Fake news is often driven by deeply ingrained partisanship. Its proliferation is also fueled by financial motivation, of course. New research, Market Forces: Quantifying the Role of Top Credible Ad Servers in the Fake News Ecosystem, found that that the top-10 credible ad servers alone account for 67% of fake news and 56% of and low-quality ad traffic. Further, Google delivers 48% of the ad traffic on fake news publishers and 32% on low credibility sites.
Methodology
To conduct this research, Lia Bozarth and Ceren Budak at the University of Michigan used a web API tool to simulate peoples’ browsing behavior. Their research identified fake news sites as those filled with pseudoscience and false facts. They also found that low credibility publishers are often hyper-partisan. The API tool initiates a browser session, navigate to the site’s homepage, scrolls through the page, and focuses the mouse on each ad’s iframe. Bozarth and Budak then filtered the collected data by the top 50 ad serves. In all, 84% of their ad data was served by the top 50% ad servers.
This methodology allowed the authors to measure ad server usage of high-quality sites, fake, and low-quality news sites. Three-quarters (74%) of all publishers (high-quality, fake and low-quality) have one or more ad servers displaying ads and 26% of all publishers are ad-free. The findings also show that fake news publishers often have fewer ad servers on average compared to low-quality and traditional news sites. Further, the median number of ad servers for fake and traditional sites is six and eight ad servers, respectively.
Ad server quality
Consumers navigating to fake and low-quality news site are at potential privacy and security risks. Fake and low-quality news publishes have a higher tendency to serve more ads and to partner with riskier ad servers when compared to traditional news media with similar popularity and age skew. Importantly, while fake news publishers use riskier ad servers, they are also dependent on credible ones. According to the findings, the top credible ad servers play a substantial role in delivering ad revenue to fake news sites. For instance, 6.7% of all fake domains are dependent on top-10 ad servers.
Impact on ad server revenue
Bozarth and Budak also provide a weighted ad traffic analysis to illustrate the role top credible ad servers play in providing revenue to fake and low-quality news sites. They found that full 61% of fake news ad revenue is estimated to be supplied by the 10 credible ad servers.
In terms of revenue to the ad servers, Bozarth and Bodak estimate that the top-10 firms, in aggregate, generate $24,500 to $28,600 monthly through fake news sites. That’s an average of $985,700 to $1.15 million of revenue or approximately 0.1% to 1.0% of the top 10 ad servers’ their annual revenue.
While the authors support ad servers blacklisting fake and low-quality news sites, that may not be the best answer. Profit-driven fake news sites banned by top-tier ad servers will partner with less reputable ones without hesitation. Further, owners of blacklisted websites will also migrate to new domains. It becomes a game of “whack-a-mole” unless there is an ability to detect these sites before ads are served. Additional research is needed to clearly identify fake and low-quality news sites. Criteria like the type of advertisers on these sites and their CPM or CPC rates to identifying profit models by category sectors. Each additional factor identified as a predictor of fake and low-quality news site can help inform ad servers about the content qualify of news sites. And this, in turn, supports sites that provide better consumer experiences and higher quality information.
Audiences are spending more time than ever consuming content. Still, even an explosion in digital subscriptions couldn’t prevent massive job cuts across the nation’s newsrooms. Any argument that closures hit companies that churned out poor quality journalism or fake news falls flat when looking at the data. Of the 10 newspapers that have earned Pulitzer Prizes for local reporting in the past decade, all but one were impacted by cuts in the last year.
Why is online news in a crisis? There are lots of theories. Many point to the impact of the Google/Facebook duopoly. The two behemoth companies gobble the bulk of ad revenue, leaving scraps for news organizations. Others suggest that the digital media industry itself is to blame. Ethan Zuckerman points to the “original sin” of building the entire Internet around advertising, putting algorithms, not audiences, in control.
New research confirms that media organizations need to do a critical rethink, but not just of the business model. It appears that media organizations are relying on a faulty content-creation and evaluation formula. The good news is that there’s plenty they can do to rethink storytelling to better engage and monetize audiences.
The findings, part of the Clwstwr Policy Brief project, reveal that audiences prefer “inclusive and reflective” storytelling models that help them understand and navigate their world. This, the research says, “challenges the perceived – and long-established journalistic principle – that the inverted pyramid model of news storytelling is the most efficient way to deliver news.”
The traditional approach for news — arranging facts in descending order of importance — lacks creativity and flexibility. What’s more, the research says this style alienates younger audiences that crave a “more thoughtful, considered and purposeful approach” to online news. They want it to reflect the reality of their lives, rather than industry norms.
Media organizations have an opportunity to rethink the way that they report the news. And, with new formats, they can encourage consumers to engage more actively with content.
Researchers created a series of different prototypes for news storytelling. Each used a linear narrative style and addressed the question of content with a user-focused “what do I need to know?” approach.
Continuing with our series of video interviews, I talk to the lead author of the report, Shirish Kulkarni, an award-winning journalist and researcher. He makes a case for a complete rethink of news storytelling models. He shares the “seven building blocks” that successful news stories have in common. These include a linear narrative, personal context, and transparency about where the information comes from in the first place.
Kulkarni also walks us through the “narrative accordion,” a prototype model that gets high ranks from readers because it allows them to sort and skim through the key elements of a story on their terms. Finally, he discusses how news organizations can drive meaningful engagement and revenues by harnessing AI to “individualize” content at scale.
WATCH OR LISTEN TO THE FULL INTERVIEW
FULL TRANSCRIPT
Peggy Anne Salz, Founder and Lead Analyst of Mobile Groove interviews Shirish Kulkarni, a researcher focused on identifying and prototyping innovative forms of news storytelling.
Peggy Anne Salz: Mainstream journalism is in crisis. Now we may think it’s due to a lack of trust or a lack of interest, but new research suggests people aren’t consuming news because the wrong stories are being told in the wrong way, by the wrong people. Now, new storytelling models, provocative prototypes, new building blocks.
They may offer the answer and we get the inside track on this and more today on Digital Content Next. I’m your host as always Peggy Anne Salz, mobile analyst, content marketing consultant, and frequent contributor to DCN. My guest today is an award-winning journalist and researcher, who’s going to share eye-opening results of his latest research project that goes to the core of what is broken in online journalism and how to fix it. Shirish Kulkarni welcome to Digital Content Next. It’s great to have you.
Shirish Kulkarni: Thank you very much. It’s great to be here.
Salz: Now you’ve got our attention with these results, the wrong people, doing the wrong thing, in the wrong way. That is something pretty provocative. You spent the last two years asking these fundamental questions about journalism, and now you’ve come up with a construct for a model of what you call reflective journalism. Now it’s not just, you. It’s had global impact. You’ve presented it at Reuters Institute, World Association of News Publishers, and many more. Tell us what is reflective journalism.
Kulkarni: Yeah. So I think we have…well, I have two reasons really, for calling it reflective journalism. Firstly, I think it’s important that we, as journalists, reflect on what journalism is for, right? What the needs of audience is rather than our organizations. Because that’s something that’s really been missing a lot in journalism. And we need to take the time. We’re in a crisis, as you said, and we need to take the time to stop and think, what are we doing wrong? What could we do better?
The second reason is that it also is super important that our industry is much more genuinely reflective of society. So, largely, if we’re talking about Western Europe or the U.S., this is a very homogeneous industry. And frankly, it’s driven largely by white, middle class, Metropolitan men, for the most part. And actually, when you think about it, that is a really small proportion of the population. And they don’t reflect, or frankly, understand the experiences, the day to day lives of most people in society. And as journalists, I think it’s our job to reflect what’s going on in society. And I don’t think as an industry, we’re actually structurally prepared to do that. So, two reasons for calling it reflective journalism, because we need to reflect both on the industry and also reflect society.
Salz: And it’s interesting Shirish because you’re making this point that. We need to reflect, and we’ve done that in a way you could even say we’ve been forced to reflect. Let’s put it that way. So we do know what is broken in principle at the core you’re stating it’s all about new forms of narrative. We need new forms of narrative. This is actually very good news because we know what is broken. We know how to fix it. And this is where your policy brief, your news storytelling, storytelling research hits upon the answer. You propose linear narratives. Now, how does this differ from what we’ve been doing? Because what we’ve been doing is the inverted pyramid style. So what makes linear better?
Kulkarni: It helps to start by thinking, why do we do the inverted pyramid, right? And actually, the kind of prosaic reason for that is because of the telegraph, the original news wire. But actually, the telegraph, when it was used widely, was expensive and unreliable. So people thought, let’s put all the important stuff right at the top, because then it’s cheaper. And if it drops out, then we haven’t lost too much of the important stuff, we’ve lost some of the boring stuff, right? So, technology has clearly moved on by about six generations since the telegraph. But largely, we are using those same habits and formulas, which come from the telegraph era. So that is strange in and of itself. So that’s why we use the inverted pyramid now. And actually, there’s not really a reason for it anymore.
When I talk about why writing linear stories is better, or producing stories of whatever kind, whether that’s text or whatever, in a linear format is better, we just go back to what are stories for? And stories are there for a kind of evolutionary, anthropological, there’s a neuroscientific basis for storytelling. They help us navigate the world. If you wanted to bring in kind of modern day techniques, they’re like a virtual reality simulator for the world. That’s what stories teach us. And I’d really recommend a book by Jonathan Gottschall, called “The Storytelling Animal.” And in that, there’s a really beautiful quote, where he says, “We are, as a species, addicted to story. Even when the body goes to sleep, the mind stays up all night, telling itself stories.”
And so, we know that to be true, right? But those stories aren’t told in inverted pyramid style. They’re told as a linear narrative. Starting at the beginning and ending at the end. And that is what we’re hardwired for as human beings. But as journalists, if we’re writing in an inverted pyramid style, we’re essentially going against what we’re hardwired for. We’re putting up a barrier between the storytelling and the engagement with a story, from the get go. And that, again, is not logical. It’s not rational. It doesn’t make any sense.
So actually, just on that kind of linear storytelling, we built a bunch of prototypes. But actually, what I was really interested in testing, for exactly the reasons you’re interested is, what if it was just linear storytelling, there’s no other formatting, would people find that interesting? So we did a prototype, which we just called kind of a plain text, dramatic prototype. And that was literally plain text, writing a story, sort of casting it quite badly, in my own opinion, because I wrote it, in a kind of three act dramatic structure, like we were just talking about. And the results from that were absolutely startling.
We tested it with more than 1300 people, against options of news which were currently available to them. And what we got the people to do was essentially, say whether they thought that it was more engaging, more informative, and more useful. And we created, I guess, a net approval rating. So on the kind of engaging axis, people have found just a plain text narrative more engaging than a BBC story, or an ITV story, or Sky News story here in the UK. The rating for that was plus 57, not 57%, plus 57, of the positives against the negatives. On informative, it was plus 41. And on useful, plus 37. So those are big, big numbers. And in some ways, you’d say for news organizations, they’re a no brainer, right? If you can, tomorrow, do something which is more engaging, more informative, and useful by big margins, just by essentially changing the structure of your story, why wouldn’t you do that?
Salz: Now we’ve had some companies here on Digital Content Next, they have been sharing what they’re doing and they are already taking a more modular approach to news and to storytelling. So there are companies moving in this direction. They understand that just by encouraging readers to skim, they’re not really driving engagement. And they have to do it in a different way. They need to break down the stories. How can news organizations further improve what they do to draw their audiences in? What is it that you’re telling them?
Kulkarni: So the very first thing is clearly thinking about what the audience, what citizens want, right? So when I was writing my prototypes, really, the first thing was to blank my brain. I’d tried to forget all the conventions of journalism, and ask myself the question, what do I actually need to know about this story to help me understand this? Rather than, what would a journalist normally write here? Because those two things are actually surprisingly different. And I think it’s where I think the kind of practice of journalism has become quite disengaged from the purpose of journalism. And as you say, there’s lots of hand wringing over, you know, people in newsrooms looking at analytics, when they are looking at analytics, and probably not enough people are sort of hand wringing over, well, people only spend 10 seconds on our page. Well, kind of, of course, they only spend 10 seconds on your page if you write an inverted pyramid style, where you’ve put in the headline, and in the first paragraph, something that looks like everything you need to know about that story. And then people think, well, actually, it gets more boring, and less interesting as I go down.
Now, actually, the truth is, it’s not everything you need to know about the story, because we all know, headlines don’t represent a story. They’re largely used as a sales technique. And the first paragraph often is a kind of one side of the story or just a really quick summary. But actually what people are telling us they want routinely, and not just me, in lots of research, they want more context around a story. What we tend to do is drop people into an on the day story, just on the day. And not everyone consumes news in the same way as journalists, right? They don’t read the news necessarily every day or every hour. We need to explain to them what’s led up to this point, and actually to some extent, what’s going to follow from this point. And so, actually providing all those things as a service, because yeah, journalism is a service, again, something which we forget. Then all those things are going to help people engage.
Salz: News as a service, you’re absolutely right here. And you’re also talking about what news organizations need to do to embrace the linear approach. Fortunately, it’s something they don’t have to do on their own because your research also shows that it’s really about collaborating, co-creating whatever you want to call it with AI to keep reader attention, as the story unfolds. Even determine the best starting points in the news. Ways to draw the audience in. So how does this collaboration working with AI? Look, what is the role of AI to get people to come into the story and stay?
Kulkarni: Lots of journalism organizations are using AI very well now, already. And so this is going to be the future of journalism. The next stage of journalism will be driven by automation and AI. So we have to be in that space. And I think the starting point is, look, right now online news is largely just newspaper articles put online, right? We’re not using, we’re not taking advantage of all the digital and technical storytelling tools that are available to us.
And I think what we’re seeing is that we should be in a post-article world, right? We can’t provide, or we shouldn’t be providing exactly the same article to everyone, right? We can’t be all things to all people. And where that leads to is personalization, essentially. That actually, we can provide news, information, in a way that is personalized to meet individual user’s needs in a really efficient way. So that might be, for example, I’m based in Wales, where we have quite a big immigrant community as well. If I’m a Chinese person living in West Wales, accessing BBC Wales’s news, wouldn’t it be interesting if I could access that in my first language, even though it’s news about Wales? That’s going to be more accessible to me. Working in that modular way, where we’re taking out a lot of interstitial language, we’re building short modules of information, which we’re putting together in different ways for different people. That, for example, takes out a lot of translation problems. It actually takes out a lot of inherent bias that exists within us as journalists. So it’s more accessible and more inclusive in that way.
So providing fact-based modules of journalism, that can be put together in different ways, by AI, to match the personalization preferences of users, citizens, audiences, has to be one big part of the future of journalism, I think.
Salz: That’s fascinating Shirish because we did start with personalization in news. It was about the categories asking audiences to choose the categories they wanted. Now it’s about personalization taking that personalization to a next level, a new level. And we agree it’s about the audience. It’s also about context, transparency, diverse perspectives.
Now these are the guiding principals, but it also comes down to the experience and that’s where your research also offers some answers. You’ve come up with ways to allow a different experience for different readers. The linear story is the concept, but you have accordions, timelines, videos. What can you tell us about the best on-ramp right now for organizations listening in, they want to know what is the best way to make the biggest difference in their stories and their metrics?
Kulkarni: The narrative accordion is really my favorite prototype. And actually, the favorite generally, with users. And what we’ve done here, essentially I’ve gone back to the basics and asked myself the question, what do I need to know about the story? What’s going to help me understand it? And I put these kind of expandable and collapsible questions, which means that people can either read them from top to bottom, so they make a linear story from top to bottom. Or if you’re interested in a particular question, such as, is this a green solution? I can go straight to that and check out the answer to that first, and navigate around exactly how I want it. Because what audiences really told us they wanted was some agency in storytelling. They wanted to be able to decide how they navigated the story. And we all understand that, don’t we? Like, when we go to find something out ourselves, we remember it better. We understand it better, because we feel like we’ve been part of that investigation process.
And as I say, the narrative accordion overall, in our testing, did really well. So basically, 75% and upwards, comparing the narrative accordion to options which are available to them in the general market, said it helped them understand the story better, and was more engaging.
Now, again, going back to the commercial needs or publishers, if you can do tomorrow, this doesn’t take a lot of kind of tooling or engineering, you could do tomorrow, something which more than 75% of people say helps them understand the story better, and is more engaging. Now, that, in a commercial sense, to me, is a no brainer, right? If you can do that tomorrow, why wouldn’t you?
Salz: That makes perfect sense. Absolutely. It’s a no-brainer and there’s no reason not to pursue that, but you’ve also found something else interesting in your research. You’ve found out that we are hard-wired, literally for the hero story or the heroine story. We want to have that arc of the story. Now, how can organizations apply that to journalism and still keep a credible balance? Because of course, drama can quickly become melodrama. It can become exaggeration very easily. So how do they approach this to give us the story? But again, also the engagement, because that’s the way of generating revenues.
Kulkarni: So, I see the tension, I’m all for kind of fact-based journalism, which sometimes, we get into kind of click bait stuff, which is about creating a particular kind of drama, right? When I’m talking about, this kind of hero, heroine story, it’s that fundamental evolutionary need for a particular kind of story, which you might describe as essentially, a fairy tale, is a great example of that. It’s why they’re so popular and successful. And that could be by just thinking about who are the characters in this. We don’t have to go off into kind of writing “non-objective,” but I’m going to put objective in quotation marks there, “non-objective” stories. What’s the sense of character, a resolution as well, because fairy stories always have a resolution. And new stories very rarely have a resolution. And actually, at that evolutionary level stories which don’t have a resolution leave us feeling uncomfortable.
So actually, that’s where we get into kind of news avoidance, because so much of our storytelling is inverted pyramid storytelling. Leaves us feeling uncomfortable and unresolved. So that’s a really important point as well.
Salz: So the answers here are context, narrative, linear narrative, AI, imagination, innovation, engagement, but achieving this, internalizing, this can take time, maybe even other talents. So what would you leave us with here? Give me a few steps news organizations can take right now to change the old habit.
Adopt the new model, adapt the new prototypes that you’re proposing such as the accordion, and also integrate AI more into this process. What can they do that they’re not already doing?
Kulkarni: When I started doing my research, I think people wanted me to come up with some kind of nonlinear gamified piece of storytelling, innovation, right? And I quickly realized that’s like putting a $100,000 kitchen in a house which doesn’t have a roof, right? We need to sort out the fundamentals. It’s journalism which is broken, and we need to fix that.
So, that comes down to understanding the user need, the audience need, remembering that journalism is for citizens, it’s for people. It’s not for journalists. So our audiences shouldn’t be other journalists. They should be what people really want from journalism. And so we need to listen to that research, not going with preconceived ideas of what we think journalism should be like in the future. We need to listen to what people actually want from journalism and then action that. And in terms of the storytelling, yeah, I think it’s using personalization, meeting people where they are, meeting their needs. And to do that, we need to leverage AI, essentially. Because to do that at scale, we need to use automation.
People want that information, they do want to understand the world, they do want to engage with it, but they’re feeling let down by journalism at the moment. So there’s repressed kind of need for that, which we can tap into. And actually, yeah, people are willing to pay for that if they get something which meets their needs. I talk about it in terms of, if you were working at Procter & Gamble or Unilever, and you never listened to your customers needs, you just carried on doing what you’ve always done without thinking about what you need to change, then you wouldn’t work at Procter & Gamble or Unilever for very long. But actually, in journalism, that’s what we do. We just carry on doing the same thing we always did, because we like doing it and we know how to do that. Regardless of the fact, we know people aren’t engaging with it or consuming it. So, there’s a really clear, hardnosed business model for doing storytelling better.
Salz: Shirish, I can’t thank you enough for sharing and, yes, for being exactly like your research, open, transparent, a bit provocative. It’s been great to have you.
Kulkarni: Thank you so much. It’s been a real pleasure.
Salz: Thank you. And of course, thank you for tuning in taking the time.
Of course, more coming in the series around how media companies are taking charge of changing their business and also increasing revenues. And in the meantime, be sure to check out digitalcontentnext.org for great content and including a companion post to this interview. And of course, join the conversation on Twitter at DCNorg until next time I’m Peggy Anne Salz signing off for Digital Content Next.
Personalized advertising offers relevance. And algorithms that help target specific products and services towards interested consumers can be beneficial. However, collecting massive amounts of consumer data is highly problematic. Some digital advertising methods use large-scale data collection, profiling, and data sharing in order to micro target ads based on behavioral habits and search history. Unfortunately, these practices are all aspects of surveillance advertising models.
From data collection to buying and sharing data, surveillance advertising is questionable in terms of its legality. Data protection regulations like General Data Protection Regulation (GDPR) and California Privacy Rights Act (CPRA) are in place to protect consumers. However, it is clear from this report that market needs a thorough compliance review.
Mechanics of surveillance advertising
Real-time bidding (RTM) with algorithms and automation accelerated the usage and growth of data-intensive advertising. In fact, targeted advertising serves as the business model for two of the largest internet platforms, Facebook and Google. While many consumers are aware that they are being tracked, they are often not aware of the extent of that tracking.
The process of surveillance advertising:
When we click on a webpage, a site identifies the number of advertising slots for sale and begins a bid request.
To compile this bid request, the site assembles as much information about the user as possible. A standard bid request usually contains:
– A user ID set by the supply-side platforms (SSPs) – Full referral URL, the link to the site where the ad is supposed to appear – Birth date – Gender – Location – IP address – Interests or segments previously assigned to the user – Other information collected directly, from a data broker, or inferred
The information contained in the bid request is then used by demand-side platforms (DSPs), working for advertisers, to decide whether, and how much, to bid in an auction for the right to show the advertisement to the targeted audience.
The winning bidder gets to place the ad on the page and to keep a copy of the data in the bid request.
The New Economics Foundation estimates that bid requests on U.K. users containing personal information are sent out at a rate of approximately 10 billion a day. This translates to approximately 164 bid requests per person per day across all the ad exchanges. This information is seen by a multitude of ad tech companies. In fact, vast amounts of personal data are broadcasted across the digital advertising ecosystem.
Advocating for children
Children are protection under the Data Protection Act (DPA) in the U.K. and under Children’s Online Privacy Protection Act (COPPA) in the U.S. The two laws require parental consent prior to any data collection, usage, or disclosure of the personal information for children under the age of 13. Unfortunately, the more children spend time online, the that more digital platforms and ad tech platforms companies target them to gather data. The data collection process also employs algorithms to keep children online longer. This leads to an endless loop of data collection and advertising.
Recommendations
The New Economic Foundation recommends policymakers address surveillance advertising as follows:
Ensure platforms do not serve surveillance-based advertisements to children. And if data is collected, the child will be compensated, and their data will be deleted.
Platforms tracking and collecting data have a legal responsibility to handle all in a fiduciary manner.
Eventually prohibit the practice of surveillance advertising.
Critical context
Extensive online tracking systems coupled with the use of online auction systems shifts the advertising paradigm from contextual to behavioral. Many marketers today prioritize targeting over ad environments that are safe for consumers and advertisers. . Unfortunately, data is now the holy grail, which allows fake news, clickbait, and user-generated content to easily be monetized.
Importantly, GDPR and CCPA legislation are critical steps to reset business strategies and their reliant on extensive third-party consumer data collection. However, enforcement has been uneven at best. And when it comes to kids, it is clear that much more needs to be done to curb these unethical, even illegal, practices.
The Covid-19 pandemic served as a catalyst for massive subscription growth, in part because consumers sought quality journalism to get accurate information about the virus. It also accelerated content consumption trends that were already happening. Let’s explore the main highlights across digital engagement, retention and conversion during a year of increased appetite for news content. We’ll also unpack how publishers can use this data to prepare for future shifts in consumer demand.
Paid trials convert to full price more often than free trials
According to our Subscription Performance Benchmark Report, approximately 17% of new monthly subscribers in January 2020 signed up using a free trial as the pandemic spread around the world. By December 2020, only 5% of new subscribers signed up on a free trial. This indicates that publishers became more confident with their pricing and smarter about promotional strategies as the pandemic raged on.
Free trials can attract a lot of new users upfront. However, they make less financial sense when there’s high demand for content. At the same time, there’s much lower lifetime value gained from users who subscribe on a free trial offer. On average, you’ll lose over a third of free trial subscribers to churn before those users are required to make their first payment. It generally makes more fiscal sense to use paid trials in acquisition campaigns since you earn a little money upfront and retain a higher volume of users over the long term compared to free trials.
Onboarding post-pandemic subscribers is crucial for retention
As many new users subscribed to online publications for the latest news about the pandemic, the strategic focus for media publishers had to shift from acquisition to customer engagement and retention. Convincing people to subscribe is only half the battle; encouraging them to continue subscribing is the other half.
If new subscribers don’t engage with your website early and often, they’re far more likely to cancel the subscription at the first given opportunity. There’s also the risk that they could become “sleepers,” which are subscribers who haven’t visited your site in the past 30 days. According to our benchmark research, an average of 40% of subscribers on media sites are sleepers.
To minimize the number of sleeping subscribers on your site, you need to act fast. Over half of your annual subscribers and nearly two-thirds of monthly subscribers will cancel in the first year if they become inactive. Your mission as a publisher is to incentivize those subscribers so they remain engaged. That’s why onboarding programs are so helpful to minimize churn and boost customer lifetime value. Use programs like guided tutorials and onsite benefits promotion to showcase all of the capabilities a new subscriber can access using their account. These programs not only drive user engagement, but they’ll also create habitual patterns that keep subscribers engaged on your site.
The Covid-19 retention bump endured thanks to annual subscriptions
Given the volume of new subscriptions early in the pandemic, many publishers expected lower retention rates and higher churn as the year went on. However, those fears never materialized. We found that users who became subscribers between March and July of 2020 retained at much higher rates than those who became subscribers prior to the declaration of the pandemic.
In an effort to maintain higher retention rates during the second wave of the pandemic, many media publishers made a concerted effort to increase annual subscription rates across their websites. Annual subscriptions retain much better than their monthly counterparts, and they subsequently carry much higher lifetime value for brands and publishers.
Throughout Q4 2020, many publishers used special promotions and smart pricing strategies to increase demand for annual subscriptions. Publishers used special events like Black Friday and Cyber Monday to create short-term offers for annual subscriptions that, in many cases, more than tripled conversion volume.
Lessons learned
The Covid-19 pandemic continues to be a prominent and dynamic world event. Publishers should use this time to assess how user behavior impacted their subscription models in 2020 to make more strategic business decisions for 2021 and 2022. It is critical to:
Determine when and how people were most likely to subscribe
Analyze conversion rates, churn rates, special offers and trials to understand more about audience behaviors
Optimize websites with targeted messaging and personalized content that incentivizes greater onsite engagement
Maximize revenue opportunities with paid templates designed to boost conversions
By understanding these patterns, your business can make strategic decisions that will boost retention rates and, by extension, lifetime value. This will help you improve growth and develop a sustainable subscription business beyond this last year of high consumer demand.
As digital publishers diversify revenue strategies and develop ecommerce businesses, it is important to understand the consumer purchase process. For many publishers, ecommerce is more than just affiliate links, branded content, and online stores. Publishers are exploring investments in online shops, unique product offerings, wellness programs, virtual learning, and events. With new ecommerce businesses and multiple digital touchpoints consumers, expect an efficient and personalized shopping experience.
BlueVenn, a provider of tools and analytics for marketers, explores consumer purchase behaviors and engagement in a new report, Digital Divide. They partnered with OnePoll to survey 4,000 consumers and 500 marketers in U.S. and U.K.
Key findings include:
Over half (55%) of all respondents in the U.S. report that having a personalized shopping experience with a brand is important to them. Interestingly, only 27% report that brands provide a similar and cohesive shopping experience across all channels.
While marketers report that their businesses collect a lot of consumer data, only four in 10 report using the information. Clearly, it’s important to analyze the data and incorporate the findings to improve the consumer experience.
Fifty-seven percent of U.S. consumer report that they prefer to share their data directly with a brand they trust. This offers a unique opportunity for publishers to grow their ecommerce businesses since they already have a direct and trusted relationship with consumers.
Mobile ecommerce is the new norm in the U.S. Six in 10 U.S. respondents (61%) agree (32% “strongly agree” and 29% “somewhat agree”) that they’ve increased the amount of time they shop on mobile compared to last year.
The top two digital channels that U.S. consumers use to interact with brands include email (61%) and desktop/laptop web browser (51%). Interestingly, Facebook placed fifth (39%).
Close to two-thirds (63% “very important/somewhat important”) of U.S. respondents report that they think it is important for a brand to create a personalized shopping experience.In fact, 58% of U.S. consumers report that they are likely (23% “very likely” and 35% “somewhat likely”) to stop buying a product/service online due to the lack of a personalized experience.
Less than half (43%) of U.S. respondents report that brands understand their shopping need.
Browsing and browsers
When shopping for specific goods and services, U.S. consumers prefer overwhelmingly their desktop/laptop browser. Ranking and ratings:
Clothing, homeware, and exercise equipment – desktop/laptop browser (#1, 48%)
Holiday or leisure – desktop/laptop browser (#1, 54%)
TV, movies, or entertainment – desktop/laptop browser (#1, 38%)
Diversifying product offerings and revenue streams is helping publishers deepen their audience relationship. As publishers continue to build their direct-to-consumer ecommerce portfolios, it’s important to monitor the consumer’s digital shopping experience. Understanding the process of multiple touchpoints and shifts in online shopping behavior provides insight into consumer needs and expectations. There is a growing opportunity for publishers to play an important role in offering consumers a cohesive digital shopping experience.
In business, sometimes incremental improvements are the right course of action. Small steps allow companies to maintain stability and balance while testing out new protocols and procedures. The advertising industry, however, can no longer take such an incremental approach. It’s time for a complete reimagining. After many years of gradual change, advertising is at a critical inflection point. It must enact a completely new and transformational strategy to restore the ecosystem and drive better business outcomes.
What will be the key to a successful reimagining? A clear vision that offers a view — not just of what could be — but of what should be. We must reframe past and pending changes from browsers, device manufacturers and regulators. They offer a massive opportunity to build a modern system that prioritizes consumer trust and transparency, gives publishers control, and delivers high performance for advertisers.
Remember: Consumers love transparent brands they can trust
First, we should recognize that a system that prioritizes people is one that reevaluates the whole experience, not just the moments when data and consent are collected. A study conducted by Microsoft Advertising, tells us 87% of consumers believe data privacy is a human right, not a privilege. Microsoft Advertising also conducted a series of research studies on the importance of trust to brand love and loyalty. The research showed that 85% of consumers will only consider a brand if they trust it. As trust in a brand increases, so does people’s expression of love for that brand, and their loyalty.
When consumers trust the intentions of advertisers and publishers, they are more willing to authenticate themselves. They will actively share their identity and provide other information, which can be used to deliver more value.
Building that trust requires a commitment to developing great customer experiences. This includes guiding language that clearly explains the value exchange. People must be allowed to signal both what they want and what they don’t want from a publisher or a brand. In the digital and mobile worlds, a strong CX capability that enables dynamic personalization serves as a more effective test for finding different ways to engage consumers and uncovering best practices for how and when to request authentication.
Avoid unsavory shortcuts when building new customer relationships
Consumers clearly want a say in how their data is collected and used. True innovators view consumer privacy as the foundation for building the future we all want. Publishers must embrace consumer control of their data and focus on delivering a trusted value exchange that delivers a great user experience. This way, we enable consumers to share their data and identity in exchange for valued content.
It’s time to debunk solutions that bypass direct consent. They are unlikely to stand the test of time. The practice of fingerprinting, for example, creates a synthetic ID in place of a cookie by aggregating signals not meant for creating identifiers. Yet again, such off-label data collection is not transparent to the consumer. Therefore, it can quickly erode consumer trust, resulting in serious reputational risk.
Take control of data to maximize revenue
Results don’t lie. Publishers that lean into the consumer value exchange authenticate more users. People who trust a publisher enough to provide an email or mobile number tend to be more engaged. The impact can be disproportionately valuable to publishers even with authentication rates as low as five, 10 or 30%.
Authenticated users consume more content on average. Therefore, they can deliver more page views. As just one example, the initial results of Microsoft Advertising and LiveRamp enabling brands to buy authenticated inventory show that Microsoft Advertising CPMs alone increased by over 40%.
This is not an either/or scenario. Even before cookies are officially deprecated, publishers can begin to attract more demand. They can also create multiple paths to stable revenue while still running traditional campaigns. This allows them to learn which strategies work best before they are forced to decide on one path or another. Publishers should layer in authentication capabilities now. This lets them use the next few months leading into this year’s holiday season to experiment with multiple, secure solutions that put them control. These experiments should be addressable, contextual, and cohort based. This will allow them to understand the value each approach can generate for their business.
Underscoring the importance of coalescing addressability and authentications, our collective goal should be to increase trust and accountability. We must first focus on authenticated experiences that deliver real value for consumers and marketers alike via permissioned data sets.
Publishers of all sizes need to be single-minded about maximizing their margins. The global ecosystem benefits when we have a diverse landscape of publishers who can cater to the broad and unique interests of individuals. They must also have flexibility and control over their revenue streams, without fear of pricing changes or other potential taxes.
With clarity of vision, our industry can ensure a win-win-win situation
Publishers must not become reliant on single solutions that come with additional expenses based on volume. They risk giving away yield they can’t invest back into their content or their user experience. The only way for advertising to thrive is when publishers have the power to alternate between effective monetization solutions. They must reduce dependence on any one, especially those with the power to squeeze those margins unpredictably. This is exemplified by the recent changes with IDFA. This seismic shift in inhibiting mobile in-app advertising will have far reaching implications, when 80% of app users may suddenly become unrecognizable to mobile publishers.
It is important to recognize the long-term, commercial impact of creating a more sustainable, healthy, and competitive web that works better for everyone. Prioritizing consumer trust and transparency is ethically the right thing to do. However, it turns out it helps the bottom line too —for publishers, advertisers, and their partners. And it’s impossible to overlook the tangible business impact and the halo effect this imparts on enhancing the holistic consumer experience. The fundamental shift toward a more trusted ecosystem is not an incremental approach, it’s a visionary one.
About the authors
Travis Clinger is the senior vice president of addressability and ecosystem at LiveRamp and serves as a IAB Tech Lab board member.
As senior director of global audience ads at Microsoft, Jeff Nienaber supports the native programmatic marketplace and video advertising business as well as data and identity assets.
Media research continues to prove that ad performance is better in premium content environments. From comScore’s 2016 research to more recent reports, World Media Group (WMG) and Integral Ad Science (IAS), findings show that it matters where advertising campaigns run. In fact, running ads on premium publisher sites substantially impacts advertising effectiveness.
ThinkPremiumDigital‘s new research, What’s so premium about premium digital?, further demonstrates the significant impact of content over ad perception. ThinkPremiumDigital partnered with MediaScience to conduct one of the biggest cross-platform ad effectiveness studies.
Their findings confirm that advertising in premium content is more effective than run of the internet and Facebook. The research includes two phases. Phase 1 examines advertising across 252 websites among 5,300 participants in Australia. Phase 2 will continue to explore ad effectiveness in social environments and include YouTube.
Measurement metrics
MediaScience’s research methodology is rooted in the fact that memory builds brands. It also confirms that memory pathways are more open to brand messages when people are consuming information and entertainment.
The analysis includes three stages of memory: encoding (recognition), storage (prompted recall) and retrieval (unprompted recall). Specifically, the research highlights premium digital’s ability to encode memories, which validates its power to build brands.
Encoding is processing incoming information so it can be entered in memory.
Storage is maintaining information in memory for a set amount of time.
Retrieval is accessing or recalling stored information from memory to use.
The brand lift metric represents a composite measure of:
awareness (of the brand, product, or offering);
attitude (opinion on quality, value and appeal);
recall (ability to remember);
favorability (likelihood to recommend); and
intent (likelihood to purchase).
Overall findings
Across display and short-form video content, premium environments deliver 2.4 times better recall. They deliver 1.6 times the brand lift of run-of-internet ads.
In terms of short-form video content, ads in premium environments offer 1.8 times better recall and 2.8 times the brand lift than short-form video on run of the internet.
They also deliver 1.8 times higher recall than Facebook video. It’s important to note that this research uses Facebook as a proxy for all social media. The research looks ad placement on the platform in aggregate, without any distinction of the content on Facebook, premium or not. Future research will include the impact of content brands on Facebook.
This study once again proves that advertising on high quality content sites drives higher brand attention and engagement for both display and video advertising. It recognizes the positive lift from the premium environments as a key driver of needed brand signals. The findings should be a loud wake-up call to marketers to place their advertise in quality and trusted media brands.
It has been frequently said, but it bears repeating: Consumer trust in media is alarmingly low. There is a great deal of speculation around why that might be the case. However, two new research studies — from Reuters Institute and The American Press Institute — dig into the topic. They explore dimensions of consumer trust, their impact on consumer engagement with digital news brands, and unexpected opportunities to engage.
Reuters Institute: What Trust in News Means to Users
The Reuters Institute study explores how consumers think about the attributes of trust for digital news brands. Reuters, spoke with 132 consumers in Brazil, India, the U.K., and the U.S. Focus groups were used to capture conversations and general impressions about trust in news brands.
Important attributes
The Reuters study identifies familiarity, reputation, and likeability as the top attributes driving the perceived trustworthiness of news brand. Interestingly, the findings suggest that familiarity with a given brand is closely linked to the consumer’s impression of a brand’s reputation.
Importantly, the researchers leveraged focus groups to provide insight into the context of each attribute. For example. a news brand’s reputation often develops over time. It can also be determined by a consumer’s historical relationship (i.e., “known in my youth” or “the brand my father respected”). However, consumers can mistakenly think longevity is the same as reputation. A brand’s standing over time does not necessarily equate to quality news reporting, however.
Additional values of trusted news brands include objectivity, impartiality, and balance. Significantly, Reuters’ analysis shows that “subjectivity” can also shape attributes of trust. Respondents note that personal differences frame how people interpret the news. They believe this can be true of journalists as well. Because they see a potential for bias, many consumers generally distrust news as a way to shield themselves from being misinformed.
Further, the research notes that consumers are confused by (or unfamiliar with) the news process. They do not fully understand the difference between hard news and editorial reporting, or (in some cases) even entertainment and opinion. This research reinforces the power of the brand. It also highlights an opportunity for news publishers to guide consumers in their content consumption and in understanding of the digital news process. Possibly, aligning these two in terms of marketing and messaging offers a way to increase understanding and build trust.
The American Press Institute: Studying Moral Values to Understand Trust in the News Media
The American Press Institute’s (API) study analyzes how consumers’ moral values align with journalism values to drive trust in digital news brands. API conducted this study across two surveys with over 5,000 U.S. consumers.
Journalism values represent ideas such as holding those in power accountable for their actions. The API research explores the relationship between consumers’ moral values and their views toward central principles of journalism. They found that not all Americans universally embrace many of the core values that guide journalistic inquiry.
Core journalism values:
Oversight: monitor powerful people and the public
Transparency: information is out in the open and the public knows what is happening
Factualism: facts bring us closer to the truth
Giving voice to the less powerful: amplify the voices of people who are not heard
Social criticism: placing a spotlight on a community’s problems
Among consumers, the two most popular values are factualism (67%) and giving a voice to the less powerful (50%). These are followed by oversight (46%), transparency (44%) and social criticism (29%). Interestingly, only one in 10 consumers (11%) support all five of the core values of journalism.
API found that stories resonate with individuals reflect moral values that align with their belief system. That said, API found that if a story is rewritten to include additional moral angles, it attracts a broader audience including those less trustful of news brands. Importantly, a broader appeal can help rebuild trust with skeptics.
Opportunities to rebuild trust
Both Reuters’ and API’s research add new dimensions to understanding attributes of trust in order to drive consumer engagement for digital news brands. Reuters’ qualitative assessment across several different countries and cultures (that share a reliance on digital media) adds additional scope to attribute definitions. The results are particularly telling in consumers’ subjective interpretation of accuracy. While most of those surveyed said information-accuracy was among the top factors determining whether an organization was worthy of trust, how they interpreted factual accuracy was highly subjective and variable.
API’s research makes it starkly clear that the things that journalism as a craft holds dear do not align with consumer priorities. This mismatch needs to be addressed in order to rebuild consumer trust. However, it is significant that the findings suggest potentially unexplored ways to garner broader public support without sacrificing core journalistic values.
The pandemic triggered further consumer reliance on media for entertainment, information, and social connections. As consumers reenter life outside the home, publishers are assessing how they will maintain strong post-Covid consumer relationships. Deloitte’s new report, Digital Media Trends, 15th Edition delves into this issue. The analysis identifies consumer attitudes and behaviors and how to best serve their needs to form a strong relationship. The research is based on the survey results of 2,009 US consumers in February 2021.
Driving subscriptions
Consumers have multiple free and paid entertainment choices competing for their attention. Content and cost are key factors driving paid video subscriptions. Content, no cost, and ease of access are drivers for ad-supported video services. Consumers often assess subscription costs based upon their willingness to offset price by viewing advertising.
Nearly the same number of consumers prefer to pay for content as those that prefer ad-supported services. Interestingly, 40% of respondents prefer to pay $12 a month for a service with no ads versus 39% preferring a free service with 12 minutes of ads per hour. Understanding how ad-related preferences and expectations around personalization and privacy impact consumer choice is crucial to driving subscriptions, paid or not.
Consumer frustration and churn
The flip side of acquiring subscribers is retaining them. Listening to consumer frustrations is an important action step for all businesses.
Content they want to view is no longer available on the service: 66%.
They must subscribe to multiple services to access the content they want: 53%.
They find it difficult to access content across so many services: 52%.
A service fails to provide them with good recommendations: 49%.
Anchoring consumers in a customized user experiences with an ease of navigation builds audience engagement and prevents churn. The report states the churn rate for streaming video services remained constant at approximately 37% measuring from October 2020 to February 2021.
Impact of data economy
Consumers are wary of data collection. They want more oversight in the data economy and question the value they get from its collection. In fact, eight in 10 respondents (82%) believe they should be able to view and delete the data that companies collect about them. Further, 78% said providers are responsible for protecting consumers’ personal data. Looking to put controls in place, 77% say the government must do more to regulate data collection and its usage. Importantly, publishers should assess ad-related preferences and consumer expectations around personalization and privacy to inform their internal policies.
As media companies navigate their subscription practices, they must continue to keep consumer preferences in focus. An emphasis on data and analytics is key to create a personalized entertainment service for consumers. Further, a customized user experiences makes it easier for subscribers to find content they want to view. Improving the interface with personalization and ease of use strengthens the audience connection. As the competition for audience grows tighter, it’s necessary to take actions that support developing and maintain a strong relationship with the audience.
Research findings show that ad delivery optimization can often skew the exposed audience by gender or race. Specifically, research found that Facebook algorithms used to optimize a target audience discriminated in its delivery of job advertisements. New research, Auditing for Discrimination in Algorithms Delivering Job Ads, expands on this work to present an auditing methodology for gender bias in audience qualifications.
The auditing methodology analyzes the delivery skew of the algorithmic optimization. Further, it detects if the skew is due to ad targeting qualifications or the platforms optimization learning process. Importantly, if offers insight into social platforms’ black box algorithmic systems.
Methodology
Proprietary ad platforms, algorithms, and data make it difficult to audit Facebook and LinkedIn. To overcome this, researchers created an external auditing process. Facebook’s and LinkedIn’s custom audience feature allows advertisers to build audience targets on the platforms. This offers the ability to infer the gender of the ad recipients for platforms that do not provide post-delivery statistics.
The authors, Basileal Imana, Aleksandra Korolova, and John Heidemann, registered as advertisers on both Facebook and LinkedIn. They ran ads for real employment opportunities on both platforms and audited the results.
Audit criteria
To test for a bias in the algorithmic choices of the platforms, a set of ads run to compare audience delivery. Each set of ads must be similar in audience requirements. This permits the audience delivery to equally qualify (or not) audience members to each of the ads with a consistent assessment.
The set of ads must also exhibit a true bias in the real-world. A comparison of the delivered audience with an actual audience bias offers an important point of comparison. Real-life bias and non-bias factors are constantly informing the algorithms in a platform’s continuous learning process. Therefore, if there is a significant skew in the platform’s audience delivery, it likely stems from the optimization process. In other words, the system overrides the requested audience requirements to supply its preferred optimized audience.
Test ads
The researcher’s setup three tests to compare audience delivery. They include pairs of ads for delivery drivers, sales associates, and software engineers. The ads ran on both LinkedIn and Facebook. Campaign goals were exactly the same and included conversion (clicks), to maximize the number of job applicants and reach, to increase the audience exposure.
The first test included ads for delivery drivers for Domino’s and Instacart, both with identical job requirements. Note that, in practice, Domino’s has a higher male composition of drivers while Instacart has a higher female composition.
Audit results
The test results show evidence of a statistically significant gender skew in audience delivery on Facebook but not on LinkedIn. Facebook’s audience delivery is in line with the actual male skew of Domino’s, even though the campaign requested a gender-balanced audience. Facebook’s algorithmic optimization trained on real-life data adjusted the campaign’s audience delivery.
This unique research offers a new auditing methodology to detect bias audience delivery on social platforms. It offers insight into how ad platform algorithms adjust for platform objectives and override the advertiser’s requirements.
Further, testing on Facebook and LinkedIn demonstrates that the methodology is applicable to multiple platforms and that not all social platforms produce biased results. Importantly, this research offers an auditing solution to protect marketers from unwanted biases baked into social platforms black box algorithmic systems.
In the wake of the pandemic-era rise in subscriptions, news publishers are intently focused on retaining subscribers. Reducing churn and increasing retention are fundamental business practices of any subscription business. However, with a vast variety of tactics to engage users, figuring out which ones serve your business best is the million dollar question. The American Press Institute (API) addresses this question in their survey of 526 news publishers to find out what practices are used to maintain customer loyalty. Important to note, the term “subscribers” here encompasses subscribers, members, and donors.
Jeff Sonderman and Gwen Vargo’s analysis of the survey data offers insight into the strategies utilized. The authors identify the top 10 retention tactics and note 12 of the least employed strategies practiced.
Most utilized retention strategies
Four of the top 10 most retention practices use email and social platforms to introduce content and offer reminders of subscription benefits.
Encourage new subscribers to sign up for their email newsletters (90%).
Send welcome emails that highlight features of their subscription(s) including apps, e-editions, rewards programs, etc. and respond to individual concerns and complaints on social media platforms such as Facebook, Twitter, etc. (78%, each).
Email subscribers to remind them about the overall benefits of their subscription (69%).
Analytics also play an important role in subscriber retention. Four core practices analyze subscriber usage on a macro and a micro level.
Use analytics to track what subscribers are reading (89%).
Track data about which digital content online users engage with (86%).
Identify reasons for a cancellation or lapse (74%).
Send surveys via email (68%).
Further, studying subscriber interests and behaviors is important to increase user intelligence. However, most publishers rate their proficiency in doing so as moderate.
The last two of the top strategies use special offerings (72%) and campaigns (69%) to attract and retain customers. Additional backend analysis by demographics, psychographics and content usage also helps optimize pricing by target group.
Least utilized retention tactics
Sonderman and Vargo identify 12 retention practices used by one-third or less of publishers. Importantly, the authors suggest that publishers should review their current practices to see if there are new tactics they can deploy in order to retain subscribers.
Maintaining updated credit card information to eliminate potential friction is important. Approximately 33% of publishers communicate one-to-one on site with subscribers to update credit card information. Many publishers use a third-party resource to automate this process, eliminating the need for personal outreach.
Further, the ability for publishers to identify subscribers at risk of cancellation allows publishers to get ahead of potential churn. Thirty-one percent of news publishers report that they target subscribers with low engagement before their renewal date. They try to re-engage these subscribers with content of interest. Similar, 28% of news publishers report that they segment their subscribers based on a risk of cancellation. Profiling subscribers at risk in advance, can provide the time to re-engage them and reduce churn.
Additional issues and opportunities
Additional retention practices, used by quarter or less of publishers, include targeted content and more personalized approaches to keep subscribers engaged.
Ask visitors to answer a survey while they are on website or app (25%).
Send individual subscribers personalized messages about the content and services they have used (23%).
Personalize content for subscribers to see on website or app based on what they previously consumed (20%).
The authors note that one of the biggest technological needs for publishers is to integrate CRM software that links all subscribers’ identities to their digital engagement. Unfortunately, many news publishers, especially smaller ones, do not have the software, employee bandwidth or budget to execute these analyzes.
Some publishers try to create face-to-face (and virtual) connections to subscribers. Close to one-third of news publishers (31%) offer meetups for subscribers and reporters. While meetups help establish a community connection between reports and readers, they are not easy to executive.
In addition, there are a few practices that are usually managed outside of the publisher. Again, bandwidth and budget are often reasons for publishers to underutilize.
Offer a reward program and discounts on local products and services (27%, each).
Send them free gifts (25%).
Bundle other news and entertainment services for free or discounted prices through partnerships (17%).
With subscription revenues now core to news publishers’ business models, retaining subscribers is crucial to their financial success. Identifying retention practices and investing in business analytics is an important to reduce churn and increase retention. Finding the most effective way to introduce users to the benefits and value of their subscription as well as content of interest pays off.
Social media encourages uninterrupted connectivity. With mobiles in hand and alert settings activated, consumers are continuously connected to social platforms. How does the desire for continuous connectedness impact the consumer experience? And what, if any, are the consequences? Ludmila Lupinacci explores these questions in his research article Absentmindedly scrolling through nothing. His study includes a thematic analysis of qualitative data gathered through a diary-interview method.
Expect the unexpected
Lupinacci suggests that social media is purposely designed to keep consumers continuously connected. Social media allows consumers to access events and people they cannot reach directly. At the same time, these platforms offer the ability to interact with others immediately around these topics. Facebook, Twitter, Instagram, and others social platforms pulsate with likes, re-postings, notifications, and trend lists.
Lupinacci refers to these tools as signals of vibrating life. For many, it offers a sense of community and belonging. For others, it offers the potential for virality, transforming the ordinary into the extraordinary. Consumers have become habituated to expect the unexpected. Social media’s monetization strategy is based on consumer engagement because these platforms derive their revenue through data-driven targeted advertising. Therefore, the more time consumers are connected, the more data they collect, the more targeted ads are served.
Media flow
Like traditional media, social media converts audience attention into revenue. However, the methods used to maintain audience attention are different. Media channels, like television and newspapers, use storytelling, fictional or real, to engage consumers. For example, a television series typically organizes its content into logical sequences to keep the viewer’s attention. It fills time by ensuring that something happens. Lupinacci describes this as an intermission or an imminent interruption from the ordinary. In this way, the TV series captures consumer attention and exchanges for advertising revenue.
However, social platforms in general do not organize events into logical storylines. There is no intermission of the ordinary. Any moment, no matter how mundane or commonplace, can earn event status. In fact, consumers remain engaged because they perpetually wait for something remarkable to happen on social media. And this constant, inevitable (if unsatisfying) engagement is readily monetized.
Consumer impact
Importantly, consumers are aware of the time and energy they spend on social platforms. They often describe themselves as navigating aimlessly without finding content of value. They recognize that social algorithms drive their need for connectivity.
Interestingly, consumers identify five different emotional experiences on social media:
Excitement and enthusiasm about possibilities offered by social media platforms. Their enjoyment is often rooted in the possibility of accessing other people’s reactions to, and experiences of, whatever is happening.
Anxiety and the feeling of discomfort. Consumers express that their state of constant alertness, often prompts “stress-scrolling” or “doom-scrolling.”
Reassurance and a gateway for support, comfort, and help. Social media offers endorsement and validation; whatever you experience is also being felt by others.
Exhaustive and overloaded from the influx of information. Consumers express a sense of pointlessness in participating in social media.
Responsibility to remain connected. There’s the constant pressure to be contactable. Many feel they cannot go offline for week without notifying a few people of their whereabouts offline.
A “live” worth living
Lupinacci’s work focuses around what she calls “liveness.” She points out that liveness has been employed by a range of media industries and technologies to promise immediate access to meaningful events and happenings as they unfold. Social media creates a sense of “the live” — in that the unexpected could happen at any time and in that it fosters a sense of real-time connectedness. However, the emphasis is on creating an anticipation of the possibility of meaning, of eventfulness, of human connection. That anticipation, in turn, fuels the scrolling, which fuels the monetization model.”
According to Lupinacci, constant connectedness alters our sense of time, space and what appears as “live.” And she believes that there are consequences to changing our perception of live events. It affects our capability to make sense of ourselves and as a result surfaces ambivalent emotional experience. In reality, social media’s culture of connectivity is a monetization model.
Traditional media captures the value of “live” and “liveness” and provides a meaningful pause, or interruption. It can connect people across continents around events unfolding anywhere. The storytelling model is designed to deliver value and engagement, which is rewarded through time, attention, and revenue. Social media, on the other hand, capitalizes on consumer’s longing for these experiences, but ultimately monetizes engagement alone, not the value of the experience.