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

Digital Content Next logo

Menu

Category results for "Industry-Research"

Industry Research

Industry-Research

Publishers explore subscription models focused on inclusivity

Reader revenue models raise concerns about subscriptions serving only wealthy and highly educated audiences. According to a Reuters Institute’s survey, almost half of news leaders (47%) are concerned that subscription models may “super-serve” more affluent and more educated audiences

A recent article by Laura Oliver identifies news publishers in Sweden, Spain, and South Africa that are creating inclusive offerings to ensure trusted news sources aren’t just available to those who can pay for them. Oliver offers examples of how publishers are paying it forward to readers who may not otherwise be able to afford a subscription. This allows them to access the news at a reduced cost (or even for free), while building good will and paving the way for a long term subscriber relationship.

Daily Maverick in South Africa provides a “pay what you can” model, while Spain’s elDiario.es allows members to pay nothing. Portugal’s Publico offers digital subscriptions to the unemployed, and Sweden’s Dagens Nyheter uses a flex paywall to attract younger and more geographically diverse audiences. Importantly, these publishers are focused on inclusivity and are setting the stage for others to follow.

South Africa’s Daily Maverick’s sliding scale

South Africa’s Daily Maverick offers a sliding scale payment for subscriptions. Readers decide how much to contribute, with prices ranging from just under $5 to just under $23 a month. There is also an annual subscription option from just under $50 to just under $230. Subscribers paying more than approximately $12 a month received the same amount in an Uber voucher as a perk.

The sliding scale attracted 24,500 Maverick Insiders, with a slight majority paying more than $12 a month. Additional benefits include ad-free browsing and invites to speak with journalists. Unfortunately, Daily Maverick Retention is somewhat problematic given credit card expirations and no auto-renewal process. Even with these obstacles, there are 17,100 active members. The Daily Maverick is looking into direct debit cards for less friction in the renewal process.

Sweeden’s Dagens Nyheter targets younger audiences

Dagens Nyheter introduced digital subscriptions in 2015 and expanded its offerings a year later. They employ a metered model, a premium model, and a dynamic model where most articles are free immediately after publication but then move behind the paywall. Approximately 60,000 people signed up for the free offer, and close to 30% converted into paying subscribers in the following year.  

They used this strategy again during the COVID-19 pandemic, which resulted in 300,000 free registrations, with 25% converting into paying subscribers later. Dagens Nyheter subscribers started with approximately 2,000 digital-only subscribers. Now it has about 250,000 and reader revenues account for 78% of their total revenue.

elDiario.es reduced-fee options

Spanish news site elDiario.es believes developing an emotional relationship with audiences will grow its membership. Their offer allows members to pay from $8.50 to $80 or more a month for a subscription. They also offer a free or reduced-fee option for those who cannot pay. The site uses a metered paywall technology to help encourage loyal audiences to become supporters.

Nearly 21,700 members signed up for elDiario.esunder the free option. The site has almost 61,000 paying members, including 3,600 paying a reduced fee. In the elDiario.es revenue model, 50% of revenue comes from readers and 50% from advertising.

Pricing options allow readers with financial limitations to identify how best they can support newsrooms. Publishers willing to experiment with different pricing offers such as “paying what you can” show readers they are more human and less transactional. These efforts help them form a loyal and lasting relationship with audiences, regardless of their financial circumstances.  

Industry-Research

How ad-supported options are shaping the future of video streaming

Everyone grumbles about ads. Yet when it comes to video streaming services, Americans across all age groups, races, and ethnicities prefer ad-sponsored content to paying more for ad-free options. Lower monthly bills are of paramount importance to users. And, as concerns about an economic downturn mount, that’s unlikely to change anytime soon. Grumbling aside, people don’t hate ads as much as they hate higher bills. While this may sound like a significant roadblock for subscription growth, people’s willingness to view ads in exchange for free or lower cost access to content actually offers companies another subscriber on ramp and revenue stream.

All demographics prefer lower cost options

Recent Morning Consult survey results confirm that both Gen X and Gen Z adults decidedly prefer ad-supported content, with 59% of both groups indicating that preference over higher priced content. Baby boomers and Millennials concurred, with 61% of Baby boomers and 51% of Millennials stating the same preference.

Gen Z adults tend to be the most cost-averse when it comes to monthly subscription fees, according to the Morning Consult poll. Only 16% of the Gen Z adults surveyed spend more than $30 a month on streaming services, compared to 31% of Millennials.

New free and low cost ad-supported offerings are sprouting up quickly. Major platforms like Disney, Netflix, and HBO Max that have long been ad-free are now adding- or actively planning to add- more affordable ad-supported tiers.

What might this mean for the future of video streaming?

  • Cheaper bundles. More companies are likely to follow the lead of Paramount, which started offering Showtime bundles including both ad-supported and ad-free content. Less expensive bundles may attract more Gen Z consumers.
  • Staggered releases. Companies may capitalize on the hype surrounding new releases of popular material by staggering the release of new content between ad-sponsored and premium subscription tiers.
  • More long-term viewers. Because lifetime viewers peak within the first month of a new series release, this kind of staggered release could reap long-term increases in viewership.
  • Shifting spending. Ad spending that might otherwise have gone to major social media platforms could instead be directed towards ad-supported streaming services, due to increasing concerns over user-generated content impacting brand image.
  • Rising average revenue per user (ARPU) from ad-sponsored streaming may eventually surpass that of subscription tiers. Some companies are already reporting revenue from their ad-supported tiers exceeding that of their ad-free tiers.

Still, premium subscriptions will remain a linchpin for streaming services. While ad-supported tiers are rising in popularity, there remains a significant percentage of consumers who prefer the ad-free viewing option. And some consumers will join at a low-cost tier and later upgrade to premium versions. That said, premium streamers—even the once immutably premium Netflix—are reconsidering their options.

Trouble for Netflix?

With declining interest in higher-cost video streaming, it’s no wonder that Netflix has been losing subscribers, as reported by Digital News Daily, citing data from Antenna and Windstream.

  • Overall cancellations rose to 3.6 million in the first quarter of 2022, compared to about 2.5 million in each of the past five quarters, according to data from Antenna.
  • Short term subscribers (under a year) accounted for 70% of cancellations in the first quarter of 2021, but just 60% in the first quarter of 2022, indicating that more long-term subscribers are leaving the platform.

Customers’ unhappiness with recent price increases as well as perceived decline in the quality of content are driving cancellations, according to a survey of 1,000 Americans by Windstream:

  • 39% of customers cited unhappiness with the latest price increase, which drove the Netflix standard plan cost to the industry’s highest.
  • 35% of customers cited declining quality of content.

Among the 23% who reported having cancelled their Netflix subscriptions, 35% reported switching to Hulu, 22% to Amazon Prime, and 11% to HBO Max. It seems significant that the largest share of those defectors went to Hulu, which has long offered a low-cost, ad-supported tier.

Reassuring news for Netflix

But even with these rumbles of discontent clouding the forecast, Windstream’s survey indicated customers still have overall positive opinions about Netflix:

  • 40% of all respondents named Netflix as their favorite streaming service.
  • 63% of subscribers report they still enjoy Netflix content options.
  • 74% of subscribers said they plan to stick with Netflix, even if the provider enacts measures to suppress password sharing (26% said they would drop Netflix if that happened).

Winds of change

Despite its continued popularity among consumers, the company faces stalled subscriber numbers and a need to create new revenue streams. Thus, it is no surprise that Netflix plans to launch a lower-priced ad-supported tier by the end of 2022, according to information obtained by The New York Times. They will join other previously premium-only streamers HBO Max, which launched an ad-supported tier in June 2021, and Disney +, which announced plans to release an ad tier for its service later this year.

The appeal of premium content environments to advertisers is clear. So is the wisdom of revenue diversification in the media business. Undoubtedly, certain consumers will remain willing to pay for ad-free options. But the ability to attract new audiences and ad revenue bolsters long-term prospects for tiered offerings in the streaming industry.

Advertising | Industry-Research | Supporter Spotlight

Europe’s CTV audience is switched on for ads

Connected TV (CTV) audiences in Europe seem to have embraced streaming as their go-to destination for video entertainment, where they enjoy a wealth of content from a diverse set of providers. While subscription-based offerings have long dominated the landscape, ad supported services are gaining traction, delivering new user experiences as well as opportunities for brands. 

In collaboration with market research company Happydemics, FreeWheel surveyed CTV viewers across the UK, Italy, France, Germany, Spain, and the Netherlands (the “EU6”) to understand their preferences and how advertisers can tap into the connected audience.

Smart TV tops connection methods

The popularity and convenience of Smart TVs has led them to be the primary method of connecting to internet video throughout the EU6, with one notable exception. In France — where telco and pay TV operators have held strong — set-top boxes are the favored connection method, used by 72% of the French CTV viewers surveyed. On the other end of the scale, our study found that 86% of CTV viewers in Italy connect via Smart TVs, well above the EU6 average of 60%.

The popularity of premium and ad-supported options

As for what they watch once they are connected, long-form premium video content reigns supreme, with the majority (59%) of respondents using at least one subscription video on demand (SVOD) service. On average, EU6 CTV viewers surveyed spread their attention across 3.5 different streaming platforms, including SVOD, ad-supported video on demand (AVOD), broadcaster video on demand (BVOD) and live TV, showing that consumers are willing to switch between apps to find what they want.

However, when it comes to SVOD, there may be a point at which viewers reach “subscription saturation.” In fact, free ad supported tv services (FAST) are gaining in popularity. According to the survey, free streaming platforms, such as Pluto.TV and Molotov TV, see the highest uptake among viewers who subscribe to multiple paid services.

AVOD users come for the price, stay for the content

As SVOD giants Netflix and Disney+ tease their ad-supported tiers, EU6 CTV viewers surveyed are warming up to AVOD, with adoption by our connected respondents nearing two-fifths (38%). Consumers seem content with the trade-off of watching ads in exchange for content. In fact, 60% of these users said that free access was, unsurprisingly, the biggest appeal of such services. However, more than a third (36%) were won over by the variety and quality of content on offer.

With no cost barrier, we might expect audiences to dip in and out of AVOD. But those who try it tend to stick around, with over two-thirds of CTV viewers surveyed (68%) accessing ad-supported video every week, half of whom do so daily. AVOD appears to slip seamlessly into viewing schedules. This bodes well for platforms big and small exploring this new frontier of content monetization.

Big-screen ads grab attention best

Advertisers seeking to capitalize on CTV will be reassured to know that TV ad experience is considered the most effective by the vast majority (64%) of EU6 CTV viewers surveyed, with little variation between regions. In the age of distraction, attention-grabbing, big-screen ads provide an opportunity to maximize campaign impact.

One advantage of CTV is the ability to personalize ads for the viewer, and EU6 respondents were generally receptive to this. When asked which type of personalization they prefer: 37% chose ads related to their personal interests, 30% related to their lifestyle, and 23% for brands or products in line with their values, such as sustainability. While the EU6 CTV audience is accepting of ad personalization, they are not accepting of their personal data being used to achieve it, as stated by 62% of respondents.

Time to unlock CTV ad potential

Advertisers go where their audiences are, and in the EU6 countries they can be found enjoying premium video streamed via Connected TV. So, there is real potential to harness CTV platforms for campaigns, particularly when you look at the apparent shift of bigger SVOD players towards ad-supported models and concerns over subscription fatigue.

Normalizing AVOD should be good for viewers, platforms, and advertisers alike. Viewers get to try content with no upfront cost, while content platforms can compete on quality rather than price. Advertisers, meanwhile, would be able to target their ad spend and creative to key demographics, while having the potential to reach new audiences; all thanks to CTV’s “superpower” – the ability to combine the best attributes of TV and digital video in one place.

Advertising | Industry-Research

Publisher demographics are more effective than data-brokered targeting

Many marketers believe that personalized advertising in digital media is very effective at offering efficiencies and generating clicks and conversions. While advertisers generally agree that targeting is a useful tool, there is little business-to-business (B2B) research that evaluates the efficacy of advertising tactics like this. However, Nico Neumann, Catherine E. Tucker, Kumar Subramanyam, and John Marshall explore What Type of Digital Advertising is Most Effective for B2B Prospecting? in a new study.

Reaching B2B decision-makers

This research questions the best targeting method to reach B2B decision-makers using digital advertising. The authors focus on the tech sector as their desired audience: the most extensive B2B advertising vertical with an over a 30% share of the U.S. B2B digital ad spend market. The goal for the campaign is to increase branding among Information Technology Decision Makers (ITDM). Therefore, reach is a key metric for this campaign. 

Methodology and analysis

Seeking out expertise, the authors asked five different global data vendors to produce ITDM prospect lists. Two vendors provide a simple list of ITDM prospects, including user’s name, location, role, email, and cellphone information. Using their proprietary black-box methods, the other three data vendors provided a ready-made list of ITDM prospects. All five ITDM segments easily integrated into buying or data management platforms.

The core focus of the study is to examine the factors of data quality and their influence on results. The authors compared the five prospect lists to random prospecting on a digital publisher network of Time Magazine, Dotdash Meredith, Design Home, and other quality publishers to serve as a baseline for reaching the target audience. In addition, the researchers surveyed those exposed to the campaign to find out about their ITDM responsibilities, demographics, work-related characteristics, digital footprint, and content interests. This benchmarking exercise assessed the reach performance of the different ITDM targeting practices compared to the network of publishers without purchasing additional ITDM data segments.

The survey analysis examined all segments and found that over 84% of respondents have no IT product or purchase responsibilities despite the list of targeted ITDM users. Interestingly, the first two prospect lists were more effective than using black-box audience segments for identifying ITDMs via digital ads. However, even the prospect lists are not statistically better at reaching the defined target market than the digital publisher network.

The prospect-information validation using the collected surveys suggests a significant level of inaccuracy, consistent across the first two vendor lists.

Invalid data can occur if:

  • A potential error in the link to the data profile itself.
  • Data is classified incorrectly.
  • Information is outdated.  
  • Inaccuracies with machine learning or other attributions problems.

Importantly, audience information generated by publishers is less likely to be subject to these errors.

Effective tools

After evaluating the cost-effectiveness of market costs and reach, the study found that contextual and content-interest targeting is almost 9 to 10 times more efficient than specific ITDM pre-packaged prospect lists. The custom B2B lists for ITDM are no more helpful in finding the desired audience than random prospecting from a digital publisher network. Further, publishers’ demographic first-party data targeting is most efficient.

This study provides independent evidence that publishers and first-party data efforts offer more effective and cost-efficient target audience reach than the use of data brokers and third-party cookies.

Industry-Research

Publishers’ video focus among major shifts for 2022

Instagram is hot but YouTube is not. Publishers around the world are shifting focus this year, according to a recent survey of 30 publishers from 17 countries. The Publishing Trends Report 2022 by Echobox offers insight into publisher’s evolving priorities as they move out of pandemic crisis mode into the new normal.

Respondents indicated that they are most focused on increasing web traffic, utilizing new content formats, and embracing automation. They also share a keen interest in capturing the attention of the all-important youth demographic.

The survey included participants from the following countries: Argentina, Bulgaria, Ecuador, France, Germany, Greece, Italy, Japan, Latvia, Mexico, Poland, Portugal, Romania, Singapore, United Kingdom, United States, and Uruguay. This year, the authors of the report concentrated on data received from decision-makers and social media specialists. News outlets comprised over 50% of the sample.

Publishers’ top priorities for 2022:

  • Increase traffic (73%)
  • Grow social media followers & engagement (57%)
  • Improve quality of published content (50%)

The release of free digital information during the pandemic led to a surge in traffic for online publishers, which – perhaps paradoxically – lead to more paid subscribers. The resulting increase in digital subscriptions even helped offset the longtime decline of print subscriptions. Respondents’ strong interest in increasing web traffic reflects reduced reliance on print revenue, while publishers continue to hone an ideal balance between paywalled and unrestricted content.

Which activities are most important to publishers in 2022?

  • Video content 63%
  • New social media platforms 43%
  • Newsletters 43%
  • Finding new audiences 40%

Authors of the study link the appeal of video to declining costs of production, the popularity of short-form content across social media platforms, and video’s effectiveness in engaging audiences.

Although only 43% of respondents listed newsletters as a top priority in 2022, 64% of respondents indicated plans to either start producing newsletters, or increase the number of newsletters they offer. This reflects the focus on turning general web traffic into subscribers.

The most important platforms for publishers in 2022 are:

  • Instagram 83%
  • Facebook 37%
  • Twitter 23%
  • TikTok 20%
  • LinkedIn 13%
  • YouTube 3%

The surge of publishers’ interest in Instagram also points to their desire to expand their audience in the 18-24 range, as they look to the future.  Pew Research Center data indicates that 76% of 18–24-year-olds use Instagram, and it remains among the most downloaded apps. Another draw is that Instagram is less publisher-saturated than Facebook.

Why the lukewarm interest in TikTok if younger audiences are so crucial? Survey authors attribute this to the relative newness of the platform. They found that publishers have not had time to refine their strategy to generate traffic via TikTok. Also, fewer young people use TikTok for news content than Instagram, which makes the platform less of a priority for news organizations.

A big change between the 2021 and 2022 survey results was declining interest in YouTube. In 2021, 52% of respondents believed YouTube to be of increased importance. However, in 2022 that percentage fell to just 3%. This would seem to contradict publisher’s strong stated interest in video this year. However, authors suggest that the drop may be due to publishers tailoring video content towards Instagram and other platforms which require formats and dimensions that don’t transfer easily to YouTube. Those interested in producing longer, larger format videos may be using third party vendors or in-house production, bypassing YouTube.

While Instagram is attracting a surge of attention from publishers in 2022, due in part to being less saturated with publisher content than Facebook, Facebook remains a mainstay platform for publishers. In 2021, 40% of publishers surveyed by Echobox stated that “staying ahead of Facebook algorithm changes” was a priority. This points to publishers’ awareness of the continued importance of Facebook referral traffic.

The growing Importance of AI

  • 74% consider AI important or very important in 2022
  • 67% believe AI will be more significant to their organization in 2022 than in 2021
  • Use and implementation of AI is increasing in emerging markets, not just large-scale publishers
  • Emerging markets are focusing AI efforts on automation of paywalls and subscriptions

In the 2021 survey, 1 in 3 companies cited lack of time as a major concern. The potential for AI to alleviate pressure and free up time can help publishers focus on a top priority cited in 2022 survey results: creating quality content.

Advertising | Industry-Research

Streaming drives this year’s upfronts

The buzz this upfront season is all about streaming. As Tim Peterson at Digiday put it, “Historically streaming has taken a backseat to traditional TV in the annual upfront market. This year, however, streaming will be sitting shotgun as it gets closer to seizing the wheel.” Many upfront presentations this year emphasized the value of ad-supported services like Peacock, Hulu, and HBO Max. In particular, networks focused on the value proposition for advertisers to buy inventory on their ad-supported streaming offerings – to keep those dollars in their family of brands.

The strategy this upfront season contrasts with to Wall Street analysts’ concerns over the long-term viability of the streaming marketplace. In the wake of Netflix’s quarterly performance, Quibi’s short life, and CNN+’s untimely demise, analysts have been skeptical about the marketplace’s growth potential. BofA Global Research analyst Jessica Reif Ehrlich reports, “We believe investors are now questioning the long-term market potential in streaming.” However, networks are not only confident that their streamers will continue to attract audiences, they are betting on their connected TV extensions to attract this year’s upfront dollars.

Networks believe that consumer viewing habits, particularly for those who ante up for subscriptions, will prove a viable market for advertising dollars. Streaming service penetration is strong among U.S. households. Deloitte research reports that approximately 80% of U.S. households in the United States paid for a streaming service in 2021, with about 35% churn across the member base. Monitoring engagement is essential to understanding churn. Subscriber growth and retention work hand in hand in monetizing the streaming ecosystem.

Streaming is nearly one-third of TV viewing

Time spent is an essential metric of engagement and retention. The Gauge, Nielsen’s total TV and streaming snapshot for March 2022, shows that streaming audiences spent nearly 30% of their total TV time watching over-the-top video content. Streaming gained a full share point over February as broadcast networks transitioned away from NFL football and the Olympics. The Gauge offers a monthly macroanalysis of how consumers access content across television delivery platforms.

There was a slight decrease of 0.7% in total streaming viewing when comparing total television viewing last month. Viewing share across all streaming providers, Netflix, YouTube, Hulu, Prime Video, Disney+, and Other Streaming was either flat or gained slightly in March.

The slight dip in streaming usage is significantly less than the drop in total TV usage, down 4.2%. March’s drop-in TV usage is consistent with historical declines this time of year due to the increase in warmer weather and more time spent outside.

Advertisers chase audiences on CTV

Broadcast programming also lost more than a full share point, and sports viewing was down 53%. NASCAR and the NCAA basketball tournaments are big March events. However, “sports event programming” share of viewing dropped from 25% to 12% in March.

An important question for marketers and agencies is where to place their advertising bets; in other words: how much of their ad budgets should they be transitioning to connected-TV audiences? While linear TV still possesses strong advertising muscle, linear ratings are a dwindling sales proposition. Undoubtedly, audiences can increasingly be found streaming content and that’s where advertisers are looking for them.

Networks and content producers are looking to direct to consumer distribution and connect-TV is center stage. There’s still much to work out, especially around audience fragmentation and measurement. Importantly, connected-TV advertising offers quality and relevance and the ability to implement cross-channel media planning. No doubt that this year’s upfronts require a careful analysis of audiences’ video content consumption in order to make savvy decisions about where ad dollars will be best spent.

Industry-Research

The value of a shared experience: co-viewing and CTV

Tracking co-viewing is essential for publishers to monetize all viewers they reach across all platforms and apps. It provides details of how people watch television in the household. TVision’s new report, Spring 2022 Co-Viewing Report, offers insight on TV and connected TV (CTV) reach with person-level data.

TVision’s technology detects viewers and what their eyes are looking at in the room. Their technology identifies the content that plays through the TV, or a device connected to the TV. TVision uses an opt-in panel of 5,000 households across the U.S. While the sample is small, when you slice and dice all of the streaming services and apps, it offers intelligence on the co-viewing experience.  

Identifying co-viewing

TVision, like other rating companies, captures Viewers Per Viewing Household (VPVH). This metric represents the average number of viewers present when the television or device is on with the content tuned. Co-viewing offers high value to marketers. It provides an additional audience qualifier – especially if family programming and an adult and child are present. The report shows that viewers are more likely to watch CTV content with friends and family than Linear TV. CTV typically sees VPVH averages of 1.29, while Linear TV falls slightly lower at 1.26.

Family-friendly movies and TV shows dominated the most co-viewed programs across ad-supported CTV apps. Further, Tubi, followed by HBO Max and Hulu, has the highest VPVH. Additionally, movies (73.2%) tend to have more co-viewers than TV episodes (54.8%).

Not surprisingly, the pandemic triggered an increase in co-viewing habits. During Covid’s stay-at-home order, streaming TV co-viewing increased by 15%, and linear co-viewing increased by 9%. According to a Nielsen Study in 2020, co-viewing with streaming happened 47% of the time and 34% on linear.

A shared viewing experience yields more attention

When multiple people sit down to watch a program together, they’re more likely to keep their eyes focused on the screen. Interestingly, when comparing engagement and co-viewing metrics for some of the most-watched connected-TV apps, the majority with high VPVH also index well above average for attention.

TVision’s data shows that adult audiences pay more attention to ads overall when watching with other adults—with a 107.6 attention index. An increase in TV viewing, especially streaming, coupled with the rise in co-viewing, creates a ripe opportunity to connect with consumers.

Younger audiences are more likely to co-view CTV content, with viewers under 18 showing the highest co-viewing rates of all demographic groups. Overall, adult audiences pay more attention to ads whether they watch with others or by themselves. Children, however, are more likely to pay attention to ads when watching in a group than on their own.

The TVision report helps to quantify co-viewing audiences viewing TV and CTV services. However, using a co-viewing index as a multiplier can easily overestimate an audience size and distort total monthly unique users (MAU). As the industry looks to determine the size and scope of streaming and FAST channels, it’s essential to monitor and scrutinize audience viewership and co-viewing claims.

Advertising | Industry-Research

Contextual may be a better alternative to behavioral advertising

Targeted contextual and behavioral advertising currently dominate much of the digital advertising marketplace. Behavioral advertising uses personal browser data collected by intermediaries to serve ads to users by assigning them into micro categories. In contrast, contextual advertising serves ads to match the marketer’s requirements. 

GumGum, a contextual intelligence company, commissioned Harris Poll to survey consumers to better understand their online advertising preferences. Nearly eight in ten (79%) consumers report being more comfortable seeing contextual ads than behavioral. While more than three-quarters of all people are more comfortable with contextual ads, there are some generational differences: 84% of consumers ages 35 to 44 preferred contextual ads, while 76% and 75% of those between the ages of 18 to 34 and 45 to 54, respectively, preferred a contextual experience. 

Personalized ads are not beneficial 

In contrast, most respondents (66%) report they are uncomfortable with companies tracking their browsing history to show them personalized ads. Further, women are more uncomfortable with behavioral ads than men (70% vs. 61%). Older adults aged 55+ are also more likely than younger adults to say they are uncomfortable with brands tracking their browsing history. 

While marketers often overstate the value of personalized ads, consumers are also uncomfortable when brands use their browsing history and habits to serve personalized ads. Personalization often relies on surveillance advertising, which is data-invasive and has consumers concerned.

Similar trends have also been observed in European research. Last year, Global Witness commissioned YouGov to conduct research among 2,000 regular social media users in France and Germany about personalization in online advertising. The findings show that consumers are uneasy about targeted ads — driven by everything from income and religious views to life events such as pregnancy, bereavement, or illness — and do not want to receive any personalized advertising. Further, approximately 38% of the respondents said they are “creeped out,” and 31% said they feel violated.  

Behavioral targeting can lead to discrimination  

Beyond privacy concerns, selecting specific demographics and audiences to receive certain advertising can be discriminatory. Civil rights groups accused Facebook of violating federal anti-discrimination laws in 2016 because of their targeted advertising practices. At least five lawsuits were filed against the company at that time. A settlement was reached in 2019, and it noted, “Facebook advertisers can no longer target users by age, gender and ZIP code for housing, employment and credit offers.” 

Google announced a cookie replacement called FLoC, Federated Learning of Cohorts, in mid-2021. The company planned to shift online advertising tracking from user to group tracking. However, many voiced concerns that users could potentially be identified within cohorts. Google’s newest idea in their Privacy Sandbox is an API called Topics, which links user browsing history to topics for interest-based advertising. Unfortunately, there’s a significant disconnect between Google’s Sandbox initiative and consumers’ sentiment from the user privacy perspective.

Contextual relevance

Contextual advertising addresses consumers’ privacy concerns, allowing publishers to serve more relevant ads to their customers without tracking their browser history. Interestingly, few marketers transitioned their dollars from behavioral advertising to contextual advertising after Google announced the end of cookies in 2022 and then again when it announced its delay until 2023.

The research clearly shows that consumers are uncomfortable with behavioral and personalized ads. As the digital advertising industry moves forward to make changes and create solutions, transparency is essential, and it is necessary to inform consumers on how their data is collected and used. Digital ads that do not make consumers uncomfortable build brand trust and increase the likelihood of a positive response.

Industry-Research | Video

Audiences climb for OTT and mobile video viewing

March marked a new milestone for streaming, as audiences spent nearly 30% of their total TV time watching over-the-top video (OTT) content. The Gauge, the monthly total TV and streaming snapshot from Nielsen found that, despite a 0.7% decrease in time spent streaming from February, viewing share across all streaming platforms was either flat or gained slightly in March.

In a further boon for the sector, Sensor Tower Usage Intelligence’s Q1 Data Digest found that the top mobile subscription video on demand (SVOD) apps in the United States saw an average of nearly 18 million monthly active users in Q1 2022, up 14% compared to Q1 2020 and 49% from Q1 2019.

The release of new streaming platforms and the race to add more content has made the space more competitive ever in Q1 2022. According to Sensor Tower, six different apps had more than 10% of the download market among top apps, and four apps had more than 10% of the monthly active users.

While market competition continues to intensify, Sensor Tower believes that enthusiasm around new launches and the strength of the top players continues to drive mobile usage. “The addition of these new content providers, as well as increased content offerings by existing platforms, have led to a consistent upward trend in average MAUs even after the expected spike in usage during their launch months,” according to the analysis. Netflix, Hulu, and Disney+ led the cohort as the top three most-used mobile SVOD apps in the U.S. in 1Q22.

The Gauge reports that, as a whole, total television usage was down in March, decreasing by 4.2% versus February. Cable stood out as the only viewing category to see an increase in both share and volume, jumping 1.6 share points from last month. Cable news viewing was up 14% from February and accounted for 21% of the cable share, driven by continuing news coverage of the Russia-Ukraine war.

Nielsen’s The Gauge: March 2022

Gaining a full share point over February, The Gauge finds that streaming services benefited from the transition away from the finale of professional football and the Olympics, which bolstered fall and winter TV viewing across broadcast networks. Sensor Tower also finds that content drives download and viewing. According to their report, several big events in Q1 2022 helped boost adoption and give certain apps an edge in this competitive space. HBO Max’s season two of “Euphoria” was incredibly popular, and Peacock TV and Paramount+ benefited from major U.S. . sporting events.

Industry-Research | Research

Understanding low-trust audiences and how to reach them

Mental shortcuts, snap judgments, gut feelings: everyone uses these to some degree while navigating an increasingly overwhelming news landscape. However, new research finds that these instant reactions are even more prevalent among the 25% of the population with the lowest trust in news. Low trust audiences are more likely to receive the bulk of their news incidentally while engaged in other online activities such as socializing, shopping, or searching for specific information pertinent to their daily lives. Significantly, low trust aligns with low interest. These individuals are unlikely to visit news sites on purpose. They are also the least-studied segment of the population when it comes to news-related behavior.

It is important that content providers understand the impact of snap judgments because they occur upstream of further engagement with news material. Research from the Trust in News Project out of the Reuters Institute for the Study of Journalism at the University of Oxford offers insights based upon an exploration of the behaviors and habits of this audience segment.

News, cues, and clues

The report, Snap judgements: how audiences who lack trust in news navigate information on digital platforms was based upon a qualitative study that involved participants from four countries: Brazil, India, the United Kingdom and the United States. One hundred individuals were interviewed in depth via videoconference as they used one of three platforms: Google, Facebook, or WhatsApp, between December 2021 and January 2022.

Six types of cues were found to serve as as shortcuts for evaluating news:

  • Pre-existing ideas about news in general or particular news media brands, including reputation and perceived reliability of the news outlet.
  • Social endorsement cues, especially from friends and family.
  • Tone and word choice of headlines, with a skepticism for headlines that seem sensationalized.
  • Visual cues, with a preference for photographs and videos perceived as recent and relevant, as well as numerical data and links to other sources.
  • Presence of advertising or indications of sponsored content are often seen as indicative of bias and profit-driven motives.
  • Platform-specific cues such as Facebook likes and Google search engine rankings. (insert cues graphic)

Comfort and control

The study found low-trust individuals have much more favorable opinions of Google, Facebook and WhatsApp than they do of professional news sources. They consider these platforms valuable tools used in everyday life, whereas many stated most news is irrelevant to them. In fact, some perceive news as an attempt to manipulate them; many stated that politicians control major news sources. In “shoot the messenger” fashion, low-trust users tend to conflate content they dislike or find upsetting with news journalists or brands.

News reports on hot topics such as politics and issues that have become politically charged such as the handling of the COVID-19 pandemic are viewed with particular skepticism by the sample group. Participants indicated that content providers have more incentive to be untruthful about such topics.

Low-trust users are more likely to look favorably upon information presented in a manner perceived as enabling them to make up their own minds. Some participants cited the presence of numerical data or links to other sources as indications that news was reliable, while others praised Google search results as such a resource.

Addressing the audience gap

While some of the 25% have overtly hostile feelings towards news organizations, indifference is more to blame for lack of engagement. Lack of knowledge in how journalism works is also a factor. Those aware of their limited knowledge may be less confident in their ability to decipher content and more likely to ignore it altogether or rely on opinions of trusted social contacts.

Trust-building strategies employed by digital news organizations tend to focus on the behavior and practices of the savviest news consumers. This makes sense if the goal is to solidify one’s base. However, expanding outreach requires more understanding of the less-engaged 25%. Building relationships with new user groups requires deeper understanding of how they engage with their platforms of choice.

This research is significant for digital media providers because it represents data from the least-studied segment of the population, and because the findings are not limited to this group. While some of the cues relied on by these users are under exclusive control of digital platforms, others can be utilized by news providers. The study has compelling implications for how information can best be conveyed to those hardest to reach.

Diversity, Equity & Inclusion | Industry-Research

Research highlights the need for diversity in media leadership

Diversity in news media matters because it offers a voice to underrepresented communities and helps provides education to break down the barriers of prejudice. When the news media provides structural diversity – hiring, retention, and promotion – it better reflects the audiences it serves, and more accurately portrays society.

A recent study, Race and Leadership in the News Media 2022, from Reuters Institute, evaluates leadership diversity in the newsroom. The research includes a sample of 100 major online and offline news outlets in Brazil, Germany, South Africa, the U.K., and the U.S. 

Key findings for the ten top online news outlets and ten top offline news outlets in each of these markets:

  • In total, 21% of the 82 top editors identify as nonwhite, compared to 43% of the general population across the five countries. However, excluding Africa from the analysis means only 8% of the top editors are nonwhite compared to 31% of the general population.
  • At the time of the analysis, Brazil, Germany, and the U.K. did not have a nonwhite top editor. In contrast, 33% of top editors are nonwhite in the U.S., increasing from 18% in 2021. Further, in South Africa, 73% of top editors are nonwhite, increasing from 60% in 2021.

Many journalists highlight the importance of diversity in the newsroom and its important impact on editorial decision-making. The Reuters research measures diversity in the newsroom and tracks its progress compared to industry studies across the globe.

Tracking change in the marketplace

American Society of News Editors (ASNE) research surveyed 293 news organizations in the U.S. in 2018. The study found that 23% of the newsroom employees included people of color represent and 26% for online-only news organizations. The research also shows that 79% had at least one woman among their top three editors, and 33% had at least one minority journalist in a top-three position.  

The National Council for the Training of Journalists (NCTJ) in the U.K. used the 2020 Labour Force Survey (LFS) data to identify diversity in journalism. Their report shows women employed in journalism as a majority (53% compared to 47% of men). There was also a slight decrease in the proportion of white ethnic groups (94% to 92%) in journalism compared to 2018. Journalists working in the U.K. increased from 78,000 in 2018 to 96,000 in 2020. However, nonwhite journalists did not grow proportionately.

In Germany, the New German Media Makers (NdM), a nonprofit association representing media professionals with immigrant backgrounds, conducted research in 2020 among 126 editors-in-chief and 122 editorial offices. The study found only 6% of the editors-in-chief have an immigrant background. While most editors-in-chief generally rated diversity in editorial offices as necessary, they did little about it. The NdM made three important recommendations to editors-in-chief and closely monitor the news media.

  1. Report for the whole society: diversity in a program or publication can increase reach, circulation, and opportunities to employ people from immigrant families.
  2. Decision-makers must develop a strategy to attract journalists and staff with immigration histories.
  3. Disclose diversity data transparently, create clear targets, and document.

News media owners and their editors need to accelerate diversity initiatives in their organizations. Reuters research and the previous studies show a slow transformation of the newsroom with nonwhite journalists and editors under-represented. Importantly, transparency and documentation are essential to share best practices for building a diverse newsroom across the globe.

Diversity, Equity & Inclusion | Industry-Research

Media companies build trust when they address audience concerns

No other business sector has more cultural relevance than media. Media shapes perception, but public perception deeply affects the media industry. Because of this, media companies need to identify the social discussions and issues in society and find a balance in addressing them without alienating their audience.

New research, Media Materiality 2022, conducted by the Responsible Media Forum with consultant Carnstone Partners Ltd, identifies the material sustainability issues for the media sector in the UK, Europe, and North America based on a three-tier research plan:

  • Reviews of environmental, social, and governance (ESG) reporting frameworks, investor indices, and recent (2019 or later) materiality assessments published by companies participating (Axel Springer, BBC, Dentsu, ITV, and others) in the Responsible Media Forum. 
  • Interviews with senior sustainability practitioners from media companies, including advertising, broadcast, entertainment providers, news publishing, and telecommunications. 
  • Interviews with external experts, including ESG thought-leaders, investors, policymakers, non-governmental, organizations, and third sector (non-profits, social enterprises, cooperatives, etc.).

Identifying material issues

To build trust between a media company and its target audience, a company needs to take responsibility for its role in, and take a stand on, meaningful issues. There are consequences when a company fails to act. For example, Disney and its CEO, Bob Chapek face backlash due to company’s donations to Florida politicians who support the “Don’t Say Gay” bill. Critics of Disney felt that that the company did not stand up for its LGBTQ employees, cast members, and guests. And fallout thus far has included widespread media coverage, employee walkouts and a public apology.

These sorts of situations are becoming increasingly prevalent. Thus, it is critical for organizations to understand the issues that are significant to staff, stakeholders, and their customers.

Responsible Media Forum defines material issues as “financially significant over the short to medium term.” These have the potential “to affect a key financial indicator, e.g., profits or revenue, by around five percent or more within two years.” These issues were found to be material: climate change, cyber security data privacy, diversity, equity & inclusion, people management, responsible content, skills development, sustainable value chain, and well-being.

Interestingly, both fake news and net neutrality are no longer identified as material issues as they were in the 2018 report. Important material issues for publishers to incorporate into their best practices.

Responding to material issues

  • While the media’s carbon footprint is relatively small, integrating climate change content can encourage behavioral shifts in society.
  • Data privacy is an essential practice of media companies. With privacy regulations, such as the General Data Protection Regulation (GDPR), becoming standard practices, publishers should communicate how they collect and use consumer data. 
  • In 2018, the Responsible Media Forum now includes “equity” as part of diversity, equity, and inclusion. Equity refers to the creation of a level playing field and increased commitment to diversity in both developing and retaining talent and entry-level recruitment. This is an important issue among those under 40 years old. DCN’s research on Gen Z Digital Media Attitudes, Values & Behavior shows that both Gen Z and Gen Y see this as the foremost issue companies should care about today.
  • Responsible content is crucial for publishers. Media companies are responsible for their content across their portfolios and usage of intermediaries. Related concerns include diversity of output, editorial compliance, creative independence, transparent and responsible editorial policies, freedom of expression, impartial and & balanced output, and promotion of causes.
  • Media companies must invest in their employees. Skill development, including training and mentoring, are strong retention tactics, especially against tech platforms.
  • A sustainable value chain is important to manage. Media companies need to manage the upstream and downstream of their supply chain beyond their own needs to support.
  • The 2018 report expanded the definition of well-being to include a focus on mental health. With the Pandemic and employees working from home, it’s no surprise that mental stress is an integral part of the wellness category.

Other areas to watch

In addition, the Forum identified three additional categories to determine whether an issue did not meet its materiality threshold but still represented an important matter.

  1. Strategic: an issue that can significantly affect the ability of the company to deliver its strategy in the medium to long term.
  2. Operational: an issue that matters for internal, reputational, and efficiency but is neither material nor strategic.
  3. Emerging: an issue that is not yet widely on the radar of a company but is increasing in importance and expected to become a material or strategic issue within the next two years.

Media plays a critical role in reflecting and responding to the needs of society. This report provides a starting point for media companies to access material issues and other key areas of potential concern in order to better meet audience expectations.

©2024 Digital Content Next. All Rights Reserved.