Savvy publishers know that balancing user experience with the need to drive revenue is key to thriving in today’s media marketplace. For NPR—where donations from an engaged and loyal audience are as important to their diverse revenue streams as sponsorship dollars—building trust is paramount to continued success. That’s why the National Public Media (NPM) team (the corporate sponsorship subsidiary of NPR) strives to uphold the values that NPR exhibits and years of data says its audience has come to expect, even as it develops content and advertising campaigns for sponsors.
Erica Osher, Vice President of Sponsorship Products and NPM Creative, says years of affinity research tells her that 72% of NPR’s audience has more positive feelings about NPR sponsors. Why? Because of a phenomenon called trust transference. NPR’s audience trusts the organization and its personalities, and that trust transfers to brands that support the news organization.
Furthermore, NPR’s research shows that its programming and journalism are “personally important” to its audience and that, all things being equal, they will buy products that are advertised on NPR over competing products. “We understand that maintaining the trust in journalism translates to our sponsors,” says Osher. With that in mind, the NPM team works “to obtain user feedback, especially when implementing new programs.” Keeping the user in mind at every turn allows NPM to create ad products that are beneficial for everyone involved.
Facts over flash
In order to maintain that all-important user trust, NPM enforces strict standards for sponsors who want to reach NPR’s digital audience with their advertising. In many ways, the guidelines sponsors must adhere to are not all that different from the standards journalists must uphold. Sponsors can only make substantiated claims in their ads, and even “broad claims” are rejected by the NPM team. No misleading creative or messaging is allowed, and sponsors cannot use disparaging language. Certain categories of sponsors are held to an even higher standard.
Another best practice suggestion for brands looking to reach NPR’s audience is to avoid inauthentic messaging. Osher says she often urges brands to speak for themselves, and feature speakers who can communicate genuinely, rather than just hitting a list of talking points. Avoiding jargon and technical language also helps keep the messaging relatable.
Holding sponsors to a higher standard is just the start of building better ads. Osher’s team thinks about how many ads per page—or podcast—the audience will tolerate. They use lazy loading to ensure content does not shift on a page because of an ad, and always test how any new major placements will impact a page. In essence, they strive to meet and sometimes improve on Better Ad Coalition Standards.
“We have these guidelines that we stick to and need to be balanced with the need for revenue,” says Osher. “When we do it well, the audience is receptive… but they hold us accountable.”
Best practices in action
So, what does it look like when sponsors take NPM’s standards to heart and deliver the kind of content NPR audiences want to see? In the case of Mattress Firm, NPM Creative (with the help of Spark Foundry) crafted a campaign around the science of sleep as part of its Brand Soundscapes product offering, which includes Center Stage. Interviews with sleep experts lead to tangible advice for readers on how to calm their minds and get better sleep.
Osher says that, as with most campaigns, her team tested different images and headlines to find what resonated best. “Featuring people is always effective,” she says. The Mattress Firm campaign, which strives to educate readers and listeners about how to get good sleep and why it matters, uses doctors to lend legitimacy to the topic. Listening to one of the segments, it’s easy to forget you are listening to sponsor content rather than a story segment about health and wellness. Year-over-year, Osher says, NPM has increased the play rate on its Center Stage Soundscapes product by about 33% and the average completion rate by roughly 19%.
Mass Mutual worked with NPM Creative to create custom Spotlight Mid-rolls to run across NPR podcasts. A case study describes the campaign: “The creative featured director Brian Trzcinski, Certified Exit Planning Advisor (CEPA). He shared how MassMutual financial professionals can help business owners balance the needs of today and tomorrow, including planning for a comfortable retirement.” Mass Mutual also used NPM’s research and measurement services to measure “campaign insights, optimize for success and ultimately make an impact.” According to the case study, the custom audio yielded a conversion rate (CR) 18% higher than standard 30-second mid-roll placements.
The success of NPM’s campaigns is due, in large part, to its commitment to producing sponsor content that feels true to NPR’s brand. With that in mind, the team has also moved away from traditional banner placements in its newsletters and switched to incorporating a native sponsorship unit. Taking a more text-based, story-driven approach has increased the click-through rate by 1,850% for the same campaign, says Osher.
The “facts over flash” approach that NPM takes when developing and implementing campaigns for sponsors has reaped rewards for sponsors as well as its own bottom line. A laser-like focus on what its audience expects and a willingness to hold sponsors to a high set of standards has created a virtuous cycle of great content that informs readers and listeners, creates a halo effect for brands, and keeps NPR in business.
Trust – and the lack of it – has become the metric of choice when discussing the alienation individuals feel regarding news organizations. When we consider what the metric is telling us, the picture is undeniably grim.
In an October 2023 poll, Gallup found that more people said they had no trust at all in the media (39%) than those that said they had a great deal of trust (32%). Increasing accountability and transparency are oft-cited prescriptions news organizations focus on to build trust.
Getting to the root of trust issues
However, many people say that the reasons they don’t trust the media include a failure to cover both sides of an issue and the perception that journalists have a political bias, particularly a liberal bias. The Gallup poll reflected a 47% trust gap between Democrats (58%) and Republicans (11%). That said, trust among Democrats is falling significantly for the same reason that it has plummeted for Republicans: a perception of bias, in this case, a conservative bias. The nation’s political polarization is further driving down media trust.
It is understandable that media organizations believe that audience perception of bias can be addressed through transparency efforts focused on the way journalists report and disseminate the news. Unfortunately, there’s a fundamental element of storytelling that may have a much bigger impact on the appearance of bias: word choice.
It’s difficult to address issues of bias when people fail to see themselves reflected in the words journalists use. Language is not merely a tool for communication but a reflection of positioning and perspective, bias and blame. Academic studies show that trust and distrust are encoded in the very language choices we make.
Research we’ve been conducting at the University of Florida’s College of Journalism and Communications is identifying patterns of common language usage in coverage of controversial and potentially divisive subjects that could drive wedges and further damage trust. It is possible that, by recoding words away from inherent biases and towards authentic language people use to describe their experiences, we may find a pathway that engenders trust.
While the pursuit of trust is indeed a noble one, it feels more ambitious than the current climate allows. Therefore, journalists should ask the question: Is trust entirely in my control? And if not, what is? Our work has steered us toward focusing on what can be controlled: authenticity, intentionality and precision. We believe these elements can serve as the building blocks that lead to greater trust.
Based on that work, we’re developing a machine-learning tool journalists can use to identify potentially biased language and use that feedback to make more intentional word choices. The tool, called Authentically, is aimed at equipping journalists with the insights to make informed decisions in their writing. Authentically is currently in the alpha stage of development and we’re working with newsroom partners to test functionality.
When complete, the tool will operate in real time to flag words that merit more careful consideration. By providing a more robust context to the connotations of language, journalists are given the opportunity to ask themselves: Is this really what I meant to say? Does this accurately represent the events I’m describing? Is this language biased?
Word choices and perceived bias
Throughout our investigation of multiple news topics, common patterns of use emerged. In our analysis of abortion coverage, the data indicated that words conveying a sense of pride, such as “proudly,”“unapologetically” and “adamantly” frequently preceded the pro-life label, whereas the pro-choice label was frequently preceded by words indicating a sense of necessity or urgency, such as “necessarily,”“increasingly” and “relentlessly.” While these differences might appear subtle, they raise critical questions: what is being communicated when the language used around one position consistently denotes an undertone of morality while the other suggests one of urgency?
In examining coverage of racial justice protests, specifically regarding the murder of George Floyd in 2020, the findings spoke for themselves. The verbs used to describe protest actions repeatedly drew comparisons to fire or destruction, such as “spark,” “fuel,” “erupt,” “ignite,” “trigger” and “flare.” Is the recurrent use of this fiery language a deliberate choice, or is it a subconscious pattern of bias? What impact does that have on the perception of these demonstrations and of the people participating in them?
As concerns and polarizations regarding the climate grow, so does the importance to be conscious of our language choices. Verbs used with the term “global warming” appear to have a more neutral focus on the general effects, such as “occur” and “bring,” while verbs used with the term “climate change” delve deeper into the speed, intensity and potential ramifications of ongoing environmental shifts, such as “alter,” “fuel” and “accelerate.” Does the language journalists use – even when the differences are subtle – help convey the urgency of a climate emergency, and therefore shape perceptions?
While the foundational tenants of journalism remain core to audience trust, words matter. Our research has illustrated to us the pivotal role of authenticity, intentionality and precision in beginning to bridge the gap between the intention of the journalist and the ways their stories are received by the public.
About the authors
Janet Coats is the Managing Director of the Consortium on Trust in Media and Technology at the University of Florida’s College of Journalism and Communications. She spent 25 years as a journalist and a decade as a media consultant before moving to higher education.
Kendall Moe is the Senior Project Manager and Researcher for the Authentically project and has conducted the language analysis described in this story. She has an undergraduate degree in linguistics and a master’s degree in special education from the University of Florida.
There are countless reasons why consumers cancel their media subscriptions.
It could be as simple as a subscriber deciding their affiliation with a publication has run its course after a change in the tone of the journalism. It might reflect financial circumstances. Or it could simply be too many things to read or watch and too little time. The National Research Group found that 23% of people who cancel subscriptions say they do so because they weren’t using them enough, which in many cases is not a failing on the media company’s part.
The Reuters Institute for the Study of Journalism also found that a proportion of subscribers do not want to feel “tied down” to any one news source. Other media companies – always in competition – might make active efforts to lure subscribers away through aggressive and antagonistic advertising campaigns.
However, there are macroeconomic factors that publishers cannot control that lead people to cancel subscriptions. In the face of challenging financial times, it won’t surprise any newspaper or magazine publisher that “poor value for money” is cited as among the most common reasons for cancellation. That’s a difficult barrier to overcome – although it is one some publications try to address by reminding consumers of the value of their subscriptions through newsletters and content recommendations.
Media companies may have to grapple with more churn in the near future. While suggesting that consumers have not reached “peak subscription,” research from Toolkits has found that a large percentage of people who have taken up news subscriptions expect to cancel some in 2024, for a variety of reasons including those mentioned above.
These factors are likely to be impacted by new legislation coming into force in the UK and EU (as well as proposed legislation in the US), which aims to streamline the process by which consumers can cancel subscriptions. For media companies – many of which argue they are not responsible for the trends that have made such legislature necessary – that presents two main challenges. The first is that they would have to bear the cost of enabling cancellation through new channels, which UK broadcaster Sky says will add significant costs to its businesses. The second is that, at a time when the rush to find sustainable subscription revenue is hotting up, it could increase the levels of churn.
For example, Sky argues the government’s proposals to tackle the problem of customers being billed for unwanted subscriptions were “too prescriptive.” This call is echoed by many media companies, which in some cases still require consumers to call to cancel a subscription.
But there is a growing body of evidence that such pain will be short-term, and that it is in media company’s favor to enable one-click-cancellation.
Proof of value
Research from McKinsey finds that of the 40% of consumers who choose to cancel subscriptions the majority that do tend to cancel do so early in their subscriptions. Those early terminations have a deleterious impact on the data that can be gathered on the consumer, making attempts to prevent cancellation more difficult.
However, it is also the case that the relationship doesn’t end as a result of cancellations. Some media companies, including Guardian News & Media, use a cancellation as a cause for further contact. Its subscriptions and sales teams will often reach out to a subscriber who has cancelled a direct debit or regular payment to find out why.
It is a technique used by other subscription-based businesses, which make distinctions between lapsed and unengaged consumers. While the latter require much more work to bring into an ecosystem, the former already have an emotional connection with the brand. Most importantly for digital subscriptions, many will continue to share their data with a brand following cancellation, making efforts to re-engage and remonetize them quicker and easier.
Given that the maxim that new consumers are five times as costly to acquire as existing subscribers are to re-up, that creates a huge incentive for media companies to continue their marketing efforts towards lapsed subscribers. Doing so mitigates the risk highlighted by McKinsey that lapsed subscribers do not continue to provide data for use in honing subscription strategies.
Cost of cancellation
In the US, the risk of more churn and less certainty around subscription revenue has been exacerbated by what the Federal Trade Commission considers effectively duplicitous activity from subscription-based companies. FTC Chair Lina M. Khan said: “Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place.”
Just as in the UK, media companies in the US feel that their businesses are going to be unduly impacted by the bad behavior of other actors in the subscription space. As a result, they are largely opposed to the implementation of “ease of cancel” rules that could lead to consumers cancelling more easily.
However, there are early signs that such efforts would not impact media companies quite as badly as might have been expected. Toolkits conducted a study of over 1,000 consumers in the US who have subscribed to digital publications. It found – in the face of expectations – that over two thirds (67%) would “more readily purchase new subscriptions if they thought those subscriptions could be cancelled easily”. Over three-quarters (77%) percent of consumers also said they would support the proposed laws requiring “one-click cancelation” mechanisms.
Zamir Walimohamed is head of digital, marketing and subscriptions at Motor Sport Magazine. He acknowledges that as a legacy brand the magazine has an advantage in converting paid print subscribers to digital: however he also notes that even niche titles face challenges around churn and re-upping subscribers.
Despite those challenges he argues that easy cancellations are not necessarily the end to the relationship between media companies and consumers. Instead, he says, it is an opportunity to better understand readers and what makes them subscribe in the first place: “If a customer is on a bundle and cancel a pop up appears saying ‘Are you sure you want to do this? Or would you also be interested in a lower offer’, which is only digital only, for example.”
He states that it is on media companies to demonstrate an understanding of why consumers would want to cancel in the first place. Moreover, he argues that the relationship is better served by making that process as easy as possible.
However, as he and other subscription managers note, the data collected throughout the active lifecycle does not lose its value the moment a subscriber cancels. Instead, the data points about why a consumer has cancelled are valuable not just enticing them into the fold, but for preventing other readers choosing to cancel as well.
We hear a good deal about news deserts and the struggles of local news. However, at least in the U.S., local broadcast news remains a bright spot. Yet, as audiences increasingly flock to streaming for what had long been broadcast-based content, NBCUniversal is focused on staying in front of the migration. The company’s launch of 15 new news channels on nine streaming platforms including Roku, Peacock, TCL and Xumo over the past two years is not just a strategic move to keep them future ready, it’s helping their local news offerings reach a more diverse audience now.
In terms of strategy, of course, there is more to launching on streaming platforms than just technology. For NBCUniversal Local, it required careful planning and design of collaborative tools and tactics, as well as consistent communication to get staff on board both practically and philosophically.
NBC’s free ad-supported streaming television (FAST) channels were born out of the traditional linear broadcast and cable channels NBC already produces each day. But while the company leverages its existing content in its FAST offerings, they took a decidedly different approach according to Meredith McGinn, EVP of NBCU Local Media, Multicast Networks and Original Programming. “What we didn’t have in our portfolio was an all-news local channel,” she said, as she outlined their reasons for launching 24/7 local news channels in markets including New York, LA, Chicago, Philadelphia and Boston.
They chose to stream partly to reach a younger audience. “But what we’re also seeing on these platforms is a more diverse audience in all demographics; age, race etc.,” said McGinn. “It was really important to reach a viewer who had either bought a new connected TV in the last three to five years, perhaps cut the cord, or was a ‘cord never’ and didn’t have an easy linear always-on source for local news.”
A blank slate
Being early movers to local news streaming has meant the team has had to work out both what the audience on streaming platforms want to see from a local news product, and what the best workflow is internally to deliver that. Angela Grande, Director of NBCU Local’s Streaming News Channels says they’ve experienced a lot of learning and had to move quickly in order to figure out the best strategy.
When launching a new newscast in a market, NBC typically includes in-market producers, writers and reporters for each location. But in this instance they took a different approach. “Instead of beefing up staff in each individual market to build a network from the ground up, we built a small central team,” McGinn explained. One reason for this was because the cloud server technology, cloud playout, virtual production control rooms, and other technology used to make the streams work was relatively new for the business.
“[The technology] could be best tested with a tight central team that could then put the new process through its paces. Then spokes go out and train each of the stations and personnel on how to use this technology. As we get product updates or new product ideas, we can test them again with a central team, again put them through their paces and then roll out more widely.”
Designing the setup from a blank slate meant that the team could test and learn first, without legacy technology and processes from the rest of the business slowing them down. But it was not without its challenges. “As you’re working with new tools, you realize that they’re not quite built for what you need,” McGinn outlined. “So we hired producers who pretty much became product managers working with vendors on development. They’re really trying to improve the product significantly day in and day out.”
Workflow, staffing, collaboration
The tech stack and staffing were not the only area the team had the opportunity to reimagine from scratch. McGinn noted that they were able to behave more like a start-up, but with a lot of resources to leverage from the wider business. It helped that the team was very eager to embrace change and new ideas.
One of the biggest learning curves for Grande’s team was collaborating and communicating with dozens of news stations across the country. “We had to break down the walls of communication to be sharing content and breaking news,” she said. “We’ve built this central team here in South Florida that works with all the stations across the country on best communication workflows, and how to actually work with us as virtual members of their news groups.”
To facilitate good communication and collaboration, the business set up Teams channels with every newsroom across the country. There are leaders on the central South Florida team who check in with ‘captains’ at each station on a daily basis. These check-ins and allowing the personal relationship to build have been a crucial part in keeping the streaming product front-of-mind for the teams.
“When we were setting up the business, we talked a lot about structure and workflow,” said McGinn. “There was a lot of concern around the ‘out of sight out of mind’. If you’re not there in the newsroom, are you and the platform going to be forgotten?”
Grande noted that initially there were a lot of reminders needed for the local newsrooms when news broke to make sure the information came to the streaming teams as well. “Then, after a lot of that practice, we really started to get the communication flowing,” she said.
Now, the teams communicate around the clock. “Someone’s always available to answer. So, if news were to break in Philadelphia, they can say, ‘Hey, there’s breaking news here, we’re going to go live,’” Grande explained. “Then folks here on our team can respond and jump in to help support the live event as they break into the channel. It’s really wonderful to see just how smooth all the communication is there.”
Integrating Spanish language and broader markets
NBCUniversal Local initially launched a select few English streaming channels, in order to get some early audience data that it could build upon. “The data from Peacock showed us that we had significant out-of-market, out-of-city viewership for our channels,” McGinn explained. “So we were able to see, for instance, that our South Florida NBC channel was being viewed in New York, and while it’s based in Miami, it was being viewed in Tampa and Dallas and LA.”
As well as the English language channels, NBCUniversal Local also has four regional streaming channels which bring live local news in Spanish to Hispanics across the country: Noticias California, Texas, Florida and Noreste. The wider business division already has 30+ Spanish language Telemundo stations and were aware that there was a growing opportunity in providing a FAST local news service to an Hispanic audience in those markets.
“So we took that data and thought, why don’t we do a different approach for Telemundo [streaming]? Why don’t we combine the resources in certain regions and create regional news channels? To beef up the coverage and recognize that there are many viewers out there who are interested in a broader view of local news, not just one hyperlocal market.”
The improved communication has made it easier for the Spanish and English teams to share content. It has also helped collaboration with the Telemundo channel teams, who now build newscasts for the entire region. “It’s something that they’ve never done before that they’re now doing through new types of collaboration to create these great streaming products,” noted Grande.
Sharing early successes
McGinn credits the instant messaging tools and channels like Teams with really helping to bring people together in the true spirit of collaboration. But she also noted that sharing early successes was just as important in cementing the new processes in people’s minds.
“As quickly as we received data from the platforms that proved to people that people are watching these channels, we shared that widely,” she said. “That told the newsrooms, ‘Oh, this is not just the latest social media fad that may be gone in a year. This is real, on-television viewing.’”
The successful set-up and centralized team to test and share technology means that additional expansion is on the cards. But the learnings go beyond NBC’s Local News initiatives in order to help keep the company ahead of the streaming pack. Importantly, this team is sharing its learnings with other divisions in the company. “We want to be able to help others launch channels and initiatives that they have,” McGinn concluded.
This week, 41 state attorneys general along with the District of Columbia filed lawsuits against Meta for creating highly addictive features that harmed the mental and physical health of children. The lawsuit is the latest in a series of revelations, inquiries and legal challenges focused on the allegedly misleading and negligent behavior of Meta with regard to the impact on children and teenagers from their services.
It’s unusual—and significant—for so many states to unite in a bipartisan effort to hold a Big Tech company accountable for consumer harms. The coordination shows states are prioritizing the issue of children and online safety and combining legal resources to fight Meta, in a similar vein as prior actions against Big Pharma and Big Tobacco
Actively addictive by design
For years, public health organizations and consumer groups have warned about the dangers of social media use by teens and children. Key features of Instagram and Facebook have been specifically called out as harmful. Numerous studies have shown that this segment of the population is especially susceptible to harmful psychological effects from design features, such as the “like” button, which research has found to be one of the most toxic components of social media.
Meta-designed notifications are particularly effective at repeatedly drawing young consumers back into their platforms while the Meta-designed algorithm keeps them engaged in the service for as long as possible so that the company can serve microtargeted ads. Such features include “infinite scroll,” persistent notifications and alerts, and autoplay of Stories and Reels. Other studies have shown that filters and other photo-altering features increase the incidence of body image issues among teenage girls.
The states’ lawsuit alleges that Meta deployed all of these tactics and more to “discourage young users’ attempts to self-regulate and disengage with Meta’s platforms.” The states included an enlightening direct quote from Sean Parker, founding CEO of Facebook:
“The thought process that went into building these applications, Facebook being the first of them . . . was all about: “[h]ow do we consume as much of your time and conscious attention as possible?” That means that we need to sort of give you a little dopamine hit every once in a while, because someone liked or commented on a photo or a post or whatever. And that’s going to get you to contribute more content and that’s going to get you . . . more likes and comments. It’s a social-validation feedback loop . . . exactly the kind of thing that a hacker like myself would come up with, because you’re exploiting a vulnerability in human psychology. The inventors, creators—me, Mark [Zuckerberg], Kevin Systrom on Instagram, all of these people—understood this consciously. And we did it anyway.”
The lawsuit goes a step further to allege that Meta misled the public about the dangers of using their services. In 2021, former Meta employee Frances Haugen came forward as a whistleblower to not only confirm that these harms were happening to children, but also reveal that Meta executives knew all along about the dangers from their own internal studies but chose to put profits over the safety of their products. In addition, the lawsuit alleges that Meta attempted to push the public narrative in the opposite direction by “routinely publish(ing) profoundly misleading reports purporting to show impressively low rates of negative and harmful experiences.”
Wider implications to watch
The proceedings inside the courtroom will be fascinating to watch. But I will also be closely watching two things outside of the courtroom:
Advertiser response
First off, it will be fascinating to see whether advertisers will change their buying habits in the wake of these allegations. Advertisers have known about the problems associated with social media for years. Despite some public hand-wringing from their trade association and boycott threats, marketers’ buying habits are largely the same today. At some point, one would expect marketers to shift their ad budgets away from financially supporting this toxic content platform to premium environments that better pair with the brand identity they want to cultivate.
Regulatory response
Secondly, I have to wonder if this may spur Congress to finally pass meaningful privacy or kids safety legislation. Every time there is a scandal and/or lawsuit involving one of the big tech platforms, there are renewed calls for legislation to regulate how they collect and use consumer data, to impose liability for the harms occurring on their services, and to create rules for how algorithms can be deployed among other things.
As a result of press coverage of these allegations, some of these bills might even get approved by the relevant committee(s). However, to date, none have been brought to the House or Senate floor for a vote. This Congress is particularly dysfunctional, but there is a decent chance that public officials heading into an election year might be shocked enough to coalesce around putting some guardrails on social media companies. Parents of children can be an influential voter base.
Stepping back a bit, all of these revelations about the dangers of social media and the abhorrent behavior of social media companies continue to fuel a global conversation about the role and impact of data, algorithms, surveillance advertising and unfiltered content. Lawsuits and legislation, which are getting smarter and more focused, will continue to draw headlines and potentially lead to liability for the worst actors. In the meantime, I am going to go give my kids an extra hug.
In New England, we have a saying: “An ounce of experience is worth a pound of theory.” At The Boston Globe, New England’s largest news organization, the team is taking that saying to heart as they carefully launch and implement a video and larger marketing strategy designed to engage current subscribers and reach new, younger, more diverse audiences. Underpinned by an audience-centric mentality, the team focuses on understanding exactly what its users want and finding innovative ways to give it to them.
Engaging existing subscribers with video
The centerpiece of the 150-year-old publication’s video strategy is Boston Globe Today. Just celebrating its six-month anniversary, the 30-minute show is broadcast five days a week at 5 p.m. on Globe.com, NESN 360, and NESN’s linear channel. (NESN is the New England Sports Network.) The show focuses on mostly news topics Monday through Thursday, and on Friday, they switch to sports. Rather than just reporting the news, Boston Globe Today focuses on taking a closer look at the news, often from a journalist’s perspective. Host Segun Oduolowu talks to Globe journalists about their stories, sometimes even telling the story behind them.
“We know our readers watch television… but they weren’t doing it with us because we are traditionally a words-driven platform,” says Peggy Byrd, Chief Marketing Officer at The Boston Globe. The priority for this team is to engage current subscribers by meeting them where they are, no matter the channel.
“Conceptually, it was coming from who we are rather than what’s out there,” says Michelle Micone, Vice President, Innovation & Strategic Initiatives at The Boston Globe. Over a year in the making, The Globe hired a television producer and other industry pros to help bring this vision to life and ensure its quality is up to readers’ expectations. The TV team is constantly conversing with the newsroom, keeping an eye on interesting stories coming up and deciding which ones will translate well to the television format.
Boston Globe Today is available online for subscribers. However, a segment from each episode is available to all site visitors — potentially giving them a reason to subscribe. “We built this in segments as well as a full show,” says Micone. This allows viewers to engage with the content they are most interested in. Not only does this let audiences use their time wisely, but it also gives The Globe team an idea of what people are most interested in, which allows them to create an even better product moving forward.
While new subscribers are always nice, engagement of existing, loyal readers comes first. Byrd says the goal is to “expand a habit” and that the team wants to “expand the expectation and the experience and give people a new way of consuming.”
So far, Byrd says they are seeing traction when it comes to engaging existing subscribers, and they have just started to measure conversion for new subscribers.
Reaching audiences wherever they consume video
Giving your audience what it wants is always critical to building loyalty and retention, but no publication can grow without new audience members. As Byrd says, younger audiences and people of color “over-index” when it comes to video consumption, so The Globe knows that video is an essential part of finding those subscribers.
From topics to geographies to channels, The Globe tries to serve its broad audience in several ways. As Micone puts it, “We do feel like we have to do it all, and these are the ways we’re trying to service everyone in a modern way.” On TikTok, that means creating content specifically for the audience in ways that feel authentic to the platform.
“We’re definitely committed to video for the long term,” says Micone. “Part of the reason for even starting this conversation with the TV show is to become an organization that’s very skilled at video.”
Strategic approach to audience growth
YouTube has played a slightly different role at The Boston Globe and its many brands. It’s primarily been a marketing tool, which Byrd says provides valuable feedback, allowing the team to take the data they collect into its content rollout on YouTube. “This is a long road we’re on,” Micone adds. “The TV show, YouTube, TikTok, all these pieces are part of it.”
However, engaging younger audiences isn’t all about TikTok and video. The B-Side is an “email and social forward product,” according to Micone, the idea for which came from a Globe employee during the company’s biannual innovation weeks. After some massaging of the idea, the B-Side emerged, which the website describes as “a hyperlocal email- and social-only daily newsletter that provides authentic and relatable news to keep readers up-to-date and in the groove on local happenings in and around Boston.”
Up next, The Globe team is turning to SMS to expand the publication’s reach. As many mobile marketers know, getting users to opt-in is the biggest hurdle to messaging users on their phones. It’s “another way to meet people where they are,” says Byrd, and as is typical of The Globe’s methodical approach, “we’re taking our time with it.” It will be more of a marketing tool in its first iteration, eventually moving to the content distribution part of this puzzle. “The point of SMS is to learn what people want to get,” says Byrd, “and then once we discover what they want we can start to give it to them through their phones.”
Staying true to their New England roots, The Boston Globe team will continue to prioritize experience over theories as it experiments and innovates with ways to reach and serve audiences old and new.
The Economist is a media brand that has led the way in subscription-based access to its content. But when it was reported by Axios last month that the media company would put its podcasts beyond a paywall, the industry took notice. As one of the first publishers to make such a move, insight into the strategic decisions around the launch are particularly valuable for any other publishers considering doing the same.
Claire Overstall, SVP, Global Head of Customer at The Economist spoke to us about the thinking behind the decision, how they have communicated the change to their millions of listeners, and what the company hopes to achieve with podcast subscriptions as part of its wider subscription strategy.
A value-add and a separate offering
The Economist’s paywalled podcasts will be available to full digital subscribers at no extra cost. “That is entirely in keeping with the general direction that we’ve taken over the last few years where we’ve been increasing the amount of things that are included in your subscriptions,” Overstall explained. “We’ve put all of our newsletters behind a paywall. We now do subscriber-only events. We’re just increasing the amount of value and the amount of things to engage with.”
The podcast subscription is being used by The Economist as a value-add for current subscribers, but also as a separate product offering. This is an unusual move; The Economist hasn’t had a separate product available to subscribe to since launching Espresso, an app which gives five short articles and a global news briefing each day. The decision to create a separate podcast offering – Economist Podcasts+ – is because of the millions of listeners the publisher has accumulated across its 18 different shows.
“There’s a whole audience there that for whatever reason enjoy our journalism but don’t want to pay the full $20 a month to subscribe,” said Overstall. “But in keeping with our belief that subscription should be the way that we fund our journalism, and making everything strategically match, we’ve decided that you can buy a podcast-only subscription in the hope that that might entice some of those millions of listeners who don’t want to pay for the full-fat product to support our journalism through paying for podcasts.”
The podcast subscription is currently the lowest cost offered by the publisher at $4.90 a month, or $49 a year. There is also currently a pre-launch half-price offer for the full year. Overstall noted that although there is every chance they may not have got everything right at launch, the pricing feels fair in comparison to the full-price subscription. “So far, we’re pleased with the response that we’ve seen,” she said of their pre-launch sale.
“There is a business benefit to upselling of course, and moving from one product to another, but also down-spinning; if people no longer have the time or the money for the full-fat products, having somewhere for them to go,” said Overstall of the lower costs options. “But in reality, the most important thing is that we’re meeting the customer at the level that they want to receive us, and with the right amount of information and the right price for where they are.”
Prioritizing the audience experience
The main reason few publishers have tried paywalling podcasts is that the technology to do so smoothly across platforms has only emerged in the past 18 months. It was important for The Economist that people were able to listen wherever they wanted.
“It’s been really, really important to us to make sure that we don’t disrupt the customer experience,” Overstall explained. “If they want to listen on Spotify, if they want to listen on Apple that’s where they should listen. We shouldn’t force people to come on our site or listen on our app if that isn’t where they’re already listening to our podcasts.”
Although Spotify has had tools to work with third-party subscriptions for some time, Apple has only recently introduced the ability for users to connect publisher subscriptions within its Podcasts app in iOS 17. Apple has also implied it may help audiences discover publishers’ paywalled content by surfacing it across the app, mitigating one of the biggest risks for others looking to follow in The Economist’s footsteps.
Since the launch of Apple’s own podcast subscription tool last year, a number of publishers such as Tortoise and Immediate Media have developed subscriber-only offerings (shows, episodes and series) as a way of warming podcast audiences up to paying. In the case of The Economist, however, the transaction is not processed through a third party, such as Apple. Instead, the subscriber signs up through The Economists site and they are then seamlessly connected through their listening platform of choice.
The pre-launch sale of the Podcasts+tier went live on September 14th ahead of a full launch this month. So far, Overstall says the response from audiences has been positive, despite paid podcasts not being commonplace.
“It completely aligns with our strategy. paying for journalism was one of the things that we led with very early; The Economist has been doing that a lot longer than many of our peers,” she said. “So that’s well-embedded in people’s minds, the way that we’ve articulated how this is supporting our journalism.”
“Even if people are choosing not to pay for it, a lot more understand the need to pay for journalism… and that’s a sea change from where we were 10 years ago where people just didn’t believe in paying for news.”
What success looks like for Podcasts+
The podcast team is keeping an open mind around the paywall, and will be carefully watching the response. Crucially, their daily flagship podcast The Intelligence, which has had more than 630 million downloads since launching, will remain free. “We are hoping that that continues to be a funnel, and then we increase listenership to that, who then convert to full paid podcast subscribers,” Overstall explained. She also said that they will do sample episodes for the paid podcasts in The Intelligence feed in order to give listeners a taste of the paywalled content.
But for The Economist, longer term success won’t be all about paid subscribers, but also about continued growth to the free-to-access The Intelligence. “I think how well we are able to swell our listenership of The Intelligence is probably more likely our health indicator,” said Overstall. “If that suddenly dwindles away to nothing, then we may have done an amazing thing right now, but how are we going to continue to grow?”
Podcasts also provide The Economist with a means to broaden its audience base. Therefore, Overstall says that “one of the things we’re also hoping for is that it will begin to diversify our subscriber base as a whole. Podcast listeners skew younger and more female in general, but also specifically our podcast listeners do as well. So we’re hoping to diversify our audience base and reach more people with this subscription.”
“Fundamentally,” she says, “we are producing good products and hoping that people pay for them. So I think the primary metrics will shift more towards engagement and conversion.”
“Keeping an eye on The Intelligence, and trying to glean any data or customer surveys or anything like that on how many people are listening to sample shows and converting from those, that will probably be a key performance indicator.”
KPIs will also change for new shows the publisher develops. “Our priority of metrics will change now and will probably be on a show-by-show basis rather than just aiming for as many people as possible for every show,” Overstall speculated. “For The Intelligence, getting as many listeners as possible will still be key. But for shows like The Prince, we’ll debate as they come up and as we make them, and how many episodes we choose to sample for non-subscribers.”
Podcast listeners are known to be highly engaged, with more than a third listening daily. This gives Overstall hope that retention for this particular group of customers will actually be fairly straightforward. “[Listening is] natural, it’s already embedded. This is something they have really opted into,” she said. “Being a first mover means that anybody opting in really genuinely does want your content enough to stay. So I’m hoping that retention will be reasonable.”
For publishers like The Economist with hard paywalls, making audio content available for free may have felt at odds with the broader subscription goals. However, given that the technology to enable payments and subscriptions have grown more publisher-friendly, the media brand is able to extend its subscription-first philosophy to its audio offerings as well. Crucially too, audiences are much more accustomed to the reasons why they should pay for professionally-produced content. Still, given the vast listener numbers (and ad revenue) The Economist’s podcasts have garnered in the past and the relative lack of paid podcasts on the market so far, the move is not without risk.
As a brand, The Economist has not shied from making the clear correlation for its audiences between subscriptions that support its quality journalism. With the addition of premium podcasts, Overstall believes that the brand will continue to make this case, and enrich the value of its subscription bundles as well.
Throughout my career, I’ve cultivated a deep appreciation for the practice of bookmarking articles and posts. This practice has enabled me to amass and retain knowledge across various subjects, whether it be in organizational oversight, crafting revenue strategies, or exploring financial management.
I know I’m not alone. We all accumulate fundamental wisdom over our careers, enriched by learning from opportunities, technological advancements, cultural shifts, and environmental events. In the ever-evolving news and digital media industry, preparing for the unexpected is crucial, requiring us to understand how and when to adapt effectively.
Recently, an epiphany has reshaped my perspective. What if I could synthesize and apply the wealth of knowledge I’ve amassed throughout my career, the content I’ve diligently studied, and even the articles I’ve saved and bookmarked in one seamless strategy? This introspective journey led me to a profound realization about generative AI, enhancing my perspective on its potential and application.
Initially, the concept felt theoretical, but it soon revealed its significant potential. I envisioned harnessing generative AI to amalgamate career-spanning learnings into practical revenue strategies. Thoughts of organizational structures, compensation plans, mission statements, value propositions, close ratios, and DMA strategies flooded my mind.
Theory and practice
However, I must note that this is not something that would only work for me or another individual. It suggests an approach that has the potential to revolutionize the way digital news organizations operate, paving the path for a new era of data-driven decision-making, innovation, and growth while also representing a paradigm shift that could reshape the competitive landscape, ushering in a more efficient, agile, and forward-thinking business environment.
By harnessing generative AI’s power to synthesize accumulated knowledge and adapt it into practical revenue strategies, organizations can streamline their approaches, enhance innovation, and excel in a rapidly changing environment.
Consider an example of a hypothetical organization aiming to boost advertising revenue in a specific designated market area. Generative AI—armed with local business data, industry insights, and demographic information—can be used to draft strategies suited to the organization’s unique characteristics and needs.
It might also be used to help craft strategies tailored to specific circumstances, leveraging real-time and historical data. For example, it can be used to systematically flesh out specific details regarding go-to-market strategies, revenue planning, or quarterly and annual goals and break them down into weekly and monthly output objectives in an organized format. These sorts of applications demonstrate the possibility for generative AI to help media organizations shape their futures.
Generative AI is a rapidly developing technology with the potential to revolutionize the way we develop and execute strategies. While it is still in its early stages, the evidence of its practical applications and case studies is undeniable.
Responsible use
Of course, it is important to caution that any theoretical or draft strategies developed by leveraging generative AI should be well vetted and assessed among peers and committees. Not everything that generative AI suggests should be implemented, and you should not disregard your instincts and experience-based reasoning. However, the evidence of its potential is clear. Neglecting the potential of generative AI for strategy means potentially missing out on invaluable insights and efficiency gains.
Like knowledge, generative AI is a tool. And both must be leveraged effectively, in the right hands, with the right guidance to have a positive, significant impact. If you’re considering or hypothesizing about how generative AI may be leveraged within your organization, consider first establishing a guiding North Star mission—a central theoretical outcome that offers purpose and direction beyond mere intentions.
From there, generative AI can then be leveraged to create or enhance multiple distinct revenue strategies, consolidating them into one comprehensive approach. This AI-driven approach allows for the crafting of specific prompts that guide generative AI to execute precise tasks, all aimed at achieving the overarching goal.
Generative AI’s ability to tailor strategies to specific circumstances and prompts could be a game-changer in the world of digital media revenue strategy. It may provide a level of precision and adaptability that isn’t always readily available, especially for startups.
For example, a senior vice president of sales or a chief revenue officer could create a prompt requesting a step-by-step plan to increase EBITDA by 5% and achieve an annual advertiser account and revenue growth of at least 10% would utilize every available dataset and avenue effectively. With this information, you can further clarify and expound upon the North Star mission. This means breaking down goals and objectives into tangible, actionable terms, and translating improvements into practical implications for your organization.
Practical application
While I can only provide a high-level summary of the most important results and insights from my theoretical exercise, it’s important to note that everyone’s needs and circumstances will vary. For instance, when I created a North Star strategy for a made-up organization and expanded it, I received hypothetical guidance on achieving specific revenue goals. This guidance encompassed expected percentages and insights based on the data used in my prompts.
Viewing it from a startup perspective, I prompted generative AI on CPM, pricing structures, and product offerings strategies. Generative AI provided valuable input, considering margins, commissions, and salaries. It also offered industry-specific advice and recommendations for advertising in the area specified. Additionally, it provided insights into salary expectations for sales and editorial staff, vital for an organization’s growth, and suggested strategies to increase website traffic and expand our audience base.
Reflecting on this experience, I found the process valuable for my strategic thinking. What stood out was that the information’s quality hinged on the input. To utilize generative AI effectively for strategy, understanding its limitations, investing time in learning, and acknowledging the input’s importance are crucial. Proper training, domain expertise, and adaptability are key in determining generative AI’s value for less-experienced users in news media or any field.
Act wisely
Generative AI is already transforming various industries, including digital news media and startups. Through interactions with news organizations of all sizes, I’ve realized that despite naysaying to the contrary, our industry is abundant with innovation, enthusiasm, and focused development. We’ve heard a lot about its use for content creation. However, generative AI can uniquely contribute to streamlining and illuminating the process of uniting innovative ideas, creative concepts, and revenue-generation strategies into one cohesive overarching strategy centered around a clear organizational objective—a guiding North Star for long-term industry sustainability.
While larger companies often have ample data resources, startups and organizations at different stages may not. And every organization can benefit from streamlining knowledge-based processes. Generative AI can be a powerful tool to guide decision-making and provide insights that may otherwise be elusive.
I encourage you to take small steps. Experiment and pivot with the wealth of information and ideas at your disposal. Let your imagination run wild. It’s time to transform our knowledge into a deployable strategy, as the potential awaits exploration. This journey is just beginning, and collectively, we are all in the process of discovery.
It’s hard to believe, but ChatGPT was only released to the public late last year (November 2022), sparking an AI arms race and spurring adoption across a range of sectors, including the media.
So, how can media leaders best harness these developments? What are the steps they need to have in place to make the most of these advances? Here are seven things you need to consider:
1. Don’t just jump on the bandwagon
The media has long been guilty of shiny object syndrome, chasing after the next big thing in the hope that it will help solve multiple short-term and long-term structural issues. All of the noise that’s being made about AI can make media leaders fear that they are behind the curve. From the publishers I have spoken to recently, the FOMO (fear of missing out) is very real.
Yet at the same time, there’s a wariness too. After all, the media landscape is littered with many other developments (the Metaverse, VR/AR, pivot to video, blockchain et al) that have been simultaneously held up as saviors and disrupters.
Will AI be any different? I think it will be, not least because elements of this technology have already been deployed at many media businesses for a while. Developments in Generative AI are the next stage in this evolution, rather than a wholesale revolution.
2. Take time to determine the best approach
Findings from a new global survey published by LSE seem to reinforce this. They found that although 80% of respondents expect an increase in the use of AI in their newsrooms, four in ten companies have not greatly changed their approach to AI since 2019, the date of LSE’s last report.
Adoption of new tools at this time may therefore be lower than you think. Perhaps that may give you the confidence to take a beat. Rather than jumping on the bandwagon too quickly, take the time to determine what you want AI to help you achieve.
This approach can help to lay the foundations for long-term success. Strategies should start with the end in mind. Set goals and ascertain how you’ll know when they have been achieved.
3. Set up a taskforce to understand what success looks like
To help them determine their own approaches to the latest wave of AI innovation, companies like TMB (Trusted Media Brands) and others have set up internal task forces to understand the risks, as well as the benefits that AI may unlock.
In doing this, media businesses can learn from the mistakes of those who’ve arguably rushed into this technology too quickly. CNET, Gannett and MSN are just some of those who have recently had embarrassing public experiences as a result of publishing (unchecked) AI-written content.
4. Bring the whole company with you
Given the breadth of activities that can be impacted by AI, these internal bodies need to be diverse and include people from across the business. This matters because media firms should see AI as more than just a cost-saver.
Harnessed correctly, it may help to create fresh revenue streams and to reach new audiences. To realize this value, publishers need to cultivate company-wide expertise and carefully assess where AI can drive efficiencies, enhance existing offerings, or enable entirely new products and services.
Tools like Newsroom AI and Jasper can help to increase the volume, speed and breadth of content being offered, while AI-produced newsletters like ARLnow and news apps like Artifact demonstrate how AI can deliver content in fresh ways. Developing internal training programs and encouraging take-up of industry wide opportunities to gain more knowledge about how AI works and its possibilities will help with buy-in and culture change.
As Louise Story, a former executive at The New York Times and The Wall Street Journal recently put it, “AI will reshape the media landscape, and the organizations that use it creatively will thrive.”
5. Have clear guidelines for AI usage
Alongside having a clear strategic approach, and a robust understanding of how to measure success, how these efforts are implemented also matters.
One way to help offset this concern is to upskill your staff and ensure that representatives from across the company are involved in setting your AI strategy. A further practical step involves creating a clear set of guidelines about how AI will be used in your company. And, indeed, what it will not be used for.
There are also opportunities to engage your audience in this process too. Ask them for input on your guidelines, as well as being clear (e.g., through effective labeling) about when AI has, or has not, been used. This matters at a time when trust in the media remains near record lows. AI missteps only risk exacerbating some of these trust issues, emphasizing why elements of this technology need to be used with an element of caution.
6. Understand how to protect your IP
Together with labor concerns, another major issue that publishers and content creators are contending with relates to copyright and IP. It is important to understand how you can avoid your content being cannibalized – and in some cases anonymized – by Generative AI.
Although tools like the chat/converse function in Google Search and Microsoft’s Bing provide links to sources, ChatGPT does not. That’s a major source of concern for media companies who risk being deprived of clickthrough traffic and attribution.
As Olivia Moore at the venture capital firm AZ16 has pointed out, ChatGPT is by far the most widely used of these tools. Its monthly web and app traffic is around the same size as that of platforms like Reddit, LinkedIn, and Twitch.
This summer, the Associated Press agreed to license its content to OpenAI, the company behind ChatGPT, making it the first publisher to do so. Not every company can replicate this. How many outlets have the reach, brand and depth of content that AP has? Nevertheless, it will be interesting to see if other major publishers – as well as consortia of other companies – follow suit.
The media industry has learned from past experience that relying too heavily on tech companies can undermine their long-term sustainability. Short-term financial grants and shifting algorithmic priorities may provide temporary relief but fail to address deeper impacts on creative business models.
Creating quality content comes at a cost. Having seen revenues eroded and journalism undercut previously, publishers are rightfully wary about how this will pan out. So, it will be critical to weigh any payment schemes and financial relationships against the larger industry-wide impact these tools will have on content creators.
Addressing this issue is not easy, given how nascent this AI technology is and how quickly it is developing. However, the potential risk to publishers is understandably focusing a lot of minds on identifying and implementing solutions. For now, as this issue plays out, it’s one that needs to be firmly on your radar.
Moving Forward: diversification and compensation
The rapid evolution of AI presents a heady mixture of both promise and peril. The companies that are most likely to flourish will have to balance the opportunities that AI offers while avoiding its pitfalls and threats.
That’s not going to be easy. However, the relationship between AI developers and content creators will remain a deeply symbiotic one.
“Media companies have an opportunity to become a major player in the space,” arguesFrancesco Marconi, the author of Newsmakers: Artificial Intelligence and the Future of Journalism. “They possess some of the most valuable assets for AI development: text data for training models and ethical principles for creating reliable and trustworthy systems,” he adds.
Given this, arguably it’s all the more important that the media industry is rewarded for this value. “We should argue vociferously for compensation,” News Corporation’s chief executive Robert Thomson says.
At the same time, media companies also need to be cognizant of the fact that AI-driven changes in areas such as search and SEO, as well as consumer behaviors, are likely to impact traffic and digital ad revenues. This is akin to “dropping a nuclear bomb on an online publishing industry that’s already struggling to survive,” contends the technology reporter Matt Novak.
With regulation unlikely to come any time soon, arguably it will be up to publishers, perhaps working together collectively, to navigate the best solutions to this thorny financial issue. That may include collective bargaining and licensing agreements with AI companies using their materials, as well as creative partnerships like the new AI image generator recently announced by Getty Images and Nvidia.
In the meantime, it will be more important than ever for media companies to diversify their revenues, as well as step up their efforts to rethink their business models, operations, and products to ensure that they are fit for the age of AI.
Professor Charlie Beckett argues that fundamental to this will be content that stands out from the crowd. “In a world of AI-driven journalism, your human-driven journalism will be the standout,” he told us recently. Differentiation will be key, concurs the former BBC and Yahoo! executive David Caswell. Meanwhile, as Juan Señor, President of Innovation Media Consultingrecently reminded us, “we cannot rely on someone else’s platform to build our business.”
This means that publishers will need to focus on originality, value, in-house knowledge and skills, as well as the ability to bring their organization – and audience – along with them.
These are major challenges, and we need to acknowledge that AI offers both challenges and opportunities to media companies. Steering through this uncertain period will require making smart strategic decisions and keeping abreast of a rapidly changing landscape. The AI-driven future is hard to predict and navigating this transformation will require both vision and vigilance. But one thing is certain. It’s going to be a bumpy, creative and fascinating journey.
FKA Twigs joined by members of the Rambert Dance Company at Vogue World. Photo credit Marc Brenner/Vogue.
Condé Nast’s Global Digital Chief Business Officer Deborah Brett has a long history of leveraging the power of partnerships to drive consumer and advertiser growth and implement revenue-generating products. According to Brett, content drives consumer engagement and intent, which in turn delivers value for the reader and improves audience engagement.
“We’ve been doing this long before an advertorial or a branded content post or dark social ever existed,” she explained. “So, candidly, it’s been very easy for us to translate that legacy into all of the different emerging partnership platforms as they’ve presented themselves.”
A world of partnerships
Brett spent last week in London for Vogue World, which began last year as a live fashion show and street fair in New York but became an integral part of Fashion Week 2023. This is an emblematic partnership for the iconic Condé Nast fashion brand. And it’s something that Brett believes Condé Nast is uniquely positioned to do because of the caliber of its content, which drives audience engagement.
“We’re executing Vogue World out of London, which will of course live on our owned and operated platforms. We’ll also engage the broader consumer-base across all of the social platforms,” said Brett.
Celebrities, royals, opera singers, actors, supermodels, fashion designers descended on London’s Theatre Royal Drury Lane for Vogue World London, a theatrical West End production encompassing the best of British culture and fashion. British Vogue teamed up with Italian luxury fashion house Moncler to host a VIP Vogue World party on September 14th at private members club George in Mayfair, which was decked out with Blooming Haus florals.
The star-studded event celebrated iconic British creatives, culture and fashion from Shakespeare to Stormzy, with performances from opera, theater, and film, as well as classical and pop music. The guest list included royals, celebrities, designers and featured music, dance, and a runway extravaganza finale. But the event’s reach was far from limited to the A-listers in attendance.
“Wherever somebody happens to tune in, they’re going to be met with incredible content from Vogue World and the talent that engages in this event,” Brett explained. Audiences will also experience “all of the ways that our advertisers have integrated, activated on the ground–but more importantly–have activated within environments like TikTok, Instagram and X” (formerly known as Twitter).
The event is a calling card for how Condé Nast mirrors culture on the wide range of platforms where they reach consumers. It is also representative of how they bring advertisers along to the party.
The approach illustrates what Pam Drucker Mann, Condé Nast’s global chief revenue officer, says at NewFronts in May: The company isn’t a walled garden. They are creators who meet consumers where they are.
The platforms
Condé Nast operates in 32 markets, among them France, Germany, India, Italy, Japan, Latin America, the U.K. and U.S. This vast global network consists of about 80 different distribution platforms, including the usual social suspects (Twitter/X, Instagram, Facebook, SnapChat, TikTok, LinkedIn) and YouTube as well as WeChat and Viber internationally. The media company also has a strong presence on Connected TV (Sling, Amazon Fire and Tubi, Roku) and across audio platforms (Spotify, Apple Podcasts, Pocketcast, Google Play).
And as Brett pointed out, “It’s not just the same content everywhere, but tailored content that is going to be native and relevant to what that consumer expects.”
Condé Nast’s biggest platform partner is YouTube, where the company boasts more than 65 million subscribers, a gain of 12% over the previous year.
Earlier this year, Condé Nast announced over 300 new YouTube pilots over 55 brand channels in 11 countries. This included the return of over 230 original series, including Wired’s Autocomplete Interview, Vogue’s Beauty Secrets, GQ’s 10 Essentials and Architectural Digest’s Open Door, which together drove over 700 million views in 2022, Mann told Adweek.
Condé Nast is also expanding its streaming partners to include Sling, Amazon Fire and Tubi. They’ve also got a brand channel for Architectural Digest on Roku, which features the Open Door and Unique Spaces series. These focus on celebrities’ private homes and the world’s most beautiful and architecturally unique homes, respectively.
Condé Nast was also one of TikTok’s initial Pulse Premiere partners – a platform Brett said their audience demands they be part of. She describes TikTok as a platform that is turnkey, low-lift and scalable.
Finding the right partners
Evaluating the perfect partnership involves a lot of considerations including brand image, customer benefits, fit, and value to bottom line.
“For us, performance drives premiumness and premiumness drives performance. It’s a two-way street,” said Brett. “And what Condé Nast does uniquely is maintain a really strict code of elevated consumer engagement and elevated content creation.”
The media company does this by staying brand-consistent. They are driven by journalistic integrity. If they’re not authentic to the voice of that specific brand, the partnership doesn’t work. “If we miss on that authenticity, on the expectation of what Vogue would be or what the New Yorker would be or what Bon Appetit would be on one of these platforms, we’ll get called out.”
Tracking conversion
Given the incredibly diverse platforms Condé Nast brands are on, as well as the global audience, evaluating ROI is a complex undertaking. However, Brett said that one of the most rewarding parts of her job is seeing how these efforts translate into conversions in trackable ways.
“When we work with Meta, for example, when we use their platform, with our intent-driving content, we’re able to track attributable conversion: literal click to purchase, click to buy.”
Condé Nast focuses on intent-driving metrics, like how likely people are to perform a certain action, for example, buying a product or attending an event.
“For so long it felt like we knew we were driving these choices, but we would never have been able to bridge the gap with the click attribution of them actually happening.” Brett said that “the partnerships that we’ve built and the way that we’ve evolved, the way we work with all these different platforms and measurement tools have really proven back to us how direct that connection actually is. And we can see the dollars transact against our recommendations. I think that’s perhaps been–not the most surprising–but certainly the most satisfying.”
Brett said that witnessing the direct connection between the two has been a remarkable evolution of how platforms and capabilities are coming together to close the loop for the advertiser. Through metrics, they can see how it all intersects. For example, they can see how high value integrations convert to high value intents, and keep the funnel full while converting at the bottom of it.
“I think we like to say that content is really the best advertising, and to know that the content that we create for advertisers is driving every different stage of the consumer journey and that we can prove it for them in simple and repeatable ways. It’s just been such an exciting era for us as Condé Nast,” she said.
Premium connects the dots
In the last five years or so, Brett said they’ve been able to move from more siloed strategies to connecting all of the dots.
“I certainly think that the more recent shifts in cookie attribution and all the rest of these things has helped to open everybody to the power of premium content to drive performance and really figuring out how to connect those dots more purposefully.”
For a long time, the digital media industry relied on third-party cookie-based verification to assess and validate the performance and delivery of digital advertising campaigns. Cookies had broad-scale adoption, but that all changed when Google announced it would phase out third-party cookies on Chrome.
“Now without that crutch, we’re really leaning back into what is true, what is fundamental, what speaks to the consumer, and how we come together to capitalize on that, but also to measure that in really meaningful ways.”
Digital media companies are now focusing on privacy, transparency and user consent as they consider alternative strategies for measurement. First-party data is more reliable and privacy-compliant and boosts engagement through personalization, content creation and recommendations and targeted advertising.
“I think everything that we do is calibrated around meaningful engagement for the consumer,” said Brett. “So every single campaign we’ve ever run and every single choice that we’re making would ladder into that ultimate goal. If it’s not delivering value for our audience, it’s not a place where we belong.”
If content is king, then context is God. As third-party cookies vanish in the rear view mirror, first-party data is moving media companies to pole position for advertisers. So how are they using their subscribers’ data to provide better context than ever for advertisers – and increasing their own return?
News and magazine publishers have always boasted of their relationship with their audiences. Direct, unfiltered access to consumers has always been part of their selling point to advertisers. And that’s never been truer than now.
With Google still making its slow march towards the deprecation of third-party cookies in 2024, brands and advertisers are hungry for alternatives to ensure a good ROI. That has provided digital media organizations with a megaphone to shout about the data they have on their members and subscribers – data which has been freely handed over during and after sign-up, and which avoids the privacy issues related to GDPR and other legislation.
Dave Randall, UK commercial director for Future plc, points out that “Privacy updates have and will fundamentally change the way brands buy media. There is a seismic shift coming to a market that has been inundated with made-for-advertising sites, click farms, contentious user-generated content and questionable third-party data.
“I believe premium publishers with professionally produced specialist content are in the best place to benefit.”
Effectively, the creation of content that Future and other digital media companies know appeals to their audiences provides the context for effective advertising. Those companies, with their vast array of acquisition and conversion data relating to their demographics, can serve up ads relevant to the content against which they appear.
Research has demonstrated that consumers are not averse to digital advertising provided it is of personal relevance, also that they are wary of “creepy” means of determining that relevance. That provides media companies with registration walls with a huge opportunity: they can square the circle between serving up salient marketing and preserving privacy.
“For advertising to be successful, it’s important to build an environment in which both readers want to spend time and advertisers want to invest,” according to Imogen Fox, chief advertising officer of Guardian Media Group. “Too many ad-funded sites place the volume of advertising over the experience that users have when they visit the site. This reduces the likelihood of audiences paying attention to the advertising and the effectiveness of the overall campaign.”
Damon Reeve is CEO of the Ozone Project, a collective of premium publishers leveraging the context of their owned-and-operated properties to sell ads at better rates than would otherwise be possible. He explains that “Advertising in context and with a creative message that is contextually relevant will always produce a better outcome for brand advertisers.
“The current programmatic model emphasizes audience targeting [out of context]. But, as third-party cookies deprecate, that will drive renewed interest in contextual targeting and creative message, which will benefit premium publishing.”
Clearing the hurdles
All of the above is, of course, contingent on a number of factors. For one thing, it is still easier said than done to sign consumers up. For all the progress digital publishers have made in refining their acquisition and retention strategies, even the most successful have registered only tiny fractions of overall internet users.
Moreover, many of those registered users have provided nothing but name, email, and the journeys they make while logged into sites. It’s far better than alternative – unregistered users – but far from the holistic view of a user to which advertisers have become accustomed.
Reeve elaborates: “Registered [and] paying readers create a much stronger data signal than anonymous readers, that creates a better return from advertising as we can provide better targeting and insight to advertisers. This will only strengthen when third-party cookies deprecate, and the gap widens between the quality of the data from registered/paying readers and anonymous readers.”
A second issue is that privacy concerns are not entirely eradicated with the deprecation of the third-party cookie. While the use of data clean rooms or efforts like the IAB’s ‘Seller Defined Audiences’ tool can ameliorate those issues, it still requires investment on the part of the paper or magazine to initialize and optimize.
So, while the very nature of a media brand’s website provides some measure of context to the ads that appear on there, publishers need to invest to truly make the most of it. Products like Piano claim that “value difference between users, pages, referral sources, and other channels is not just two or three times higher but hundreds of times higher” when users are registered – but that requires media companies to partner up or pay for access to those data tools.
Blended future
The reality is that, for most mass-market media brands, neither subscriptions nor advertising alone will sustain them. While subscriptions have come roaring back to the fore for digital publishers, advertising is still on par with subscription revenue in terms of their priorities.
Smart media leaders are therefore thinking about how the two revenue strategies synergize, rather than keeping them separate. Katie Le Ruez, director of digital, Guardian News & Media, explains: “As privacy changes come into force, brands will want to continue to reach relevant audiences at scale as they do today, so they will need to lean into alternative tech and the contextual targeting that it offers. Greater numbers of people visiting websites will be unreachable using traditional advertising technologies, and privacy-preserving tech often relies on contextual signals.”
“At the Guardian, we’ve been testing solutions that serve advertising to audiences who choose to ‘reject all’. We know that multiple ad tech vendors who traditionally offered brand safety solutions are now pivoting to offer contextual solutions too. This is a clear indication that contextual advertising will have greater value in future.”
And Randall believes that “Contextual advertising will return as a key pillar for brands to connect with audiences authentically. Alongside intelligent first-party data solutions, publishers and advertisers can further collaborate to make the future of advertising more effective and transparent”.
So, while the spray-and-pray approach to contextless digital advertising is unlikely to go anywhere, there is an alternative for more discerning advertisers. Just as the ads that appeared in print magazines and papers benefited from the context of the content around them, so too do the ads that appear on publishers’ websites. Combine that with the first-party data to which they have access, and those titles are poised to further differentiate themselves from the non-premium contextless adverts bought and sold on the wider web.
Brands have paid for premium product placement in stores as long as there have been stores. Whether it’s book publishers paying to get their books turned face-out on the shelves or your favorite cookie company splurging for an end-cap display in the supermarket, companies are used to paying for placement. But now, like so much else, that trend has gone digital.
Retail media networks [RMNs] are not exactly new, but they are growing in popularity, especially with U.S. advertisers, where interest has traditionally lagged. As more shoppers move from brick-and-mortar stores to e-commerce, retailers are looking for new ways to engage buyers and advertisers on the web. That’s led to retailers becoming their own ad networks, charging advertisers to promote products on their sites — and this has the potential to impact revenue for media companies.
Sizing the retail media market
According to Bain & Company, “Retail media is expected to be a $61 billion business by 2024—double its 2021 numbers.” This increased spending is indicative of an overall shift toward digital ad spending, says Bain: “In 2019, about 50% of ad spending went to digital campaigns, and by the close of 2021, about two-thirds of US advertising was digital.” But that’s not the end of the story.
While digital ad spending in the U.S. has been on the rise for years, retail media has not traditionally been a big draw. In fact, historically, retail media advertising has been a much bigger player in China. Now, however, interest is growing stateside. Not only is it growing faster than China’s spending, but it’s got more room to grow, according to Insider Intelligence.
There are a few factors at play here, says Li Lu, Research Director at Digiday Media. First, Lu says, retail media has become a more robust channel, and companies like Omnicom make it easier to get more information as retailers build out their networks. But they say there is another factor at work here: the loss of the third-party cookie.
Digital publishers know the story well: As third-party cookies go the way of the Dodo and the web becomes a more privacy-conscious place, first-party data is imperative. And RMNs have first-party data in spades. Retailers like Amazon, Walmart, and Target are close to the customer at the point of checkout and know the kinds of products an individual user is searching for and often what they may have bought in the past. This makes it easier for advertisers to target users based on their personal preferences and positions retailers as excellent partners when it comes to driving actual sales.
In fact, Lu says, the KPIs are really what’s driving a lot of this change. Retail media traffics in actual sales, while on social media, success is often measured in impressions or clicks. “You’re so close to the customer at their checkout point,” Lu says of retail media networks. People there are “shopping with a purpose in mind.” Naturally, they are further up the funnel and ready to make a purchase.
It’s also important to note that revenue from RMNs is a completely new and discrete income stream, not just a replacement for flagging in-store opportunities. McKinsey reports, “Our research suggests that more than 80 percent of spend flowing into retail media networks is incremental and comes from all sources, including net new spend and reinvestment of brand and performance budgets. So for retailers, RMNs provide an incremental source of high-margin revenue, and substitution for shopper or co-op marketing can be managed.”
Who is leading the retail media pack?
Of course, not all online retailers are created equal — and ad spend can tell us a lot about who the leaders are. Lu says that Digiday’s research found “Amazon was the most popular media retail partner.” A whopping 76% of respondents said they partnered with Amazon, and that Walmart and Target came in next, with more than 30% saying they partnered with these retail giants. Other research backs this up.
Still, Amazon’s dominance is sure to wane eventually, according to Lu. As other retail media networks improve their search capabilities — search is currently one of Amazon’s biggest benefits over other options — and new competitors emerge, advertisers are bound to shift their spending priorities. In fact, delivery apps like Instacart are already becoming a destination for some brands — and are even driving some of the growth in a post-pandemic world where people have gotten used to shopping online, even for things like groceries.
Increasingly, price is also a problem. Lu says Digiday’s research revealed that the cost of retail media placements was a concern. From CPC models to actual conversions, they are all getting pricier. Lu says, “Advertisers may start diversifying if it gets too expensive and can’t scale.”
Content and commerce is the way forward
Publishers may have yet another competitor to deal with when it comes to vying for dwindling ad dollars, but hope is not lost. On top of the price concerns that Lu mentioned, ANA found that “A major concern expressed repeatedly throughout the study was that although [retail media networks] are being credited for driving brand sales, they have not yet convinced advertisers of their ability to drive brand growth. We found that 67 percent of our respondents cited ‘to drive conversion’ as their most important objective with RMNs, while only 7 percent cited ‘to drive awareness.’” This presents an opportunity for publishers.
While RMNs may have an advantage when it comes to down-funnel actions, publishers can still leverage their first-party data to help drive awareness. But publishers also have some potential to become a commerce-driven partner for brand advertisers as well.
Last December, just after Black Friday and Cyber Monday, Digiday reported, “Hearst Magazines’ total product sales increased by 50% year-over-year” and “Foundry’s U.S.-based brands saw a 57% increase year-over-year in the total dollar amount they generated for retailers through sales.”
Embracing commerce media may just be publishers’ best bet to help win some of those RMN dollars; while retailers may have an advantage for funneling consumers who are already close to purchasing toward advertisers, publishers may be able to reach people who are still contemplating a purchase. From review seekers to people looking for gift ideas to browsers who are open to discovering new products, media companies can compete if they are willing to embrace new, commerce-driven strategies.