The New York Times, Wall Street Journal, LA Times, and others continue to report increases in subscriptions. Undoubtedly, this is a trend that media organizations of all types would like to get in on. It is helpful, then, to understand who these subscribers are as well as why are they willing to pay for their news. A new study, The 3 types of news subscribers: Why they pay and how to convert them, from The American Press Institute and The Associated Press-NORC Center for Public Affairs identifies the emotional and behavioral factors that affect consumers’ news subscription decisions. The research methodology included the use of in-depth interviews to uncover the values and motivations key to subscription habits.
Three types of subscribers (and how to attract them):
1. Civically Committed: those individuals supporting goals and initiatives that reflect their personal values. The Civically Committed subscribe to a higher-than-average number of subscriptions.
High willingness to pay for news content.
Views their support of journalism as a moral duty.
Subscription decisions are more emotional than practical.
Subscribes to a higher-than-average number of publications.
Prioritizes organizations whose goals and values align with their own.
High loyalty; likely to pay for subscriptions even if they aren’t using them.
Low price sensitivity.
Key descriptors
Likely a news organization member, or donor.
Subscribes and donates to multiple news sources.
Likely donates to other causes and/or volunteers.
Strategies to attract
Publicize the news brand’s mission, values and community role. Ensure the brand’s mission and agenda is public. The Civically Committed support news organization aligned with their thinking.
Partner with civic-minded organizations and brands. Affiliate with causes the Civically Committed are already involved in and become part of their community.
Create events where they can meet journalists and get to know one another.
Reward them with appreciation. The Civically Committed see their subscription as an extension of themselves. Remember to thank them and be personal.
Allow them to donate to a news publication by adding a philanthropic relationship to their subscription. The Civically Committed want to support journalism.
2. Thrifty Transactors: consumers who pay for no-nonsense value and are highly selective in their subscriptions.
Moderate willingness to pay for news content.
News subscriptions are a combination of utility and relevance.
Price sensitive; needs to have high value.
Loyal to a small, highly curated number of publications.
Specific reasons for subscription such as part of a daily ritual.
Key descriptors
Subscribers usually have at least one publication related to hobby or special interest.
Fans of coupon clipping.
May rely on a news publication for its coverage of one topic (look for digital users with high engagement in one area).
Strategies to attract
Provide excellence and ensure content stands out as high value and unique. Thrifty Transactors look to dedicated sources for items that really matter to them. Find these subject areas and serve the Thrifty Transactors.
Consider offering subscriptions by verticals or specialty areas. Thrifty Transactors only want to pay for the content they use so make sure they know the details of the publication’s reporting areas.
Think of magazine marketing partnerships to promote subscriptions of like content.
3. Elusive Engagers: generally do not like subscriptions. They see news and information as a commodity that should be free.
Low willingness to pay for news content.
Utility drives subscriptions.
Sees news and information as a commodity.
Not comfortable with transaction and commitment of subscription.
Low loyalty.
Key descriptors
Likes free trials.
Prefers digital.
Likely to find content through search.
Strategies to attract:
Offer one-time-payment options with no commitment and include easy cancelation policy. It’s important to avoid monthly payment reminders.
Monetize Elusive Engagers outside of subscriptions. Market other products such as books, souvenirs, e-commerce, third-party paid promotions, etc.
The subscriber segments identified in this research are based on behavior, attitudes and beliefs, not demographics. This means an individual’s group will not likely change as they get older. However, further analysis of the segment groups by print and digital usage and demographics are also valuable in establishing marketing and monetization plans. Importantly, pinpoint the key differentiators of the news brand by segments to use in acquisition and renewal strategies.
Though sometimes it seems like we’ve been talking about it forever, Facebook became a leading referrer to publishing websites only in mid-2015, according to Parse.ly data. Around that same time, other news broke that was poised to impact traffic drivers: Google officially launched AMP.
Today, the two news stories again converge. We’ve seen Google take the “referral king” crown back, with Google accounting for 44% of traffic to our network, and 12% of external traffic to media sites specifically coming from Google referrals AMP pages.
We can thank supply and demand for some of this. According to Google, there have been more than four billion AMP pages published and over 25 million domains creating AMP pages. Google purports that AMP brings benefits that can explain the rise in referrals. The web giant commissioned a study that shows that “AMP leads to a 10% increase in website traffic with a 2x increase in time spent on page. For e-commerce websites using AMP, the study also found a 20% increase in sales conversions compared to non-AMP pages.”
While these numbers point to a fairly big success for AMP so far, multiple causes likely contribute to the big picture numbers. Some of this shift to of referral traffic back to Google, AMP or otherwise, may be result of user preference for broader sources of information. Digital Content Next’s recent research showed that consumers have low levels of trust for news they get via social media, which could be a contributing factor. And perhaps the decline in Facebook as a primary driver of publisher traffic reflects Facebook’s desire to keep people in their app to try get a grip on the shifting tide of awakened media consumers.
However, it definitely shows the success of Google’s ability to sell AMP as a non-proprietary solution, versus Facebook Instant Articles. In short, development work done for AMP isn’t constrained to one audience or platform. Our research on referral traffic to publisher websites shows that the additional benefits may be mounting.
Adoption of AMP, it seems, has not just been embraced in Google searches but more broadly across the web. Over 3% of visitors to our publishing network visit through AMP off of Google, from sites like Twitter, Pinterest, and LinkedIn. For context, all of Twitter’s referrals to publishers’ websites only accounts for 2.5% of total external referral traffic.
Whatever the cause, for publishers still considering the adoption of third-party distribution channels, or considering their continued support in 2018, understanding these numbers for your site and for the industry should play a role in decision making. Audience acquisition, engagement, and retention through them becomes not just an editorial strategy, but a product development one as well.
Digital Content Next (DCN) and the Reuters Institute both released significant studies on trust in digital information within a week of each other. Here’s a topline analysis of the many consistencies in the findings important to navigating the future of digital content and building trust in media.
First and foremost, it’s important to note each methodology and identify the differences. Here’s how they compare:Here are some of Reuters’ top findings (and how they compare with DCN’s):
Social media is trusted less than the news media in its ability to separate fact from fiction. Respondents think newsfeeds are filled with inaccurate information, extreme agendas, and strong opinions, perhaps encouraged by social media algorithms.
Supports DCN’s findings of 62% agree “There’s so much random content on social media, there’s no way to tell if an article is credible or not.”
A significant proportion of respondents feel journalists do a good job in checking sources, verifying facts, and providing evidence to back up claims.
Supports DCN’s findings regarding the building blocks of the Trust Model and the importance of key components: brand sites must focus on four key areas to build trust: attribution (confirming multiple sources), reputation or authority, navigation/user experience, and prediction — building a direct relationship with consumers that builds upon past experiences.
In talking about trust, people mention television brands more than any other type of media (e.g. print or online).
Supports DCN’s findings in the regarding top trust brands – Newspaper and TV/Cable legacy brands historically rooted in media.
Some media outlets are taking sides, encouraging polarized set of opinions.
Supports DCN’s recommendation that Brand sites and apps should focus on what’s vital to consumers to drive trust, position their content as regularly updated, respected, and authentic in addition to the core positioning of high quality and trustworthy.
A substantial minority who trust social media, do so for its broad range of views and authenticity.
Source: Reuters Institute
Key Recommendations:
The news media needs to differentiate itself more from information that has not gone through the same professional checking processes
DCN’s recommendation that fake news and distracting settings are significant problems in the digital landscape. A good opportunity for premium publishers to market themselves as a destination to avoid these annoyances.
The media need to do a better job in separating facts from opinion.
Correlates to DCN’s discussion of vital drivers of trust. Premium content should be in-depth, respected, expert and authentic. These are the definitions of trust that move the needle.
Build a more representative media – in terms of age, politics, economic outlook, and gender – is likely to help answer the criticism that media is only looking after the interests of the establishment (we don’t speak to diversification of reporting).
Building trust takes a strong commitment from publishers and platforms, alike, to develop a successful consumer relationship. It requires understanding and strategically implementing components and drivers of trust. Importantly, the need for self-monitoring is essential to ensure accurate and credible reporting is commonly practiced.
Viewability is at the center of every digital media buy. It’s the metric that assures consumers have an opportunity to see a digital advertisement. The Media Rating Council (MRC), an independent third-party, has established a framework for measuring and reporting viewability. The MRC’s standard for viewability includes two factors: the amount an ad is shown on screen and the amount of time the ad is viewed on screen. A display ad is considered viewable if half its pixels are on the screen for one second. A video ad must be on screen for at least two consecutive seconds. The standard is meant to be a minimum threshold for determining an “opportunity-to-see.”
Not surprisingly, the research shows that the more viewable a digital ad is and the more screen time it has, the more likely it is to be effective. The more viewable campaigns are, the more likely they are to lead to a consumer action to buy, click or register, etc.
However, viewability is one of many factors connected to a campaign’s success. Additional metrics such as ad interaction also show a positive relationship with conversions. Specifically, Magna reports a direct relationship between consumers who interact longer with ads during exposure and their conversion rates. For example, the longer consumers interact with ads during exposure, the more likely they are, at some point, to convert to an action.
The research provides confirmation that the MRC baseline of viewability is clearly connected to ad effectiveness. It is significant to note that the research also proves that higher levels of viewability required by some agencies (80% to 100%) has no additional impact on ad effectiveness.
It’s important for marketers to experiment and test viewability rates and engagement levels to find the best performing combinations. Importantly, measurement of campaign success should include metrics that relate to performance goals. Other metrics such as such as cost, conversion task, target audience, ad format, frequency and others may also to the story of an ad’s performance.
Brand safety measures are a key concern for advertisers given recent headlines highlighting safety limitations in the programmatic advertising buying process. Advertisers and brand marketers often resort to open exchanges and ad networks for large volumes of inventory and to reach demographic targets. As a result, their ads may be found next to offensive or inappropriate digital and video content. The CMO Council, in partnership with Dow Jones, examines the impact of unsuitable ad placement on consumer satisfaction and perception of digital advertising in their research report “How Brands Annoy Fans.”
To provide context, the research also provides insights on the consumers’ view of the digital content environment. A full three-quarters of the 2,000 consumer respondents surveyed in North America and in the UK report that they are concerned with the growing number of fake and biased news sites. Further, consumers surveyed rank social media last among their five most trusted information channels, following friends, TV, search engines and newspapers. As a result, 60% of respondents now seek their content from brand sites with trusted content.
These findings indicate that environment impacts the overall advertising experience. Most consumers (88%) state a negative advertising experience may make them think differently about the advertised brand. Nearly half of all consumers (48%) indicate they would rethink purchasing brands or would boycott products whose ads appear alongside digital content that offends or concerns them. Further, 38% report they would lose trust in a brand that advertises next to objectionable content.
Importantly, ad placement in specific channels has a direct impact on how consumers perceive those brands. Additional findings on the effect of ad placement on consumer intent include:
64% of consumers state they respond better to ads delivered from a trusted news site than those that appear on social media or search.
If ads are near to objectional content, 37 percent report it changes how they think of the brand, and 11% state they will boycott the brand.
Advertisers and programmatic platforms need to take these findings to heart as consumers are ready and willing to their business elsewhere. Importantly, where marketers run their ads is just as important as the ads themselves. Brands need to ensure their ads are adjacent to appropriate content among trusted-brand websites in well-lit environments.
What makes a great headline, and why? How can headlines make the casual skimmer stop and read? While much has changed in media’s shift from print to digital, these fundamental questions haven’t. Editors and writers correctly describe headline writing as an art — but with all the technology out there, there is a scientific way to put evidence behind that art, and help publishers grow their engaged readership as a result.
Changing behaviors
Reading, scanning, skipping, sharing – our reading behaviors have changed dramatically in recent years. Chartbeat data shows that on average, only around half (55%) of readers who click through to content actually read what they land on.
The context of headline writing has changed as well. Media objectivity, which involves writing factually true and balanced content, is sometimes at odds with the goals of social media marketing, which values metrics like shares, likes and clicks. Increasing readers’ engagement with content can align objectivity and editorial integrity with the need to grow audience in a world where more than half of traffic to publisher sites is driven by platforms like Facebook.
However, publishers can support those better reading behaviors. Recent Chartbeat research shows that despite our changing reading and writing habits, there are scientific ways to improve the likelihood that something will get read.
The role of language and technology
In an analysis of around 100,000 headline tests and 250,000 individual headlines, we examined linguistic traits of successful and unsuccessful headlines and found that language really does matter.
What we see is that words like “what” and “where,” as well as numbers, quotations and superlatives (like best and worst) lead to more readership, whereas using question marks or time references can actually hurt. Interestingly, short headlines actually have a negative effect on readership of content as well, whereas notably longer headlines have no effect.
In a separate study, we also looked at the impact of headline testing technology and its ability to improve the number of visitors who read for more than 15 seconds. What we found surprised us. In a comprehensive evaluation of headline tests that use Chartbeat’s multi-armed bandit testing model, we discovered that alternative headlines – ones that, without testing, would never have seen the light of day – outperform the original roughly two-thirds, or 62% of the time. That means most headline writers only get headlines right the first time for 38% of stories. But technology can vastly improve these results.
A headline should not only entice readers to click and see more; it should drive consumption of a story. Of those 62% of stories, the alternate headline saw on average a 78% lift in traffic. It also led to a 71% lift in readership, measured by quality clicks: visitors who spend more than 15 seconds or more of engaged time with an article.
The bottom line
While gut instinct around language matters, technology can enhance that ability to find the right fit between content and audience. This, in turn, can dramatically improve engagement with content.
These days, publishers wear many hats. They have to write, edit, promote, monetize, optimize and grow quality audiences. The good news is that science — both in terms of predictive modeling and engagement-focused technologies — can help us improve the imperfect art of writing so we can better connect with readers and, ultimately, with each other.
Fraudulent news poses new challenges in today’s digital society. As such, there is a need for best practices and practical solutions to repair tainted digital information streams. In an effort to develop effective solutions and remedy the information disorder, the Council of Europe commissioned research to delve into the digital information and communication process. The newly released report, Information Disorder: Toward an interdisciplinary framework for research and policy, offers a detailed insights at a global scale and examines the agents, messages, and audiences involved.
The term “fake news” was intentionally not used in the report. Instead, three new terms were introduced to better define the reporting and sharing of false and inaccurate information.
Dis-information is false information purposely created to harm a person, a social group, an organization or a country.
Mis-information is false information not created with the intention of initiating harm.
Mal-information information that is based on reality used to bring harm to a person, a social group, an organization or a country.
The phases and elements of information disorder
Three components are identified in the process of information disorder: the agent, the message, and the interpreter. Agents are involved in all phases of the information chain from its creation, production to distribution. It’s important to explore and provide context to agents to identify them and their motivation. Discovering who the agent is, and the purpose of the message is an important part of the evaluation to help stop the information disorder process.
Evaluating the agent
Is the agent acting as an official person/group (e.g. intelligence services), a politician, a news organization or an unofficial person/group?
Is the agent organized as an individual, an official business group (e.g., PR firms or lobbying groups) or a group casually organized group around common interests?
Is the agent motivated financially to profit from the information, politically to discredit a candidate, socially to connect with a specific group of people or psychologically to gain status?
Is the agent human, automated by technology or both?
What audience is the agent targeting?
Is the agent’s intent to mislead??
Is the agent’s intent to harm?
Examining the message
The message itself also needs to be examined. Analyzing the content for key characteristics is important to determine the accuracy of the information. Asking these questions will also help to identify intent of content.
Is the message for short-term or long-term intent?
How accurate is the message?
Is the message legal or does it include hate speech or privacy infringements, etc.?
Is the message posing as an official source to appear credible?
Who is the intended audience?
Factoring in interpretation
The last component to evaluate in the process of information disorder is the interpreter, the recipient of the message. Audiences, individuals or groups, all react to messages in different manners. Understanding how individuals and groups consume information is critical to understanding the flow of the information. Further, identifying what audiences do with the information, such as commenting, or sharing, are an important part of understanding the intent of the content.
Fighting fakes
A few efforts were introduced last year to stop the information disorder. They include Tim Cook’s, CEO of Apple, call for Public Service Announcement about dis-information, new technologies to take down bots, and the addition of labels to identify different types of content on social media. Facebook and Google have also announced ways to prevent fake sites from earning ad revenue through their advertising platforms. Unfortunately, none of the programs impede the continuous flow of fraudulent content.
The issue is complex and efforts toward solutions need to work across multi-levels using technology companies, consumers, educational institutes and others. Importantly, it’s essential for all constituents to receive steady reminders
Consumers are very familiar with digital recommendations. Suggestions online are a constant and come in all varieties from recommendations on new products to purchase, to new songs for your playlist, to new individuals to connect with to news posts in your newsfeed. As consumers spend more time on social platforms consuming content and expressing their views on just about everything, more data is collected, and more algorithms are employed to extract value from consumer information. However, consumers appear mystified as to what usage data tech platforms collect and how it’s parlayed into algorithms to impact their content results.
The Tow Center for Digital Journalism examines this question and others in their study, “Readers are hungry for news feed transparency.” In all, they conducted 13 focus groups across four cities with news consumers. The goal was to understand consumer usage and to clarify the role of algorithms in terms of tech platforms’ accountability and transparency, particularly in the distributed news environments.
Key findings include:
1. Tech platforms and news habits
Participants claim that their news and information consumption on tech platforms is more of a consequence and not their main intent upon visiting. They believe the ease and convenience of accessing news when visiting social platforms fuels this pattern of news consumption.
2. Algorithms
News audiences understand few details about platform algorithms. In fact, many participants have little awareness of algorithm usage. While, others see algorithms as filters for relevant content and personalization. Still others think their usage remains independent of algorithms and generally overestimate their degree of control on their news feeds. Interestingly, many participants said they are willing to leave tech platforms because of the lack of transparency with their algorithms and privacy practices.
3. Local news
Participants think local news has little to no visibility on tech platforms.
4. Brand
Audiences claim they can recognize publishers’ brands on platforms. They also admit to sharing fake news, thinking at the time it was accurate and truthful. Many participants identify what the Tow Center refers to as the “third-person effect.” According to the participants, they of course, recognize solid news brands but it’s “others” who do not and end up sharing fake news.
Participants link fake news to social platforms and place responsibility on them for allowing fraudulent information to be shared. While consumers debate platforms’ ethical responsibilities, they agree that offering ineffective solutions to identify fake news is not the answer. Further, audiences also see platforms as often having political biases. They think platforms are quite challenged in their ability to remain politically neutral.
5. Privacy on social platforms
Participants are concerned with tech platforms’ black box practices and lack of transparency, yet they appear resigned to the practice of data collection. Surprisingly, data collection is viewed as the price paid for accessing these platforms. Not surprisingly, the younger the participant, the more accepting of a platform’s data collection practices.
6. Business models
Participants acknowledge the value of news content; however, they often engage in practices to avoid publisher paywalls. The ease to which consumers can access news content on social platforms reinforces the practice of non-paid for content.
In terms of advertising, native advertising and the use of sponsored links such as “recommended links” or “partner content” is viewed with little trust and appears to carry negative views on the publisher.
The research suggests a necessary unveiling of algorithm practices for both publisher and tech platforms to maintain a trusted relationship with their audiences. It’s essential to offer tools and education to verify brands and the legitimacy of content and to unveil algorithms, tracking and privacy policies.
The UK TV industry has always punched above its weight class. Smaller than Oregon, with a population equivalent to that of California and Texas (66 million), the British TV sector is a vibrant £14 billion a year ($18.58bn/yr) business, which has created formats, content, and executives, who have made their mark around the world.
So, what the can media organizations everywhere learn from their smaller cousins across the pond? Here are seven ideas and considerations (not, by all means, unique to the UK) worth exploring:
1. Consider moving millennial orientated services online only
We know that millennials consume content differently. They’re more likely to watch video content on devices like smartphones and laptops than older demographics. They’re less likely to watch TV-like services on an actual TV.
Against this backdrop, in 2016 the BBC made their youth targeted TV network, BBC Three, online-only. In part, the move reflected the fact that younger audiences are increasingly consuming less linear TV. But, it also yielded major savings (estimated at c.£30 million / $39.6 million p.a.) as the online-only service requires less original programing, and isn’t burdened with the same transmission and distribution costs.
The BBC’s move didn’t just make financial sense, it was also an effort to more explicitly take content to the spaces that their younger audiences inhabit.
2. Explore opportunities for ad free options
British viewers have grown up in an environment where TV advertising is much less pervasive. The BBC, for example, has no adverts at all, just trailers for other BBC programs and services.
“Seven in ten (67%) say they like to watch TV programs and films on demand to avoid adverts, or because there are no adverts,” UK communications regulator, Ofcom, recently noted.
This preference – coupled with the use of ad blockers on web based TV services – should be a cause for concern, given the continued importance of traditional advertising. One potential solution, explored by the UK’s oldest commercial broadcaster ITV, is to offer a premium IP delivered service that mirrors the ad-free experience provided by HBO and Netflix.
In 2013 the network launched an iOS app that allowed Apple users to watch the last thirty days of their content (from five different TV services) without advertising, as well as live simulcast of ITV3 and ITV4, for £3.99 ($5.27) per month.
The service, called ITV Hub+, has now been rolled out to other platforms including Smart TV’s. (It also costs £3.99 a month.) Will consumers pay more for this convenience? Evidence suggest they will, and this is therefore a model that other broadcasters may want to emulate.
3. Be everywhere
Given the range of ways in which audiences consume – and access content – it’s increasingly incumbent on broadcasters and other content providers to be as accessible as possible.
The BBC iPlayer, an internet streaming, catchup, television and radio service from the BBC, which celebrates its 10th anniversary this year, has always been available across wide range of devices, including mobile phones and tablets, PCs, gaming devices and Smart TV’s.
BBC Three, their youth orientated service, doesn’t just live on the BBC’s own app and web services, it also has its own YouTube channel with full episodes – and entire series – available to watch.
Other UK broadcasters have followed suit. The ITV Hub, for example, is now available on 30 different platforms, including Google Chromecast, and Xbox. At the end of 2016, the broadcaster noted that consumption (the measure of the number of hours watched) is up by 43% in the past year; and, interestingly, that Live TV accounted for c.30% of all requests.
4. Embrace bingeing, archive access, and offline viewing
On-demand services like Amazon, Hulu and Netflix have changed viewing behaviors. As a result, traditional broadcasters need ask whether they too should go “all in” and do things differently.
That might mean releasing new series in their entirety, offering new content for download and offline viewing (which the BBC and others offer) as well as providing “digital boxsets” so that audiences can binge on older shows.
These moves are not just designed to protect revenues and audience share, they also reflect evolving consumers behaviors. Failure to respond to these expectations means that traditional broadcasters risk being left behind.
5. Serve better ads, because audiences still watch a lot of TV
It’s not just online ads that are often terrible, many TV commercials aren’t great either. And yet, we continue to watch a lot of TV, creating prime conditions to deliver strong, effective, advertising to captive audiences.
“The average time spent watching broadcast TV across our 15 comparator countries,” the UK communications regulator noted, “was 3 hours 41 minutes per person per day in 2015.”
That’s a lot of screen time (most of it live viewing) which, when coupled by the mass audiences TV can still reach, continues to remain attractive to many advertisers.
6. Innovate and experiment with new forms of ad delivery
TV’s mass reach makes it an appealing medium for advertisers. Yet, at the same time, we also know that audience’s attention is increasingly fragmented. For many younger audiences, TV is already the second screen, and has been for some time.
As far back as 2012, the Pew Research Center found that 58% of smartphone owners used their phone to keep themselves “occupied during commercials or breaks”. But, Pew found, respondents were often engaged in second screen activity related to what they were watching. This resulted in advertisers trying to find new ways to engage audiences on their second screen. (See some great examples below targeting Game of Thrones fans).
How some advertisers have tried to engage Game of Thrones fans on Twitter.
Personalization, time-shifted ads and the use of products (like Sky AdSmart in the UK) to serve different ads to different households (or different people in the same household) against the same content, may still be relatively small markets, but they’re expected to grow quickly. As such, they’re a technology that broadcasters need to be doing more than keeping an eye on.
7. Recognize online revenues can be a major growth area
In 2016, TV revenues in the UK were worth £13.8bn, a figure which is remarkably resilient considering that TV revenues in 2011 stood at £13.3bn.
Key UK TV Industry metrics. Source: Ofcom/broadcasters/Ampere Analysis/Advertising Association/Warc/BARB
The sector’s revenue mix has also proved to be surprisingly durable. In 2016, 30% of UK TV revenue was generated by advertising, compared to 29% in 2011, subscriptions accounted for 46% of revenues in 2016 and 44% in 2011, and broadcasters enjoyed 30% of total UK display advertising in 2016, down just 1% from five years ago.
However, this relative stability doesn’t mean that sector can rest on their laurels. Finding new revenue sources, remains important. And in this space, online revenues are growing fast.
In 2011, online revenues were worth £0.3bn for UK TV companies. Jump forward to 2016, and this figure was £1.7bn, a substantial increase. Given this rapid growth, and stagnation in other areas, expect more efforts to be focused on this space.
Final thoughts
“Despite fundamental changes in the advertising market over the last ten years,” writes regulator Ofcom in their latest UK Communications Market Report, “the television advertising market has remained very resilient due to its primacy in providing mass audiences.”
That’s not going to change any time soon, but as viewing habits on both sides of the Atlantic continue to evolve, so broadcasters and advertisers need to refine their strategies accordingly. This means finding new ways to capture attention, serve relevant – and increasingly targeted – ads, and experiment with new revenue models.
Three areas that I believe merit more attention are: more flexible pricing models – recognizing that many audiences love to watch certain shows, series or events, but that they don’t necessarily want (or can afford) a year-round subscription – simulcasting shows (nationally and internationally) to prevent piracy, and identifying opportunities to both reduce churn, and discourage the illegal sharing of logons and subscriptions.
What we see in the UK, as well as here in the US, is that although TV’s business model is changing, there are opportunities to diversify both content distribution and income strategies. How broadcasters continue to respond to the challenges – and opportunities – presented by digital disruption, is a subject many of us will continue to watch with interest.
Damian Radcliffe is the Carolyn S. Chambers Professor in Journalism at the University of Oregon, a Fellow at the Tow Center for Digital Journalism at Columbia University and an Honorary Research Fellow at the School of Journalism, Media & Cultural Studies at Cardiff University. (And, by way of disclosure, Damian is originally from the U.K.)
The continuous stream of false information and mounting consumer mistrust challenges today’s media environment. When fake news becomes a daily battle cry for consumers and politicians alike, it’s time to rethink current reporting practices. The PEN American Center’s new report, Making News: Fraudulent News and the Fight for Truth, reviews journalism and media interactions to identify how best to rebuild consumer trust in news outlets today.
Figuring out fakes
What exactly is fake news? It includes clickbait and misleading headlines as well as fraudulent news for profit or political reasons. On the other hand, “good-faith mistakes” or editorial points of view don’t fall under the fake news umbrella. PEN America defines fraudulent news as “demonstrably false information that is being presented as a factual news report with the intention to deceive the public.”
Importantly, while there is no quick-fix to stop fraudulent news, restricting or governing speech is not the solution. That said, digital media’s content and search algorithms are no excuse. Popular information channels like Facebook and Google need to behave responsibly, given their powerful roles. When Google shares content to supply a search result and Facebook curates content for its newsfeeds, they take on the responsibility to ensure the information they share is truthful. Social media and technology platforms need to step up their game to curtail the spread of fraudulent news.
The game plan
The report calls upon users, news outlets, policymakers, educators, social media and technology platforms and others in six key areas to support consumers in their efforts to combat fraudulent news and rebuild trust in media outlets. The six steps approach includes:
1. Educate to create informed consumers of news across all platforms.
Policymakers and educators:
Identify effective forms of news literacy education.
Engage and prepare teachers to educate the public on news literacy.
Use all media platforms to inform citizens about the foundation of news literacy.
2. Equip the public to differentiate between fact and fiction.
Technology, social media platforms and other news intermediaries:
Identify those producing fraudulent news to ensure they do not profit from advertising revenues and marketing dollars.
Develop or invest in technologies and practices to quickly identify fraudulent efforts (e.g. bots) that increase traffic and suggest credibility of information.
Detect fraudulent traffic so it’s visible to users.
Fortify partnerships with independent fact-checking organizations. Ensure their work is easily available and understandable to users.
Encourage news literacy plans and support through funding and partnerships.
Introduce users to content outside their personal views. Ensure users can control what they see and receive.
Appoint independent spokesperson(s) to reply to the public questions on these policies.
Collaborate with academic researchers and civil liberties advocates to understand effectiveness of educational programs and policies.
Ensure employees can speak candidly about preventing the spread of fake news.
Guarantee there is an appeal process for those identified as publishers of fake news.
3. Exemplify the values of collecting and distributing credible news.
News outlets:
Highlight transparency practices including the editing practices and the management of errors.
Carefully label content to identify information reports versus an opinion or analysis.
Ensure independent spokesperson(s) focuses on transparency and accountability.
Assist in the public education regarding the harms of fake news.
Proactively engage in civic and education initiatives to improve media literacy.
4. Engage users of different groups to better understand the passion or trigger points that influence their trust in the news media.
News outlets, social media platforms, educators, research institutes, and civil society:
Identify and understand the drivers of media distrust.
Offer opposing sides of topics to fight fraudulent news.
Include voices from across the political spectrum.
Ensure objectivity in operations and including the reasoning behind conclusions.
5. Expose those who purposely spread fake news.
News organizations and civil society:
Report the ways in which fake news is created and distributed.
6. Empower people to help disarm fake news practices.
Policymakers, news outlets, social media platforms, and civil society:
Refute those who deny validity of news.
Protect sources especially with concerns of national security.
Support the news of those in the minority.
Publicly reject all efforts to denigrate the news media or undercut the legitimacy of their work and reaffirm commitment to the freedom of the press.
Counter government efforts to close or limit media outlets.
Defend freedom of the press.
Consumers, news outlets, social media and technology platforms all have a role in combating fraudulent news. Importantly, empowering consumers is the ultimate solution to reviving trust in media. Today’s users have the right to exchange information but now they need the necessary tools to conscientiously access its credibility.
Over the past year, advertisers have devoted more dollars to programmatic native than ever before. And it’s easy to see why. Programmatic native gives native scale, while bringing more efficiency and data-targeting into the equation. Nativo, TripleLift, Sharethrough, Unruly, and Bidtellect are some of the most well-known players/programmatic native exchanges in this space.
To get a clearer picture of today’s programmatic native ad market, my company, MediaRadar, pulled together some of the most pressing trends on the year so far.
It’sa growing market
The number of advertisers placing native in Q1 2017 was nearly identical to Q1 2016 (2,318 vs. 2,326 brands). However, there was a sharp increase in Q2 2017, where the number of advertisers grew 42%, from 2,100 to 2,981 native programmatic advertisers. Why the surge? Good performance. As I have shared previously, programmatic native is generally evaluated on the same KPIs as display. In a contest against most standard IAB ad display units, programmatic native scores well with high click-rates and engagement. And it can scale.
Penetration is low
Despite the fast rise in programmatic native, 122,241 brands were buying advertising online in the first half of the year. This means that as a% of total, only 2.5% of those brands buy native programmatic. We are only scratching the surface here. Even though large national brands make up the early adopters, there is still significant room for programmatic native to grow. This is welcome news for native exchanges that sell this kind of advertising. They know the opportunity is poised to grow substantially.
Renewal rates are mixed
While total numbers are strong, quarterly renewal rates on programmatic native remain challenged, with only 20% renewing. Specifically, the brands buying in the first half of 2017 share just 20% of the same brands from the first half of 2016. So, for programmatic native to continue its expansion, brands will have to recognize its benefits and make a long-term commitment to the format.
Campaign duration varies
Campaign duration remains short, with most native campaigns lasting a median of one month. In Q1 and Q2 2017, 14% and 20% of advertisers ran multi-month campaigns, respectively. During this time period, renewal rates on longer campaigns were much higher than shorter-term campaigns. This is why renewal rates and campaign duration are often tied together tangentially. Longer campaigns mean more of an opportunity to tweak and amend programs, which feeds into higher renewals.
Programmatic native is on the rise. And while there are some challenges – namely measuring performance of programmatic native and no definitive, standard set of metrics, as well as some market confusion about what programmatic native can offer – the benefits outweigh them. Yes, the market is still in its infancy – relative to its potential – but it’s becoming increasingly popular. And it has a lot of room to grow.
A study conducted by International Center for Journalists survey set out to answer a critical question: Are journalists keeping pace with the digital revolution? Despite making strides in leveraging new technologies, the study concluded that the answer is no.
The State of Technology in Global Newsrooms takes a deep look at the adoption of digital technologies at a wide range of news media organizations worldwide. Working with Georgetown University, the International Center for Journalists conducted the study in 12 languages, and received more than 2,700 responses from journalists and newsroom managers in 130 countries.
Key takeaways include:
Newsrooms still face a deep technology gap.
Digital journalism has made some substantial gains.
In an era when fake news and hacking have proliferated, too few journalists are taking the proper precautions.
While most newsrooms find it challenging to gain trust with their audiences, there are two major exceptions.
New revenue models are emerging, but not fast enough.
Newsrooms have yet to fully embrace analytics data to make decisions.
Journalism is a young person’s profession.
The digital training journalists want is not what their newsrooms think they need.
Today’s media organizations
The report examines technological investment, use, and staffing across different types of newsrooms in the digital age. ICFJ identified three newsroom types based on their primary distribution platforms:
Traditional news organizations, which disseminate information primarily in the legacy formats of newspaper, television, print magazines, and radio. Though these organizations may have a website or some digital presence, their primary platform is a traditional format.
Digital-only news organizations that exclusively publish in an online format.
Hybrid news organizations, which use a combination of traditional and digital formats. Many hybrid organizations have transitioned from being traditional news outlets.
The report finds that digital-only and hybrid newsrooms are outpacing traditional media in most of the world. In fact, according to the ICFJ, news organizations that disseminate content primarily in traditional print, television, and radio formats are disappearing from the global media landscape. Overall, the majority of journalists surveyed work for news organizations that are either fully digital (33%) or a hybrid of traditional and online (40%). About one-quarter are employed by traditional news organizations.
Distribution strategies
Today’s newsrooms have access to a multitude of new platforms and formats — from social media to mobile apps to virtual reality, which they use to distribute their stories and reach wider audiences. Though the range of tools has expanded, the news industry relies heavily on the two social media giants: Facebook and Twitter.
Though digital-only and hybrid newsrooms are more likely to use Facebook, traditional organizations (which use digital but not as a primary distribution format) are not very far behind. Three-quarters of traditional newsrooms reported using the social media site to push out content, compared to 93% of digital-only and 91% of hybrid.
Staffing up
Hybrid organizations are the most likely to cut their newsroom staffs, with 41% reporting that their staff size has decreased in the past year. Traditional newsrooms are a close second, at 38%. Digital-only newsrooms are at the opposite end of the spectrum, with only 17% reporting that their staff size has decreased, compared to the 50% that reported adding more staff members.
Digital-only newsrooms are also more likely to have older personnel – in the 51-55 age group – than both their traditional and hybrid counterparts. Traditional newsrooms also have a higher percentage of staff in the 25-29 age group than hybrid ones, following digital-only newsrooms in this category.
Hybrid and digital-only newsrooms are more likely than traditional newsrooms to have digital content producers/editors and tech professionals on staff, though the number of these positions remains small compared to established roles.
The study shows that many journalists are hired into their positions without experience working in digital media or significant digital skills. While on-the-job-training remains an essential tactic for staff-strapped media newsrooms. However, news professionals almost universally agree that training is important to help them meet the demands of their job.
As the report points out, the digital era is forcing newsrooms to adapt to a constantly evolving space. They face an array of major challenges, including shifting revenue models, attracting loyal advertisers, engaging audiences, and developing new storytelling formats. While journalists (and the media organizations they work for) continue to experiment with a range of digital tools, the report makes it clear that continued investment, innovation, and development of the digital skillset is required.
