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

Publishers focused on audience, automation and video

June 13, 2023 Rande Price, Research VP – DCN

In today’s fast-paced digital world, media companies face intense competition across many different platforms. Echobox, a provider of social media management tools, offers new research, “Publishing Trends 2023,” highlighting media businesses’ priorities, challenges, and opportunities. The top three priorities for content companies include finding new audiences (53%), automation and AI (50%), and video content (47%). Staying ahead of the Facebook algorithm (53%), declining traffic (47%), growing digital subscriptions and diversifying revenue streams (both 34%) were commonly cited challenges.

Echobox surveyed a targeted sample of 32 leading media companies across the world. This global perspective includes respondents from 20 countries in Europe (67%), the Americas (20%), and Asia (13%).

Platform usage

Instagram emerges as a vital channel for publishers in 2023. In fact, the study shows that 66% of respondents believe Instagram will play a more significant role in their business this year. Publishers recognize the value of leveraging Instagram’s visual nature for content promotion and audience interaction.

TikTok is also gaining prominence, with 59% of publishers turning to this platform for video content distribution and audience engagement.

Media brands recognize the importance of capitalizing on the visual nature of TikTok and YouTube. By investing in video production and distribution, the report suggests that media companies can enhance their content offerings and attract a wider audience.

However, challenges persist on platforms like Facebook, primarily due to its lack of algorithmic transparency. Approximately one-third of media companies view Facebook as vital, and they want to maintain visibility and reach on this platform. Unfortunately, the opaque evolving nature of the platform requires publishers to constantly adapt their strategies, remain vigilant of algorithm changes, and seek alternative avenues to engage their target audience.

Embracing newsletters

Newsletters remain an area of growth for many media businesses. The report highlights that 56% of respondents plan to expand their newsletter offerings or start producing newsletters in the coming year. Publishers understand the value of direct communication and engaging subscribers in off-platform vehicles. By crafting compelling and personalized content in newsletters, media businesses can establish stronger connections with their audience and help drive traffic to their websites.

AI attraction

The report indicates that 63% of media companies acknowledge the growing importance of AI for their businesses. AI-powered tools and technologies offer immense potential to streamline operations, optimize content distribution, and enhance audience targeting.

Publishers can leverage AI to automate repetitive tasks, personalize content recommendations, and gain valuable insights into audience preferences. Media companies using AI can unlock new efficiencies, improve engagement, and achieve better business outcomes.

Ending third-party cookies

When thinking of the impending demise of third-party cookies in 2024, less than half of the respondents foresee a significant impact on their business. Specifically, 31% do not anticipate any effect and 13% state that they don’t rely on third-party cookies. Of the 50% of publishers anticipating significant impacts, half report they are prepared while the other half are not.

The Echobox report does highlight that, though the growth of newsletters has slowed, the first party data insights they provide does provide a means to offset the loss of third-party cookies.

Future focus

The results of Echobox’s 2023 publisher survey does show a certain amount of continuity from last year, as traffic remains a concern along with Facebook, while newsletters continue to demonstrate value. This year did see significant economic impacts as well as uncertainty around the role Twitter will play for media companies and advertisers. The report finds that publishers are investing resources in a wider array of social platforms in an effort to diversify their own audience demographics and to position themselves for increased adaptability to weather the evolving social landscape and consumer consumption trends.

Industry-Research | Video

Understanding consumer choices in the evolving TV market

May 26, 2023 Rande Price, Research VP – DCN

Consumers grapple with an overwhelming array of choices and confusion in an era of rapidly evolving streaming services. The streaming landscape has recently witnessed significant shifts, with established players like Netflix and Disney+ introducing ad-supported tiers, Peacock discontinuing its free tier, and anticipation around the impact of Netflix’s crackdown on password sharing.

In this context, HUB’s Best Bundle study aims to shed light on how consumers adapt to the evolving TV/streaming space and land upon the the ideal combination of services that suit their viewing needs. It delves into the extent to which viewers opt for linear versus on-demand services, ad-supported versus ad-free experiences, and subscription-based versus free streaming services. By examining these variables, the study aims to decipher consumers’ choices when constructing their personalized bundles.

The research shows a notable decline in the average number of TV sources used by respondents from 7.4 in 2022 to 6.4 in 2023. This decline suggests that consumers are consolidating their streaming services and opting for a more streamlined approach to their TV viewing experience. While the average of TV sources declined, the overall demand for streaming services remains robust.

Though the use of streaming remained the same compared to last year, responses with an MVPD bundle dropped to 55% versus 62% in 2022. Consumers continue to embrace streaming as their primary source of entertainment, and the decline in the number of sources used does not imply a decrease in consumption. Instead, it signifies a more focused and curated approach to streaming, where viewers prioritize quality over quantity.

Evolving landscape

Interestingly the largest segment of viewers (63%) continues to be those who utilize a combination of traditional and streaming TV sources. This remains consistent with last year (64%) and indicates that traditional TV sources remain relevant in the face of the streaming revolution.

The study reveals that 27% of viewers plan to add a subscription to their existing lineup, which is higher than the figure in 2021 (21%). While this shows a continued consumer interest in expanding streaming options, it also suggests a slight decrease from the previous year, as 33% of viewers intended to add a subscription in 2022.

Furthermore, more than half of respondents (57%) state that they have utilized at least one free-with-ads (FAST) TV service, which aligns with 2022 findings. This suggests that despite the proliferation of subscription-based services, free platforms with advertising support continue to attract many viewers. Cost-saving advantages of free services are attractive, and advertisements for access to content are tolerable.

The study also highlights a decline in the percentage of viewers who use three or more of the largest subscription video-on-demand (SVOD) platforms. In 2023, only 43% of viewers report using three or more of these SVOD services, compared to 50% in the previous year.

Hub’s Best Bundle research points to a nuanced streaming landscape, with viewers seeking a balance between traditional TV sources and streaming platforms. While streaming services are immensely popular, traditional TV sources still play a significant role in viewers’ entertainment consumption. The addition of new subscriptions indicates that viewers are willing to explore and invest in streaming services, although the growth rate has slowed slightly compared to previous years. Further, as the streaming landscape continues to evolve, service providers must take note of viewers’ shifting preferences. Streaming platforms can attract and retain viewers in an increasingly competitive market by offering diverse content, personalized recommendations, and competitive pricing.

DCN-Research | Revenue | Video

New DCN consumer research: Digital Media Subscription Tracking

May 23, 2023 Rande Price, Research VP – DCN

Full research report for DCN members only. Register to or login to download (on desktop see top right corner of page, on mobile the top center). Download buttons will appear at the top and bottom of the page.

DCN Members can access the video of today’s virtual event – a review of the study’s topline findings here.

Digital media companies recognize the important role of subscription-based models in monetizing content effectively. Understanding consumer behavior to support this business model is crucial for attracting and retaining subscribers, optimizing user experiences, and staying competitive. DCN’s new consumer subscription study: Digital Media Subscription Tracking offers a deep dive into consumer subscription behavior and covers a wide range of digital subscription services, including SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio – and usage metrics for AVOD and FAST services. The report is DCN members only, please login or register to access (on desktop see top right corner, on mobile the top center).

The Q1 2023 report is available to all DCN members; all subsequent waves will be exclusive to DCN Benchmark participants as part of their Benchmark’s suite of reports offering timely market intelligence each quarter.

This quarterly research, conducted with Screen Engine/ASI, will identify trends and track market penetration, shifts, and growth in the rapidly changing media landscape. The first wave, Q1 2023, surveyed 1,893 adults 18+, representing the U.S. Census population by age, gender, race, and ethnicity. The sample was online-only and represented approximately 89% of U.S. households and adults 18+ with access to the Internet.

Category penetration

One of the study’s key findings is that the U.S. had more than one billion paid subscriptions in Q1 2023 across the digital media landscape – SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio. This indicates that almost all online U.S. households (97%) subscribe to one or more digital media subscription services. On average, households subscribe to approximately nine different pay services when combining all seven digital media services measured in this study.

The SVOD service category has the most subscribers, with nearly a 60% share of total pay subscriptions, followed by MVPDs and vMVPDs, digital newspapers, digital magazines, and digital audio services. The study also indicates that 29% of all subscribers plan to add one or more services next quarter, while 26% plan to cancel one or more, with MVPDs potentially continuing to decline and vMVPD subscriptions potentially increasing.

The study also highlights that free, “ad-only” AVOD and FAST services will continue attracting more traditional media consumers, who tend to be older and watch more linear TV. SVOD with ads and AVOD services will provide a much-needed incremental and growing revenue stream, especially as growth for pay-only services that don’t carry ads slow their subscriber penetration.

Demographic appeal

The demographic profile of digital media service subscribers shows that the heaviest concentration of subscribers for all services combined are slightly younger (P18-34), more male (M18-34), more diverse (Hispanic and African American), family-oriented (parents with children under 18), higher income (households with income $150K+) and slightly more educated. This demographic profile is extremely attractive for advertisers, making the launch of more digital “hybrid” (pay + ads) services likely.

The Digital Media Subscription Tracking study offers digital content companies essential consumer research to support new revenue models and pricing strategies to stay competitive and retain their subscribers.

Please reach out to me at [email protected] with questions about the Digital Media Subscription Tracking study.

DCN Members can also access an on-demand video of the study results.

Advertising | Research | Video

Streaming continues to overtake TV

May 16, 2023 Rande Price, Research VP – DCN

In recent years, the traditional television and streaming video industries have undergone significant transformation due to the expansion of digital platforms and changing consumer preferences. To gain insights into these changes, Adtaxi conducted an extensive study, 2023 TV & Video Streaming Survey, exploring the evolving landscape of TV and video streaming with more than 1,000 U.S. adults.

According to the survey, streaming services have solidified their position as the primary mode of video consumption for most viewers. More than 80% of respondents report subscribing to at least one streaming platform, with Netflix leading the pack. The convenience of on-demand content, the wide variety of choices, and the absence of advertisements were cited as the primary reasons for the popularity of streaming services.

Preferred choice

Streaming services are the preferred choice of video consumption for a significant portion of adults, surpassing cable (31%) and broadcast (11%) options. Approximately 42% of adults now opt for streaming services, with 35% accessing streaming content through their TV sets and 7% using personal devices. Roku predicts that this trend will persist and that an estimated 50% of all U.S. households will cut the cord by 2024.

Cord-cutting continues

The research also reveals that the cord-cutting trend shows no signs of abating. A staggering 75% of respondents report that they canceled their traditional cable or satellite TV subscriptions in favor of streaming services. The flexibility, cost-effectiveness, and customizable nature of streaming platforms have made them attractive alternatives to traditional TV providers.

Original content and exclusive deals

In the battle for viewership dominance, original content has emerged as a key differentiator among streaming services. The Adtaxi survey found that 68% of respondents subscribed to a streaming platform specifically for its original programming. Netflix, Amazon Prime Video, and Disney+ were identified as the top platforms known for their high-quality original shows and movies.

Moreover, exclusive deals and partnerships have become important strategies for streaming services to attract subscribers. This includes securing exclusive rights to popular sports events, partnering with renowned creators, and signing contracts with top-tier production companies. These tactics not only help streaming platforms stand out but also provide viewers with unique and diverse content options.

The battle of ad-supported streaming

While subscription-based streaming services dominate the market, the survey highlights the growing popularity of ad-supported streaming platforms. Almost 40% of respondents report using ad-supported services, indicating a willingness to endure ads in exchange for free or lower-cost access to content. This trend should encourage more advertisers to invest in digital advertising within the streaming space, presenting new opportunities for brands to reach their target audiences.

The 2023 TV & Video Streaming Survey sheds light on the ever-evolving landscape of entertainment consumption. The dominance of streaming services, the ongoing cord-cutting trend, the importance of original content, and the rise of ad-supported platforms all point toward a significant shift in viewer preferences and behavior. As the industry continues to evolve, it will be interesting to see how streaming services adapt to meet the demands of their subscribers while providing a seamless and personalized entertainment experience. The future of TV and video streaming looks promising, offering consumers a wide range of choices and content options that cater to the consumer’s interests and preferences.

Industry-Research | Revenue

Tips and tactics for the growth of digital native media

May 9, 2023 Rande Price, Research VP – DCN

Digital media continues to transform the way people consume news and information. Native digital news organizations have become a vital source of information for many people around the world. With fierce competition and the role of social platforms as intermediaries, how can digital native media businesses grow, develop, and publish information with greater independence and sustainability? New research, Project Oasis, from Sembra Media, examines the trends, impact, and sustainability of independent digitally-native news organizations.

To help support the growth and sustainability of independent digital native news organizations, the report includes a searchable media directory. This database includes 530 digital native news organizations in more than 40 countries across Europe. It contains information on the types of stories each organization covers, their funding sources, and their audience reach ‒ showcasing the need for diverse voices and perspectives.

The directory is a valuable resource for journalists, editors, and publishers looking to connect with other independent digital native news organizations. It provides a way to easily find and share important stories and sources that offer diverse perspectives, which are essential to accurately informing audiences.

Challenges

Project Oasis highlights some of the many challenges facing native digital news organizations. One of the biggest is the struggle to achieve financial sustainability. Many of these organizations rely heavily on one or two funding sources, such as donations, subscriptions, and advertising. However, the report found that these sources of funding can be unpredictable and unstable, which can makes it difficult for organizations to plan their future. The research identifies the need for two to six revenue sources as optimal for native digital news organizations to be sustainable and remain independent.

Another challenge facing independent digital native news organizations is the need to build trust with their audience. Many people are skeptical of the news they see on social media and other online platforms. As a result, there is a greater need for independent digital native news organizations to establish their credibility and build trust with their audience.

Optimism

Despite these and other challenges, the report finds reasons to be optimistic about the future of independent digital native news organizations in Europe. These include several key trends that are shaping the future of the industry, including the growing importance of mobile and social media, the rise of video journalism, and the increasing use of data and analytics to inform reporting.

The research also focuses on identifying profitable business models for independent digital native news organizations. These models include advertising, subscriptions, memberships, events, grants, and partnerships.

An advertising-based model is the most traditional revenue source for digital news organizations. Competition from big tech platforms like Google and Facebook presents a difficult ad sales marketplace for smaller players. However, advertising is still a viable revenue source for digital news organizations. Digital news organizations should differentiate themselves by focusing on building high-quality content, engaging audiences, and offering first-party targeted advertising solutions to advertisers.
Subscription models require high-quality content that engages the reader and convinces them to pay for the content. There are also membership models, which offer a more community-focused approach to revenue generation. Memberships typically offer readers access to exclusive content, events, and other perks, in exchange for a regular fee. The report notes that membership models can be particularly effective for organizations with a strong and loyal following.
Events-based revenue models involve hosting conferences and workshops to generate revenue. The report notes that events can be an effective way to build relationships with readers and generate revenue. However, they require significant resources to organize and execute successfully.
Grants and philanthropy in funding independent digital news organizations are also available. The report notes that grants and philanthropic funding can be an effective way to support journalism that is not commercially viable. Organizations must carefully maintain their editorial independence and avoid conflicts of interest. The report also notes that there may be viable partnerships and collaborations between digital news organizations and other media outlets, as well as non-media organizations. Partnerships can offer benefits such as shared resources and expertise, as well as access to new audiences and revenue streams.

Future focus

As the digital marketplace continues to evolve, independent digital native news organizations will play an important role in shaping the future of journalism, filling news gaps, covering underserved communities, and combating mistrust and disengagement.

The Project Oasis report and its searchable media directory offer important resources to support the future of independent digital native news organizations. The research provides a comprehensive look at the challenges and identifies opportunities for sustainable growth. The directory also provides a valuable resource to help protect democracy by sharing resources, collaborating on projects, and amplifying each other’s voices.

Diversity, Equity & Inclusion | Industry-Research

Steps to help rebuild trust in news in underserved communities

May 2, 2023 Rande Price, Research VP – DCN

Consumer trust in news is a complex and dynamic relationship that varies across countries, platforms, and audiences. Different audiences have different reasons to trust or distrust news organizations. However, misrepresentation and underrepresentation are two common drivers of distrust in news reporting.

Reuters Institute’s new report, News for the Powerful and Privileged: How Misrepresentation and Underrepresentation of Disadvantaged Communities Undermine Their Trust in News, examines this problem. The report is part of the Trust in News Project, which explores the factors that drives trust for audiences in different contexts. The research identifies evidence-based recommendations for publishers and platforms. Reuters conducted 41 focus groups among 322 participants from Brazil, India, the UK, and the U.S. from several marginalized groups.

The respondents include:

Black and mixed-race audiences (people who identified as either preto or pardo) in Brazil
Marginalized castes or tribes and Muslim audiences in India
Working-class audiences in the U.K.
Black and rural audiences in the U.S.

The findings show that many respondents have doubts about the motives of news organizations. Many attribute their distrust to what they see as chronic bias in reporting: coverage that reinforces stereotypes and sensationalized news items.

Detailed findings

Respondents feel that the news media does not reflect their realities or interests but serves the agendas of those in power. The research finds that most participants see the news media as biased and depressing. They feel the news media often treats them unfairly, perpetuates stereotypes, fails to cover them, or promotes divisiveness among groups.

Respondents have different expectations and requirements from news media depending on their backgrounds and experiences. They cite examples of the news media’s misrepresentation in story selection and story framing.

– Emphasizing negative news

– Unfairly treating groups

– Perpetuating stereotypes

– Failing to cover them altogether

– Promoting divisiveness between groups

As one respondent states, “Black and brown people are not just the focus of tragedies; there are successful people among us.”

Many Black participants in the U.S. and Brazil note that most news coverage about Black people only emphasizes negative dimensions such as poverty, crimes, and violence. Further, respondents state that news coverage about high-profile cases of police brutality adds to the complexities and experiences of racism and discrimination in their day-to-day lives. One respondent comments:

“We always knew this was happening throughout history to the lynchings and the Civil Rights era. These things were always known, but seeing it broadcast every day, week after week, month after month, year after year, it’s mentally and emotionally exhausting, and I just couldn’t keep up with it.”

Action items

Research participants want news coverage inclusive of more positive and constructive news stories. They request that news stories be diverse and offer representation, transparency, and accountability. They would also like coverage to offer personal and social relevance.

The report suggests that the news media must address these concerns to rebuild trust and engagement with disadvantaged communities. Recommendations for news media professionals:

Invest in more diverse and inclusive newsrooms and sources
Provide more contextual and explanatory journalism
Avoid sensationalism and negativity bias
Seek feedback and dialogue with audiences
Collaborate with community media and civil society organizations

Reuters Institute acknowledges the challenges and trade-offs the news media faces in serving different public segments. It argues that there is no single trust problem or solution but rather a need for more nuanced and tailored approaches that recognize the diversity and complexity of audiences.

Advertising | Research

Is behavioral advertising good for consumers?

April 26, 2023 Rande Price, Research VP – DCN

Most of today’s digital display advertising is sold programmatically. The process is automated from buying to displaying ads and determining which ads are shown to which users. Programmatic advertising uses behavioral ad targeting and relies on extensive online consumer tracking, which raises important privacy concerns.

The benefits are often the counterargument to privacy – asserting the strong economic value consumers derive from targeted ads. But is this really the case for consumers? Do the purported positives – such as oft-touted “better effectiveness” and “ad relevance” – outweigh or offset the impact on consumer welfare? Further, how is the product’s quality viewed in targeted ads compared to other vendors, and how do the prices compare?

New research, Behavioral advertising, and consumer welfare: An empirical investigation from Eduardo Abraham Schnadower Mustri, Idris Adjerid, and Alessandro Acquisti, answers these questions. The findings show little consumer benefit in seeing targeted ads. In fact, respondents are less aware of vendors displayed and perceive products of lower quality, and at a higher price.

Study details

The research encompasses two studies. Study 1 included 489 participants across two phases. Phase One asked participants to browse randomly across selected websites using a Chrome browser on their computers. If they clicked on an ad, URL of the ad was captured. The research team then used automated scripts and the Google search engine to find competitive products of the advertised brands. They collected several pieces of information for the competitive analysis; landing pages, the product image, price, description, brand, and name of the website that sells the product.

Approximately one week later, respondents return for Phase 2. The researchers show nine product photos randomly to participants.

Respondents assessed all nine products:

three products from the ads they viewed (ad condition),
three competitive products from the organic search results (search condition), and
three randomly selected products from ads served to other participants in the study (random condition).

Study 1 included objective metrics in the analysis, like price. The study also included self-reported metrics such as participants’ assessments of purchase intention, product quality, price fairness, relevance, and novelty of product type, brand, and vendor. This design captured participants’ perceptions and purchase intentions independent of their vendors’ perceptions.

The second study replicates the first. However, it includes third-party objective data vendor rankings from the Better Business Bureau and SiteJabber. The researchers share the vendor ratings with the respondents before asking about their purchase intent.

Findings

The research shows that participants’ intention to purchase products in targeted display advertisements is low but still higher than for random products. Notably, Study 2 finds that higher purchase intentions and higher relevance in the ad condition are driven by participants having previously searched for the advertised product.

The findings also state that, on average, products in targeted display advertisements are only somewhat relevant to respondents. However, while participants appear to benefit from the pricing of targeted products, search results can offer better prices and higher-rated vendors.

The researchers only find one major difference in the direction of the results between Study 1 and Study 2. Study 1, without vendor ratings, shows significantly lower purchase intention. Study 2, including vendor ratings, shows a higher purchase intention for higher-rated vendors. Therefore, vendor quality is a relevant factor in consumers’ purchase decisions.

The research results offer insight into understanding the complexities of measuring the impact of targeted ads on consumer welfare. These two studies take a new route and look beyond ad effectiveness and click-through. Using objective and self-reported metrics across three conditions – ads, search, and random, results in low awareness, low-quality, and high-priced vendors. This new empirical study further questions the benefits of behaviorally targeted advertising.

Industry-Research

Do negative headlines drive news traffic?

April 4, 2023 Rande Price, Research VP – DCN

Digital news media is continuously battling for reader attention. With fierce competition for engagement and loyalty, it is crucial to identify what drives online news consumption. A newly released study, Negativity drives online news consumption, analyzes news headlines’ impact on news consumption. The findings confirm that negative emotional words in news headlines increase consumption rates. However, the dataset is from 2013 to 2015. So, while the results are certainly worth consideration, it is important to consider whether the same would hold true today.

Methodology and analysis

This study comprises 22,743 randomized control trials (RCTs) with over 105,000 different variations of news headlines from Upworthy. Each random control test compares different variations of news headlines, an average of 4.31 variations, that all belong to the same news story. The headline variations are then compared to the generated click-through rate (CTR), defined as the ratio of clicks per impression.

The headlines generated approximately 5.7 million clicks and more than 370 million impressions. The research notes that the results are comparable to traditional news sites. However, Upworthy differs from traditional news sources due to their early ‘click-bait’ headline practices. Therefore, there might not be a direct parallel to the headline practices of other types of news sites.

Detailed findings

The research shows that a higher share of negative language in news headlines increases click-throughs, and a higher percentage of positive language decreases them. Headlines with an average length of approximately 15 words with a single negative word increase the click-through rates by 2.3%. In contrast, including a positive word in a news headline significantly decreases the likelihood of CTR by about 1.0%.

Overall, positive words are more common than negative words in the headlines analyzed ‒ 2.83% were positive words versus 2.62% negative words. Click-throughs overall are low, with the average CTR across all trial experiments at 1.39%, and the median click rate at 1.07%. Only a small proportion of the news headlines tested were associated with a high CTR.

The research also tests headlines across various news topics – economics, entertainment, lifestyle, etc. Interestingly, they found no difference in click-throughs across content categories. Further, the report notes an analysis in which the researchers study the effects of four emotions (anger, fear, joy, and sadness) and their role in news consumption. Words like sadness increase click-through rates, while words about fear decrease them.

A statistically significant and positive coefficient for sadness increases the probability of a user clicking the headline by 0.7%
A statistically significant negative effect for joy and fear decreases the probability of a user clicking on a headline by 0.9% and 0.7%, respectively.
No statistical coefficient estimates for anger.

Again, it’s important to understand the emotional response to these words today compared to the original testing.

The study’s research integrity is not in question here. This research offers insight into how the presence of certain words links to behavior from 2013 to 2015. However, digital media, news delivery and consumption platforms, and the internet itself constantly evolve. Therefore, while the study provides interesting insights on language choices in headlines, it might not hold true today. Updated research is essential to understand if the emotional effects on readership remain the same.

Industry-Research

Building an ethical framework for decentralized social technologies

March 28, 2023 Rande Price, Research VP – DCN

To date, only a few publications have offered an ethical framework for decentralized social technologies (DSTs) ‒ blockchain, Web3, and Fediverse. The collapse of FTX, a cryptocurrency futures exchange using blockchain methodology, alarmed many. Its absence of records, accounting controls, and transparent decision-making processes highlights the need for new governance guidelines across new technologies.

As a result, the Justice, Health, and Democracy Impact Initiative, a collaboration between Brown University School of Public Health and the Edmond & Lily Safra Center for Ethics at Harvard University, has offered up a foundation for ethical and social experimentation with DSTs. Their new report, Ethics Of Decentralized Social Technologies, unpacks the transformation of DSTs, their impact, built-in mechanics, and downstream consequences. Importantly, it offers lessons learned and insights into how decentralized social technologies can be developed and implemented ethically and responsibly.

Ethical framework

The Justice, Health, and Democracy Impact Initiative examines AI ethics and bioethics frameworks to identify DTS best practices. Employing AI ethics includes asking fundamental questions like how to use the data to generate predictions and how institutions will use the predictions. AI ethics also includes basic questions about who makes these decisions, sets the timeline, and establishes the criteria.

In addition, bioethics looks to find the middle ground between identifying risks and modifying them while continuing the work unless deemed unsafe. Importantly, bioethics technologists structure their practice in four stages. A safety net is also essential to the process, with each layer providing safety guarantees to support safe experimentation.

Be precise about goals and offering validations;
Have governance structures to oversee the design and evaluation of experiments;
Publicly report what happens, what works, what doesn’t, and any unintended results; and
Have precise mechanisms for democratic oversight developed in collaboration with public democratic organizations.

Constitutional moments

The report also examines whether the DST ecosystem exemplifies a constitutional moment ‒ a pivotal point of transformation. The U.S. Constitution, written in the late eighteen century, reflects the U.S. economic, demographic, technological, and social structure of its time. However, new technologies (i.e., Industrial Revolution, air travel, and the biomedical revolution) emerge and cause transformation in the structure of society.

Constitutional moments do not mean we need to write a new Constitution but a framework to navigate and experiment with new technologies and social platforms. While blockchain technology is often celebrated for decentralized networks (because they are less likely to marginalize one community over another), they can also create divisions. These divisions can include social bias in their datasets. And training on them will replicate and intensify these patterns. Therefore, we must carefully examine the ethical practice of new technology to ensure that decentralized technologies also bridge communities and build a connected society.

The Justice, Health, and Democracy Impact Initiative acknowledges that this is just the start of the ethical DTS landscape. The report highlights the importance of ensuring user privacy and data protection and the need for transparency and accountability in developing decentralized social technologies. It also emphasizes the importance of fostering a diverse and inclusive community and ensuring that decentralized systems are accessible to all and beneficial to society.

Industry-Research

Younger audiences pay for news—when they think it’s valuable

March 21, 2023 Rande Price, Research VP – DCN

Connecting with younger audiences is essential for digital news organizations. And, like each generation, their habits and preferences differ from the ones before. The good news is that today’s young people both consume and pay for content. The trick is engaging them and demonstrating value worth paying for.

New research, The Media Insight Project, a collaboration of The Associated Press-NORC Center for Public Affairs Research and the American Press Institute, shows a positive connection between younger cohorts and paying for news content. Their findings state that while news consumption among younger audiences is rooted in social media, more than half (51%) of Gen Z (ages 16-24) pay for or donate to the news. Paying/donating for news content is even higher among younger Millennials (ages 25-31) and older Millennials (ages 32-40), 63% and 67%, respectively.

Notably, more Gen Z and Millennials, regardless of race or ethnicity, pay/donate for some news than not: 68% of Black Americans, 63% of Hispanic Americans, 60% of Asian Americans, and 57% of white Americans.

Online behavior

Those who pay/donate for news content have distinct usage behaviors compared to those who do not.

1. Time online

Twenty-seven percent of Gen Z and Millennials who pay/donate for news reports spending 9 hours or more online. In contrast, only 19% of those who do not pay/donate to any news source report spending 9 hours or more online.

2. Activities online

Gen Z and Millennials do numerous online activities. However, Gen Z and Millennials who pay/donate for news content are more likely to keep up with what’s happening worldwide, do more research online, listen to podcasts, and watch videos.

3. Seeking out the news

Gen Z and Millennials who pay/donate for news are more likely to seek out news (45%) than those who do not (27%). Yet, Gen Z and Millennials who pay/donate are also likely to bump into the news (54%), given their time and activities online.

4. News consumption

Gen Z and Millennials who pay/donate for the news are more likely to get news and information at least daily from traditional media sources than those who do not pay/donate for news content (56% vs. 28%). In contrast, when getting news daily on social media platforms, there is less distinction between those who pay/donate for the news and those who don’t (77% vs. 62%).

Facebook, YouTube, and Instagram are the most-used platforms for those who pay/donate for the news and those who don’t. Interestingly, Twitter registers the most significant difference between those who pay/donate for the news and those who don’t (30% vs. 13%, respectively).

Topics of interest

Not surprisingly, the research finds that Gen Z and Millennials who pay/donate to the news tend to consume more across all content categories.

Topics most often followed by those who pay/donate for the news:

Information about Covid-19
News about celebrities, music, or TV
Sports
News about national politics or government
Information on traffic, transportation, or weather

Topics most often followed by those who don’t pay/donate for the news:

Information on traffic, transportation, or weather
News about celebrities, music, or TV
Sports
News about social issues such as abortion, gun policy, and LGBTQ issues
Information related to health or mental health

Content worth paying for

Younger audiences are likelier to pay/donate to independent news content creators than digital or print newspapers. Gen Z and Millennials also find newer and independent sources relevant, especially among those more racially and ethnically diverse.

The Media Insight Project research shows strong potential for digital news companies to develop younger and more diverse audiences. If news organizations create content valuable to Gen Z and Millennials, these audiences will pay/donate for access. Importantly, news businesses must meet younger audiences where they are, which means developing relationships with younger cohorts on different platforms.

Industry-Research

Understanding the dimensions of trust in the news media

March 7, 2023 Rande Price, Research VP – DCN

Accuracy and transparency are vital elements of quality journalism that both play into another critical component: trust. Therefore, understanding consumer trust (or lack of it) is essential in today’s news media business. A new report, American Views 2022: Part 2, from Gallup and the Knight Foundation, examines the emotional dimensions of trust and how they relate to how people feel about news organizations. Further, the research provides insight into emotional triggers in today’s media environment providing a deeper understanding of consumer sentiment.

Using six questions designed by Gallup and Knight, the research measures five dimensions of consumer trust ‒ competency, reliability, benevolence (societal and individual), and integrity. Analytics then determine respondent segments from low to high levels of emotional trust. The spectrum of emotional trust offers important subtext to topline findings. For example, 61% of respondents find it harder to be well-informed because of the overwhelming number of information sources. Among consumers with low emotional trust in national news, this percentage jumps to 76%.

In contrast, the percentage remains at 60% among those with high emotional trust. The sharp increase among those with low emotional trust shows that this setting triggers low confidence and frustration in navigating a complex media news ecosystem. Notably, the emotional trigger is external and not related to the news organizations’ reporting competency.

Trust in the news media

Gallup and Knight’s research finds consumer dissatisfaction with the news media at a record low of 26%. Older segments, Baby Boomers and the Silent Generation appear more favorable toward the news media (33% and 34% very or somewhat favorable, respectively) in comparison to less favorable younger cohorts ‒ Gen Z (58%), millennials (56%), and Gen X (55%).

The perception of political bias in news coverage is also driving low favorability. More than half of Americans (55%) say there is “a great deal” of political bias in news reporting compared to surveys results in 2019-early 2020 and 2017 (46%, and 45%, respectively).

However, despite the level of dissatisfaction, 72% of Americans agree (strongly agree/agree) that national news organizations have the resources and opportunity to report news accurately and fairly to the public.

News favorability

Unfavorable opinions of the news media correlate with low emotional trust in national news organizations. Slightly more than two-thirds (67%) of consumers with unfavorable opinions of the news media have low emotional trust. Among those with a favorable or very favorable view of the media, 56% have high emotional trust in national news organizations.

Interestingly, 44% of consumers report high emotional trust in local news organizations, compared to 21% who have high emotional trust in national news organizations. These findings are consistent across political parties; 31% of Republicans and 58% of Democrats trust local news organizations among those with high emotional trust in local news.

Trust motivates consumers to pay for news

Slightly more than one-quarter of consumers (26%) report paying to access news or donating to a news organization. Applying the dimensions of emotional trust shows that those with higher emotional trust in the news are likelier to pay for it (35%) compared to 23% with low emotional trust.

Gallup and Knight’s research includes a nuanced approach to understanding and correlating consumer trust of the news media. Adding an understanding of the dimensions of trust provides richer context. It offers links to drivers of low emotional trust and favorability, such as information overload or fear of navigating the information ecosystem. National and local news organizations should identify these external triggers and discuss the issues and potential solutions with their audience.

Diversity, Equity & Inclusion | Industry-Research | Innovation

What’s behind digital media’s confidence – and priorities?

February 28, 2023 Rande Price, Research VP – DCN

The Association of Online Publishers’ (AOP) new report, Digital Publishing: Outlook and Priorities 2023, offers insight into this year’s top priorities for media companies – which unsurprisingly featured revenue growth. Publishers are also focused on talent and building a diverse and inclusive workplace.

As digital media companies look to grow their businesses, they assess internal strategies and external macroeconomic and legislative influences. Both publishers and solutions providers report being well-positioned for the year ahead and rate their confidence level a 7.2 based on a 10-point rating scale.

The AOP surveyed 92 digital publishers and 16 solution providers; 26% of respondents are at the board level in their organization, and 51% are heads of departments.

Internal business priorities

Revenue remains a top priority for publishers. Subscriptions (17%), sponsorships (15%), and lead generation (13%) rank as top revenue sources for growth among consumer-based publishers. B2B publishers see stronger growth opportunities in lead generation (28%), events (22%), and sponsorship (20%). Digital publishers targeting business and consumer audiences rank developing new revenue streams through product innovation as their highest priority (3.9).

Developing new audiences is important for revenue growth. To that end, consumer publishers work across multiple platforms to drive content discovery while B2B publishers are more reliant on LinkedIn (44%).

For advertising, publishers targeting consumer audiences report they depend more on advertising deals in the open marketplace. In contrast, B2B publishers divide more evenly across open and private marketplaces and non-programmatic. Further, 44% of all publishers expect revenue growth from private marketplaces and 42% from non-programmatic revenues.

Publisher respondents appear to be highly focused on their employees. Asked to rate how important different organizational priorities are [where 0 is not a focus at all and 5 is a very strong focus], B2B publishers ranked recruiting and retaining new talent as the most important priority, with a score of 4.1. Consumer publishers ranked ensuring a diverse and inclusive workplace as the most important priority, at 3.9.

External factors

With new legislation a key focus, digital media companies are mildly confident of their knowledge of the UK’s Online Safety Bill. This legislation establishes a new regulatory framework to ensure tech companies protect users from illegal content and activity, specifically social platforms, and other user-generated content-based sites. Publishers rate their confidence in understanding the Online Safety Bill’s impact on their organization at 5.6 on a 10-point scale and solution providers at 5.3.

Some publishers report that their companies are preparing for this new law by consulting with their legal teams, providing a comprehensive editorial policy, and relying on browser options. However, many also reply that no actions are needed because quality content publishers do not target children.

Further, publishers’ confidence rating is 6.5 regarding their readiness for the end of third-party cookies, while solutions providers report lower confidence in readiness (4.8). Publishers prioritize their investment in first-party data and user experience in preparing for the end of cookies:

Enhancing the engagement funnel to build better first-party data (23%);
Implementing tech solutions to provide a 360-degree view of audiences (15%); and
Investing in solutions to deliver a more personalized user experience (15%).

With a strong focus on first-party data, 58% of publishers are working to ensure their audience informs their business decisions and their investment in a data-led organization. Another 21% highlight the importance of internally managing and communicating audience insights throughout their organizations.

The AOP provides a snapshot of important focus areas for the year. A strong confidence level among media companies reflects positive internal alignment on essential strategies to develop and grow their businesses further. They are focused on building a diverse and strong talent pool. In terms of strategy, they are taking an audience-focused strategy and look to diversify revenue growth beyond advertising sales and subscriptions and increase sponsorships, lead generation, and event revenues.