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Industry Research

Industry-Research | Supporter Spotlight

Survey reveals 2024 referral traffic trends for publishers

Over the past few years, publishers have seen formerly reliable sources of traffic like Google and Facebook dry up, with no new platforms on the horizon to make up for that loss. Shifts in user behavior and changes in algorithms have left publishers scrambling to respond across both search and referral channels. And with the rise of generative AI-enabled search, the ability to find new sources of referral traffic and build a loyal audience has become even more critical for publishers.

To gain a better understanding of how traffic declines are affecting them and the steps they’re taking to address challenges, Arc XP partnered with Digiday to survey 115 publishers for the report The state of publisher traffic: Framing the evolution and impact of search and referral in 2024. We asked about the referral traffic trends they’re seeing, how those trends have impacted their revenue, and the steps they’re taking to either rebuild their traffic or find other ways to reach and grow their audience.

In this article, we’ll focus specifically on what we heard from publishers about their referral traffic from social media platforms (like Facebook and TikTok), news aggregators (like Apple News), and other third-party platforms (like Reddit).

Referral traffic is an important revenue driver for publishers, with 98% of survey respondents saying that referral traffic has a moderate or very significant impact on their annual revenue. But 2023 proved to be a challenging year for publisher referral traffic, with most survey respondents saying they experienced a 1% to 20% decline.

The publishers in our survey experienced traffic declines across the major social media channels. Respondents named Facebook as a channel where they expect continued declines (82%), followed by YouTube (67%) and TikTok (57%). Given Meta’s announcement that it will de-prioritize news content on its platforms, the decline in referral traffic from Facebook is not surprising. And across all social platforms, opaque changes to algorithms have made it difficult for publisher content to stand out among the vast array of options presented to users.

According to survey respondents, the primary ways referral traffic decline impacts their revenue are decreased advertising ROI (63%) and changes in collaborations with brands, influencers, or other publications (54%). They also cited a change in competitive positioning, change in quality of audience, and a decline in social media engagement (each named by 43% of respondents).

How publishers are responding to referral declines

When asked what challenges they face around responding to the trend of declines in referral traffic, 54% of respondents named building/maintaining strong relationships with external platforms as a challenge. This was followed by adapting to social media trends (52% of respondents). Accurately pinpointing referral sources (49%) and constantly changing algorithms and updates (46%) were also top challenges.

Despite these challenges, the publishers we surveyed are forging ahead with tactics to combat referral traffic decline, including experimenting with new forms of video content and increasing their presence across social channels. 81% of respondents said they are experimenting with live streams and long-form video content, and 70% said they are focusing on short-form original vertical video for TikTok, YouTube Shorts, and Instagram.

Long-form video content will ultimately offer publishers more control over monetization options than short-form videos created specifically for social channels. With long-form videos, publishers can incorporate in-depth reporting that sets them apart from other content sources and encourages deeper reader engagement and return visits.

The “pivot to video” isn’t new for publishers. Unfortunately, they’ve been burned before by making big bets on video content that didn’t pan out. This time around, publishers need to think carefully about what they want to accomplish with their video strategy: is it about getting advertising revenue from the videos? Driving readers from other channels to their website? Or creating longer-term audience relationships?

Surprisingly, only 56% of respondents said they are increasing direct-traffic efforts (newsletters, owned podcasts, etc.). Given the inherent unpredictability of social platforms, all publishers would benefit from thinking about how they can build more direct connections with their readers.

Publisher referral traffic expectations for 2024

When publishers look ahead to 2024, they are optimistic that referral traffic will rebound. Most of the publishers we surveyed expect referral traffic to increase by 1% to 20% this year, a trend that will likely driven by newsworthy events like the summer Olympics and the U.S. presidential election.

Publishers’ cautious optimism about 2024 might also reflect confidence in the tactics they’re implementing to combat referral traffic declines. But with platform changes and user behavior shifts it’s likely that referral traffic will never fully rebound to previous levels. Publishers will need to continue exploring ways to boost traffic across all channels, including owned channels that enable direct connections with readers.

Industry-Research

Consumers value local news, though they fail to support it

Consumers value local news media, with a large majority saying that local news outlets are at least somewhat important to the well-being of their local community according to new research from Pew. Most people also say local journalists are in touch with their communities and that their local news media perform well at several aspects of their jobs, such as reporting the news accurately.

Interestingly, Republicans and Democrats both display significant confidence in local reporting, with 66% and 78%, respectively, which showcases bipartisan support. This widespread trust highlights the local media’s role in ensuring accountability and integrity in governance.

Nevertheless, the landscape continues to shift as more consumers engage with local news through online forums and social media groups. Unfortunately, these days intermediaries have moved to the forefront and diminished the direct influence – and perceived value – of news publishers. In fact, a mere 15% of Americans say they have paid or given money to any local news source in the past year – a number that has not changed much since 2018. Oddly, this coincides with the finding that a majority of Americans (63%) say they think their local news outlets are doing very or somewhat well.

Consequently, local news outlets are re-evaluating their strategies to engage audiences effectively. Addressing how local news businesses can adapt, serve their communities, reignite an interest in, and support for, news media to flourish in the current media environment remains a critical challenge for the industry.

Local news is appealing, but to smaller audiences

Around 85% of those surveyed indicate that local news outlets are at least “somewhat important” to the well-being of their local community. Similarly, a majority believe that local journalists are in touch with their communities and perform well in various aspects of their jobs, such as accurately reporting the news.

However, despite reporting significant value and trust, Pew’s trending data shows that the share of U.S. consumers who actively follow local news very closely dropped from 37% to 22% in the last eight years. Additionally, many consumers are unaware of local news’s significant financial challenges. Of these, 63% (slightly fewer than in 2018) believe their local news outlets are doing very well.

Demographics impact the perception of local news

If attention correlates to valuing local news, the industry needs to pay attention to audience behavior. A decline in attention to local news has occurred across demographic groups, though there are significant differences by age. Young adults are much less likely than their older adults to say they follow local news: In 2024, only 9% of U.S. consumers 18 -29 say they follow local news very closely, compared with 35% of those 65 and older. 

Americans with higher levels of formal education are less likely than those with a high school diploma or less education to follow local news very closely. While 17% of college graduates follow local news very closely, 28% of those with a high school education or less say the same.

Among U.S. adults ages 30 and older who have not paid for local news in the past year, the most common reason they cite is that they can find plenty of free local news. This is likely influenced by the sharing of local news – or at least information about things happening locally – via social platforms. However, as platforms “distance themselves” from the news, the likelihood of people encountering news from a publisher are increasingly diminished.

While 37% cite the availability of free alternatives, the most common reason given by Americans ages 18 to 29 is a lack of interest: 46% in this group say the main reason they don’t pay for local news is that they are not interested enough in it.

Local news consumption shifts to streaming

Streaming offers a viable outlet for local news. With nearly 40% of U.S. households reachable only through streaming TV, local news can deliver a converged linear and streaming advertising strategy to access the total TV audience in a local market. This shift to streaming enables personalization in local news content while catering to individual viewer preferences. It also allows local broadcasters to monetize local inventory across a broader spectrum of premium publishers, reinventing the advertising paradigm.

The evolving landscape of local news presents challenges and opportunities for the future of journalism. While digitization transforms how news is accessed and consumed, local news’ fundamental role in informing communities remains unchanged. Local news outlets can find new and direct paths to the consumer by adapting to changing consumer preferences and embracing digital innovation. By leveraging technology and engaging more interactively with their audiences, these outlets can enhance their relevance and sustain their crucial societal role.

Industry-Research | Video

What Twitch can teach the media about audience engagement

Twitch – the go-to platform for gamers and live streamers – may have something to teach the media about as a news production and engagement. New research shows a generational shift in live news production, emphasizing community-driven storytelling and interactivity and real-time engagement. Amazon-owned Twitch’s popularity among young audiences challenges traditional journalism to confront the realities of how news consumption is changing.

In their paper, Recasting Twitch: Livestreaming, Platforms, and New Frontiers in Digital Journalism, researchers Maxwell Foxman, Brandon Harris, and William Clyde Partin explore Twitch as a new platform for journalists and examine how the platform influences journalistic practices. They analyze three popular Twitch channels: The Washington Post (WaPo), Hasan Piker, and Patriots’ Soapbox (PSB). The authors chose to focus on these three channels due to their popularity and distinct modes of news production thereby offering a comprehensive view of the platform’s impact on journalism.

The research highlights several themes regarding news production on Twitch: the concept of liveness, various styles and formats used, engagement with the audience, professional identity and boundaries, and the platform’s relationship with digital intermediaries.

A Twitch approach to live news and entertainment

Central to Twitch’s influence on journalism is its unique approach to “liveness.” Liveness refers to audiences routinely tuning in and interacting with creators. The platform encourages viewers to actively contribute during streams through Chat, which also becomes content that hosts react to aloud. The real-time back-and-forth entertains users.

While WaPo relied on exclusive coverage and traditional broadcast formats, Piker and PSB (which appear to no longer be on Twitch at all) integrate pre-existing content and engage directly with their audiences, fostering a sense of community and immediacy. This dynamic interaction blurs the lines between creators and consumers, redefining the traditional roles of journalists and audiences.

Media style and format

Each channel exhibits its style and format, reflecting the diversity of content on Twitch. The Washington Post’s channel (which hasn’t broadcast since May 6, 2024) took an approach that resembles traditional broadcast journalism. Piker’s is a social media-inspired mix of news and entertainment. PSB offers hyper-partisan commentary. Twitch provides a wide range of approaches to news production, which allows news brands to cater to diverse audience preferences.

Professional identity and boundaries

Each channel navigates journalistic boundaries differently. WaPo adheres closely to traditional journalism practices. However, Piker and PSB embrace their roles as ideological commentators, blurring the lines between journalism, entertainment, and political activism. This fluidity in professional identity can challenge traditional journalistic integrity and objectivity norms.

Audience engagement lessons for media

Audience interaction is central to all channels, with each streamer fostering a collaborative relationship with their viewers. Piker and PSB rely on audience contributions for content and validation, while WaPo maintains a more traditional broadcast format with limited on-air engagement. This direct interaction enhances viewer engagement and fosters a sense of community, continuing to blur the distinction between creators and consumers.

Twitch and media audience engagement

This study recognizes Twitch as a way to offer new and innovative forms of journalism that challenge traditional norms and practices. Its unique approach to “liveness,” diverse styles and formats, and dynamic interaction with audiences could impact how journalists produce news as it reflects how audiences engage with information they enjoy.

ESPN’s Esports channel (active almost daily as of May 2024) has 88.8k followers
https://www.twitch.tv/espnesports

However, while Twitch has lessons to teach legacy news organizations, it seems few have found a sustainable model on the platform. In addition to the sites included in the research, it appears that channels for Wired, Complex, Rolling Stone, and Vice have all gone dormant. In any case, this research highlights the evolving relationship between live streaming, entertainment, and news.

The popularity of Twitch (as well as other social platforms) among young audiences needs to offer more than competition for media brands. It is important that we experiment by going where the audiences are. However, it is also important that we begin to understand the reasons audiences gravitate towards these platforms to find ways to better attract and engage them.

Industry-Research | Innovation

Technology innovations drive 2024 media trends

New technologies will be critical to the media landscape in 2024, converging with trends towards immersive, personalized experiences and the increased impact of the creator economy, according to Arthur D. Little’s State of the Media Market 2024. The report is subtitled “Back to Balance: A Year of Prudent Economic Expectations,” reflecting the authors’ belief in the sector’s recovery and stabilization following a rocky 2023. Read on for a few takeaways from this extensive report.  

The media embraces new technologies

A persistent theme in the ADL report is the need to employ new technologies to improve operations, engage new audiences, and customize experiences.

  • Artificial Intelligence (AI) and Machine Learning (ML) continue to transform the media landscape, helping to automate manual processes, personalize content and experiences, and enable data-driven decision-making to power industry growth. However, for all its utility and potential, AI is a powder keg of potentially explosive issues, as seen during the WGA strikes (which resulted in greater protections and compensation for writers). The ADL report maintains that early adopters will benefit from AI innovations, even as the regulatory and ethical landscape around AI continues to evolve.
  • VR and AR add dimension to immersive experiences for customers and will increasingly merge with other new technologies in the development of cutting-edge user experiences.
  • Cloud computing facilitates agility and reduces costs. Cloud gaming continues to expand globally, driven in part by immersive experience.
  • Big data and analytics should be wisely employed to discover customer preferences and behavior and inform industry decision-making.
  • Social media continues to be vital to the overall media industry, with huge capacity to engage audiences, build brand awareness, and boost content discovery. Platforms such as Twitch, Reddit, Discord, and TikTok are enticing content creators with AI tools that facilitate video and music editing, while also developing tools to label AI-generated content.

Audio is a big opportunity

Perhaps it’s a sign of multitasking culture, but the public’s appetite for music, podcasts, and audiobooks has remained robust and is forecast to remain strong.

  • Music streaming saw almost double-digit growth globally during the pandemic, and that growth is forecast to continue at a somewhat slower but still steady rate. The U.S. was the main driver, contributing about 40% of the growth in the global music streaming market in 2024. Spotify continues to dominate as a platform. Most streaming services increased consumer prices in 2023 but also expanded options such as audiobooks and podcasts.
  • Podcasts are still climbing in popularity and attracting advertisers. A significant portion of the public are tuning in to news podcasts, especially in the U.S. 19% of U.S. residents surveyed have tuned into a news podcast in the last month, compared to an average of 12% globally. Sweden is just behind the U.S. in news podcast use at 17%, with the UK lagging at only 8%, according to the ADL study.
  • Audiobooks continue in popularity overall and will benefit from a boom in education publishing (which is expected to achieve double-digit growth between 2020 to 2025), and in self-publishing. Spotify has moved into the audiobooks business, offering 15 free hours of audiobook listening to paid subscribers in the U.S., UK, and Australia.

Traditional news vs. the “creator” economy

Creator culture and the resulting creator economy have grown, and AI tools are making even it easier for individuals to create and edit content. Brands are recognizing the power of influencer marketing and giving creators more leeway to put forth fresh, albeit less polished, content.

A flipside of the enthusiasm for interactivity and user creation is declining interest in newsprint and linear television. Younger generations are driving this change. In the UK, only people aged 55 and older cited television as their primary source of news (42%). Those under age 45 showed a strong preference for online sites and apps as news sources, followed by social media. People under 25 relied on social media above all, with 41% of people in that age group citing it as their main source of news, according to the survey.

A concerning aspect of this trend is the lack of regulation, which makes misinformation much easier to launch and spread. Print news struggles to compete with free but often less reliable digital news platforms. Only a small minority of all age groups (ranging from 6% of people 55+ to 0% of those 45-54) in the ADL’s UK survey cited print as their primary source of news. Bundling and partnerships may be one path to combine more traditional linear media sources with more fluid and creator-friendly platforms.

Recommendations for media companies

In addition to the key theme of embracing and leveraging new technologies, the report’s authors offer a few more recommendations.

  • Forge strategic partnerships to reach new audiences, pool resources, and share expertise.
  • Balance user privacy with data-driven decision-making.
  • Invest in customer relationships, using new technologies to better understand and communicate with users and tailor content accordingly.
  • Deliver excellent content and experiences. There’s no substitute for outstanding content. Audiences seek high quality, engaging, unique experiences, so media leaders must invest in content that rises above that of competitors.
Industry-Research | Innovation | Video

Generative visual AI in news organizations: challenges and opportunities

News has long relied on the power of visuals to tell stories: first through illustrations and more recently through photography and video. The recent rise in access to generative AI tools for making and editing images offers photojournalists, video producers and other journalists exciting new possibilities. However, it also poses unique challenges at each stage of the planning, production, editing, and publication process.

As an example, AI-generated assets can suffer from algorithmic bias. Therefore, organizations that use AI carelessly run the risk of reputational damage.

AI-generated images can suffer from algorithmic biases. As examples, without specifying any demographic or environmental attributes, text-to-image AI generator Midjourney returned four images—all of light-skinned men and all in seemingly urban environments—for the prompt, “wide-angle shot of journalist with camera.

However, despite the risks, a recent Associated Press report found that one in five journalists uses generative AI to make or edit multimedia. But how are journalists using these tools, specifically, and what should other journalists and media managers look out for?

I recently undertook a study of how newsroom workers perceived and used generative visual AI in their organizations with Ryan J. Thomson and Phoebe Matich. That study, “Generative Visual AI in News Organizations: Challenges, Opportunities, Perceptions, and Policies,” uses interviews with newsroom personnel at 16 leading news organizations in seven countries, including the U.S. It reveals how newsroom leaders can protect their organizations from the dangers of careless generative visual AI use while also harnessing its possibilities.

Challenges for deploying AI visuals in newsrooms

Mis/disinformation

Those interviewed were most worried about the way in which generative AI tools or outputs can be used to mislead or deceive. This can happen even without ill intent. In the words of one of the editors interviewed:

When it comes to AI-generated photos, regardless of if we go the extra mile and tell everyone, “Hey, this is an AI-generated image” in the caption and things like that, there will still be a shockingly large amount of people who won’t see that part and will only see the image and will assume that it’s real and I would hate for that to be the risk that we put in every time we decide to use that technology.

The World Economic Forum has named the threat of AI-fuelled mis/disinformation as the world’s greatest short-term risk. They rank it above other pressing issues, such as armed conflict and climate change.

Labor concerns

The second biggest challenge, interviewees said, was the threat that generative AI posed to lens-based workers and other visual practitioners within news organizations. AI-generated visual content is much cheaper to produce than paying for bespoke content but the interviewees noted that quality is, of course, different.

An editor in Europe said he didn’t think AI tools would take peoples’ jobs. Instead, he felt it would be others who apply these tools well who would be hired instead, as the newsroom can thus be more efficient by using them.

The third biggest challenge, according to the interviewees, was copyright concerns around AI-generated visual content. In the words of one of the editors interviewed:

“Programs like Midjourney and DALL-E are essentially stealing images and stealing ideas and stealing the creative labor of these illustrators and they’re not getting anything in return.”

Many text-to-image generators, including Stable Diffusion, Midjourney, and DALL-E, have been accused of training their models on vast swathes of copyrighted content online. The two biggest players in the market that said they are taking a different approach are Adobe (with its generative AI offering, Firefly) and Getty (with its offering, Generative AI by Getty Images).

Both of these claim they’re only training their generators with proprietary content or with content they have license to use, which makes using them less legally risky. (Although Adobe was later discovered to have trained its model partially on Midjourney images.)

The downside of not indiscriminately scraping the web for training data is that this affects the outputs that are possible. Firefly, for example, wasn’t able to fully render the prompt: “Donald Trump on the Steps of the Supreme Court.” It returned four images of the building itself sans Trump along with the error message: “One of more words may not meet User Guidelines and were removed.”

Adobe Firefly wasn’t able to fully render the prompt “Donald Trump on the Steps of the Supreme Court.” It returned this image of the building itself, instead.

On its help center, Adobe notes, “Firefly only generates images of public figures available for commercial use on the Stock website, excluding editorial content. It shouldn’t generate public figures unavailable in the Stock data.”

Detection issues

The fourth biggest challenge was that journalists themselves didn’t always know when AI had been used to make or edit visual assets. Some of the traditional ways to fact-check images don’t always work for those made by or edited with AI.

Some participants mentioned the Content Authenticity Initiative and its Content Credentials, a kind of tamper-evident metadata used to show the history of an image. However, they also lamented significant barriers to implementation. These included having to buy new cameras equipped with the content credentials technology and also re-develop their digital asset management systems and websites to work with and display the credentials. Considering that at least half of all Americans get at least some news from social media platforms, content credentials will only be effective if they are adopted widely across the industry and by big tech giants, alike.

Despite these significant risks and challenges, newsroom workers also imagined ways that the technology could be used in productive and beneficial ways.

Opportunities for deploying AI tools and visuals in newsrooms

Creating illustrations

This is how text-to-image generator Midjourney responded to a prompt about visualizing generative AI. Journalists said they could see the potential for using generative AI to show difficult-to-visualize topics, such as AI itself.

The newsroom employees interviewed were most comfortable with using generative AI to create illustrations that were not photorealistic. AI can be helpful to illustrate hard-to-visualize stories, like those dealing with bitcoin or with AI itself.

Brainstorming and idea generation

Those interviewed also thought generative AI could be used for story research and inspiration. Instead of just looking at Pinterest boards or conducting a Google Image search, journalists imagined asking a chatbot for help with how to show challenging topics, like visualizing the depth of the Mariana Trench. Interviewees also thought generative AI could be used to create mood boards to quickly and concretely communicate an editor’s vision to a freelancer.

Visualizing the past or future

Journalists also thought the potential existed to help them show the past or future. In one editor’s words:

“We always talk about how like it’s really hard to photograph the past. There’s only so much that you can do in terms of pulling archival images and things like that.”

This editor thought AI could be used in close consultation with relevant sources to narrate and then visualize how something looked in the past. Image-to-video AI tools like Runway can allow you to bring a historical still image to life or to describe a historical scene and receive a video in return.

Image-to-video AI tool Runway allows a user to bring life to a still image from history.

More guidance (and research) needed

From our research, which also discusses principles and policies that newsrooms have in place to guide the responsible use of AI within news organizations, it is clear that the media industry finds itself at another major crossroads. As with each evolution of the craft, there are opportunities to explore and risks to be evaluated. But from what we saw, journalists need more guardrails to guide their use and allow for experimentation and innovation in ethically sound and responsible ways.

Diversity, Equity & Inclusion | Industry-Research

Women’s athletics drives audience attention 

It has escaped no media executive’s notice that women’s sports teams are on a rampage. However, media leaders may not be investing in coverage of women’s sports and athletes proportionally to the value they deliver. 

The 2024 women’s Final Four game between Iowa and UConn garnered the largest audience for any basketball game in ESPN history. More viewers tuned in for the women’s NCAA championship than the men’s – by over four million viewers. Disney sold out of ad inventory going into the Final Four, with women’s March Madness advertising revenue doubling from last year. Women’s Final Four games commanded ticket prices 47% higher than those for men’s games (although not in proportion to seats available); and Indiana Fever rookie Caitlin Clark is currently finalizing an eight-figure deal with Nike. 

The stars are not just shining on women’s basketball. The National Women’s Soccer League signed the largest media deal in women’s sports history in November 2023, and Women’s College Volleyball recently shattered an all-time attendance record. More female athletes than males now represent Team USA at the Olympics and they have been winning proportionally more medals.  

Influence goes both ways 

Support from sports franchises is critical to the development of women’s sports, but so is media attention and investment. While teams and athletes lend their fame to media companies and advertisers, the reputation and popularity of teams and athletes are also influenced by media coverage. Decisions about which Olympic events get covered and which athletes get interviewed impact public perception of female athletes and sports. 

The study A Quarter Century of Prime Time’s Summer Olympics examined how women’s sports were framed for audiences over the past 25 years. Researchers analyzed 311 hours of NBC primetime Summer Olympics coverage and found female Team USA athletes were underrepresented in media coverage in proportion to medals won. Representation has soared in recent years though, with equal screen time given to men and women. In fact, two thirds of the athletes and coaches interviewed by NBC at the Summer 2021 Olympics games were female- indicating that women athletes are attracting more than their share of fans.  

However, the study found that at the 2021 Olympics, only 24% of the non-athlete sources interviewed – such as anchors, reporters, commentators, and analysts – were female. The sports media field is still largely male dominated, even as interest in female athletes rises. Improved gender equality among sports reporters, commentators, and others in media positions adjacent to athletics could help grow interest around women’s sports even more. It also positions media companies to better take full advantage of audiences’ increased interest.  

Female sports superstars drive views 

The explosion in women’s NCAA basketball viewership can be attributed in part to fandom for athletes such as Iowa Hawkeye’s Caitlin Clark (now with Indiana’s WNBA team, Fever) and South Carolina Gamecock’s Kamilla Cardoso (now with the WNBA’s Chicago Sky). Interest in the WNBA Draft soared to an all-time high after the record-breaking season, quadrupling the number of viewers for this year’s draft over last year.  

Superstars like Clark and Cardoso are bringing home the bacon for those who invested in them. As recently pointed out in an NPR interview, when Clark declared for the WNBA draft, Indiana Fever’s average ticket price doubled. Teams across the WNBA saw bumps in ticket sales at or near sellout levels when Clark is slated to be in town.  

Some worry the “Clark Effect” had an outsized impact on the spectacular ratings this past season. However, new stars are on the horizon. Stellar freshmen players include USC Trojan’s Juju Watkins, Gamecock’s MiLaysia Fulwiley, and Notre Dame’s Hannah Hidalgo. Viewers who admired their skills this season are likely to be tuning in next season to follow their progress. 

The fandom factor 

As fans rally around rising stars of women’s sports, new research emphasizes the importance of fandom among young viewers. According to the 2024 Digital Media Trends by Deloitte Center for Technology, Media & Telecommunications: 

  • 35% of young people surveyed say sports team fandom is important to their identity.  
  • Gen Z participants were especially likely to cite fandom as a component of their identity- whether they identified as fans of a sports team, movie franchise, music artist, or video game. 
  • People who consider sports fandom important to their identity were more likely to engage with sports content. 

About 10% of those surveyed were dubbed “M & E super fans” – people who consider fandom for a sports team, musician, video game, film, and TV series all important to their identity. These super fans were more likely to pay for streaming subscriptions and on-demand entertainment services. They were also more likely to use multiple social media platforms. While these super fans can have a higher churn rate, they may be attracted to cross-platform experiences and cost-saving bundles, according to Deloitte.  

Fans contribute greatly to media hype-building and the development of cross-media franchises. According to the Deloitte study, media companies can leverage the power of fandom in multiple ways. 

  • Seek deeper engagement with and understanding of fans. This might involve more granular interactions via online group forums and discussions.  
  • Discover burgeoning fandoms, nurture and learn from them.  
  • Consider the intensity of fan bases, not just their size. A smaller group of passionate fans may wield more influence than a larger but more casual audience. 

Once fandom is established, viewers often remain loyal even when their favorite athletes are off their game. The interest in gymnast Simone Biles and skier Mikaela Shiffrin is proof of that. Even after Biles had to withdraw from much-anticipated 2021 Olympic events due to “twisties” and Shiffrin was disqualified from her two best events at the 2022 Olympics, viewers remained glued to coverage of them, and both continue to thrill fans and score lucrative endorsement deals to this day. As one fan tweeted supportively when Shiffrin had to opt out of the 2024 World Cup Giant Slalom in Australia, “You owe us nothing, Mikaela. Save it for the Olympics.” 

Women’s athletics: more than a passing fad 

There are many signs that escalating interest in women’s sports is more than just a moment. With fandom increasingly important to young audiences, and female athletes tearing it up on court on field, media and entertainment executives will do well to evaluate their investment in women’s athletics.  

Media execs can deepen their investment in women’s sports by bolstering gender equality in adjacent media positions, evaluating their coverage of women’s events and athletes, and nurturing the fandom ecosystem. As Laura Correnti, founder and CEO of Deep Blue Sports + Entertainment, put it in an interview for NPR: “If you build it, they will come.”  

Industry-Research

Bust newsroom burnout without breaking the bank

Burnout among newsroom employees has risen to critical levels. According to a recent study by the Reynolds Journalism Institute (RJI), 84% of current journalists and 88% of those formerly employed as journalists say burnout has impacted them personally. Over 90% of both groups say they have observed burnout among colleagues. More than a third of all journalism professionals surveyed agreed that covering news is increasingly challenging today, compared to the past.  

Burnout often appears as exhaustion, mental distancing from work, and reduced efficiency. For individuals, quality of life is impacted. For businesses, retention and productivity of the workforce are at stake. On a societal level, widespread burnout among news professionals threatens to jeopardize the high-quality reliable journalism necessary to maintain an informed public and a healthy democracy.  

Solutions for newsroom burnout 

The remedies to address newsroom employee burnout proposed in RJI’s study, The Burnout Crisis in Journalism: Solutions for Today’s Newsoom, sidestep those many executives currently find prohibitive, such as hiring more staff and raising salaries. Instead, the study focuses on solutions deemed most desirable among staff that are within reasonable reach of employers. The findings offer insight proactive leaders can utilize to improve career satisfaction and work-life balance in the workforce. 

A total of 1,140 participants from across the industry, representing all 50 of the United States, completed the RJI survey. Of the participants, 39% were currently active journalists, and 21% were currently active in management. Former journalists and managers made up 15% of the survey participants, while 12% represented other aspects of the profession, and 12% were students and faculty members in journalism higher education programs. 

Survey respondents chose two of 10 solution areas to address in more depth. Tellingly, the top five selected included: 

  • Work hours and flexibility options. 
  • Coverage responsibilities and workload. 
  • Changes in newsroom culture. 
  • Time off and vacation options. 
  • Additional or improved benefits. 

The other five solution areas which garnered less enthusiasm were: management training, career support, mental health support and resources, newsroom team building, and trauma training and resources. 

Critical issues to address burnout

Agency: Journalists and other newsroom professionals express a clear desire to have more control over their workflows, job responsibilities, work environments, schedules, and output. 

Flexibility

Journalists and managers want more flexibility when it comes to hours and work shifts – including the option of four-day workweeks, hybrid shifts, and remote work options. 

Recognition

Acknowledging the valuable work of employees would help reduce burnout, according to 84% of current journalists and managers, and 93% of former journalists and managers. 

Time off

Participants almost universally agreed that more vacation time would help with work-related fatigue. 100% of former news professionals and 94% of current managers and journalists say that more days off would ease burnout. 

The authors of the study put forth concrete solutions to mitigate newsroom employee burnout. Many of these can be enacted relatively quickly and without major financial consequences: 

  • Offer employees a four-day workweek option. 
  • Allow more hybrid shifts. 
  • Enable remote work from home at least once a week. 
  • Offer more flexible shifts, enabling employees to choose when they work, as long as they complete the required hours and/or deliverables. 
  • Evaluate and adjust workload balance among individual journalists and teams. 
  • Provide additional days off. 
  • Let workers have more input on content and how work gets done. 
  • Evaluate newsroom culture with an eye towards increasing recognition and acknowledgement. 

Newsroom burnout ripples across the pond 

Journalist burnout is reaching crisis levels outside of the US as well. Research from the UK finds more journalists disconnecting from social media to preserve work life balance, and even to avoid threats and harassment. However, this move could potentially stymie their careers because social media plays a key role in discovering and connecting with new audiences, boosting important news content, and facilitating investigative research.  

Before publications join new online platforms, it’s important to weigh ramifications in terms of employee workload and digital safety. Where such risks are unavoidable, newsrooms should consider ways to mitigate potential impacts. For example, rather than suggest employees manage stress on their own, UK researchers advise facilitating group discussions among colleagues aimed towards shaping long term policy. 

As in the US, UK journalists studied are weary of leadership shifting the burden to staff by suggesting they distress by using their free time to pursue therapy, yoga, or meditation. These activities often leave underlying systemic issues in the workplace unresolved.  

News executives worldwide must act on mitigating burnout now to sustain the vitality and integrity of the profession. In the U.S., strife around upcoming national elections is sure to increase strain on journalists. Proactive steps such as those suggested by the RJI study can help reduce stress, keep top quality professionals on the job, and sustain a landscape of abundant, reliable information for the public. 

Industry-Research

How to engage young news consumers

Young news consumers understand the value that news can play in their lives, but are often disinterested in it or frustrated with how it’s being delivered to them. It isn’t a surprise that news brands tend to focus on older consumers with larger disposable incomes. However, no one can deny the importance of engaging and building future audiences.

A new report from FT Strategies and Medill’s Knight Lab, “Next Gen News” aims to help news media producers understand the needs and behaviors of younger news consumers so that they can better serve these news consumers. particularly as they come to dominate content consumption in the future. The report also points to the fact that we frequently see the behaviors and preferences of younger consumers eventually adopted by older ones as well, which gives their attitudes additional weight.

Emerging behaviors of young news audiences

The research finds that the next generation of news consumers exhibit four key emerging behaviors:

1. Digital simul-tasking

They fluidly transition between dissimilar tasks (messaging friends, buying things, playing games, catching up on socials, listening to a podcast) while they’re on their phones.

2. Sensemaking via digital discourse

They rely on the personal opinions of others in digital contexts to frame and understand the news.

3. Filtering through trusted networks

They seek out sources of information from people that they know, or feel like they know (e.g. their favorite creator), in real life.

4. Sophisticated searching

They have honed their own sophisticated search skills on social media platforms and in online communities to avoid information overload.

What young consumers need to navigate news

To navigate information, the research found that younger audiences also adopt different modes of consumption which can occur throughout the day to satisfy different news needs:

Sift

They need simple, low-effort ways to keep up with and discover relevant news.

Substantiate

 They need straightforward ways to follow up on and verify news that has sparked their interest.

Study

They need access to content that educates, upskills and inspires them (when they want to dive more deeply).

Socialize

they need information that they can share that makes them feel current, connected and socially validated.

Sensemake

They need different perspectives and other accessible ways to process and understand complex topics.

The ideal news experience for young audiences

Most news producers operate under the assumption that young audiences’ news consumption takes place on mobile phones and is primarily accessed through social media and video. While the research points out that this approach is not wrong, they found that it lacks the level of nuance required to build significant audiences for the future.

After extensive experiments and interviews with 45 young news consumers, the researchers found that that the ideal news experience for the 18-25 year old respondents revolved around three important factors: trusted source, personal significance and desired storytelling.

Rebuilding trust with young news audiences

For most media organizations today, the issue of trust is of particular concern. Traditionally news brands have relied on trust signals that lean into brand and credentials and actually avoid any personal information about the makers of news. However, younger news consumers may be more inclined to trust reporters over monolithic brands, particularly if they are more transparent about who they are. In fact, it might be beneficial to news organizations to help journalists build their personal brand.

The report suggests that media brands might better make use of the lived experiences and personal stories of journalists and other subject matter experts to build deeper connections with the next generation. However, they point to the difficulties of achieving this without undermining journalistic notions of balance and fairness.

News that matters to young audiences

Deciding what stories matter most has also long been the provenance of news providers. It is common to assume everyone is interested in “hard news” (or believe that they should be) and therefore over-index on reporting of topics like politics, international affairs, economics, and science. It is important to recognize that while younger news consumers know that these are important topics, they are bombarded with content and seek out a personal connection to information to give it relevance that will allow it to rise above the noise.

By adopting a broader definition of news that incorporates infotainment and giving more space to “soft news” topics, news brands can better engage younger audiences and provide entry points into more difficult topics that serve different life stages. These audiences want to understand how a piece of news directly impacts their life and those around them. They also appreciate context and explainers that help to bridge gaps in their knowledge. And they want to feel that they can take action; that they are part of a solution working with their community on big social, political, and economic issues.

Storytelling formats that engage young news consumers

Historically, news producers have sought out singular and uniform formats that would attract younger audiences, such as the industry-wide “pivot to video” in the 2010s.  However, the research found that format preferences were dependent on several factors, not least the mode that consumers were in. For example, those in the Sift mode may be more likely to look for short form videos or TLDRs, while consumers in the Study mode are more likely to consume long-form podcasts.

To meet the needs of younger audiences, news producers must acknowledge that there is value in a diverse portfolio of formats that match an individual’s preferences or situation (time of day). In other words, they must not default to any one storytelling structure that doesn’t align the kinds of emerging styles and formats that are growing in popularity. And it is critical that news organizations adopt an experiment-led approach that allows them to validate audience demand.

The time to act – to attract young news audiences – is now

Certainly, we have seen that consumer behavior and expectations shift as each generation matures. However, the authors of the “Next Gen News” report point out that news producers can’t afford to wait to build relationships with younger audiences. Instead, they need to make the effort to meet them where they are now to be perceived as a trusted ally moving forward.

It is critical to understand the shifting information consumption trends shaping the expectations of younger news consumers. By developing trust-based relationships on their terms, news brands can engage and interact with these audiences now. This requires adapting to the information environment they live in, and adopting an open, experimental mindset that maintains the values of quality news while adapting to serve the next generation of news audiences.

Industry-Research | Video

Most people opt for free, ad-supported streaming

The ubiquity of streaming services is evident in their widespread adoption across various models, including subscription-based and ad-supported platforms. In fact, nearly every U.S. household (99%) subscribes to one or more streaming services. Of those, the majority (58%) are willing to endure occasional interruptions in exchange for cost savings.

This sentiment underscores a growing trend toward prioritizing affordability without sacrificing the viewing experience. In addition, 62% prefer free, ad-supported streaming over paid subscriptions. New research, The Stream 2024, sponsored by Tubi, examines the streaming surge and reflects a fundamental shift in how people consume content. These days, convenience and flexibility take precedence over traditional television viewing.

Further, on-demand streaming services are the new norm in entertainment consumption. As households cut the cord to traditional cable subscriptions, streaming services are now integral to daily life for millions. From disrupting the sports-streaming landscape to championing representation and diversity in content, millennials and Gen Z are at the forefront of this cultural shift. However, as these demographics grapple with financial constraints, they are increasingly reevaluating their relationship with streaming services.

Viewers’ advertising preferences

Consumers viewing ad-supported streaming services ad preference:

  • Like those on TV, standard ad breaks are strategically inserted at convenient plot point breaks within an episode or film (35%). They provide a fitting pause that harmonizes with the content’s flow. 
  • Personalized ads that align with consumer interests and viewing journeys offer an enhanced experience. Most viewers (67%) prefer ads relevant to their streaming content, while 29% appreciate targeted ads tailored to their preferences.
  • A notable 35% of audiences embrace quirky or unconventional ads for an added dose of enjoyment: Surprise and delight viewers with the unexpected.

Budget constraints and content preferences

While the attraction of streaming is undeniable, viewers are increasingly mindful of their spending habits. With subscription costs rivaling traditional pay TV services, price sensitivity is rising, particularly among younger audiences. Consequently, many are reassessing their streaming habits, with 27% admitting to using more services than they plan to in the future.

Moreover, viewers crave variety and fresh content. Their preferences lean towards a vast selection of shows and movies (69%) and new or original content (61%). As such, there is a growing demand for tailored content experiences that cater to diverse tastes and preferences.

This report suggests that ad-supported freemium models are poised to play a pivotal role in shaping the future of content consumption. By offering a blend of quality content and reasonable spending options, platforms can cater to consumers’ evolving needs while presenting compelling opportunities for marketers. Notably, the future of ad-supported services relies on a holistic viewer journey where ads amp up rather than interrupt the narrative.

Tubi’s research also suggests that integrating artificial intelligence (AI) holds immense promise in enhancing content discovery and personalization, addressing viewers’ dissatisfaction with current recommendation algorithms. As technology, tastes, and behaviors evolve, the onus is on streaming platforms to anticipate and adapt to shifting trends, delivering engaging narratives and seamless viewing experiences.

Streaming quality time and self-care

Streaming has taken on a role beyond entertainment, fostering a role in human connection and personal empowerment. For many, streaming represents an opportunity to bond with loved ones, with 71% of viewers citing it as a form of quality time spent with family or friends. Moreover, many view streaming is a form of self-care, with 68% of individuals leveraging it to carve out precious alone time in their hectic schedules.

The rise of on-demand streaming represents a paradigm shift in how audiences consume and engage with content. As streaming services continue to develop, understanding and adapting to evolving viewer preferences and market dynamics is essential for both platforms and marketers. Streaming platforms can shape meaningful connections with audiences by embracing innovation, diversity, and affordability.

Diversity, Equity & Inclusion | Industry-Research

Women just might achieve editorial leadership equity – in 50 years

Top editorial positions within news organizations are crucial in informing and shaping public discourse and understanding. The composition of these positions influences the narratives presented to the public and reflects the industry’s commitment to diversity, equity, and inclusion—and to representing the diverse audience the news media serves.

That said, editorial roles are still largely filled by men. According to Reuters Institute’s Women and Leadership in the News Media 2024, only 24% of the 174 top editors across the 240 brands covered in the report are women, despite the fact that, on average, 40% of journalists in the 12 markets are women.

In its fifth annual report, Reuters Institute for the Study of Journalism’s Women and Leadership in the News Media 2024 highlights the representation of women in leadership roles within the journalism industry and offers insights into the ongoing disparities that persist. The research finds that, though there has been improvement, it is taking place at a glacial pace.

Under-representation of female editors

Reuters delves into the nuanced dynamics among 240 major online and offline news outlets in 12 diverse markets. The 12 markets include Kenya and South Africa; Hong Kong, Japan, and South Korea in Asia; Finland, Germany, Spain, and the UK in Europe; Mexico and the US in North America; and Brazil in South America. The research examines cultural norms, institutional practices, and societal attitudes toward gender roles in each market.

This year’s study shows that although women constitute a significant proportion of journalists in many markets, their representation in top editorial positions remains disproportionately low. The subtle relationship between the percentage of female journalists and their representation in top editorial roles is evident. The research highlights the complex factors influencing career advancement in journalism and the broader news media landscape. Further, it indicates that external societal factors are not the primary impetus for this phenomenon. Rather, they are intrinsic to the profession and industry.

The report’s authors note the periodic industry focus on diversity and gender equity in the news media. Certainly, this is important as it drives change. However, they caution that the current interest in addressing the lack of diversity may be ebbing away.

These observations underscore the complex interplay of factors shaping the composition of top editorial roles. They suggest that addressing the issue requires a multifaceted approach that includes internal practices and industry culture. This recognition is crucial for fostering a more inclusive and representative media landscape that resonates with diverse audiences and rebuilds trust in journalistic institutions.

News media forecast for gender equity

This report emphasizes that while there’s been some progress over the years, the pace of change is very slow. For instance, Reuter’s analysis covering five years from 2020 to 2024 shows a marginal increase from 23% to 25% in the proportion of women among top editors. However, projections cautiously suggest that achieving gender parity in these positions could be an achievable, if a distant, goal. A linear projection based on the observed two-percentage-point change over four years indicates potential gender parity by 2074. Alternatively, conducting an average analysis across five years and 10 markets suggests that achieving gender parity among top editors may never occur at the current rate of change.

Further, the change varies within our sample. In six countries, the percentage of women in top editorial positions increased compared to 2020. Conversely, Mexico (6%) and Japan (0%) remained unchanged, while Germany (from 27% to 25%) and South Africa (from 47% to 29%) decreased.

As the research continues to track developments in gender diversity among top editors globally, it underscores the need for proactive measures to address systemic inequalities. The journalism industry must strive toward a more representative and responsive media landscape by prioritizing a culture of empowerment and support for women in leadership.

Diversity, Equity & Inclusion | Industry-Research | Video

Hollywood’s diversity-driven returns don’t align with investments

In Hollywood, where creativity meets commerce, diversity is a central theme, not just on the screen but also behind the scenes. Box-office numbers demonstrate the power and profits wielded by audiences of color and women: People of color dominated opening weekend sales for 14 of the top 20 films in 2023, while while female moviegoers dominated sales for three films in the top 10, according to the latest Hollywood Diversity Report.

UCLA’s annual Hollywood Diversity Report, now in its eleventh edition, offers insight and guidance for the industry in representation, inclusion, and profitability. This report examines diversity within Hollywood’s top films and TV shows, showcasing the realities between demographics and the bottom line. It delves into dimensions such as race, ethnicity, gender, age, sexual orientation, religion, and disability status. The study offers a better understanding of Hollywood’s diverse landscape using data from sources like The Studio System, Variety Insight, IMDb, comScore, and Box Office Mojo. The report provides valuable insights into the industry’s efforts to reflect society’s diversity by tracking data and their correlation with audience preferences.

Cast diversity

Despite the demonstrated success of diverse casts, the report highlights disparities in gender representation. Despite significant gains, women’s share of top theatrical film leads declined to 32.1% in 2023 from 38.6% in 2022. This decline underscores women’s ongoing challenges in securing prominent roles within the industry.

Moreover, the report delves into the representation of individuals with disabilities, an area that has historically received less attention. While the report shows some progress, adults with disabilities remain underrepresented as theatrical film leads in 2023. Only 7.1% of all top theatrical film roles include actors with a known disability.

Further, the report uncovers disparities within racial and ethnic groups and gender identities. While certain groups, such as Asian and MENA (Middle East and North Africa) individuals, approach proportionate representation, others, including Black, Latinx, and multiracial individuals, continue to face significant underrepresentation.

Budget allocation and financial performance

Budget allocation also emerges as a factor affecting diversity within the industry. The report underscores the correlation between diversity and box office success, revealing that films with casts featuring 31 to 40% BIPOC (Black, Indigenous, and People of Color) enjoy the highest median global box office receipts. Notable titles include Barbie, The Hunger Games: The Ballad of Songbirds & Snakes, and Shazam!

However, films with BIPOC leads are also likelier to have the smallest and largest budgets, highlighting the uneven distribution of resources and opportunities for diverse talent.

In addition, BIPOC audiences emerge as a critical demographic for the industry, with most opening weekend domestic ticket purchases by BIPOC moviegoers for seven of the top 10 and 14 of the top 20 films in 2023. Additionally, films featuring casts where more than 30% of the actors are BIPOC account for nine of the top 10 and 15 of the top 20 films at the global box office.

Global distribution and the importance of intersectionality

The report also sheds light on disparities in global distribution and representation, revealing that top theatrical films with Black and Asian leads are less likely to have distribution in China compared to other racial and ethnic leads. However, films featuring Latinx and multiracial leads are more likely to have distribution in China.

Moreover, the report highlights the importance of intersectionality. Films featuring casts from 41% to 50% BIPOC post the highest median domestic box office, and those with casts from 31% to 40% BIPOC dominate the international markets. These findings challenge the notion that “diversity does not travel,” emphasizing the global appeal of diverse storytelling. As the industry continues to navigate the dynamics of diversity and representation, this report serves as a vital resource for understanding Hollywood’s evolving landscape. Overall, the report offers insights into the state of diversity in Hollywood and the challenges in achieving true representation. Looking closely at this data shows that having various types of people in movies and TV contributes to their popularity, and profitability.

Industry-Research

Media companies can learn about growing audiences from creators

Social platforms and creator-generated content are undeniably popular among audiences. In particular, digital-native platforms and individual creators resonate strongly with younger demographics, who increasingly consume content on mobile devices. A newly released study, 50 Richest Content Creators, highlights this dynamic and the rise of digital content creation. The report examines the earnings, follower count, efficiency, and platform preferences of the top 50 creators, offering a comprehensive view of the growing creator economy.

From June 2022 to June 2023, the top 50 social media content creators collectively earned $700 million. With a combined follower count reaching 2.92 billion, these creators average an impressive $239.68 per 1000 followers. Digital media companies must examine creator-generated content and identify what appeals to their target demographics. Understanding this appeal and relevance is crucial for media businesses to capitalize on new content opportunities.

Top performers and platforms

The study highlights TikTok, YouTube, and Instagram as these influential creators’ primary platforms. TikTok emerges as the frontrunner, commanding 40% of the total followers (1.2 billion), followed by YouTube at 24.8% (724.8 million) and Instagram at 22% (642.2 million). Interestingly, most creators are millennials (56%), followed by Gen Z (40%) and Gen X (just 4%).

Jimmy Donaldson, also known as MrBeast, is the highest-earning creator, earning $82.3 million and having 377 million followers. Others like Rhett & Link, Preston Arsement, and Ryan Kaji follow closely, each earning $35 million and having follower counts of 51 million, 39 million, and 36 million, respectively.

Elliot Tebele, the founder of FJerry LLC and a prominent figure in meme culture, expands beyond content into business ventures ‒ board games and Jaja tequila. He has a total of 25.6 million followers across platforms and earns $1,172.20 per 1,000 followers, amounting to $30 million in earnings in 2023. Tebele’ brand extension and business ventures showcase cross-over opportunities in other business verticals.

Diving into the creator economy

The report highlights key areas for media companies to explore when navigating the creator content ecosystem. Examining each area will help formulate a media brand’s creator content strategy to best align with evolving consumer behaviors and preferences.

  1. Platform preference: Understanding why top content creators favor certain platforms shows the shifting dynamics of social media. User trends, engagement, and content consumption highlight the potential for audience reach and monetization.
  2. Generational trends: Identifying the breakdown of top creators by generation sheds light on the demographics of content creators and their audience. Marketers can use these profiles to target their products and services to specific demographics.
  3. Economic impact: Analyzing content categories will help identify broad and niche categories and new opportunities. This will also provide earnings by top content creators.
  4. Monetization metrics: Analyzing “Earnings per 1K Followers” to provide information on how effectively creators monetize their content and audience. This metric is a clear and powerful sign of a creator’s talent in turning their audience into valuable financial returns because getting the most value from followers is crucial.
  5. Global perspective: While the data predominantly focuses on creators from the U.S. (representing 80% of the top 50 creators), understanding these trends can be crucial for international expansion.

Embracing and leveraging creator content enables media companies to enhance their competitiveness within the digital landscape. Careful analysis, identification, and alignment of appealing creator content can deepen audience engagement and loyalty. Furthermore, creator content presents opportunities for revenue generation through partnerships and sponsorships, providing avenues for diversifying revenue streams.

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