Category results for "Featured Post"

Audience trust drives Wirecutter’s affiliate strategy

June 30, 2022 Carol Brzozowski – Independent Journalist

Leilani Han
Executive Director of Commerce, Wirecutter

Affiliate marketing is a dynamic endeavor, with myriad factors driving strategic decisions on how to sustain a healthy revenue stream while maintaining consumer trust.

In this Q & A, Leilani Han, Wirecutter’s executive director of commerce, shares her insights on strategies driving Wirecutter’s success.

DCN: There appears to be a renewed or intensified interest in affiliate marketing as a revenue diversification strategy. How do you see it?

Han: There’s always been a keen interest in affiliate marketing, but the space has certainly evolved with who was investing in the channel over the last 10 years. In our space, we’ve seen many media companies realize this was a smart strategy for engaging with your audience more deeply while providing a service to them that could evolve into a revenue stream.

This coincided with an evolution in the consumers’ relationship with their shopping journey. Affiliate has the unique capabilities of encompassing all channels so that it fits in perfectly with social media, the internet, and being able to provide greater value to people’s lives.

Wirecutter has been at the forefront of this trend, as we helped to prove to others this model could scale successfully. Today, millions of readers turn to Wirecutter’s advice for inspiration and making smarter shopping decisions.

DCN: What is your company’s approach to affiliate marketing, content/commerce mix, video, social?

Han: Our recommendations – and affiliate marketing – have always been at the core of our business since its 2011 launch. While we’re technically classified as commerce content, we don’t separate our work into content or commerce. We are simply focused on providing the best service journalism to our readers.

Compared to competitors, we are not in the business of worshiping products. We are in the business of helping users find out what is worth paying for and what is the best product for the price. We employ a journalistic, methodical process to uncover the right information.

We make a recommendation – not just a review. We communicate in a way that is relatable and direct – not academic. Wirecutter cuts the time and stress of shopping by providing direct and actionable buying advice.

We knew if we took care of the reader experience and prioritized their trust in us above all else, the monetization follows. That’s an indication we’re hitting the mark on being helpful to them. That’s a balance we have to strike to serve our readers and our ability to monetize. Our team does a great job of finding that balance.

As digital innovation has evolved over the years, so have the channels through which we can reach our audiences. We view video and social media as another way to introduce new readers to our advice while reaching them in the moment in the spaces where they’re organically spending their time.

DCN: What are the driving factors underscoring where to put the efforts?

Han: Our core mission is to serve our readers with helpful advice and earn their trust. Our recommendations are at the center of our efforts. We try to be thoughtful about how we engage with our audiences and whether we’re successful in meeting their needs.

We aim to be as impartial as possible from any business interests. Our approach is being transparent through every point of the user experience.

The affiliate model aligns well with our reader service mission because we do not earn commissions if we are not successful in earning trust and making the right recommendations. A successful affiliate business is a clear indicator we are doing right by the reader. The data helps inform us whether we’re meeting the mark on what readers need advice on and what to buy.

Learn more about the Wirecutter’s policy.

DCN: How do you mitigate the inherent challenges?

Han: One of the biggest challenges at the beginning is figuring out what resonates with your readers, how you can gain traction with them to return and click through to purchase, and then scaling that in a way that honors your service for your readers. While affiliate marketing can be a very meaningful revenue stream, it is not as turnkey as some other channels. It requires time, effort, and a lot of testing to eventually find the sweet spot of your editorial voice and how to monetize effectively.

Another challenge is in how to strike the right balance between sources that are key drivers of your business and ensuring you’re diversified enough to withstand changes that are outside of your control.

One example of this for Wirecutter is organic search and the ever-changing algorithms that can impact how much traffic is coming to your site.

Last fall, we launched a subscription product because we know that our journalism is worth paying for and we are focused on deepening our relationship with our readers. This allows us to reach these readers directly and lessen our reliance on other traffic sources to bring readers back to Wirecutter. So far, we are seeing positive results that confirm our belief that Wirecutter’s service journalism is a meaningful resource in people’s lives.

Despite our priority to grow our subscriber base, we are continuing to focus on our affiliate business as well. Our affiliate business model remains unchanged. If you click a link on our site and buy something we recommend, we may receive a commission.

As always, our writers and editors are never made aware of any business relationships we have with retailers. We’ll continue to make picks independent of all business and financial interests. Those things will never change: helping readers make the right buying decisions will always come first.

The change happening with browser updates and privacy regulations is also top of mind for many publishers and what the deprecation of cookies means for the industry. Many of the major affiliate networks have been addressing this by updating their tracking technology to help mitigate any losses from these changes, while Wirecutter has proprietary technology that has also helped us to mitigate any loss.

How Mail+ delivered nine major updates in two years to deliver 300% subscriber growth

June 28, 2022 Peter Houston – Independent Media Reporter

The U.K.’s DMG is a media heavyweight by most measures and the group’s Daily Mail ranks close to the top on any chart for online newsbrands. In terms of web traffic, it places fourth in the U.K., 10th in the U.S. and sixth globally according to the U.K.’s Press Gazette.

At the FIPP World Media Congress in Portugal earlier this month, the U.K. news giant outlined its adoption of a “launch everyday” philosophy that, surprisingly, owes a lot to the paper’s print heritage. The result was a 300% increase in subscriber numbers in just two years.

Product director Simon Regan-Edwards was unable to travel, but Denis Haman of CMS supplier Glide stood in to explain how the Mail+ team brought a print mindset to the evolution of the Mail+ subscription product first launched in 2013.

Mail+ began by replicating the newspaper experience online. Between its launch in 2013 and 2020, Mail+ secured 40,000 subscriptions as a digital replica available across multiple devices, including Kindle and Amazon’s Alexa.

In March 2020, the decision was taken to begin building out the Mail+ offering and by June 2022 it had 120,000 subscribers in total, with 76,000 digital only subscribers. This level of growth is impressive in itself, but even more so considering the free-to-access Mail Online site sits alongside it.

Two years, nine updates

Over the two years between the end of 2019 and the beginning of 2022, the Mail+ team delivered nine major updates.

These started with the introduction of briefings and newsletters and the addition of content in areas where the audience wanted to see more — TV and radio, food and health. Mail+ today incorporates Best Of sections, ListenTo functions and puzzles.

Moving through a homepage rebuild and a new storefront to improve the subscriber sign-up journey, Mail+ then made the shift to an edition-based format with three daily updates.

Additional releases have since brought author and category pages, new sections, and enhanced search functionality. More recently, the team implemented a second home page redesign to pull together a unified Mail+ offering.

“It’s been actually incredible to watch,” said Haman, “The Daily Mail team has managed to work and rework the product and reconfigure what it means to the customers. I have rarely seen a product move at such a pace and reinvent itself repeatedly.”

And the results have been applauded independently. Lewis Wiltshire, former head of media partnerships at Twitter described the most recent redesign as “A beautifully elegant looking website — almost Athletic-esque.”

So how did the Mail+ team do it?

Agile print

Haman began by exploding the misconception that a print foundation will slow digital development, arguing that print is possibly the most agile of all content channels.

“It gets destroyed and remade every single day, with the opportunity to redraw it, reshape it, rework it. And it has to hit the deadlines,” he explained. The Mail digital team brought that print mindset to the rebuilding of Mail+. That meant launching “every day, every week, every month.”

Of course, digital is not the same as print and Haman noted that there are “sensible limits” to digital development, meaning everything takes more time than you might think. Quoting Alan Hunter, former head of digital at The Times, Haman said: “This means you won’t be asking for a new product feature on a Tuesday and expecting it to be in the app by Friday.”

Crucially, the Mail digital team was given license from the very top to keep going until the right formula was found for Mail+. From that foundation and armed with audience data that suggested there was a real interest in the evolving subscription product, the team built quickly following a rigorous framework for decision making.

Ask what problem you are solving

Haman described the sweet spot for innovation between visibility, viability and desirability. He said it was important to be disciplined in asking key questions. Do customers want the features you are developing? Are they financially viable and are they technically possible with the available resources?

“It’s really important to fall back on the process,” said Haman. “If you’re under pressure you can easily find yourself jumping to conclusions.”

Data is crucial in building insight into what is building habits and why people do what they do. But Haman said it is also important to be open to new voices. He highlighted customer-service teams, sometimes overlooked, but often a powerful source of knowledge into what motivates or demotivates readers.

Data also avoids the HIPPO trap — the Highest Paid Person’s Opinion. Haman explained, “without data, it’s just an opinion.”

Networked teams bring together diverse groups with different perspectives and different skills, all the disciplines needed to launch a product. It’s important to give everyone access to the data to understand how it relates to revenue, engagement, and readership.

Haman emphasized the importance of giving everyone on the team a voice, and making sure that they are truly engaged in asking “What problem are we solving?” However, he took care to explain that although everyone should have a voice, “not everyone makes the decisions.”

Be realistic

To separate “should” from “could” and focus on priorities, the Mail+ development team used the MoSCoW methodology:

Must have
Should have
Could have
Won’t have

This helped the development team move faster and, crucially, get data back quickly to provide valuable insights for moving forward.

The team used digital tools across functions to “dig into” designs before development started. Haman compared this to making sure your architect’s plans are solid before starting to build; it’s considerably cheaper to revise plans than tear down half the house to make things right. Then lock designs to prevent changes at the 11th hour. “I love the fact that they would laminate designs,” he said. “It’s genuinely locked until it is released.”

The elegant exit

Andy Grove, former CEO of Intel, said it is important to act on your temporary conviction as if it was a real conviction; and when you realize that you are wrong, correct course very quickly.

Data, again, provided insight to what was working and what wasn’t for The Daily Mail. And if something wasn’t working, Haman said it was important to ignore the sunk cost fallacy — that we have spent all this money and we have to make it work. He explained, “If it’s going in the wrong direction, you need to be brave enough to cut your losses, pivot, or rather elegantly exit and move to a new direction.”

Regan-Edwards made a guest appearance at the end of the session via Zoom and I asked him if he thought at the start of the project he would make nine major updates in two years? He said, “No, but I think what we learned through this whole process is don’t predict what’s coming in two years time, focus on what are we delivering for this next quarter. What makes sense in this next quarter? What do we want to do in the quarter after that?”

He also re-emphasized the importance of being led by feedback from customers. “We have a big focus on puzzles,” he said. “That’s come from the feedback of how people are using the product.”

And finally, he said, overcome the “moonshot mentality” that says, “We’re done now, let’s put it in the cupboard. Instead, get into the mentality that you want to constantly improve.”

One year later: Who won the pandemic newsletter boom

June 23, 2022 Chris M. Sutcliffe – Independent Media Reporter

The newsletter gold rush is well under way. Media companies large and small are focused on their newsletter strategies. And the frontier towns of Substack, Revue and Ghost are packed with hopeful writers and journalists hoping to strike a rich vein of subscribers. But—as with real world gold rushes—there will be big winners and a wider array of also-rans, whose grand plans didn’t pan out.

Just as we are progressing from web2.0 to web3, the editorial newsletter has moved to the next level, driven in part by the emergence of integrated platforms. While the email inbox is still the destination for the final product, the ability to integrate sign-ups across social platforms and dedicated newsletter ad tools have propelled the medium to its next stage.

Between the development of those new tools and the recognition that completable, digestible news formats have value in the constantly updating nature of digital news, it’s small wonder that so much time and effort is being poured into newsletter strategy. And, driven in part by the pandemic, last year saw a raft of newspapers and magazines doubling down on newsletters for community development and revenue purposes.

The revenue models

Paid subscriptions to Substack’s newsletters exploded to more than one million late last year. Mid-2019, that number was closer to 50,000. And it isn’t just the newsletter platforms that have reaped the benefits of a bumper year for sign-ups.

The New York Times, which has around 17 million subscribers to its newsletters, announced last year that it is to make a third of those subscriber-only. Its decision around which were to be paid-for products was based largely on which newsletters it saw as being better for discovery and which had revenue potential. Its editorial director of newsletters Adam Pasick attributed that potential to growth in newsletter sign-ups from people desperate for news about the pandemic and the U.S. election.

Of course The New York Times is not alone. Organizations like The Financial Times and Axios also so their investment in newsletters pay off during the pandemic.

Perhaps the best measure of the maturation of the space is the level of experimentation that has gone into newsletter revenue strategies. Mel Magazine, buoyed by subscription success, launched a trio of paid-for newsletters in March 2021. In January of this year, the newsletter Dirt launched DirtDAO which allows its subscribers to use branded NFTs to vote on and commission stories for its writers.

On the other end of the scale, the Manchester Mill is a local newsletter published to a few thousand people in a Northern UK town. Its founder Joshi Hermann told me that 2020 and 2021 outpaced his expectations for signups: “In the first year, we’ve picked up just over 1000, which is really promising, probably slightly more than I expected given the notorious difficulty of building up subscriptions in the first place for massive content and stuff. So, I’m really delighted with that.”

Beyond paid-for newsletters, ad-supported formats are increasingly popular. Andreas Jürgensen, CEO and co-founder of newsletter ad platform Passendo, said: “There’s… a whole resurgence of publishers who are email first, and are basically building strategies around email. Then web becomes secondary, or might not even exist in the mix for them. These guys have seen the light, in regards to this as a trusted channel of the future.”

But that gold rush can’t last forever. There is increased competition amid a range of newly launched newsletters from individuals and newspapers alike. With a potential impending economic crunch, sponsors and advertisers will have to cut spend, and the public won’t necessarily prioritize newsletters. So while publications might be looking to newsletters for post-Covid revenue growth, they will have to contend with growing headwinds.

However, as bad as that might be for major publishers, it will be far worse for individual newsletter creators.

Squashed by the giants

Larger publications have the resources to keep newsletters going through a slump or take the time to transition the strategy, such as for discovery over direct revenue. Individuals who have launched newsletters will be first to feel the pinch.

Neal Freyman is managing editor of Morning Brew, which preempted much of the discussion around newsletters as an editorial product when it launched in 2017. He explains: “I think it was a bit of a pandemic blip kind of thing, as we’re seeing a lot of the pandemic winners kind of fall back to Earth.

“It’s an insane amount of work to put out a newsletter every day. So, I do think you’ll see the level of individual newsletter creators fall back down to earth and realize that you know, a support system is really needed. You might see some of these writer collectives start forming, but then you’re basically looking back at a media company, again, with sales and all that.”

One early piece of evidence for that was the closure of a long-running freelancer-focused newsletter in the UK. In the announcement, the sole creator Anna Codrea-Rado noted: “There are lots of reasons for this difficult decision, but they can be summed up quite simply: it’s just not working. Most pressingly, the maths doesn’t add up anymore. The number of paying subscribers isn’t high enough to make this one-woman newsletter business sustainable anymore.”

Some of that pressure comes from the fact that the majority of consumers who choose to be informed through newsletters signed up via major publications rather than individuals. According to the latest Digital News Report only 16% of that cohort are signed up to newsletters run by individuals. Meanwhile, 53% are signed up via “mainstream media organizations.”

The Report also notes that, to some extent, the newsletter boom is a US-centric trend: “The ‘Substack revolution’ for news is still primarily a U.S. phenomenon and it is not guaranteed to catch on elsewhere, especially given the difference in market size and context.” It is notable that most of the non-U.S .publications that launched paid-for newsletters did so with modest aspirations in terms of subscribers: Mel Magazine’s three paid-for newsletters had a goal of 10,000 subscribers within their first six months.

The outlook for individual-based newsletters, then, is iffy and exposed to volatility in the wider economy. But for bigger publications, newsletters are set to retain their primacy as a tool to entice readers into their ecosystems. There might the massive market for subscription newsletters the industry might hope fore. However, newsletters still offer unmatched value as a way to connect with audiences and add value for subscribers.

Digital News Report 2022: Four key implications for publishers

June 15, 2022 Damian Radcliffe, Carolyn S. Chambers Professor in Journalism – University of Oregon

The annual Digital News Report from the Reuters Institute for the Study of Journalism is a must-read for anyone in the news, media and digital publishing industries. Clocking in at 164 pages, the latest study, which came out today, covers a cornucopia of topics, informed by an online survey of more than 90,000 digital news consumers in 46 countries.

DCN members will want to read the complete report when they can, but ahead of that, we wanted to share some of the most relevant findings for digital content companies. To do this, I read the full report, identifying key trends and corresponding with the lead author, Nic Newman, to discuss these areas in more detail.

It is a decade since the first Digital News Report was published. Newman reflects that, since then, we have seen a relentless decline in consumption of traditional news sources such as TV, radio, and print and the growing importance of digital and social media.

“This has brought [a] greater variety of sources and perspectives than ever before, especially for educated and interested news consumers,” Newman says. “But at the same time,” he adds, “we see those that are less interested [in the news] often feeling overwhelmed and confused.”

It is against this backdrop that major themes emanating from the latest report — including growing news avoidance, as well as declining interest and lower levels of trust in the news —need to be considered. With that in mind, here are four developments publishers cannot afford to overlook, and recommendations to help tackle them.

1. Respond to the implications of news avoidance

Issue:

One of the biggest topics explored in the report is news avoidance. “Selective avoidance” is on the rise globally, with growing numbers deliberately steering clear of content that is often seen as difficult and depressing. Long-running and recurrent stories — such as those covering politics, the war in Ukraine, or the COVID pandemic — are also driving audiences to disconnect more frequently from the news.

Implications / Solutions:

To avoid audiences checking out, publishers need to recognize that some approaches in practice can be off putting. Therefore, they may need to offer a different content mix and tone. Addressing this is challenging, Newman says, because audiences also want — and expect — the media to cover difficult stories. Nevertheless, Newman identifies three areas where journalists and publishers can tackle several core reasons people often give for news avoidance: accessibility, negativity and bias.

First, he argues, we need to make news content more accessible and easier to understand. “This is one of the reasons why young people and less educated groups selectively avoid the news.” He also notes that content is typically produced for avid news consumers.

“Avoiding jargon and insider speak will help,” he says. More explanation, directly asking for — and addressing — audience questions, as well as producing fact-based content for video and podcast formats, could also be useful.

Secondly, telling stories differently might mean embracing approaches such as solutions and constructive journalism, as part of a mix of formats and content styles. Newman suggests outlets consider “finding more ways to cover difficult stories that provide hope or give audiences a sense of agency around stories like climate change.”

Lastly, we need to rebuild trust and credibility. Over a quarter (29%) of news avoiders believe the news is untrustworthy or biased. That rises to nearly four in ten (39%) in the United States.

“Some of that is about partisanship,” Newman says, “some is about sensationalist chasing eyeballs and clicks.” Potential remedies include “signalling opinion more clearly,” as well as “not labeling everything breaking news when it isn’t,” an approach CNN has recently broached.

2. Double-down on revenue diversification

Issue:

Increasing reader revenue is a key strategic goal for many publishers. However, much of the digital spoils generated by subscriptions are enjoyed solely by the biggest national brands. In the U.S, around half of paid subscriptions go to just three titles: New York Times, Washington Post, and Wall Street Journal. More widely, fewer than one in five digital news consumers (19%) in pays for content.

Implications / Solutions:

This “winner takes most” dynamic can make it difficult for smaller and local publishers to compete. Furthermore, the rising cost of living may also mean that some audiences will look to cut back their expenditure on paid-for content.

As a result, publishers can’t afford to be over-reliant on subscriptions. It has to be just one component of their revenue portfolio.

That’s a development Newman says news providers are alive to.

“More publishers are recognizing that subscription on its own will not be enough,” Newman says, “especially as further growth is likely to [be] constrained by rising prices and the squeeze on household budgets. Developing multiple revenue streams will provide resilience and help publishers weather the coming storm.”

This impending subscription storm is not unique to news publishers, but all media players. A chart on page 21 of the report outlines this tension. It shows that while 14% of digital news users in the U.S. think that they will have more media subscriptions in the next year, a further 14% of users believe they will have fewer subscriptions in the same period.

3. Ensure you have an effective first-party data strategy

Issue:

As the experienced product marketer Aphrodite Brinsmead noted last year, browser updates and privacy regulations impact the ability to use personal identifiers and capture customer data through third-party cookies. Subsequently, Brinsmead reflected, “the race is on for publishers and brands to leverage first-party data.”

However, news consumers appear to be wary about providing personal information, such as email addresses, to publishers. Just under a third (32%) of the report’s sample indicated they trust news websites to use their personal data responsibly. This drops to fewer than one in five in France (19%) and the USA (18%).

Implications / Solutions:

Most publishers understand that they need to develop their first-party data capabilities. But knowing you need to get to grips with this, and effectively doing so, is not the same thing.

“The low numbers (28% average) who have currently registered with a news site show that most news websites simply do not have a clear enough value proposition to get people [to] give up their data,” Newman argues.

This principle aligns with the subscription challenge publishers face too. It is hard to convince audiences to pay for content if the same material is available elsewhere for free. In these circumstances it seems not even inclined to hand over their email address to access it.

To remedy this, Newman suggests, “publishers will need to use a mix of competitions, events and special features to get those numbers up. They also need to persuade people that they will treat personal data responsibly.”

4. Do things differently if you want to reach Gen Z

Issue:

As we outlined recently, Gen Z is a demographic with its own outlook and media habits. The Digital News Report reinforces this, with Dr. Kirsten Eddy, a Postdoctoral Research Fellow at the Reuters Insitute, commenting on the growing gulf seen in the media behaviours and preferences found among many younger audiences compared to other demographics.

Implications / Solutions:

This cohort is less interested in traditional news subjects like politics. It also has a weaker connection with news brands. “They are also more skeptical of traditional sources,” Newman advises. “They are also shaped by social aspect of news ‘who is telling the story’ and what others think about it.”

As a result, this is a demographic more likely to seek out diverse voices online. They are less concerned about impartiality and more comfortable with journalists expressing opinions on social media. A preference for more visual social networks has meant that across all markets the use of TikTok for news consumption has jumped among 18–24s from 3% in 2020 to 15% in 2022.

“But they are not simply all TikTokers,” Eddy cautions, recommending in a dedicated essay (found on pages 42-45 of the full report) that publishers connect with the topics young people care about, and develop content that is aligned to the style and tone of specific platforms. Publishers should do this, in preference to “expecting young people to eventually come around to what has always been done.”

The big four (and much more)

These four issues – reaching younger audiences, addressing issues of news avoidance, ensuring you have an effective first party data strategy and the need for revenue diversification – matter to publishers large and small. As a result, these were the topics that emerged as most critical upon first read of the Digital News Report 2022.

They are, of course, just a fraction of the actionable insights that can be gleaned from this weighty annual research study. Readers may also want to delve further into issues such as trust, polarization, as well as data related to the consumption of podcasts, online video, email news and attitudes towards coverage of climate change.

Learn more by reading the full report.

What The Economist’s move into education can teach other publishers

June 9, 2022 Esther Kezia Thorpe – Independent Media Reporter

Education may not be an obvious segue for a news publisher. But when you look more closely, it can actually be an incredibly powerful way to leverage the expertise of journalists to create something valuable for your audience (and bottom line). The Economist launched its Executive Education pillar in February 2021 as a growth initiative that would allow it to leverage its journalists’ deep knowledge and understanding of global issues.

The education sector itself is vast, and there are many routes publishers could take, from accredited courses to partnerships with schools and universities. The Economist decided to focus on its existing audience, and tailor its courses at highly qualified senior executives. “We’re already catering to the needs of mid-career executives who are upskilling, and that’s our target audience for our courses,” explained Fionnuala Duggan, Executive Director of Education at The Economist Group Media.

“We chose a format for a course and topics that would resonate well with them and at the level they were looking for. The whole operation is pitched to their needs in terms of their ongoing executive development, corporate professional development and career development.”

Now, they are expanding their offering with a new course on fintech and the future of finance. Billed as giving attendees a “future-focused view of the major issues”, the aim is to demystify personal fintech, blockchain, and cryptocurrencies. Notably, the program will draw in implications for both the business and personal lives rather than being solely work-related.

Quality not quantity

Each course runs for an average of six weeks, and requires between 6-8 hours a week from participants. They are delivered online, which was a pre-pandemic decision to widen participation to a global audience. Courses contain a mix of writing, infographics, video, audio and links. Each is led by a head tutor alongside a team of tutors who guide students through each week.

The Economist decided to take a guided approach with scheduled start and end dates rather than run on-demand courses because it offered a higher quality experience. Having tutors that can answer questions, stimulate discussion and provide feedback helps participants get more out of the courses, which underpins the value of the four-figure price tag.

Duggan also noted that having a schedule means they can bring participants together. “There are around 72 countries represented in most courses,” she said. “If you’re discussing something like international relations with people from the U.S., Australia and central Asia, you get all these different perspectives. There’s an enormous amount of learning from each other.”

Although the courses may run to schedule, they are far from being one-hit wonders. The first course Economist Education ran was on International Relations, which is now on its sixth presentation. “Each of these courses takes quite a long time to develop — four or five months,” Duggan said. “That’s why we have a smaller number of courses that are high quality.”

Blending journalism and pedagogy

One key part of the publisher’s approach has been separating the focus of this pillar from the rest of the business. Although there is a great deal of collaboration between the departments, their approach is different. “We’re not in the media business,” Duggan said. “We’re in the business of education. But we’ve benefited enormously from all the things that The Economist and The Economist Group has.”

This has also meant the team are able to acknowledge what strengths they don’t have within the business. Duggan was cognizant of the fact that The Economist had never run courses before, and that this needed additional expertise in order to meet audience expectations. They chose to partner with GetSmarter, an EdTech firm who deliver online education from world-leading universities like Harvard and Cambridge.

“We really wanted these courses to be from The Economist, so that they would be able to carry over people’s expectations journalistically, and also bring the coverage into the courses,” Duggan explained. “At the same time, the journalists aren’t teachers. So we’ve found a really cool way of blending what they’re able to bring with the pedagogical expertise that our partner has.”

“This means we have this very constructive, collaborative relationship with the journalists and all of the knowledge and knowhow and context they bring. Our editorial processes are also involved clearly in the editing of the course. And then we bring in the pedagogical experts who can shape the course, and we have the best of both sides.”

Duggan’s advice for other publishers is to focus on getting the proposition right, and partner up if necessary. “For a media brand to go into education, it’s very important to execute very well,” said Duggan. “But it’s also important to understand what your brand brings.” The Economist brand’s vast reach helps with attracting an audience to the course. But that’s not all: The courses put the publisher’s journalistic expertise front and center of both the courses themselves, and the marketing strategy.

“Bringing the newsroom into our courses is absolutely central to our offering,” Duggan emphasized. “When you’re talking about topics that are extensively covered already in our publications, we need to make sure that the courses have the same take on subjects, the same access to the sources the journalists might use, and of course, the journalists themselves, because they are the best people to comment on these topics.”

Top marks and takeaways

The courses so far have been a success. Each one sees completion rates of around 94%. “When very busy executives are giving six to eight hours a week into a course, that’s quite a lot of time,” she said, noting that the lack of attrition highlights the strength of the content.

The publisher declined to give any specific revenue figures, but did note that each course is attended by between 100-300 people on average. Given the price is £1,475 per person for their current selection, it is safe to assume each course is generating a healthy six-figure sum.

Now Economist Education has established itself and had time to iron out the kinks, they have a wide range of topics they can develop courses on next. Duggan confirmed that their next course will be on sustainability, coming in October. They are also exploring the B2B enterprise market. “From where we are now, there’s plenty of opportunity to continue growing quite quickly,” she noted. “There’s an awful lot of scope in the education sector.”

Although The Economist’s approach is specific to its own needs, there are still plenty of takeaways for other publishers looking to extend into educational courses. First and foremost, it is important to consider what your brand would bring to an education course. There may be lots of opportunities depending on the type of coverage. But educational courses like this are best suited to super-serving existing audiences rather than bringing in additional subscribers.

It is also crucial to acknowledge where skills may be missing at a publication. A well-crafted course will almost certainly need input from educators. Consider partnering with educational institutions or companies who specialize in pedagogy in order to bring the most value to a course.

Ultimately, however, as publishers’ seek ways to build value for audiences and diversify revenue, there are lessons to be learned from The Economist’s successful addition of an Education pillar. Given a media brand’s strength and deep institutional expertise, there may well be value for audiences that want to engage more intently and enhance their own knowledge further.

Featured Post | Innovation | Perspectives

Streaming is for everyone: three strategic considerations

May 31, 2022 Christy Tanner, Founder – Coraly Partners and Senior Advisor Oaklins DeSilva & Phillips

2022 already has been a dramatic year for streaming. Even if you’re not trying to keep up with day-to-day industry developments, you’re probably aware that CNN+ launched and died, Netflix announced plans to launch an ad-supported tier, and IMDb TV was renamed “Freevee.” These rapid developments may seem daunting for many potential streaming players, considering that the ground will shift again soon.

But here’s the good news about these rapid changes: While the “Streaming Wars” narrative — referring primarily to competition among media giants’ SVOD strategies — remains the focus of many in the business and trade press, the reality is that there are wide-open opportunities for a variety of players. Whether it’s a paid app, a YouTube channel, or a free channel on a FAST service, streaming is definitely not confined to the players locked in the so-called streaming wars. Streaming is for everyone.

We’re just getting started

SVOD, AVOD, FAST, OTT, and CTV are not only competing, overlapping, and complementary acronyms — they represent multiple potential business models as well as multiple avenues to reach audiences looking for entertainment, news, and sports. Across devices, services, and platforms, there are more opportunities than ever before to develop content, products and business models contributing to the next evolution of the streaming industry.

Media players and startups — large and small — can compete and win the loyalty and trust of consumers. By the end of 2022, we will see new players on the streaming scene — growing, thriving, and innovating to capture audience attention and significant revenue opportunities.

Find your place in streaming

The fact is, it remains early days for streaming viewership, and we need bold players to bring expertise and creativity to the space. So let’s set aside the winners-take-most Streaming Wars narrative and consider these factors:

1. Focus on the right video strategy for your audience.

In the streaming space, many strategies and tactics are still in an experimental stage, so don’t assume that your traditional competitor’s widely-publicized strategy is going to work. And definitely do not copy their strategy without significant research and diligence, because you may find that your competitor doesn’t have a clue — and won’t provide significant competition at all in the streaming space. For instance, it may be that launching a solid AVOD or FAST strategy will give you much of the data you need to make a decision about an SVOD strategy.

2. It’s easier and less expensive than you think to get started.

There are new technologies and new tech companies that can support a variety of streaming strategies. Generally speaking, these options are less expensive, more standardized and faster to implement than many broadcast technologies. Additionally, trusted brands will be in a good place to negotiate with these vendors.

3. Creativity and innovation are badly needed in the streaming space.

Think about how hard it is — still — to navigate streaming interfaces. This space needs to improve the consumer experience, ASAP. With so many major media brands in flux, those who are focused on making streaming a great consumer experience have an incredible chance to jump in and create a successful strategy.

Focus on the consumer to improve what’s ahead

The complexity of the streaming landscape is enough to confound savvy media veterans and newcomers alike. But this complexity should not prevent most media players from crafting or revamping their streaming strategy – now. It’s a wide-open field for trusted brands and innovators, especially those who create content, products and services with viewers at the center. We all have a lot to learn from rapidly shifting consumer habits and preferences, and the timing has never been better to start learning.

About the author

Christy Tanner, President of Tanner Media LLC, is former EVP & GM of CBS Interactive, where she built CBS News Digital/CBSN into the #1 streaming news service, with more than 1 billion streams in 2020 and 2021.

The FTC is about to enter a new era

May 26, 2022 Chris Pedigo, SVP Government Affairs – DCN

Nominated by President Biden, and recently confirmed by the Senate, Alvaro Bedoya was sworn in as the 5^th Commissioner of the Federal Trade Commission (FTC) this month. As a result, Chair Lina Khan now has a majority of Democratic-nominee votes with which she intends to move quickly to implement a promised progressive agenda. Let’s dig deeper into what issues Chair Khan and the FTC are likely to move forward and how this might play out.

Privacy rulemaking

In February, the FTC gave the required advance notice to the relevant Congressional committees that it intended move forward with a rulemaking “to curb lax security practices, limit privacy abuses, and ensure that algorithmic decision-making does not result in unlawful discrimination.”

Now that Commissioner Bedoya is confirmed, it is widely expected that the FTC will move forward in the very near future. Historically, an FTC rulemaking of this kind can take years to process. However, in 2021, the FTC streamlined the process including by removing the requirement for a staff report and analysis. So, while it is not clear exactly how long it will take, the intent is to move quickly.

One of the wild cards in this process is a petition filed last year by Accountable Tech, which urged the FTC to ban “surveillance advertising” under its authority to prosecute “unfair or deceptive” acts. The petition suggested the FTC could act in one of two ways:

Prohibit platforms from using personal data for targeting ads, or;
Prohibit businesses from “sharing user data, for the purposes of advertising, to any business line, website, advertising technology, or tracker other than the business or service with which a user intentionally interacts” AND prohibit platforms over a certain threshold from using consumer data to target ads.

As hinted at in the second option, Accountable Tech’s petition notes that “any rule should make clear that it does not ban all advertising or even all targeting of advertising.” Indeed, they specifically call out search, contextual, and first-party targeted advertising as acceptable practices in line with consumer expectations. All that said, it is unclear whether and how much the FTC will follow the suggestions of the petition.

Ramping up COPPA enforcement

In 2019, the FTC initiated a mandatory review of their regulations concerning the Children’s Online Privacy Protection Act (COPPA), but we have heard very little since. Consumer groups have been calling on the FTC to modernize the COPPA rules, which have not been updated since 2013. Now that Chair Khan has a majority, we are likely to see revised draft regulations sometime before the end of this year.

In the meantime, on May 19, the FTC issued a policy statement indicating that they intend to closely examine whether ed tech providers are fully complying with COPPA. Specifically, they will focus on whether these companies have sufficient “limitations on collection, use, and retention, along with security.” Enforcement action in the ed tech space could provide clues as to how the FTC wants to update the COPPA rules.

Merger reviews

The Biden Administration has publicly announced that it will closely scrutinize any and all acquisitions by big tech companies. To that end, the Department of Justice and FTC are working on updating the merger guidelines.

As part of a series of “listening forums” to gather feedback, Chair Khan voiced concerns about mergers in the media sector, noting that there were $200 billion worth of mergers in 2021. She disclosed that “we are working to ensure that our analytical methods are keeping up with new market realities.” Specifically, she wants to avoid consolidation that leads to firms having “outsized power over how information is distributed.” At the same forum, DOJ Assistant Attorney General Jonathan Kanter expressed concerns that consolidation in the media sector has led to a decrease in the amount and diversity of content.

From my perspective, there are two big takeaways from this listening forum. First: The Administration is doubling down on its efforts to stop big tech platforms from developing (via acquisition) a dominant position in the content industry. To that end, they are looking for new ways to identify and quantify harms to content creators and the market in general. And Second: While we can expect the Administration to remain hyper-focused on big tech mergers and acquisitions, publishers should also understand that the FTC and DOJ will be closely scrutinizing deals between publishers.

Dark patterns

Last year, the FTC issued a policy statement to curb the use of “dark patterns” to trap consumers in subscriptions. Since then, the FTC has followed up with enforcement action against various companies and we expect that action to continue going forward. Many have observed that Amazon may be in the Commission’s sights. While that may be true, the FTC’s enforcement record indicates it is looking at the industry more broadly.

A bold era begins

Lina Khan has been heralded as a bold thinker, ready to lead the FTC into a new, modern era. Yet, for most of her tenure, she has been hampered by the lack of a working majority. With that constraint removed, we can expect more and aggressive action from the FTC on privacy and competition. Indeed, the era of Lina Khan is about to begin in earnest.

How social audio supports The Washington Post’s “adoption, addiction, and affection” strategy

May 19, 2022 Jessica Patterson – Independent Media Reporter

In the 18 months since social audio spaces were introduced the media landscape, digital content companies have experimented to uncover their purpose and how they can best serve audiences. For The Washington Post, the answer was revealed amid the discussion of a massive leak of offshore data, which exposed the secrets, deals, and assets of the world’s rich and powerful.

The Pandora Papers investigation was not The Post’s first use of social audio. They’d experimented with Clubhouse in mid-May 2021 and held their first Twitter Spaces event June 10, 2021.

It was, however, one of their most ambitious experiments as it involved other global news organizations simultaneously joining the Twitter Spaces event. The Pandora Papers investigation spanned five continents and involved 600 journalists in 117 countries.

“The Pandora Papers was the largest reporting consortium in journalism history. We’re talking about [journalists examining] 11.9 million documents and financial records,” said Michelle Jaconi, head of news talent strategy and development at The Washington Post.

That’s a wealth of information – but a challenge to present given its scope and depth. “The amount of nuance that you can go into in a platform in audio where you don’t have the set limitations of an article is wonderful.”

“Twitter Spaces has been an incredible playground for creativity and exploring ways where we could stretch that platform,” Jaconi said. “That one was one of the biggest and most ambitious spaces we’ve done, because we did it across different newsrooms. It was an incredibly fascinating test and stretch, and incredibly well received.”

Space(s) for transparency and engagement

Social audio allows The Post to share the teamwork and collaboration that takes place in their newsroom, Jaconi explained. The work that goes into a large scale, investigative report is largely invisible to readers. However, the audio format allows the journalists to communicate the process and passion that goes into a project like this one. As Jaconi points out, “The voices humanize the work, effort, the passion and the care that goes into every piece of journalism at The Post.”

One thing the team at The Post has learned through its use of social audio is that the audience is incredibly curious and wants to learn more about the journalistic process.

“We learned, wow, there is an audience for this, and [social audio] is incredibly good for things that are so complex that you need extra time and nuance and care to explain,” Jaconi said. “And, especially with Pandora Papers, we were testing the platform and how much we could stretch the production capabilities of an audio event that was truly global. We had some issues. But I think Twitter’s even gotten better since then at the product and the production aspect of doing massive events.”

Attracting and engaging audiences

Like all publications, Jaconi says The Washington Post not only wants to increase the size of its audience, but also engage younger, next generation, diverse and global audiences. For the use of Twitter Spaces grew the following of @washingtonpost on Twitter, as well as the following of their reporters.

“I think one of the things that social audio is incredible for is that social platforms convene audiences of curious people – or sometimes just bored people who become curious when they see a trending hashtag,” Jaconi said. “Every time we do one of these spaces, our reporters get new followers. That shows that we’re building audience.”

Social audio spaces create an intimate connection between The Post and their audience, on a device that many use to interact with their family and friends. “That is a wonderful way for us to not tell our expertise, but instead to show it. We do it in a way that provides intimate connection between our reporters and their audience,” Jaconi said.

For reporters who often work in text-based mediums, one of the things that makes social audio fun is that they get to know their audiences more personally and engage directly.

“While you’re talking, you can actually see avatars and photos of people joining in that conversation right there with you. And that is something that I love for reporters to know,” Jaconi said. “Who doesn’t like telling a story and looking at the avatar of someone and saying, ‘oh, thank you for listening. That’s so interesting that you’re popping into this conversation and listening to me.’ That has been really rewarding for everyone who’s participating.”

And, as it continues to improve the functionality of Spaces, Twitter is now surfacing live audio to users when they first log in and providing beacons to audiences indiscriminately. This adds value for digital content companies because previously, Twitter had only surfaced Spaces to an organization’s existing audience.

“Social audio is one of the most exciting playgrounds right now to gather new audiences because the product keeps getting better,” Jaconi said.

Adoption, addiction, affection

In helping Post reporters reach new audiences, Jaconi looks for a funnel of adoption, addiction, and affection. With The Post’s recent reporting on the war in Ukraine, Jaconi said they are seeing an uptick in followers, but also affection. Social audio plays into this by increasing the personal engagement between audience and reporters.

In particular, The Post has sees a trend of audience members sending deeply moving messages. “People have been following reporters for the first time and posting comments like: ‘I am praying for your safety. I hope you’re okay. Please be all right.’ That is affection and concern for our journalists,” Jaconi said, noting that she’s never seen this kind of thing take place at this scale before.

“To have that be the overwhelming chat response to an audio space from our reporters covering the war, boy, is that a different experience for our journalists and reporters,” Jaconi said. “It means that we we’ve done a really good job and reaching people who are interested in information and are interested in building that relationship with us and our reporters.”

Lessons learned

Jaconi explained that there are a few best practices in the social audio space that digital content companies ought to think about.

First, update your Twitter app. Jaconi explained that Twitter often updates Twitter Spaces and improves and fine tunes its functionality. (We covered some of those in our last social audio piece.)

Second, remember that audience members can join Twitter Spaces mid-stream. It’s possible those audience members have never met you before. Hosts should make a habit of re-introducing themselves during the course of an event. This should include addressing new people joining the Space and telling them what they’re speaking about, their name, background, expertise, and the topic of discussion.

“It doesn’t have to be boiler plate. It can be done in a casual way. But also, because there’s audiences that are listening while they’re multitasking, I really urge people to introduce themselves again,” Jaconi said.

Thirdly, Jaconi suggested that digital content companies who engage in social audio spaces ought to “feed their audience.” This means give your social audio space a thread of everything you covered in that space. If you’re using social audio to discuss investigations, mention the methodology of your investigation, the complexity of doing the investigation, biographies of speakers or guests and the like, in a thread. This assures that the listening experience isn’t just a one-off that happened in the Twitterverse, and instead is and can be connected to other content, events, or used in the future.

“It is so rare, and so exceptionally powerful, to be in the same place as your audience at the same time, with everybody convened,” Jaconi said. “You’re convening the curious at something that you’re an expert in. So feed them when they’re there, because it might be a while before you convene them again.”

Diversity, Equity & Inclusion | Featured Post | Perspectives

Five big leadership challenges facing the media industry

May 12, 2022 Damian Radcliffe, Carolyn S. Chambers Professor in Journalism – University of Oregon

Anita Zielina founded the Executive Program in News Innovation and Leadership at CUNY in 2019. Since that time, she has shaped the leadership skills of executives from local media, start-ups and major outlets such as The New York Times, Reuters, Bloomberg, and ProPublica.

Now, on the eve of her departure as Director of Strategic Initiatives at the Craig Newmark Graduate School of Journalism in New York, she shares her perspective on some of the biggest leadership challenges the media industry faces – one of which is leadership training itself.

“I just built the program that I wish I had a bit earlier in my career,” explains Zielina. Like so many in our industry, she says “I started out as a journalist and I never had the management training, the product training,” she says. “I never learned how to speak the language of the business and strategy side of things.”

An Executive MBA at INSEAD, addressed some of those needs, but “there was not one other person from media in my class,” Zielina observes. In a cohort of 120 people, all of her peers were from consumer brands, oil and gas consultancies, banks, and the like. Nonetheless, she says, “I loved the experience.” But she could see that there was a need for such a program tailored to the media industry.

Zielina has set out to fill this need at CUNY. She built a program offering elements of a traditional MBA – with classes on strategy and organizational change – alongside a “comprehensive leadership growth development program,” and a focus on media best practices.

In a wide-ranging interview, Zielina – who is returning to Austria to launch her own consultancy focused on digital and leadership transformation – shared her views on the key challenges facing the news and media industries.

Here are five of the core elements that emerged from our conversation, with a focus on supporting future leaders – and the challenges facing them – in the media industry:

1. Training the next generation of leaders

Zielina has extensive leadership experience in media including stints as Chief Product Officer & Editor-in-Chief Digital at the Swiss-based NZZ, Digital Editor and Deputy Editor-In-Chief at Stern the German current affairs magazine, and as an Editor at the Austrian newspaper Der Standard. Looking back at previous roles she says, “I think I did a decent job. But I had to teach myself a lot of the skills you need as a leader.”

Those skills include an ability to navigate the intersections of business product, audience, editorial, technology and innovation. They are not necessarily acquired in the newsroom, she suggests, and the media context is often missing from traditional business programs.

“Our industry has a tradition of people rising to leadership roles,” she says. “They were great journalists. Then suddenly they become managers, and they do not get the support that they need.”

The need for this type of support is clear when looking at the graduates from CUNY’s executive programs. “Half of the people in that cohort that just graduated have taken on a larger role throughout the year or immediately after the program,” Zielina told us, “either in their own organization or in a different organization.” The training CUNY provided has been crucial to enabling them to effectively step into these leadership roles.

2. Strategic vision and execution

“There are some similarities in organizations whether they are large or small,” Zielina says when asked to share the biggest challenges for participants in the CUNY’s Executive Program in News Innovation and Leadership. “Number one is strategy.”

Shortcomings in communication, as well as the need for strategy to continually evolve and be updated, are key factors. Even when strategy exists, she says “it’s not clearly communicated. In other cases, the strategy “is old, it’s faulty, it needs to be adapted to new challenges.”

To address this, Zielina encourages leaders to think about whether their organization is prepared for transformation. They must focus on which audiences they want or need to reach, and how to ensure that appropriate resources are prioritized. Integral to this is a “talent pipeline” as well as clarity about the type of work culture you want to instill.

“The difference between an organization that successfully manages transformation, and an organization that doesn’t, is not necessarily that one has a strategy paper or slide deck while the other does not.”

At the heart of this are leader who can turn strategy “into products, into audience work, into services, into organizational structures, and the daily execution routine.”

3. Detoxifying the workplace

Implementation is about more than just the products you build, and the platforms you use, Zielina reminds us. People, ethics, and culture must not be overlooked.

The workplace is an area in which she believes change is long overdue. If not, then talented people will leave. For good. In fact, Zielina says, many are already gone.

She notes a generational shift whereby Millennials and Gen Z “are not willing to put up with the not-so-great culture and ethics anymore.” “They are opting out,” she says. Unfortunately, “these people are never going to come back if we lose them now.”

According to Zielina, the size of this issue is one that too few industry leaders grasp, although she believes the trend is “becoming more obvious.”

“Younger colleagues in this industry, are waking up to the fact that they don’t have to stay in places that are toxic. They don’t have to stay in places that don’t let them have impact.”

“I think it’s the big the big issue that we’ll have to tackle the next few years,” she says.

4. Making DEI commitments a reality

“A lot of tensions obviously revolve around women, people of color, [and people] from different socio-economic backgrounds, finally saying, ‘I want a seat at the table. And if I don’t get a seat at the table, I’m going to leave.’ So really prioritizing DEI is so crucial.”

Zielina feels that “there was a certain reckoning after the murder of George Floyd and we see movement there.” However, many organizations are failing to deliver on their DEI promises.

Too often, she says, we hear companies say “yes, we are prioritizing, but it was so hard to find a woman and it was so hard to find that person of color. So we took another white man, but next time, we’re definitely gonna do it.”

“If we don’t tackle the big underlying cultural issues of this industry, if we don’t make this industry more attractive, if we don’t make this industry more equitable, if we don’t make this industry a healthier, better and more supportive space, we are going to lose all those people,” she adds.

5. Updating outdated modes of human capital

Making the industry more attractive, Zielina suggests, includes learning from the creator economy and the great resignation.

“More folks are realizing maybe I don’t want [to work for] an employer, maybe I want to do my own thing. But I don’t want it to be a kind of hockey stick startup with venture capital, I just wanted to work for me. I want to tell my stories. I want to serve my audience, who I care about.”

“We are going to see more of that,” she says, which means rethinking collaboration and working with creative/journalistic talent. She also believes we will see increased emphasis on impact, flexibility, and hybrid work – issues that matter to growing numbers of the workforce.

“There is a huge disconnect between the corporate world, and specifically corporate HR and applicants and employees,” she cautions. “And this disconnect is getting bigger.”

“You can start that tomorrow,” she says, urging organizations to ask “whether our incentive systems, our HR processes, our way of work is still adequate for this day and age.”

Future plans

After she leaves CUNY, Zielina plans to continue to focus on ensuring organizations have the structures, skills and talents they need, “in the space of digital leadership and product.”

Zielina sees signs that a famously myopic industry is starting to look beyond national markets for solutions. “It makes me optimistic that it seems that we are getting a bit more global and a bit more international as an industry,” she says.

“Those best practices are really starting to be shared across borders, and that that I think is an a fantastic development. We need more of that,” Zielina adds, “and I hope to play a part in that in at least bridging that gap between the U.S. and Western Europe.”

Stay the course

May 5, 2022 Jason Kint, CEO – DCN

Netflix’s earnings report last week sent a chill across nearly every company with a business model tied to a direct-to-consumer relationship. There are real concerns about the global economy and speculation about whether the massive increase in streaming viewing habits seen during the pandemic will prove to be enduring. However, I wonder whether the insights gleaned from the Netflix situation are unique to Netflix and not a strong indicator for other media companies, most of which are just starting their streaming ventures.

First, let’s acknowledge the macroeconomy. Inflation registering over 8% will impact nearly every consumer market; this is especially true if inflation leads to higher interest rates and the dreaded “R” word. Unfortunately, this will be an ever-intensifying concern.

There has been a great awakening around the globe after two years of Covid, during which we had requirements and excuses to stay home and avoid socializing. There were countless stories in the trade and mainstream press as we witnessed streaming viewership’s outsized growth about isolation’s impact on our insatiable appetite for entertainment – escape. And binge-watching – which was already a trend after Netflix tossed a hand grenade into the linear schedule – only escalated during this period.

Certainly, Netflix finds itself with real competition for digital share of wallet for the first time in its history. Storied media companies have rolled out exclusive offerings that feature everything from hit television programs to blockbuster movie franchises: Batman, Star Trek, Yellowstone, Avengers from HBO Max, Paramount+, Peacock, Disney+, respectively. Many have regained rights to classic television hits that are endlessly bingeworthy. Meanwhile, Netflix has increased its price, nearly doubling its monthly cost ($15.49 from $7.99 when it first launched) while cracking down on password-sharing as it, impressively, has saturated the market.

But while Netflix may have led the way in streaming, it may not be the best proxy for the subscription market opportunity. The company faces its own issues with stagnating growth and should not be mistaken for marketplace indicators.

What is really happening

DCN’s 2021 research into the value of direct, trusted consumer relationships, brands as proxies for this trust, the needs and behaviors of Gen Z vs Gen Y, and the subscription market point to this lesson: Ignore Netflix and stay the course.

Most important are the lessons coming from studying the “next” generation. Consumer behavior is radically different in a world where payment and immediate gratification are merely a double tap of the thumb and face scan away on a mobile device. Paying for access to your favorite news or entertainment product, whether podcast, app or website, is no longer a foreign concept after hitting a “paywall.” Rather, it is little more than a friendly nudge along the way associating value with the products you love.

The number of people willing to pay for access to news and entertainment is increasing. In fact, Netflix’s greatest legacy for the market as a whole may have been leading the horse to the water. Netflix also worked with premium providers and helped build an appetite for great content and normalized paying for it.

What publishers seek

Now, distribution platforms from Apple to Google to Facebook are being pushed to finally act as true partners in driving subscription revenues and monetization for premium publishers. At times this nudge has had to come from regulatory threats in an effort to create more balanced bargaining power.

But what are publishers seeking? Publishers expect traffic to their owned and operated platforms and true ownership over the customer journey including the underlying transaction and customer data.

Publishers also want to take back control over the pricing, bundling, and messaging for their services from the distribution platforms. This allows a trusted publisher to extract and retain more subscription revenues by controlling their highly-valued brands and, importantly, the customer data from before, during, and after their subscription relationship.

Putting things in perspective

For decades, the vast majority of digital content was available for free.

Meanwhile, Netflix built its business on spending (many would say excessively) on licensing and creating content. It helped rebuild the consumer appetite for quality content and experiences worth paying for. However, when we consider the implications of the company’s recent subscriber losses, we should not be so quick to predict a ripple effect across subscription-based businesses as a whole.

While a couple of news publishers, and a handful of other streamers count their subscribers in the tens of millions, the reality is that most publishers count theirs in the tens or hundreds of thousands. Thus, the basis for comparison with Netflix’s 220 million subscribers is specious at best. That’s like comparing a slowdown in Coca-Cola’s beverage sales to my kids’ driveway lemonade stand.

And the behavior of younger consumers points to a healthy appetite for great content and a willingness to pay for it. Now is not the time to panic, pivot, or radically shift your subscription strategy in Netflix’s wake. Instead, trust in the value of quality content well-delivered in trustworthy settings and know that audiences will be right there with you.

Doubling down on personalizing the reader experience

April 28, 2022 Jason Langsner, Senior Product Manager – WaPo 360

Bugs Bunny and Michael Jordan co-starred in Space Jam. Bill Cinton was re-elected to serve a second term as President of the United States. Tiger Woods became a professional golfer. The Summer Olympics were hosted in Atlanta. And washingtonpost.com went live. What do all of these events have in common? They all took place in 1996.

It has been 25 years since those first readers could get their news from The Washington Post online. Back then, Post articles couldn’t be “googled,” since Google — as a company — would be founded two years later. And sharing a news article with friends couldn’t involve Facebook or Twitter, as these networks wouldn’t come to market for eight and 10 more years, respectively… TikTok was only the sound an analog clock made and early-social media adopters were closer to Tom being their first friend on MySpace than influencers going viral and becoming millionaires from creating content on Instagram, Snapchat and/or YouTube.

News consumption was a one-size fits all paradigm: heard or seen via broadcast news on TV or radio, read from printed ink on paper, and skimmed from websites that were effectively static brochureware representations of their print big brothers (with some supplemental content online). There was no personalization. The model was one-to-many: here are the top things reader X, Y and Z need to know to stay informed. That model is changing and has changed. And The Post has shown success in personalizing the news to readers’ interests through My Post, newsletter subscriptions and much much more.

Stay tuned, Washington Post readers are about to see more personalization in 2022!

Creating and distributing the news: then vs. now

An “Apple-to-Apple” Comparison of Reading The Washington Post
on December 20 in 1996 and 2021 through then-Modern Apple Technology:

The December 20, 1996, homepage of washingtonpost.com on an Apple Macintosh

Rhe December 20, 2021, home screen of the WashPost iOS app on an Apple iPhone

Change is good. But change needs to be managed. A lot has changed in this last quarter century at the intersection of media and technology. The Post has responded to change by building new systems that manage how content is created, distributed and amplified. But one thing has remained constant — great reporters and editors create great journalism.

Another constant is that quality journalism will be seen or heard by consumers looking to stay informed. And it can shine through the cloudy haze of mis-and-disinformation maliciously shared online.

Although these constants of good journalism from trusted institutional brands and other media players communicating the news remains, how consumers get their news has certainly changed with the times. In today’s digital new media landscape, according to The Pew Research Center, “more than eight-in-ten U.S. adults (86%) say they get news from a smartphone, computer, or tablet ‘often’ or ‘sometimes.’”

As a media AND technology company, The Washington Post has not just followed consumers to their preferred destinations, it has been a leader in creating content and bringing it to readers — readers who may have an interest in politics can get their Daily 202 newsletter emailed to them; food enthusiasts can cook with confidence with Voraciously recipes and guides; podcast listeners can subscribe to Post Reports, Please Go On, Can He Do That, and other audio format news; and over 1.2 million fans of @washingtonpost on TikTok can be informed and entertained by short, witty, videos by a creative team of content creators.

All of this work needs to live somewhere. Platforms, tools and services power this news before it reaches readers’ smartphones, computers, or tablets. The Washington Post has had to understand not just the scalable infrastructure needs of today to deliver this news where and how readers want it, but technology leadership has also had to set the organization up to be successful in the future with new and expanding infrastructure and Infrastructure-as-a-Service (IaaS) resources. It’s like the old sports adage — Wayne Gretzky wasn’t the fastest skater on the ice in the NHL and he wasn’t the biggest professional hockey player. He was the greatest because he played not to where the puck currently is, but where the puck was going.

The Post’s aspiration and northstar is to not just continue to deliver excellence in journalism, but also to equally deliver excellence in engineering and innovation. The Post is playing to where the innovation puck is going by as, Deloitte Insights suggests, “designing systems in which humans and machines work together to improve the speed and quality of decision-making.” The Post is doing this to improve the reader experience through personalization and to allow company leaders to turn more data into actionable intelligence at scale.

“I’ve always understood and appreciated the work that The Post contributes to the journalistic space, but interviewing [for my role at The Post] quickly made me realize the sophistication behind the engineering effort supporting that mission.”
— Washington Post Data Engineer Jack Miller, who joined The Post in 2021.

Data, data, everywhere. Data, data, time to share.

Moore’s Law highlights the correlation of computing power essentially doubling every two years. That’s become more of a rule than a law over-time. Another rule that has held steady is the total amount of data created or copied doubles roughly every two years — therefore, The Post has seen a whole lot of redoubling of total data since 1996 and Post engineering leadership expects that trend continue in the coming years.

Inside-and-outside of the newsroom, The Post — as a business — relies heavily on data-informed decision making at strategic and operational levels. Over the years, in addition to the increased need to approach data management in a holistic way, The Post has experienced a significant increase in subscriptions and traffic across various platforms and channels. This increased data volume and velocity coupled with new sources and complexities has created new challenges (and opportunities) to turn raw, siloed and unstructured data into business intelligence.

To address these challenges/opportunities and gain maximum journalistic and business benefits from reader interests, The Post began to develop a more integrated approach to data management in 2021 under the leadership of Beth Diaz (Vice President of Audience Development & Analytics), Venkatesh Varalu (Head of Data and Analytics), and in collaboration with leaders across Subscriptions, Advertising, Newsroom, Marketing, Finance, Product and Engineering.

This data was available and accessible prior to 2021, but The Post began to manage it in a more innovative, agile and programmatic way. Under this new approach, customer data is being positioned to power various marketing and reader personalization efforts through enhanced workflows, automations and data activations via homegrown tools or services and vendor platforms. The Post is calling this macro-initiative WaPo 360.

“I’ve always been a huge fan of data. Working as a newsletter analyst, I got the opportunity to explore The Post’s various data sets to answer interesting questions about how our readers behave, and to find evidence of what works best for keeping them engaged,” said WaPo 360 Senior Data Engineer Patrick Haney. “It was a fantastic experience. However, while working with these data sets, it became almost immediately clear that they weren’t arranged in an optimal format for analysis. Answering simple business questions could take hours instead of minutes due to the siloed nature of each data set, along with the business logic that needed to be applied in a consistent fashion and often it required reaching out to a subject matter expert for validation.”

“I was ecstatic when I learned about this new data integration initiative because it would solve all these aforementioned issues and enable analysts and non-analysts to quickly and efficiently use our data to answer vital business questions,” said Haney regarding his choice to transfer from one Post team onto another.

Graphic showing 5 levels of insight-driven organizational maturity: analytics aware, localized analytics, analytical aspirations, analytical companies and analytical competitors — *Deloitte’s Insight-Driven Organization (IDO) Maturity Scale*

According to a recent Deloitte study, “most executives do not believe their companies are insight-driven. Fewer than four in 10 (37 percent) place their companies in the top two categories of the Insight-Driven Organization (IDO) Maturity Scale, and of those, only 10 percent fall into the highest category. The remaining 63 percent are aware of analytics but lack infrastructure, are still working in silos, or are expanding ad hoc analytics capabilities beyond silos.”

WaPo 360 will improve the turn-around time for The Post to turn data and signals into insight-driven business decisions.

WaPo 360 and the engineering experience

When he applied to work at The Post, Jack Miller said his “interviewers stressed the importance of the WaPo 360 project across many different verticals within the organization. Being able to join a growing team supporting that project was a huge reason why I decided to pursue the position and so far it has been a great experience.”

Fellow team Data Engineer Zach Lynn agrees, saying, “the WaPo 360 project struck me as an excellent opportunity to learn and also support The Washington Post’s core mission.” Lynn’s interest included working in several business areas and collaborating with other software teams.

The first step of WaPo 360 has been focused on stitching data signals from various data sources together. Data that previously was unstructured and accessible only to data analysts is becoming democratized for Washington Post engineers and technical business users. This first pillar of work is essentially warming up the oven and organizing all of the ingredients to make it easier for business stakeholders, in different departments, to bake their own pies. Data from site and app traffic, newsletter engagements, ads, subscriptions, and other sources are becoming more structured in WaPo 360 through Customer 360 — our first pillar of the initiative.

A Washington Post data analyst recently presented how his work has been impacted by WaPo 360. In his presentation, he outlined how he experienced a nearly 96% improvement in a SQL query run time by switching data sources from the siloed unprocessed data that he was looking for to the same data signals that were structured and pre-processed in WaPo 360. As noted earlier, different data sets have been accessible before 2021, but with WaPo 360, The Post is turning data into intelligence and making it easier for staff to do their jobs. WaPo 360 is essentially replacing their hand tools with power tools.

Flowchart showing four steps: Raw WashPost data, then semi-structured data, then structured data, then customer 360 data

WaPo 360 and the business-user experience

The data that is becoming structured and pre-processed in Customer 360 isn’t just going to live on an island to be visited by data analysts and data engineers. The second pillar of WaPo 360 is to make that data accessible to those with a business need to access it, in anonymized ways, through improved self-service tools.

Flowchart showing three steps: Customer 360 data, then Customer Data Platform, then either offsite marketing services or internal email and website personalization tools

Joshua Zieve, Senior Data Analyst, joined the WaPo 360 team, to “help catalyze The Washington Post’s data sources to better understand and serve our current and prospective readership.” Zieve has been active in coordinating with business and technical users on many fronts. “Working across the Analytics & Engineering teams, I’m grateful for the opportunity to develop systems that facilitate, deepen and expedite analytics for use-cases throughout the organization,” Zieve said.

Good data is the foundation for WaPo 360 and that leads to personalization benefits. Following the team’s work in delivering structured data in Customer 360, WaPo 360 sends relevant data to power the business use-cases that Zieve references into a new Customer Data Platform (CDP). The CDP then works as an engine to allow business-users to perform exploratory data analysis, build audience segments, create marketing and reader engagement campaigns, analyze their success, then deliver an improved personalized experience to readers through integrations with Washington Post-built tools and popular offsite services that The Post utilizes to reach potential readers.

“[I’m] most excited about the self-service potential for The Post’s newsroom and business teams … with data in one place, which is aggregated and ready to be queried, users can get their data without waiting for The Post’s Analytics team to prepare the data. For the Analytics team, this will also reduce time spent for serving ad hoc requests from the newsroom/business side.”
— Sam Han, Director of Zeus Technology and Artificial Intelligence (AI) / Machine Learning at The Washington Post

WaPo 360 and the reader experience

The Post will be doubling down on personalization in 2022 — directly and adjacent to the work being conducted by the WaPo 360 team.

Early work is underway to improve the onboarding experience for new subscribers. And the team plans to unlock significant opportunities to retool, rethink and reshape how articles are suggested to readers — such as through improved content insights and an updated Content Taxonomy System with new article subjects/topics metadata powering future innovation.

Members of the WaPo 360 team recently presented the team’s work at a company-wide virtual forum. Washington Post Organizational Development Consultant Cameron Booher said, “Planning for any What’s Next event involves talking with many project teams about their ongoing and upcoming initiatives. And the usual format of What’s Next is to highlight three projects from different areas of the business. But it very quickly became evident through conversations just how significant of an undertaking WaPo 360 is. It’s extremely collaborative, and has been built upon expertise from almost every department at The Post. It will be rolled out in various phases, which speaks to the iterative process of develop-test-improve.”

“Some of the insights we’ll gain will help us improve reader and user experiences in spades,” Booher said.

This article originally appeared on Washington Post Engineering and is re-published with permission.

5 ways media companies can better reach — and engage with — Gen Z

April 26, 2022 Damian Radcliffe, Carolyn S. Chambers Professor in Journalism – University of Oregon

True digital natives, Gen Z grew up with smartphones, social media, and video on demand. “Understanding Gen Z’s media experiences and entertainment preferences is a priority for publishers,” Michelle Manafy, DCN’s Editorial Director, observed, “ because they provide a proxy for the future of digital media.”

*Image* *via* *eMarketer / Insider Intelligence*

Not to be confused with millennials, Gen Z’s outlook and media habits are very much their own. A powerful demographic — and audience — in its own right, Insider Intelligence noted Gen Z is expected to constitute more than one in five (20.2%) of the U.S. population in 2022. With nearly 70 million tweens, teens, and young adults falling into this category, “Gen Z is the most racially, ethnically, and sexually diverse generation in history.”

So, what do we know about this demographic, and how can publishers best reach and engage with them?

1. Understand their social media habits

Given that this group was “born digital” it is no surprise they are active users of social media. One key segment of this demographic, teens, spends around four hours a day on social media new research from Piper Sandler shows. This latest semi-annual Taking Stock With Teens survey also revealed TikTok is teens’ favorite social media platform (33%) surpassing Snapchat for the first time (31%). Instagram ranks third (22%). YPulse’s social media monitor reports that, although Gen Z’s use of platforms such as Facebook, Instagram, and Snapchat increased slightly last year, “no platform has seen growth comparable to TikTok’s in 2021.”

2. Create digital campfires

Gaming platforms and emerging social spaces also present some intriguing possibilities. For example, YPulse found Gen Z is more than twice as likely as Millennials to use platforms such as Discord (34% vs. 15%) and Fornite (25% vs. 10%). They are also less inclined to use products like Facebook (42% vs. 75%) and Facebook Messenger (42% vs. 62%) although that may change as they get older.

Writing in Harvard Business Review, Sara Wilson remarked on “how younger audiences are leaving many public-facing social platforms and flocking to smaller, more intimate online destinations.” She calls these spaces “digital campfires.”

With roots in gaming culture, but not exclusive to gamers, Wilson argued, “digital campfires have become a force defining not only how Gen Z audiences connect, but also how they experience and shape the culture at large.”

“For that reason, marketers can no longer afford to ignore them,” she said. The same argument can be made for publishers and other content creators too. Twitter Spaces, live streams, and AMAs are just the mainstream tip of this intimacy iceberg. Other platforms like Roblox, Geneva, and Discord should also be on your Gen Z radar.

3. Keep it real

“Connecting with Gen Z means much more than just creating a company TikTok account,” suggests Max Pinas, Executive Creative Director, Dept. “As digital natives with a sixth sense (and zero tolerance) for insincerity, Gen Z is expecting more from brands,” Pinas told AdWeek.

That means “you must earn their trust, as they need to believe in your product as well as your purpose,” according to Erik Huberman, the Founder & CEO of Hawke Media, a full-service, award-winning marketing consultancy headquartered in L.A.

For media players, that may mean everything from providing more behind the scenes stories on Instagram Stories, as well as having a more defined voice on issues that matter to Gen Z. Those subjects include climate change, social justice and the wider uncertainties faced by this generation; uncertainties impacting Gen Z’s economic prospects and their mental health.

Having a voice on such matters may challenge traditional journalistic concepts of neutrality and objectivity, but can be clearly seen in outlets such as VICE, Complex, and The Recount. These are publishers I find many of my Gen Z students naturally gravitate towards because of this.

4. Lean into their content preferences

Video, mobility, and short-form content all matter to this cohort. DCN’s research established the primacy of video. Gen Z values video over other media platforms by a margin of around 2-to-1.

More than half of their daily video viewing is on Netflix and YouTube (both 30%) Piper Sandler showed.The research also found 87% of teens own an iPhone; with 87% expecting an iPhone will be their next phone too.

“Gen Z typically have an attention span of just 8 seconds,” the IAB reported, “a few seconds shorter than millennials, who come in at approximately 12 seconds.” From Under The Desk News on TikTok, to Axios’ penchant for bullet points (a format they’ve trademarked as Smart Brevity®) and the emergence of audio “microcasts,” no medium is immune to this short-form trend. Given that it’s not just Gen Z with infinite sources of distraction and entertainment available to them in the palm of their hand, short-form’s prevalence is only likely to grow.

5. Find fresh ways to make it pay

“The number of those [Gen Z] investing in cryptocurrency in the US increased by a whopping 200% since Q2 2020,” GWI highlighted last month. This presents intriguing possibilities for outlets seeking new content verticals, as well as new ways to secure reader revenue.

As I demonstrated in a list of 231 Ways To Make Media Pay, publishers such as the Chicago Sun-Times, Time, and The Marginalian (formerly Brain Pickings) have already been experimenting with cryptocurrency payments. More widely, Gen Z’s propensity to consume media on platforms like Netflix, Hulu, and Spotify may mean they’re more in the habit of paying for premium content.

*Examples of tipping on social media,* *via* *The Information*

In a similar vein, the tipping culture manifest in parts of the creator economy also offers some fascinating possibilities. Publishers may want to tap into Gen Z’s relationship with influencers and above-average propensity to use platforms like Discord and Twitch where this type of functionality is baked in.

Lastly, as more and more publishers seek to add e-commerce into their revenue mix, the emergence of social commerce — and Gen Z’s growing habit of not only drawing inspiration from social networks but then purchasing products and services directly through them — is another area publishers must pay heed to.

Implications for publishers

For content creators chasing after Gen Z consumers, the data suggests it is important to be active on newer, more visual, video-led social networks like Instagram and TikTok. At the same time, YouTube remains the most popular social media channel used by Gen Z and the rest of us, a traditional platform many publishers do not make the most of.

And it’s not just social video attracting Gen Z. Spotify’s data shows that Gen Z (and millennials) actively use audio to access diverse viewpoints and to find out about social issues, potentially creating a space to dig deeper and offer more long-form content.

Embracing these platforms, certain characteristics of the gaming ecosystem, as well as the style and tone of voice Gen Z expects from much of the media they consume, is essential if publishers are to develop long-term relationships with Gen Z. Given their size and purchasing power, Gen Z is a group no publisher can afford to ignore.