Americans are watching fewer big live events on TV — as seen in declining viewership of the Super Bowl, Oscars, etc. And you can count the Winter Olympics as another victim of those changing habits. A recent Gallup poll confirmed that lower ratings will likely follow. But Comcast and NBC aren’t letting that get them down. Instead, they are pushing even harder into social media and new platforms.
And it’s not just a way for NBC to increase its social footprint and beat criticism of #NBCFail memes of years past, when viewers were unable to access solid coverage because of tape delays and commercial interruptions. With less people watching linear TV broadcasts, multi-platform viewership on digital and social is likely going up, and NBC is pushing hard into different platforms to stay ahead of the curve. It’s a way to engage advertisers and audiences — especially younger audiences — for the future.
Here’s a look at how NBC and other publishers will take on the Winter Games this year.
NBC Goes All-In on Social
This tweet has already gathered 45,000 retweets and nearly 124,000 likes as of writing:
The tweet from NBC Olympics is just one example of a social strategy that appears to be working: Push content online right away. Research out of the Rio Olympics from 2016 reflected skyrocketing numbers for social viewership, and there was no reason to anticipate those figures would decline.
So, NBC is seizing control over the narrative of the Olympics. It’s broadcasting the games live for the first time, streaming clips on Facebook, posting videos on YouTube and Twitter, and investing heavily in a Snapchat presence that also includes hiring BuzzFeed to produce a daily, Olympics-themed Snapchat Discover channel. NBC and Snapchat struck a partnership — one of several, as NBCUniversal invested $500 million in Snap Inc. when Snap went public last year — to broadcast exclusive content on Snapchat.
That Snap had a solid earnings call right ahead of the Opening Ceremony this year also gives the company an extra boost of recognition. Snap may be suffering the fallout from Instagram and Facebook copying some of its core features, but it has long pitched itself as a “complementary, second-screen platform for live and linear TV,” as Digiday’s Sahil Patel wrote. And that’s a selling point when you think about the ways linear TV habits are changing.
Publishers, Take Note
Alongside NBC’s huge push into social distribution, a few publishers are also engaging audiences in new ways to boost their own metrics down the line. The New York Times, for example, announced a “live messenger experience” with the Times’ deputy sports editor, Sam Manchester, where he’ll be messaging directly with audiences who want a closer, behind-the-scenes, personal take on the Olympics.
With different mediums for consumption — and therefore disparate methods for measuring consumption — Discovery Communications is consolidating data from linear broadcasts, digital platforms, and social media engagement metrics, to get a better picture of who’s tuning in and who is tuning out of watching the Winter Olympics. Discovery has the rights to broadcast the Games across Europe and will share these results with their clients and partners. While no measurement approach is perfect, it’s a huge step to prepare for a future where understanding metrics can make or break an editorial or ad strategy. It’s not a question of whether other publishers will follow suit, but when.
Google’s Plan
What conversation about distribution can take place without acknowledging the influence of large gatekeepers like Google? Google’s search algorithm has long been key in ensuring people can actually find all the content publishers are putting out there. This year, Google is filtering live video, VR video, and YouTube video into its search results. It’ll offer users location-specific updates about a country’s rankings and other top news stories from the Olympics. And subscribers to YouTube TV can stream over 50 hours of live video coverage, including VR content.
Let’s be clear: The efforts in social viewing and highlight reels for the Winter Olympics this year are not a one-off endeavor. Insights gleaned from how it pans out this year will help better cater to multi-platform consumption in the future — not just for the Olympics, but for all content moving online and on social. And as live events lose their luster on linear TV, more publishers will consider ways to move to social viewing while still driving revenues along with attention.
Strategies for differentiating their premium news and entertainment companies in an environment of disruption, trust issues, and monetization challenges were the focus of the annual closed-door members-only Digital Content Next (DCN) Summit held Feb. 8-9 in Miami, Florida.
DCN CEO Jason Kint updated attendees on consumer privacy, net neutrality, and press freedom policy initiatives. He said that pressure on platforms will increase this year and that advertisers will seek greater transparency. Kint cited findings from DCN’s new Distributed Content Revenue Benchmark Report, which found that publishers only garner 5% of their revenue from social platforms. However, he also touched upon the growth in paid content, on-demand video, and promising signs of sustainable advertising models.
Trust
For the digital media industry, Trust has reached a crisis level, Kint said. He and other speakers throughout the event pointed to the 2018 Edelman Trust Barometer, which reveals a low consumer perception of the media, platforms, and advertisers—particularly around digital.
An absence of trust has been a driving factor toward regulatory scrutiny in the U.S. and abroad. It has also profoundly affected digital advertising, one of the mainstays of the industry. Kint applauded DCN members for embracing DCN’s new tool for rebuilding trust: TrustX. The cooperative private programmatic marketplace serves as a collaboration platform for marketers and publishers to create innovative advertising solutions that drive measurable value and improve the consumer experience with confidence and safety at scale.
Kint was far from alone in extolling the importance of trust in the digital content marketplace, however. Fatemeh Khatibloo, principal analyst at Forrester Research cited the building blocks for trust, which include integrity, competence, transparency, privacy, and data security.
David Sable, Global Chief Executive Officer, Y&R, noted that trusted brands employ honesty, environmental sustainability, and kindness. He also pointed out that millennials are keen to identify trusted news sources. Building trust starts early, according to Sean Cohen, president, International and Digital Media, A+E Networks, citing how brands such as the History Channel have become a trusted source for students.
Brian Stelter, Katy Tur, Arianna Davis, and Jorge Ramos
While Edelman’s barometer noted a five-point jump in trust of journalists, a social media-weaponized world has given way to readers and viewers expressing anger, often anonymously and without consequences, as vividly reported by a panel of journalists— Arianna Davis of Refinery29, Jorge Ramos of Noticiero Univision, CNN’s Brian Stelter, and Katy Tur of MSNBC Live.
Brand Quality and Context
People won’t pay for brands that don’t focus on quality, noted Andrew Essex, former CEO of Tribeca Enterprises and Droga5 [pictured, top]. Quartz President and Publisher Jay Lauf also emphasized value-based selling over commodified volume selling.
Context is critical, he said, adding that marketers “are terrified” about ads appearing on an exploitive YouTube video or inadvertently funding fake news on Facebook. And Hearts & Science research on negative reach confirms advertising appearing next to content a consumer finds offensive does more harm than good according to the agency’s president Zak Treuhaft.
Sean Cohan, President, International and Digital Media, A+E Networks & Jason Kint, CEO, Digital Content Next
And, in a world dominated by memes and disembodied news delivered via social platforms, “Context is king,” according to Sean Cohan, President, International and Digital Media, A+E Networks. For example, he pointed to the History brand’s increased emphasis on providing a larger historical context for today’s news, such as the history of sports figures’ involvement in political protests.
Disruption and Opportunity
Disruption has led to a competitive marketplace imbalance as DCN member companies try to transform their business models, as Kint noted. At the same time, disruptive technologies, such as voice assistants, can create significant opportunities.
Loren Mayor, COO, NPR, spoke of the station’s mission to connect with people through storytelling journalism and is using on-demand audio and podcasting to enhance audience growth and engagement.
Smarter use of data and respectful personalization were subjects that came up in a number of conversations and presentations. More-informed data will help drive value, according to Lou Paskalis, SVP, Enterprise Media Planning, Investment and Measurement Executive, Bank of America Merrill Lynch.
Marcus East, EVP & Chief Technology Officer, National Geographic
Marcus East, EVP, Product & Technology/CTO, National Geographic, said that successful brands create personalized experiences and help consumers save time and money, create emotional connections, offer life-changing elements, and promote positive social impact.
That said, in today’s uncertain digital environment, the hallmarks of reputable journalism have reemerged as critical for consumer trust and attention. Michael Anastasi, VP News, USA Today Network, Tennessee pointed to importance of the Indianapolis Star’s investigative coverage of U.S. Olympic gymnastics doctor Dr. Larry Nassar, which stands out in a time of local news outlets’ survival uncertainties.
Anastasi said that USA Today leverages its local/national symbiosis on to inform some of its stories. He cited the brand’s coverage of the opioid crisis across all platforms—and with national, local, and individual ramifications. The comprehensive coverage was made possible through a sponsorship from BlueCross BlueShield of Tennessee.
In addressing financial sustainability in non-profit journalism, ProPublica President Richard Tofel noted significant growth in donation-based revenues since the 2016 U.S. presidential election. The non-profit model seems to be working for ProPublica as Tofel said that they launched with a staff of 25 nine and a half years ago and now number more than 100.
Diversification and Monetization
Ed Davis, EVP & CPO, Advertising Products, Fox Networks Group
Unsurprisingly, revenue was a key topic at the Summit. And while advertising remains a critical focus, diversification was a dominant theme. In all aspects of monetization, good consumer experience and engagement were essential. As Ed Davis, EVP & CPO Advertising Products, Fox Networks Group put it: “Attention is currency.”
Maggie McLean Suniewick, President, NBCUniversal Digital Enterprises & Tracy Corrigan, Chief Strategy Officer, Dow Jones
Maggie McLean Suniewick, President, NBCUniversal Digital Enterprises, showed off the many ways the company’s Olympic coverage is tapping into a wide range of platforms to engage target audiences wherever they might be. Bloomberg Media’s initiatives include global partnerships that help it transcend the competitive U.S. market according to Scott Havens, Global Head of Digital, Bloomberg Media. And The Washington Post has launched 15 products specifically designed to engage consumer interaction according to Jarrod Dicker, The Post’s VP of Innovation and Commercial.
The History Channel is leaning into new platforms and partners with The New York Times on stories and photo spreads. Sean Cohan, President, International and Digital Media, A+E Networks said that the company is seeing doubled social engagement, significant newsletter interest, and substantial boosts in YouTube video revenues.
Marty Moe, Vox Media President, said his company focuses on finding ways to grow quality, scale, and audience across its eight brands while retaining relevancy on each platform. However, diversification brings challenges such as tracking and measuring performance on multiple platforms, noted Christy Tanner, EVP & GM, CBS News Digital CBS interactive.
Dr. Jens Mueffelmann, CEO, Axel Springer Digital Ventures GmbH, President, Axel Springer USA, said his company’s success in global acquisitions is based on later-stage investment, development and partnership. While its successful classified ad profits have stunned critics, Mueffelmann urged companies to “stay paranoid” and continue to keep a close eye on emerging digital technologies and players.
On the heels of the news that The New York Times added 157,000 digital subscriptions in the 2017 fourth quarter, pushing its subscription revenues – which comprise 60% of overall revenues – to more than $1 billion, COO Meredith Kopit Levien encouraged everyone to get into the subscription business. It’s important to understand what drives subscribers, she said. For The New York Times, it’s the resources to create better original content, including 250 daily stories, a popular crossword puzzle and a cooking app, she said, noting “our strength is as a brand.”
While challenges in trust, brand quality, disruption and diversification continue to throw roadblocks up in the news and entertainment industry, Kint emphasized that for DCN members, there is strength in numbers, citing The New York Times’ subscription victory as a victory for all DCN members because of what it symbolizes for the industry.
At the core, DCN members are focusing on what they do best and continue to innovate and experiment in order to best serve audiences.
“All of our members have a direct and trusted relationship with your audience and with your advertisers,” Kint told the packed conference room. “They come to your brands because they know what they’re going to get when they give you their valued attention or valued advertising dollars.”
The shift to abundance is a very well-known trend in the media industry, and something that most publishers are struggling with. But the dynamics behind this trend are not unique. As soon as you get too much choice in a market, it starts to split in in two very different directions.
The Supermarket Effect
One direction is what I call the “supermarket effect,” where you focus on building scale with content that covers people’s general needs. This works great if you are big publisher, because then you can use your size to drive revenue, even though the value per article is extremely low.
But this is also where the problem is. Because, if your editorial strategy is to be a supermarket, being small just doesn’t work. There is no market for a smaller supermarket.
This is the problem we now see in the media. Most publishers have traditionally been centered around creating “packages of random content,” which, fundamentally, means the they are designed to be a supermarket of content. This worked great for a while. But in today’s world of abundance, it puts a lot of pressure on smaller publishers.
The Local Papers
We see this very clearly when we look at local newspapers (especially outside the larger US cities). Think of it like this: A local newspaper is like a small grocery store with a little bit of everything for the local community. And for many years, it was the go to place for everyone in its community. But imagine what happens when, one day, Amazon opens a Whole Foods store next door.
The answer is obvious, the smaller local store is outcompeted.
Being local is no longer viable, because you can’t compete with Amazon’s many advantages of being able to offer more items, at lower prices, with bigger marketing budgets, Amazon Prime, and a hugely scalable back-end logistic system.
We can see this in play when with companies like Meredith acquire Time Inc. Their strategy is to become a bigger supermarket by consolidating not just how many publications their own, but also how they work. And, as a strategy, this is a good approach if they can build up enough scale.
The Selective Approach
But this isn’t the only way to win the future. Another way is to become the opposite of a supermarket of content … which is to “get picked.”
People use supermarkets when they are just filling their daily needs without really thinking too much. So, the opposite of this is to get people to think and to choose to spend time with you. To do this we have to change the way we exist as publishers. Instead of focusing our editorial strategies around creating packages of content, we must start to build publishing products that people can (and will) pick.
Let me give you an example.
Most traditional magazines do reviews, but they are not designed for people who have a specific need. Instead, they are just published like any other article. This is not what people want when they are looking for a review. There is a very big difference between people who just sit down and flip through pages (or randomly come across links on Facebook), and people who are actually looking for answers. So, what we see now are companies like The WireCutter, which was created in 2011 by Brian Lam, to be a new type of review site that only focused on bringing you very high-end and very detailed reviews.
And look at what has happened. Because The Wirecutter designed itself around people when they need a review, they have become the destination for people to go to when they want to figure out what products to buy.
This is the difference between just having a “supermarket” editorial focus where the reviews are just another random story and having a “product” editorial focus where the content is designed to solve a specific need.
Product Makes Perfect
And this also applies to many other things. For instance, a traditional fitness magazine often has a wide-ranging selection of stories about health, nutrition, and exercise, but there is no real goal or structure to them.
Then look at the digital native publishers. They are not creating random articles. Instead, they are building fitness publishing products. They offer you actual training, they create meal plans for you, and they actively help you achieve your health goals.
Consider business publications: Are you just giving business people random news? Or are you helping them do their job better? Are you providing them with content, data, and insights that they can put to work?
Watch YouTube
On YouTube, for instance, YouTube itself is the “supermarket of random videos.” And, because of this, every single YouTuber knows that the only way to be successful on YouTube is to instead do something that people will specifically pick. So, every YouTube channel is defined around a very narrow focus, because you need that to create something for people to connect with.
YouTubers know that you can’t be a supermarket within a supermarket. Meaning, you can’t just give people a little bit of everything in a place where there is already a lot of everything.
This is now the reality of the media.
A few larger publishers will attempt to become the modern supermarkets of publishing and they may succeed. But next to this is another marketplace, where individual publishers create publishing “products” that are designed to be picked. The kind of specialty places that they turn to when they have a more defined moment and want something specific.
This is your challenge for the future. What will you do to get picked?
Thomas Baekdal is a media analyst and publisher of Baekdal Plus.
Artificial intelligence (AI) is being used more and more in ad tech to solve a variety of problems. Between the highprofileacquisitions and its rise as the industry’s latest favorite buzzword, it’s clear that AI is an extremely powerful tool. However, it’s definitely not a silver bullet. Let’s take a look into a few AI pros and cons.
PROS
Workflow Efficiencies: One of the largest benefits of AI is how much time it can save on the user side. Without AI, proper campaign optimization takes a lot of time and is absolutely more art than science. Just consider how much data is available on each individual. Even with a target persona in mind, sifting through vendors and guessing at which attributes will perform best is a costly and time consuming exercise at best. Once that’s done, the ad trafficker then needs to toggle pacing, pricing, and potentially dozens of other variables. AI can automate much of that. At which point, the user just needs to pick a goal the AI can optimize toward and let it run giving directional guidance where necessary.
More Data Processing than Humanly Possible: Big data and AI go hand in hand regardless of the industry. JP Morgan even published a massive white paper on how they think those two trends will affect investing. When it comes down to it, programmatic trading isn’t all that different from programmatic advertising. It’s all about automated buying and selling to maximize value. AI can “see” and consider as many features as it’s been trained to, considering hundreds or even thousands of variables over the course of a campaign to determine significance. That’s just not something humans can do in any cost-efficient manner.
ROI: What happens when you put workflow efficiencies and maximum data activation together? Cost savings. Lots of it. Assuming your AI strategy is working (and your mileage may vary), adopters of AI stand to reap massive benefits. Since AI requires less human capital to operate, adopters stand to gain from not having to hire as many heads and the heads they do hire aren’t focused on tweaking knobs and levers manually. Additionally, since AI learns as it goes, performance constantly improves over time as it begins to distinguish between what’s important and what’s irrelevant.
CONS:
Black Box Algorithms: Unless you’re building your own, it’s pretty difficult to know exactly how an AI algorithm works. Two primary reasons for this: 1) The features an algorithm considers are typically a company’s secret sauce, and asking a company to publicize everything that goes in is like asking KFC to share their 11 herbs and spices. 2) Even if there is a degree of visibility into what features are being considered for optimization, oftentimes the amount of data being processed is more than what a human can parsethrough (see Pro #2). Which begs the question…what’s the point of performance if you can’t explain it?
Not All AI is Made Equally: If AI is a brain made to learn for a specific purpose, who’s to say whether you’ve chosen the AI equivalent of Einstein or your bratty seven-year-old neighbor? Every partner’s going to represent themselves like they’re Watson, but realistically, that’s impossible. Some partners are better for specific industries, some are probably pure vaporware. Choosing the right partner isn’t easy, and if everyone’s offering an AI solution it’s difficult to say which is the best one for you without at least some degree of upfront investment and a decent amount of research.
ROI: Similar to how properly implemented AI can generate huge savings, it can also be a massive sunk cost. The initial barrier to entry – either investing in developing your own algorithms or paying a partner to use theirs – is going to be fairly substantial for most advertisers or publishers. There’s also no guarantee that it’ll work in every scenario. As much as partners would love for you to believe that their AI will make it rain gold bricks every Sunday, that’s just not true. When choosing a partner, don’t just think about their historic performance, but also whether they meet your needs in terms of transparency in both costs and reporting.
As far as AI pros and cons go, it’s hard to say whether AI is right for you. That said, AI is becoming an increasingly important part of a greater shift in the digital advertising ecosystem, and I’m personally interested in seeing how it adapts to other trends. Will AI specced for second price auctions succeed in first price environments? How about in a post-GDPR world? Will the new data restrictions affect performance and will new strategies arise as a result? Who knows, but I’m looking forward to finding out!
We were wasting time chasing display advertising dollars.
That’s the big lesson Spirited Media learned at the end of 2017, an awakening of sorts for us at the parent company of Billy Penn in Philly, The Incline in Pittsburgh and Denverite in Denver.
Now don’t get me wrong, we believe still that there are companies in and around our cities that are interested in partnering with us to reach our audiences — which are generally young, affluent and very civically engaged. And we’d had an encouraging start to the year by pursuing display ad sales. We needed that success to continue; that’s what we built our budgetary projections on.
And then that early ad success faded. It stands to reason why, of course: Going head to head with Facebook, Google and the largest newspaper websites was always going to be tough, And our staffs (no larger than six doing editorial work) can’t tell the same traffic story as sales folks repping newsrooms 15-20 times that size.
Instead, we looked at all the other ways we’ve been able to grow revenue, and prioritized those internally into three tiers. We stuck display advertising at the very bottom. In other words, we’re happy to get it, but we can’t burn staff time and effort to chase it. We’ve got bigger things in mind.
Tier One:
There are three things in Spirited Media’s most important revenue tier: the first is sponsorships and ticket sales for the events we’ve become so adept at organizing. The second is a membership program we’re rolling out in the coming weeks across all our sites. And the third is offering our custom platform for others to use. Let’s talk briefly about each of them.
Events
Billy Penn launched in October 2014 – I was the site’s editor at the time – and we began hosting the first of our events a few months later. At the time, our staff numbered five people – myself, a community manager and two reporter/curators, and a brand new sales and events director. So, when we decided to start getting our audience together in person, putting together a lot of programming for those events wasn’t realistic. The same people building that event were the ones building our daily news report, after all. So the events (we tried many, but what worked best were happy hour gatherings) were very light on the programming. And when I say “light,” I mean we’d maybe grab a microphone for 20 minutes of a two-hour event.
These events proved incredibly popular with our audience and they had several things that recommended them over intrusive advertising on our site. One, the events lasted for a set amount of time; two, the events could only hold a certain number of people. In other words, we were able to create the scarcity that is nonexistent in a land of infinite Web pages. So events — the smart execution of them, ticket sales to attend them, and sponsors to underwrite them — are one of the pillars in our most crucial revenue tier. And, of course, events (and the potential early access to their tickets, or even their planning) will play in very heavily to the next item on our revenue punch list.
Membership
One of the things I consistently heard from Philadelphians as I walked the streets of the city was how much those who read Billy Penn loved it. Not just liked or respected, but connected with in a visceral way. So as we looked at how to build a business model that could withstand the seismic shift rocking the ad-supported media world, we of course considered whether we could turn that loyalty — hell, that love — into monetary support. But we can’t make this happen alone, so we’re working with the News Revenue Hub (Motto: “Fortifying the public’s access to quality journalism by helping news organizations build sustainability”), a spinoff of the stellar digital operation Voice of San Diego, a company that’s helped many newsrooms figure out how to turn their audiences into members. We’ll launch membership across our sites in the next few weeks, directly making a pitch to our readers that the work they’ve been consuming requires their direct support to continue. That’s because, plainly speaking, it does.
Platform
We’re proud to be a company that puts our users first. Editorially, that means we pay attention to what we think people want to know. And we’ve also committed to respecting their time and their experience online. That means unlike other news providers’ sites, we don’t pop advertisements up in front of the story you’re trying to read, or force an auto-play video into your quiet office, or load up the top, middle and/or end of your story with some photo you just won’t believe about a 70s TV show star. We try to respect people’s time and their attention.
How’s that working out for us? Well, our research shows that more than half our audience is under age 35, and 75% of our readers are under age 44. That’s a startling figure for a media company, and it’s due in no small part to the way we’ve built our sites, using a custom WordPress theme that gives us what we think are clear advantages in the market:
One, it’s very easy for journalists to write and post their work onto our sites (and, automatically, Facebook Instant Articles, and Google AMP pages). We’ve also baked newsletter functionality into the back-end as well. Because we have very small staffs, there’s no separation between a reporter, an editor and our audience.
Two, our sites make a small amount of content look and feel like a lot. The home pages of Billy Penn and The Incline (and soon Denverite) spotlight the most important stories we’ve published, and then present a list of the most important events and other news stories happening in and around our cities, whether or not we’ve written them, in what we call “The Stream.” It’s basically a Facebook feed of what you need to know at any given moment.
Three, we’ve baked membership tools right into the platform. These pages, and the action funnel on which they’re built — driving occasional readers to become repeat readers, into newsletter subscribers, and into paying members — take advantage of a sea change in how the news industry is realigning itself in the midst of the great advertising breakdown.
And we’re finding that this suite of tools is attractive to other small publishers that are also seeking revenue that’s immune to the whims of Facebook and Google. In fact, we’ve closed one deal with a publisher to provide them the same tools we’re using, and following up on other requests about it that have come over the transom. We’ve seen enough interest, in fact, to prioritize platform sales as part of our most crucial revenue streams in 2018.
Another thing we’ve heard through the course of our existence is that people were interested in starting a “Billy Penn” newsroom in their city, but owned and operated by them. Until now, we have not pursued those arrangements; however, in the course of our reevaluation, we’re willing to explore arrangements like this.
Tier Two:
Consulting
My boss Jim Brady, the former editor-in-chief of Digital First Media, former editor of washingtonpost.com, and a former news executive at AOL, has also consulted at many of the world’s biggest and best media brands — ESPN, USC and The Guardian, among them. Our VP of Product, Brian Boyer, was most recently the Senior Editor for Visuals at NPR; he came there after building the News Apps team at the Chicago Tribune. Me? I’ve been the Executive Online Editor at the Philadelphia Inquirer, and the top digital editor in two of Hollywood’s oldest news institutions, Variety and The Hollywood Reporter.
Among us, we’ve worked in newsrooms covering local, national and international news; in verticals (sports, entertainment, politics), launched departments and won awards for videos, innovation, public service and more. And we’re finding interest in accessing that expertise among other media companies, which out of necessity have cut their digital workforces down in the face of the ad cataclysm.
So we’re putting out our consulting shingle, and negotiating with those seeking everything from advice in reaching the audience we have now or the audiences we’ve reached in our past. Why isn’t this a Tier One revenue stream? Simply put: bandwidth. While we can hire developers should interest in our platform take over, we can’t easily clone ourselves to grow a consulting arm. But the money we make in this fledgling endeavor can help extend our company’s runway as we push toward profitability.
Grants
We’ve already received grants to support our work —we hosted a Knight Foundation fellow for one year in Philadelphia, and are the proud recipients of a $106,000 grant for work on a Playbook for Mobile News. We’re also finalists for a Report for America grant, which would support a Spirited Media reporter working in Pennsylvania’s state capital of Harrisburg. These kinds of efforts can help underwrite important journalism in our cities while easing the burden on our budgets. In addition, a two-year partnership with Politifact funded a reporter position to help us fact-check Pennsylvania, thanks to a grant from the Democracy Fund. So we’re no stranger to grant-funded journalism, and are actively seeking out new ways to bring it into our newsrooms.
Tier Three:
Display Advertising
Finally, we’re not going to say no to companies that only want to buy space on our sites. But, as we said, it’s just not a great use of our time to sit through endless agency meetings on the off chance that we score the rapidly declining dollars to spare, once Facebook and Google gobble their share. We’re delighted with the roster of repeat advertisers we’ve had across all our sites, of course, and hope to continue working with clients as diverse as the Philadelphia Eagles, Comcast and Beneficial Bank — but, as often as possible, we’re hoping to convert those advertisers into sponsors supporting the events that are increasingly part of the future of our businesses.
We’re confident that future is bright. After all, local news is a lot closer to our users than the national and international sources. We’re down the street, just around the corner from our readers. It’s sobering but heartening to come to the realization, as a company, that those readers are even more directly responsible for our future than we’d first considered. But then again, that makes sense. We’re always telling them how important they are. We’re now giving them the opportunity to prove it.
A December 2017 survey by the Pew Research Center found that 46% of Americans use digital voice assistants, and the trend is going up. A recent study from Juniper Research forecasts that 55% of all households will have a smart speaker installed by 2022, and marketers’ spending on such assistants is expected to reach $19 billion by the same year.
It’s a huge opportunity for marketers and publishers looking to reach audiences on these devices. But buying an Amazon Echo, Google Home, or Apple HomePod isn’t just buying a product, but inviting an entire company into your home. So, publishers should tread with caution to make sure they have a fair shot in sharing upside, without upsetting people with invasive advertising and pitches. It’s a no-brainer that as Amazon, Google, and Apple rev up their products, they’re also going to look for ways to monetize their use and increase their company footprints. As the battle between platforms and publishers plays out, publishers must bear in mind that digital voice assistants are no exception.
The Voice Battle Rages
It’s become something of an iPhone or Android question: Google or Alexa? Both are great products and offer great services, and their comparison is the focus of many consumer-focused assessments of where people should invest their money — and eventual data. Indeed, knowing the aim behind these companies is a good indicator for what to expect down the line. Wired’s Scott Rosenberg put it this way: “Amazon is primarily a store, so its likely long-term plan is to use Alexa to sell you more stuff. Google is primarily an advertising company, so somewhere down the line you can bet it will find ways for its Assistant to present you with ‘sponsored’ suggestions.”
Not to be outdone but admittedly late to the game is Apples’s new HomePod device and Sonos’ new voice-activated speaker, Sonos One, which presents itself as a platform-agnostic device. But you’d have to do the legwork yourself to transfer your personal data, should you switch from one platform to another.
And that means that the platform buy-in is real. Amazon has a two-year leg up over Google and is obviously at the top of the hierarchy at the moment; it also has the potential to upend the entire advertising industry. What was once a company that tiptoed around marketing has now been toying more with placing sponsored products higher up in search results — which means advertisers are now buying in more. To date, Amazon says it won’t sell advertising on Echo, but advertisers and the public assume the company will change course when it figures out the best way to serve them.
Google Coming On
Google, meanwhile, is pushing its Assistant onto more products, and made a huge splash at the recent Consumer Electronics Show in Las Vegas. It recently came out with “Smart Displays” (akin to Amazon’s Echo Show), which, among other things, can visualize recipes, maps, and — to toot on its own horn — YouTube videos.
It’s no wonder that marketers are trying to benefit. The natural question for brands now is how to bring voice into their experiences, which is in sync with how companies are also trying to differentiate their products. You can see how that plays out with Apple’s “give me the news” feature on for Siri, or the number of brands building skills for Alexa, which Amazon also touts as device features.
The BBC has been relying on voice assistants installed on smart devices to feature BBC content, and will likely transition into creating content specifically for Echo and Home devices, and monitoring what and how people are listening to create better experiences for those voice-activated formats. The Washington Post and CNN, among others, are also experimenting with ways to leverage audio programming in a way that’s useful for their audiences.
Ensuring a Win-Win Situation
With more devices entering the market and voice positioned to be the next frontier in experience and marketing, the risk for publishers is that building for one company specifically — or even multiple companies — places their eggs in the basket of a third-party tech giant. That means that as bullish as publishers ought to be in featuring content where their audiences are, they also need to insist on sharing the wealth these tech companies are gathering — revenues, customer data, advertising insights and more — to beat any potential exploitation.
And that can also be an opportunity for publishers. The current trend is still on the we-must-get-on-the-voice-AI-bandwagon-before-it’s-too-late hurried strategy, without thinking about the data and revenue deals that need to happen in tandem. With all the opportunities publishers can leverage with voice — news flash briefings, news quizzes, podcast streaming, recipes and the like — they should also emphasize their own loyalty programs, subscriptions and original content back on their own sites.
Just as publishers have battled with social platforms over the power dynamic, data and promotion, they will have to make sure voice devices don’t end up using their content without giving them a good chunk of the spoils when they take off.
Today, Slate unveiled a sweeping redesign that includes its logo, website, mobile, and events branding. But this redesign runs much deeper than a new aesthetic approach. Slate’s new look reflects the organizations’ emphasis on audience engagement over scale.
“Our last major redesign, in 2013, was at the height of the Facebook boom. Social was the driver.” That design was very successful, according to Slate’s editor in chief Julia Turner. However, like most websites, it prioritized social sharing over increasing user interaction and time on site.
The landscape has changed a lot since 2013. In fact, the only constant has been change—with traffic, audiences, and distribution largely reliant on the algorithmic whims of search and social platforms. This is evident in Facebooks recent decision to de-emphasize news articles and anything published by brands in user’s News Feeds. While many publishers are concerned over how the latest change will affect traffic, few are surprised.
Engagement versus Scale
However, the pursuit of likes and shares was just one symptom of a larger trend that dominated the thinking of digital publishers: the quest for scale. As Dan Check, the president and vice chairman of The Slate Group, describes it “social isn’t about increasing time spent on site; it is about touching more people. Scale is fundamentally the pursuit of uniques.”
According to Turner, “We began to see fairly early on—in late 2104, early 2015—that the pursuit of scale for scale’s sake, didn’t make sense for a brand like Slate.” In fact, last September the company moved to engaged time as its primary measure of success, which enabled teams across the organization to put loyalty at the forefront of their initiatives. “The Landscape has become inhospitable to cheap scale. But even more, it doesn’t suit our audience and values.”
The new design builds upon Slate’s commitment to understanding and serving its audience, which Turner describes as “a highly-informed omnivorous media consumer.” Given that they are looking for “sophisticated next-level analysis,” she said it was important that this new design help guide them to information that will offer a deeper contextual understanding of topics in Slate’s five verticals: News & Politics, Culture, Business, Technology, and Human Interests.
With the new design, regardless of whether the visitor is a regular or lands on a page via search or social, Check said “We wanted to give people stronger signposts and a better understanding of what they can expect from us.” The redesigned Slate (which doesn’t use a third-party recirculation partner) will “show people more relevant content and tell the story about who we are. For years, our message was ‘like us on FB, follow us on Twitter.’ Now, it is more about contextualizing what you’re seeing.”
Listening to Opportunity’s Knock
This, in turn, is intended to deepen visitors’ time-spent on the site and affinity for the brand, both of which translate into revenue opportunities. While Slate CRO Charlie Kammerer says that the company has been able to “baseline monetize purely with our programmatic dollars,” the new design will offer more premium membership prompts for SlatePlus as well as newsletter sign ups.
It will also better surface and integrate Slate’s popular roster of podcasts on the homepage and throughout the site. Check points out that for many years, podcasting was a medium awaiting a business model. However, in the decade between the company’s first podcast (in July of 2005) and the explosion of podcasting a revenue driver, Slate remained committed to the format—in large part because its audience was. “Podcasting was something that garnered a lot of audience interest for about a decade. There’s rabid listenership. So, though it wasn’t a business for a number of years, it always made sense from an audience perspective.”
Today, Slate claims 2% of the podcast market share. Kammerer said “We’re glad we stuck with it because when the model matured, we were already in a good position in terms of expertise and audience.” And, with this redesign, Slate will also be investing more in audio, further increasing its roster from a current 24 podcasts and putting out more original shows like its hit Slow Burn, about the untold stories of Watergate, which hit #1 on iTunes on its first day out.
However, Slate’s emphasis on audio and the written word is not an indication that it has “abandoned video” said Turner. “Our video focus is what we can do well.” And, as Kammerer pointed out, the “the case for the pivot to video was a case for scale. The CPMs were higher so a lot of outlets chased those CPMs forgetting that video is expensive to produce well, and that the margins aren’t that great.” In his experience, the CPMs for audio are as good or better than video. “It’s about focus for us and we continue to focus on maintaining a super-premium audience. The written word and podcasting delivers that audience in a very meaningful way.”
News Judgement
And, while engaging its existing audience is a critical piece of Slate’s strategy, they plan to continue to build a quality audience without embarking on an unbridled quest for scale. As Turner put it, “It isn’t that social isn’t a good way to drive traffic. But what you want is a real relationship with your audience that isn’t dependent on social media.” She reports substantial growth in Slate’s Google and Apple News-driven traffic.
Referring to Facebook’s decision to downgrade publishers’ content in News Feed, Kammerer said “If they really want to drive more meaningful interaction, I like our chances. But who knows what changes they’ll announce two months from now?”
As Check put it, “You saw big publishers reach huge audiences through Facebook; a lot of people discovered content they wouldn’t have otherwise. Unfortunately, it has also given rise to a lot of things that aren’t great like fake news and low-quality content.” He sees a genuine market opportunity for existing or emerging aggregation partners who “want to be more responsible.”
Ultimately, Turner sees a real upside for Slate in Facebook’s move to back away from media distribution. “My instinct is that being an arbiter around the news space requires a whole set of real responsibilities and rigor that they’ve been fairly freaked out about. Now maybe we’ll see the return of news judgement to the institutions that have been cultivating that judgment for years.”
In an age where exclusive content is pure gold and data is the new black gold, smart news organizations are looking for ways to unlock their frontline information and insights for maximum exposure across a multitude of platforms.
Ted Mendelsohn, AP Vice President, Commercial and Digital Markets
The Associated Press — a 170-year old news organization with teams in over 100 countries and one of the world’s most important archives of audio-visual archives of news, social history, sports, and entertainment — is going one better. It’s exploring new and rather unconventional opportunities, in areas ranging from data-mining to data journalism, to identify new markets and revenue opportunities for its wholesale and non-profit businesses.
Peggy Anne Salz, mobile analyst and Content Marketing Strategist at MobileGroove, speaks with Ted Mendelsohn, AP Vice President, Commercial and Digital Markets. They discuss the company’s mission to expand distribution of its archival content, extract value from its data, and enhance news-gathering capabilities.
PAS: On any given day, more than half the world’s population sees AP content. But that’s just one side of your business. Tell me more about your wholesale business and the opportunities you pursue.
TM: When I was brought into AP some 25 years ago, the commercial business focused on selling AP content into the federal government, corporate markets, and large clients, including Prodigy, LexisNexis, Dialog. Expanding this by identifying new markets and opportunities is very much what my job is about today.
Another part of the business is our retail business, where AP mobile comes into play. The focus is on making our own content available on AP-owned and operated sites and monetizing through advertising.
Finally, there are content services, where AP — because of its huge footprint worldwide and access to photographers and videographers — can work together with clients. It’s a service and a business opportunity that we see expanding. are exploring opportunities where brands might sponsor content like the AP Top 25 college basketball or college football rankings. There are also opportunities for companies to sponsor unique content. This might be along the lines of the top 5 things you need to know about ways you can improve health and fitness. We are open to doing more of that and that’s also where having our own platform opens a whole line of revenue and opportunities.
PAS: AP is perhaps best known for frontline, breaking news content…
TM: Yes, it’s our bread and butter. We’ve noticed that our audience is heavily engaged with our content — stories, photos and video — and that the sessions are long. In fact, in August 2017, a survey from NewsWhip showed that AP drove higher total engagement on Facebook than any of the Top 10 individual publishers in June and July. This achievement is also linked to our ongoing efforts to update our content and add value. We provide alerts, but we also add to the news content from every angle, enhancing the story with text, photos, and video.
PAS:You’re using technology to expand and enhance distribution of your content. What is the role of technology in the production of content?
TM: AI is a technology that has an impact at several levels. We’re using it, but we’re also educating the media by showing the example of how we use AI within our newsroom. A lot of our efforts around understanding and using AI in the newsroom is focused on producing the routine news, like sports scores, and have them generated through AI technology.
But it’s not just about automation; AI can open opportunities for our reporters to cover more important stories and produce the exclusive in-depth content that wins us — and our clients — audiences on mobile and other platforms. And that is what drives the higher engagement. A good example is one of our most successful stories, what we’ve been calling the “Seafood from Slaves.” Here our reporters won the Pulitzer Prize for Public Service for their investigation that exposed slavery in the Southeast Asian fishing industry.
PAS: What are the other technologies top of your radar?
TM: At one level, AP is a retail store, for lack of a better word. We focus on approaches that will allow us to appeal to our readers directly. We ‘sell’ them on our content on the platforms, such as mobile, where they want to consume it. But it’s also about understanding how other companies and platforms are going to impact how we engage audiences. A prime example here is voice and deciding how we engage with companies that are creating voice-activated content.
It means talking to the Amazons, the Apples, and the Samsungs — companies now looking for content that is driven by voice-activation. For us, it’s becoming a new way of engaging with the customer, if you will, by creating content and adjusting our content for this market and working with companies who are attracted by the content we have and the platforms we can serve.
In other words, it’s not just the technology that we use internally. It’s working with the companies who are really technology-driven and finding ways to use our content to improve their technology and, at the same time, to make our content available in new and different ways.
The number one question for AP is: how do we move our content and make our content play across the platforms? My first boss at AP used to say he wants to ride every horse in the race. And, in some ways, that’s what we’re trying to do. We are on the horse that allows us to display and distribute our content. And we are riding the horses that allow us to get our content to the companies out there that need our content to engage their customers.
PAS: AP is exploring AI, launching a VR and 360 video channel in collaboration with AMD, examining the opportunities around voice and Internet of Things. How do make choices about the companies or platforms to explore and the ones to ignore?
TM: It’s not about betting on the newest technology or the ‘Next Big Thing.’ You also have to be flexible enough to adjust to what is coming out on the market. As an industry, we couldn’t have anticipated a technology like Amazon Echo and its impact. We also couldn’t have known the content these platforms require. But once it’s gaining traction on the market, like it is now, the best advice I can give content companies is to be flexible. You cannot shut them out; you have to engage.
What do I mean by engaging? It starts with the way I organize my group. Specifically, I’ve brought people together who have a focus on vertical segments. Some are in continuous discussions with industry leaders — they are in talks with Amazon, Apple, Yahoo!, and so on. It’s not a discussion like “Oh, we have this content for you, why don’t you sign a deal with us?” It’s a dialog where we want to understand where they’re going and they’re coming back to us with insights on the tech and opportunities that have real potential.
In this Oct. 20, 2017 photo, Jamain Lee, center, looks at classmate Andre’veon Mosby at Milwaukee Math and Science Academy, a charter school in Milwaukee.
PAS: Data is hailed as the new black gold, and you have stockpiles of it. How do you view the opportunities in unlocking that data for clients?
TM: On the data side — for example, election data — we are the primary source for our clients. We’re finding that election data, even older data, is highly valuable to hedge funds. We make that data available for them to study and make whatever algorithmic assessments they feel necessary based on the data.
Data is also at the core of our edge in investigative reporting, identifying trends and news ahead of the competition. For example, an AP analysis of charter school enrollment data allowed us to expose the growing level of racial segregation in schools. Recently we reported on crime in the cities, using the data to take a different perspective. Rather than look at crime growing in cities, we used the data to examine crime in particular neighborhoods. Data allows you to see this, and so we are finding ways to make this data available for our reporters and for other organization to use.
PAS: So, data has become a new commodity?
TM: Maybe commodity is not the right word. Let’s say it’s a valuable good that we can offer and sell because other companies — businesses, financial institutions, hedge funds — are evolving to use data in ways that we don’t.
There are two ways to look at the way marketplace for data is developing. One is the opportunity at the consumer level, where more and better data can improve marketing, advertising, and understanding your audience. The other is the opportunity at the commercial level. Companies need access to data — for example, election data — to identify and understand the trends, and make investment decisions based on the combination of data.
It’s early days, and frankly, no one is exactly sure where how data will play out. But we are seeing that a number of financial institutional are looking for data to enhance their own data. It’s why I have some people on the team who are working with financial institutions, trying to understand what they need so we can extract data to make these datasets available in the way our clients want them.
PAS:Content and data — the opportunity is in being flexible in your choice of platforms and models…
TM: Correct. And the third part is being flexible in how you do business. You can’t be limited in how you do business or the kind of business terms you negotiate. All of us in the media industry have models, pricing lists and stuff like that. I threw those models right out because I realized they don’t work. The next technology comes around, and whatever pricing model you have doesn’t work. Instead, you have to adapt to change. You have to adjust your content, and your business model has to be flexible as well.
Peggy Anne Salz is the Content Marketing Strategist and Chief Analyst of Mobile Groove, a top 50 influential technology site providing custom research to the global mobile industry and consulting to tech startups. She is a frequent contributor to Forbes on the topic of mobile marketing, engagement and apps. Her work also regularly appears in a range of publications from Venture Beat to Harvard Business Review. Peggy is a top 30 Mobile Marketing influencer and a nine-time author based in Europe. Follow her @peggyanne.
When your employer is first and foremost in the television business, and your job is to manage the company’s entire digital presence, you’ve got your work cut out for you. That’s precisely what Jay Yarow, CNBC’s SVP and Executive Editor, Digital faces on a daily basis. He is responsible for everything that appears online outside of what is being broadcast. That means CNBC.com, Facebook, Instagram, LinkedIn – everything.
Yarow says that the objective of the brand is tracking everything related to business, finance, and investing. “We are aiming to be the most trusted brand when it comes to everything money.”
And his approach seems to be working: In September 2017, CNBC Digital reached the number three position in the Business/Finance News category for the first time ever and delivered a record 49.2 million unique visitors in September, which was up 74% year-over year. CNBC Digital also saw impressive growth in mobile with a record high of 30 million mobile unique visitors in September, up 105% year-over-year. And so far this year, traffic from social platforms to CNBC.com has grown 83%.
Keeping it simple
When he came on board in February 2016, Yarow’s goal was to keep a good thing going and expand upon and improve what he could. “They had a great digital brand in place [when I got here]. It was growing before I got here. I helped to accelerate that growth. They have been doing digital for years. I tried to come in and add some extra,” he explained.
Sometimes, the seemingly small things make a big difference. For example, when you read a CNBC story and you see the bulleted data points summarizing the story at the top of the page, that’s something that Yarow added. “From my perspective, it’s super valuable. Investors or business leaders tend to be busy and don’t have time to absorb a lot of information,” he said. This way, readers can quickly get the gist of a news story on the way to a meeting when they might not have time to read the whole thing.
He also recognizes the importance of social media in reaching his busy audience. “I’m fortunate in that I really enjoy doing these things. It’s not like it’s a chore to check Instagram and check Twitter or Facebook or CNBC.com. These are all things I would do either way and I get to influence that.”
Keeping it real
Yarow says his primary focus is putting together a strong news team that breaks a lot of stories. As he joked, “We are first and foremost a media company. We never have to pivot to video.”
Above all, his focus is on producing high quality journalism. Then, he asks if “the journalism we are producing being rewarded with an appropriately large audience.” As he points out, it is important to be able to support the production of this journalism so reaching a significant audience and monetizing them is essential. “When you are building something, you have to make sure there is a business there,” he said. To that end, Yarow stays in sync with the business side to ensure that whatever he is doing has their support.
Media people
And, with so many media properties struggling and announcing layoffs, CNBC has been a marked positive contrast. It’s been growing and adding reporters like Chrissy Farr and Alex Sherman as well as a slew of new reporters to its tech coverage team in the last year. When it comes to different social channels like Instagram and YouTube, Yarow says he tries to hire good people and empower them to do good work. “We have great leaders we trust and empower them to run the different channels. My goal is to have nothing to do.”
“We have really focused on news and making sure we are breaking news. We built out our tech section and made it a strong team. And we are always systematically assessing business news and where we can get stronger,” Yarow explained.
One of the great advantages of being part of CNBC is that we have a lot of great platforms. I see a lot of different tech pieces being built and see what produces the best results.” He added, “We focus primarily on journalism and building a technology platform and tech stack.” And while the company is growing fast, he emphasizes that they are doing so it in a responsible way. “We are not saying, ‘Here is a $100M. Set it on fire and see what happens to our traffic’.”
As we head into 2018, there are very few things as certain as the growing relevance and impact of the healthcare sector and health technology. As I look to the year ahead, here are my top 5 health tech predictions:
1. Native advertising will be the drug of choice for pharma marketers
Pharma marketers have a dual challenge of raising awareness about both medical conditions and the products that treat them. Native advertising and content marketing address both objectives by allowing marketers to capture mindshare in highly relevant environments while satisfying brand safety and regulatory requirements. Pharma marketers will recognize this value and shift significant budgets from TV and print to this digital line item.
2. Radical health personalization
The combination of data from wearables and apps, along with known digital behaviors can create a very powerful recipe for personalized healthcare. From smart devices that communicate with each other to relevant sequential advertising, messaging to consumers will take on a far more individualized approach. Your smart coffee maker might remind you to take your cholesterol medication in the morning, and you will receive ads across multiple devices throughout the day reminding you to refill your allergy prescription, prompting an alert on your phone to go off when you are within one mile of the pharmacy while you are on your way home from work.
3. GDPR will drive development of transformative targeting capabilities
GPDR impacts the way data can be used to target consumers. These new guidelines place even more stringent regulations around health data, genetic data, and biometric data. Strategic alliances among publishers, data providers and advertisers will form to create new ways to find these audiences in this new world order.
4. Wearable data will be in the hands of the few
Fitness trackers, life-logging platforms and the proliferation of healthcare apps provide an abundance of data, such as steps, heart rate, and sleep patterns, which can be combined with other known information to create highly personalized messaging. As the wearable industry matures, there will be major consolidation. Apple, Google and Samsung will be the last men standing and will control all of this valuable first party data. It will be a three horse race to see who can best leverage these insights.
5. AI and ML will save lives in 2018
AI and ML will revolutionize clinical trial recruitment by finding patients based on a variety of factors including symptoms and co-morbidities, and matching up individual online behaviors with relevant messaging to create a highly targeted, message-specific campaign of one.
Wishing you all a happy — and healthy — 2018!
Sloan Gaon is the CEO of PulsePoint, leading the company’s vision and mission to deliver integrated, value-based digital marketing solutions for advertisers and publishers. A renowned industry veteran, Mr. Gaon has executive management expertise in global digital marketing, content and e-commerce.
Steven Smith, AccuWeather President of Digital Media
Given its effect on pretty much everything people do, weather sits at the sweet spot between content and commerce. However, it’s also information that companies can harness to do much more than trigger a purchase. AccuWeather, a weather information and digital media provider, is focused on platforms and partnerships that deliver accurate weather content and data in the proper context at the appropriate moment. The company, which counts over 30 billion data requests daily, is pursuing a strategy that spans multiple channels and touch points – ranging from apps and bots, to watches and wearables, to connected cars and devices in the home. Peggy Anne Salz – mobile analyst and Content Marketing Strategist at MobileGroove – catches up with Steven Smith, AccuWeather President of Digital Media, to discuss how the company, established in 1962, has evolved with technology, devices, and IoT to power content and services with a personal touch.
PAS: AccuWeather brings together weather information and digital media. What is the role of the data you provide across the products you power and the partnerships you pursue?
SS: To be clear, it’s more than weather data; it’s a type of content that makes what we offer part of the equation in people’s everyday lives. It is content geared towards helping people plan their day, plan their lives, plan everything around it.
It’s also part of a concept we call Weather 2.0 – making our content relevant to the user ‘in the moment.’ That moment is influenced by the decision people want to make and dictated by the device they’re using at the time. To be relevant to their needs and their context ‘in the moment,’ you have to be on the traditional platforms – including browsers and mobile apps. But you also have to integrate into a range of other platforms, devices, delivery vehicles – or whatever you want to call them.
PAS:AccuWeather has a presence in the connected car. This makes it possible for drivers of Ford SYNC 3 cars to operate the AccuWeather app using voice commands or buttons on the vehicle display screen. What did you have to consider in order to deliver, as you put it, “meaningful impact?”
SS: Obviously, a five-day forecast is probably not the most useful piece of information at that time, in the moment. So, the product we’ve developed here tells you when it will start raining along your route, and answers key questions: When do I need to slow down? When will that heavy snow start? And it’s the same approach for a whole variety of IoT devices – whether it’s wearables for fitness or wearables for health. It’s why we have put forth several initiatives to tailor those products and the content we provide, to be contextually relevant. It’s the reality of what our content – and really all content today – needs to be.
PAS:I hear Accuweather is making a personalization play as well as a platform play. Is one more important than the other?
SS: From the browser products all the way to the traditional flagship apps, it’s about being on the relevant platform. And we make our platform choices by watching our audience. We have 300 million monthly active uniques interacting with our core digital properties. It’s activity and usage that allows us to see where there is a desire to use a product.
For me, connected car tops the list of practical platforms, which is why we are developing a product that provides users with minute-by-minute forecast along their route. The product has been developed to support driving, whether that’s a person in their car, a ride-sharing platform or an autonomous self-driving car. So, you can see how our content is transcending beyond being a feature within an app to become the heart of the driving experience. Right now, it’s contextual content, just-in-time. There’s a safety aspect as well as just what is going on with the weather.
PAS:Where do wearables come in?
SS: Wearables is also at the top of our list, and we break those down into categories. There’s Fitness, where we’ve had a partnership with Garmin for a number of years that’s geared around providing weather content related to the fitness activity like running. Our Minutecast, which is minute-by-minute forecasting for basically every exact GPS point on the route, provides the user what they need based on where they are, or will be, for that period. We also have a partnership with Samsung and a number of others in that space that we haven’t announced yet. Another category is Health. It’s where our content focuses on conditions that tangentially impact to health. So, how air quality impacts asthma, for example. We have partnerships, where our big data on the back-end is used to personalize and predict conditions.
PAS:It’s all about delivering accurate and actionable content – regardless of platform. You offer an AI-powered weather assistant for Facebook Messenger. What is the fit with bots?
SS: Imagine a scenario where there is a major line of thunderstorms coming. That’s where you want advice and help, not just the weather. It’s where a bot experience meets the requirement of the individual for real assistance in the moment. It’s why we launched a Facebook bot, and we just did the same on Google. It all gets to your point that there are scenarios when the consumer needs to make a life-management decision, and a bot is a good fit.
Voice is similar, in this respect, which is why we consider it a future path for the delivery of content and – more importantly – interaction with the consumer. We have been active in that field for a while. In fact, we power the weather on the Amazon Alexa product and the Echo. This quickly taught us how to create a voice experience and meet the consumer expectation for an answer coming back within milliseconds.
PAS:What about the role of content in effective and relevant advertising? You have a partnership with Swirl, a mobile marketing platform provider, giving them access to your weather data sets to tailor and trigger in-door shopping experiences based on the user’s local weather conditions…
SS: Weather is a universal language. It’s the classic conversation starter, regardless of language or dialect. It has relevance in all our lives all around the globe. Of those 300 million monthly active users I mentioned, 65 percent come from outside the U.S. The reality is, as an organization, we have to be global-first, and this also applies to partnerships. On the handset side, our partners range from Samsung to Sony. We also work with Naver, the popular search engine in South Korea. Globally, we have a joint venture with the Chinese Meteorological Agency within China, as companies must be licensed by the Chinese government to distribute weather data.
In all these partnerships it comes down to the same principles and paving the way to deliver meaningful content and experiences regardless of the platform consumers prefer. Advertising is also about delivering experiences. Imagine a user who’s looking at a flu index, because we create flu forecasts influenced by weather conditions. It’s not inappropriate at that point to present a product that will help with the types of conditions the user is interested in at that moment and in that context. It’s all about the ability to wrap contextual advertising around something that we know a user will find interesting.
We’ve been talking about consumer-facing scenarios, but AccuWeather is also very much a B2B partner. We help companies, do everything from logistics planning and supply chain planning, to a product by product roll out. Weather heavily influences what consumers want and product usage, so we also help companies to make decisions around where to place those marketing and advertising dollars.
PAS:I’ve been reading about how Starbucks Corporation uses your predictive analytics to gauge how many iced or hot drinks it may sell in a given season. It’s a great example. Can you tell me more about your experience with brands?
SS: That’s an interesting one. We have also partnered with Spotify, on a new site titled Climatune aimed at giving music fans around the world the perfect musical score for any weather. That’s a perfect example of how we are at the intersection of where weather meets and mixes with another data set – and it shows how companies can deliver experiences by taking our unique data set and combining that with another data set to offer a service that is unique and personalized. Frankly, we’ve been doing this type of big data look-up for years, long before brands and marketers got a hold of it and understood how weather influences consumer preferences and behavior. The Spotify example is interesting because it provides insights into mood and what people do musically.
PAS:We agree that weather content must be contextual and can be incredibly valuable to users. What is the best way to get it in front of consumers in a way they will appreciate, and not find annoying?
ISS: n our product team, we talk about push moments, as opposed to pull moments. Before everything was about the user pulling information. They opened an app, went onto a website, entered an environment to access content. As a content company, you tried to triage the three pieces of information about the user to decide what to present them. Today, it’s about creating push moments, where content and information is front and center – right in front of the user at the right time, and when they want to see it.
PAS: So, we’re right back at personalization?
SS: Yes, it’s personalization, and it also takes contextual awareness into account. Am I at the office? Am I at home? In each case, the content and information will differ. But what’s really key is how you craft that delivery. We all know what it’s like to have too much clutter – like 17 notifications on your smartphone and more coming in. The push I’m thinking of adds value by delivering what people expect in the way they need it right then and there. This why much of our product development going forward focuses on technologies to avoid clutter. Whether it’s a push technology or some of the new notification technologies on the market – or whether it’s a wearables device or a connected car – it’s about using the right platform to bring that content – that experience – to life for that user in that moment.
Peggy Anne Salz is the Content Marketing Strategist and Chief Analyst of Mobile Groove, a top 50 influential technology site providing custom research to the global mobile industry and consulting to tech startups. Full disclosure: She is a frequent contributor to Forbes on the topic of mobile marketing, engagement and apps. Her work also regularly appears in a range of publications from Venture Beat to Harvard Business Review. Peggy is a top 30 Mobile Marketing influencer and a nine-time author based in Europe. Follow her @peggyanne.
The alignment of new laws, reader advocacy, and technology has opened up a challenge to user tracking tools. While some express concern that an end to unbridled tracking will hinder the digital ecosystem, this is an enormous opportunity for publishers to take the lead in building the next generation of personalization technology. However, this evolution in personalization will need to be built on a foundation of editorial metadata, which will drive everything from video playlists to targeted advertising.
A new door opens
A new type of personalization that eschews user-based targeting is coming. In part this will be driven by the fact that many analytics, ad tech, and personalization-tech companies will be deeply affected by the EU’s General Data Protection Regulation (GDPR). An AdAge headline once proclaimed that the GDPR will “rip global digital ecosystem apart.” While that may be a bit alarmist, the GDPR will force companies operating within the EU, and the third party tools they use, to adhere to a strict opt-in for all tracking. It will also levy severe penalties on those companies within EU jurisdiction that fail to do so.
The omnipresent motivation behind the law, though, has failed to prompt the development of similar legislation in the U.S. Despite results and sentiment that suggest otherwise, targeting remains central to many marketing strategies. Brands have found user targeting programmatic campaigns less effective than they expected. Consumer groups have formed in protest of the functionality of user tracking in action (such as ads appearing with no regards to the content they appear on). Individuals on social networks find retargeting approaching some sort of uncanny valley — a point at which its very accuracy is becoming deeply discomforting. And we’re even seeing the start of a conversation around user targeting happening in Congress.
A victory for publishers
Publishers have a mission to treat their readers and viewers ethically. The good news is that smart publishers can (and do) run user-targeting related tools on that basis. The personalization of ads and news has become a significant trend, one that many are still chasing. However, the fundamental underlying technology is challenged by the GDPR. Even if publishers never conduct any business outside of the U.S., the vendors who power personalization tools do. We operate on literal reams of data but must face a future where comparatively little is available.
These oncoming shifts in the marketplace shouldn’t frighten publishers. They are likely to hurt the thousands of middleware third-party ad tech companies that have failed to deliver on user targeting for years now while skimming profits. A push to decrease both publisher and advertiser reliance on user targeting is an opportunity.
Metadata to the rescue
Publishers need to take a look at the new generation of tools that can provide the data needed for personalization on-page without ever tracking a user. Metadata standards are improving and adding detail. Our current tools consider article relationships mostly in keywords and categories but new ways of telling the story about a story could bring about a revolution in personalization.
Almost by accident, social media has pushed thousands of sites to adopt Open Graph, an RDF-based standard built to provide detailed site data. Search engines have long supported and rewarded structured data like hCard. Improvement in the Schema.org project, along with increased support of JavaScript Object Notation for Linked Data (JSON-LD) by a variety of platforms, has made it an increasingly promising standard. Unfortunately, The Schema Project, which is complex and lacking good documentation and in-action examples, has been challenging to adopt. Publishers have also lacked a clear reward for use. However, that is changing with the announcement of support by Google for the use of structured data for fact checking.
Regardless of how successful the fact checking markup project becomes, it demonstrates that page-to-page relational metadata is joining other complex metadata systems as part of the future of publishing. With privacy concerns on the rise, it behooves publishers to start considering these systems as part of the future of personalization.
A structured future
Beyond keywords and tags, there is an embarrassment of new options for metadata that can create a unique experience on each webpage more tailored to the moment the reader encounters an article than following them with cookies ever was. While a reader might have been shopping for shoes yesterday, what they read today may put them in a very different mindset. And the reader of today is a more useful target for personalization than the reader of yesterday.
What can we build on using enhanced metadata? Geographic coordinates could drive a set of recommendations even more relevant than attempting to geotarget the user. Article authorship has worked well for media companies where the byline promises a particular voice. We can build playlist systems that find their next videos through more than title keywords, looking at producer credits, length and related affiliate offers. Types of content or referenced urls in the body of an article can allow personalization tools to recommend other articles that share a particular format, or ads that sell the referenced type.
Planning beyond keywords
Taking advantage of these opportunities will require different ways of thinking about what everyone creates and how it breaks down. It won’t just be up to an SEO expert to drop tags on a page. News organizations will find that optimizing for search, social, or ads will require taking advantage of all the opportunities that complex metadata provides and operating within a larger plan for how metadata should be handled. The editorial and business sides will need to work together to consider the whole of outlets’ output, prioritizing approaches, and building out tools that automate and suggest metadata structures.
Owners of this process will need to consider personalization on a variety of factors that describe form, format, key ideas and digital objects. They’ll have to build out a framework on how articles connect to each other that will describe small universes of content. A site that takes full advantage of metadata structures can promise a richer experience for readers, viewers and listeners than any provided through cookie-based tracking, an experience based on in-the-moment intent.
Our current generation of overly-targeted ads and recommendations don’t just fail to perform, they’re creepy and overpriced. Our audiences deserve more and our ethics require that we provide it. We have the technology and industry pressure to deploy successful alternatives. Understanding, expanding and adapting the use of detailed metadata across the web will build better media companies and a better open and well-connected internet.
Aram Zucker-Scharff is the Director for Ad Engineering in The Washington Post’s Research, Experimentation and Development group. He is also the lead developer for the open-source tool PressForward and a consultant on content strategy and newsroom workflows. He was one of Folio Magazine’s 15 under 30 in the magazine media industry. He previously worked as Salon.com’s full stack developer. His work has been covered multiple times in journalism.co.uk and he has appeared in The Atlantic, Digiday, Poynter, and Columbia Journalism Review. He has also worked as a journalist, a community manager and a journalism educator.
