content moderation practices. The authors, Robyn Caplan and Tarleton Gillespie, investigate the complex landscape of YouTube, the largest video hosting platform in the world. They explore YouTube’s monetization models and their attempt to provide a foundation for governance.

Monetization strategy

One problem is that they frequently include different governance strategies for different creators. The result is that creators struggle to remain inside the viable boundaries for monetization.

YouTube offers a partnership program for content creators and shares advertising revenue with them. Plain and simple, the more user-generated content, the more views, which allows YouTube to collect user data to support targeted advertising. And the more ads served, the more revenue generated.

The YouTube Partnership Program (YPP) is intrinsic to its revenue model. Essentially, it is a form of unpaid labor that generates enormous revenue for the platform. YouTube’s partnership program encourages users to make more content with an offer of compensation as ads run against that content.

YouTube’s content creators vary from amateurs, professionalized amateurs, legacy media organizations, and YouTube’s contracted producers of original content. One particularly tricky aspect is that each is held to held to a different standard and entitled to a different monetization offering.

A few other social platforms developed similar programs, but YouTube’s is by far the largest. According to Caplan and Gillespie’s research, YouTube’s lack of clarity and complicated rules appears to do little in the way of effective content moderation or fair compensation. Further, the fact that YouTube works with multiple creator tiers fuels issues of inconsistent treatment. Consider how editorial standards would impact:

  1. amateur creators who are not dependent on revenue,
  2. creators who are dependent on revenue
  3. professionals building their reputation for secondary distribution, or
  4. media institutions who partner for distribution power.

Enforcement practices

YouTube’s policies vary, with little explanation, in dealing with content that violate their standards and practices around sexual content, violence, harassment, hate speech, or misinformation. Actions include content demonetization, removal of individual videos, or the suspension of entire accounts. They might also place videos behind age barriers or include interstitial warnings indicating graphic content. YouTube may also remove videos deemed to infringe on copyright infringement, violate privacy, or simply spam.

Caplan and Gillespie summarize the YouTube problem:

  • YouTube stated values as an open platform of expression are in direct conflict with their cautiousness regarding acceptable content and the financial and algorithmic incentive structure.
  • YouTube’s governance offers a different set of rules for different users. These include different material resources and opportunities for creators to different procedural protections and different expectations of fairness.
  • Given the ambiguity in the guidelines, creators develop their own theories as to why their content is demonetized.  

Caplan and Gillespie offer examples of YouTube’s randomness in enforcing its standards. For example, it appears that YouTube determines participation in YPP based on an algorithmic mix of popularity, engagement, and propriety.  However, according to many independent content creators, YouTube also allows inappropriate content to circulate and amplify based on popularity and the ability to generate revenue for the company.

YouTube’s participatory video culture does not bode well for advertisers’ demand for quality and predictability. It appears to be a system based on rewarding audience size and celebrity stardom. Unfortunately, given this revenue model, when YouTube adds new layers to its already complex labyrinth of standards, it fails its creators and fails to effectively moderate content.

Industry-Research

The market is flooded with streaming options. But are consumers satisfied?

As more media companies enter the streaming video marketplace, consumers are presented with more choices and content. The good news is that, overall, consumers value the video subscriptions they subscribe to. Hub Entertainments’ annual Monetizing Video report finds that 62% of viewers feel they get at least a “good” value from their TV subscriptions. Hub’s research was conducted with over 2,000 broadband users, age 16-74, who watch at least 1 hour of TV per week.

Significantly, holding subscriptions in high esteem is not necessarily a side-effect of Covid-19. While lockdowns helped drive viewership and overall value, we have seen high levels before shelter-in-place orders. In fact, DCN’s Digital Subscription Economy research showed that 64% of consumers reported their subscription(s) offer high value.

Valued services

Across the different video/TV services consumers use, streaming services topped the list in terms of value for the money. Seven in 10 rated Netflix, Hulu, Disney+, and Amazon Prime as excellent or good value for the money. Boasting deep libraries of content, streaming are convenient and appealing entertainment resources. In contrast, only four in 10 consumers ranked traditional pay-TV as a good value for the money.

Consumers estimate they spend $94 per month for all their TV subscriptions combined. However, they believe they should only pay $72 per month. It is interesting that, even though they are paying $22 more each month, subscriptions services are still perceived as a good value.

Actual vs. reasonable price

Breaking down the payments across the television categories, traditional pay-TV subscribers (no SVOD) are the most likely to feel their total TV bill is higher than reasonable. They estimate they are paying $106 for their subscriptions but think they should only pay $69. The actual vs. reasonable gap is $37 more than they think they should pay.

Pay-TV only (including SVOD) subscribers estimate paying $107. However they think they should only pay $79, making the actual vs. reasonable gap $29. Consumers paying for streaming-services only (no pay TV service) estimate they are paying $60 and think they should only pay $54. This is the only cohort that thinks they are paying the appropriate amount.

Consumers ranked the kind and amount of content a platform offers right up there with pricing as the most important features. Least important features included both recommendations and notifications.  

Streaming theatrical releases

Accessing theatrical releases at home is of high appeal among adults 18-34 years old. In fact, 63% of young adults, a key target audience in the theatrical movie business, say they definitely/probably would pay to stream a movie at the same time it’s released in the movie theater. Consumers 35+ differed greatly. Only 12% said they’d definitely/probably pay to stream a movie at the same time released in a movie theater. Further, 18-34 years olds show a strong willing to pay with 65% would definitely/probably pay $15 dollars, 65% would definitely/probably pay $25 and 57% pay $50.

Streaming theatrical releases is a completely different distribution dynamic, altering the window availability across the distribution timeline. The recent release of the big Broadway musical “Hamilton” on Disney+ serves as a promising start with more than 725k global downloads. This marks a 47% increase in app downloads compared to the average four weeks in June. Of course, not all movies will have “Hamilton” level success. Monitoring and evaluating  new distribution patterns will be critical to understanding how wide-spread streaming and its adoption becomes for theatrical release.

Advertising | Industry-Research

How publishers can reset to serve a cookie-less digital marketplace

To date, marketers and ad tech companies have heavily relied on third-party cookies – those created by domains other than the one the user is visiting. Third-party cookies are used for cross-site tracking, retargeting, and ad serving. Whereas first-party cookies, which are created by the site the user is visiting, allow publisher sites to collect data, remember logins, and help to create a better user experience. A new International News Media Association’s (INMA) report, “The Third Party Cookie Trigger,” covers fundamentals, complexities, and new possibilities as the industry moves beyond third-party cookies.

Clearly, data is an important currency in the digital ecosystem. However, in January 2020, Google announced that it will phase out support for third-party cookies in Chrome by the end of 2022. The next two years provide the time to reset the digital advertising marketplace. We’ll need to reshape data collection and exchange strategies, redefine advertiser opportunities and enhance the users digital experience. Importantly, publishers have an opportunity to showcase how first-party content consumption data provides a better signal for relevance in the advertising ecosystem.

Disappearing cookies is no surprise

The holy grail of digital advertising is its ability to serve the right ad to the right user at the right time. However, the current path to that grail is questionable. Today’s digital advertising ecosystem is complex and messy. According to the Incorporated Society of British Advertisers (ISBA), tracking advertiser spend to the publisher is nearly impossible. In fact, publishers receive only 51% of digital advertising spend with up to one-third of the total spend unattributed.

Further, data collection of consumers on the web has a myriad of issues. These range from consumer consent to data tags firing off signals that lead to latency problems. And now with GDPR and CCPA in place, new governance on data collection is in play. So, it was only a matter of time before third-party cookie were phased out.

Moving beyond cookies

Media companies are already investing in technology platforms, modernizing their publishing infrastructure, building a data foundation, and setting new standards for publisher and advertiser transactions. In fact, publishers are taking steps to build scalable audience segments based on their data for advertisers. They are developing ways to leverage their first-party relationship with their users to evolve the advertising ecosystem.

The INMA report also identifies five potential alternative vehicles, some already in the works, to third-party cookies:

  1. Open Web alternative solution: An alternative such as Web browser APIs, driven by Google, Apple, Firefox, and media companies.
  2. In-app advertising: A shift of marketing spend from the Web to in-app advertising (90% of time spent on mobile is spent in apps).
  3. First-party data: An acceleration of first-party data (scalable) by publishers with a connection to advertisers.
  4. Paywalls and logins: Paywalls and logins and first-party cookies offered as a digital currency to use among publishers, brands, and companies. 
  5. Universal IDs: Development of universal user IDs (needs to work across all parties and comply with GDPR and CCPA).

The end of third-party cookies affords publishers with an opportunity to re-think the value of advertising served on their site. It also allows them to distance themselves from an over-reliance on ad tech. It’s important for publishers to take the lead in reshaping data collection and exchange strategies in the digital advertising ecosystem to better reflect the value of the first-party relationship.  

Industry-Research

Nonprofit newsrooms proliferate with an emphasis on audience connections

Right now, nonprofit newsrooms are surviving and, in some cases, even thriving. A steady stream of new nonprofits continues to join the media market. Many have a strong focus on public interest news, particularly investigative and analytical journalism. INN Index 2020: The State of Nonprofit News research offers insight into nonprofit news organizations’ sustainability, especially among those serving at a local level.

Community journalists generally launch nonprofits with lean budgets and a small staff, with a management style similar to that of many startups. They engage directly with audiences and members. However, even with claims of success, non-profit newsrooms face struggles of their own. At least 40% expect declines in revenue due to the Covid-19 pandemic, while more than half expect no impact, and 8% report expectations of revenue gains. Revenue declines are directly tied to losses in events and advertising.

Growth

According to the INN Index, 12 or more nonprofit news outlets launch each year. Growth areas include local reporting and explanatory reporting, with more than one-third of the outlets focused on these areas. Further, specialized nonprofit publications have also launched and grown, often funded by foundations supporting a coverage topic.

Stability

About half of INN members earn more than $500,000 per year while the remaining half earns less. This has remained consistent for the past three years. Non-profit publishers manage multiple revenue streams. In fact, on average, 41% manage at least four revenue streams. Interestingly, reader revenue in the form of donations and memberships accounts for just a small percentage of overall income, with little change in the last three years.

In all, foundation grants still comprise the largest revenue stream, accounting for approximately less than half of total revenue. Individual giving, including both major gifts and small donations, makes up about one-third of total revenue.

Focus on direct audience relationship

Significantly, non-profit publishers are highly focused on developing direct relationships with their audiences and connecting “the press” with “the public.” In fact, six in 10 report that they reach their audience primarily through direct publication touchpoints including, their website, newsletters, podcasts, and events. Direct engagement makes sense as nonprofits seek to convert loyal readers into donors.

Establishing ties to communities and strengthening audience engagement are two best practices to build upon in order to expand the public’s understanding and support of community-based journalism. Unfortunately, there are many nonprofits operating without a substantial reserve fund. As many non-profit publishers manage their businesses like a start-up, it’s important to establish and maintain best-practice standards for nonprofit management and revenue reserves.

©2024 Digital Content Next. All Rights Reserved.