If your media company is directly monetizing its audience in any way or form, odds are, your registered users and subscribers are your biggest money-makers. Even so, the largest portion of your audience is probably made up of unknown readers who aren’t contributing much to your overall reader-revenue growth.
According to recent research we conducted at Viafoura, a shocking 99.6% of publisher unsubscribed audiences, on average, are anonymous visitors. While most of these visitors are passive readers who are less committed to a company’s content than known audience members, you can still get tremendous value from them.
In reality, your anonymous audience is far from worthless. It’s an untapped goldmine of information and revenue just waiting to be activated. But before you can extract the full value of your unknown visitors, you need to know exactly why and how they can become loyal and lucrative audience members.
Prioritizing anonymous to known audience conversions
Naturally, known audience members give your organization far more data and monetization opportunities than anonymous visitors. Viafoura’s research finds that engaged registered users offer publishers five times more return visits than non-registered users.
Rather than waiting for registered users to appear magically, successful publishers have recognized that the key to better monetizing audiences is to actively nurture their anonymous audiences and encourage them to log in. After all, each of your registered and subscribed audience members first started off as unknown visitors.
Keep in mind that almost every anonymous user can become effectively monetized once they are registered. As Greg Piechota, Researcher-in-Residence at the International News Media Association (INMA), explains, “[we] see reader and ad revenue strategies converging as publishers refocus on registering and logging users.”
Ultimately, converting your anonymous visitors to known users online is an essential step on the road to building audience loyalty and growing your company’s revenue streams.
Registration as a means of improving content performance
Logged in users are not just more readily monetizable, they provide a raft of information that allows you to improve their experience and increase engagement.
You can begin piecing together your users’ profiles as soon as they create profiles on your website or app. The more they interact with your content and fellow users, the more you’ll understand who they are, their needs, and the types of content topics and writers they favor.
This valuable data can be harnessed to segment your users into different groups with similar interests. Then, they can then be targeted with relevant content — including advertisements.
Of course, content that aligns more with your users’ interests is more likely to draw their attention and keep them engaged on your website or app for longer. “Once you understand your target audience’s needs, you can develop personalized content that addresses their biggest concerns and pain points,” Gartner reports. “But timing is everything.”
To make the biggest impact on your audience and win over their loyalty, your media company must serve its users the content they want when they crave it, even as their needs and interests change. While you can’t get this information from unknown visitors, you can extract it through the data and comments of your known users.
Turning anonymous users into engaged subscribers
Giving anonymous users the chance to log in to your website is not only key to getting their data, but it can also make your anonymous users become dedicated to your brand. The reality is that once you get anonymous visitors to register, you’re halfway to getting them to subscribe.
In fact, Viafoura data reveals that registered users are significantly more engaged than their unregistered counterparts. They spend an average of 15 times more time on-site after registering. And all that extra time your registered users spend on your company’s website means they have more opportunities to connect with your company’s content and other users.
“News brands that see more known users see more subscribers, and brands that see longer session duration see lower rates of churn,” according to Piechota. He says that research proves that you earn one subscriber for every 10 registrations.
The Telegraph recently shared that its audience growth goal is framed around this research. The company is aiming for 10 million registered users and one million subscribers as of 2023.
This reinforces the fact that you can unlock significant value — including engagement and (eventually) subscription revenue — from a large portion of your anonymous audience simply by getting them to register.
So, if the majority of your company’s audience is anonymous, what’s stopping you from encouraging that massive group of people to become registered, known and returning users? From there, you can use their available data and growing loyalty to your advantage, further enhancing your organization’s engagement, content, subscription and ad revenue strategies.
Both the immersive web and Web3 are coming. Publishers need to make sure they are prepared for any changes that will inevitably impact their data.
But before we start, it’s important to make the distinction between the immersive web and Web3. They are not the same thing.
As a new iteration of the web based on blockchain technology, Web3 will, according to many, revolutionize the internet by transferring the ownership and power of private data to users. It aims to “decentralize” management. As such, it promises to reduce the control of big corporations, such as Google or Meta, and make the web more democratic. It is defined by open-source software. It is also “trustless” (it doesn’t require the support of a trusted intermediary) and is permissionless (it has no governing body).
Meanwhile, the immersive web or metaverse (which many conflate with Facebook’s new branding as “Meta”), is a version of the online world that incorporates advanced technologies to enhance user engagement and blur the line between the user’s physical reality and the digital environment.
But what are the implications for data-driven companies?
With Web3, the most obvious data implication is that publishers will now have to deal with distributed data and new applications, which will require new connectors. It will also impact yield management. The simplest example is downstream royalties (i.e., publishers rewarding customers for the resale of their data and passing that cost along to advertisers).
Meanwhile, the immersive web’s key impact will be the explosion of data volumes, which by some estimates will push global data usage by 20 times by 2032.
The jump from Web 1.0 to Web 2.0 was massive enough. But the leap to the immersive web is likely to see an exponential increase.
So, when moving from terabytes and petabytes, to exabytes and beyond, what components do you need to unify your data?
Velocity and scale
Everywhere you look, there are data automation solutions promising access to “real-time” or “near-real-time” data. But the question shouldn’t just be: how can I get real-time access to data? Things are a bit more complicated than that.
Rather, you should be asking:
1. How can I scale ongoing operations by having a data integrity engine that I can trust to continually scale, as my disparate data sources increase in number, and as my data sets explode in volume?
Building one data pipeline manually is manageable. But having the flexibility to add more pipelines, and connectors, becomes unsustainable without automation. For example, it can take up to a month to build each new connector manually. Unfortunately, that means the data from each new integration (Facebook, Snapchat etc) is out of date by the time your teams can access it. And if you need multiple new APIs for multiple different purposes – all at the same time – chaos reigns before you know it (and with no clear end in sight).
Any publisher attempting to keep up with the influx of new and ever-changing APIs on the horizon in Web3 needs to build a strong and workable data unification platform, now.
2. How long will it take to build a strategic data asset in the first place, before my teams get access to the data?
There’s no use in having access to real-time data in six months’ time. To make informed business decisions, your teams need that data right now. However, in reality, the majority of publishers embarking on building (or buying) their own data unification platform accept that they’ll need to wait for months before they can get close to any actionable data. For example, it might take six data engineering personnel a period of three to six months to code a bespoke platform that is useful to their individual business teams.
In an age of automation, where real-time data is key to keeping up with the competition, these time frames are no longer acceptable.
Smart data pipelines
Typical data pipelines are “dumb.” That means that they’ll pull all the data you need, but also a whole lot you don’t. For example, you might only need to access 100GB of your 1TB dataset to transform into actionable data. But without building a smart API for the job, it will end up pulling the full terabyte, which you will then need to store in your data warehouse.
The costs of exponentially larger data volumes can soon spiral out of control if left unchecked. Instead, you need to build APIs for specific cuts of the data that your teams need. This is what we call a smart data pipeline.
While the pace of adoption of Web3 is still unclear, the immersive web is just around the corner. It’s imperative that data-driven companies are prepared for what’s coming. That’s not just a few more rows of data to process and store, but a tsunami of new and larger data sets that will become overwhelming overnight without the right infrastructure in place.
For any publishers still attempting to carry out their data operations manually, they need to look to automate, wherever possible, before it’s too late.
About the author
Navid Nassiri joined Switchboard as Head of Marketing in 2021. Switchboard’s data engineering automation platform aggregates disparate data at scale, reliably and in real-time, to make better business decisions. In his role at Switchboard, Navid is focused on driving growth and brand awareness through innovative marketing strategies. Navid is a seasoned entrepreneur and executive, including leadership roles at PwC and NBCUniversal.
Netflix’s earnings report last week sent a chill across nearly every company with a business model tied to a direct-to-consumer relationship. There are real concerns about the global economy and speculation about whether the massive increase in streaming viewing habits seen during the pandemic will prove to be enduring. However, I wonder whether the insights gleaned from the Netflix situation are unique to Netflix and not a strong indicator for other media companies, most of which are just starting their streaming ventures.
First, let’s acknowledge the macroeconomy. Inflation registering over 8% will impact nearly every consumer market; this is especially true if inflation leads to higher interest rates and the dreaded “R” word. Unfortunately, this will be an ever-intensifying concern.
There has been a great awakening around the globe after two years of Covid, during which we had requirements and excuses to stay home and avoid socializing. There were countless stories in the trade and mainstream press as we witnessed streaming viewership’s outsized growth about isolation’s impact on our insatiable appetite for entertainment – escape. And binge-watching – which was already a trend after Netflix tossed a hand grenade into the linear schedule – only escalated during this period.
Certainly, Netflix finds itself with real competition for digital share of wallet for the first time in its history. Storied media companies have rolled out exclusive offerings that feature everything from hit television programs to blockbuster movie franchises: Batman, Star Trek, Yellowstone, Avengers from HBO Max, Paramount+, Peacock, Disney+, respectively. Many have regained rights to classic television hits that are endlessly bingeworthy. Meanwhile, Netflix has increased its price, nearly doubling its monthly cost ($15.49 from $7.99 when it first launched) while cracking down on password-sharing as it, impressively, has saturated the market.
But while Netflix may have led the way in streaming, it may not be the best proxy for the subscription market opportunity. The company faces its own issues with stagnating growth and should not be mistaken for marketplace indicators.
What is really happening
DCN’s 2021 research into the value of direct, trusted consumer relationships, brands as proxies for this trust, the needs and behaviors of Gen Z vs Gen Y, and the subscription market point to this lesson: Ignore Netflix and stay the course.
Most important are the lessons coming from studying the “next” generation. Consumer behavior is radically different in a world where payment and immediate gratification are merely a double tap of the thumb and face scan away on a mobile device. Paying for access to your favorite news or entertainment product, whether podcast, app or website, is no longer a foreign concept after hitting a “paywall.” Rather, it is little more than a friendly nudge along the way associating value with the products you love.
The number of people willing to pay for access to news and entertainment is increasing. In fact, Netflix’s greatest legacy for the market as a whole may have been leading the horse to the water. Netflix also worked with premium providers and helped build an appetite for great content and normalized paying for it.
What publishers seek
Now, distribution platforms from Apple to Google to Facebook are being pushed to finally act as true partners in driving subscription revenues and monetization for premium publishers. At times this nudge has had to come from regulatory threats in an effort to create more balanced bargaining power.
But what are publishers seeking? Publishers expect traffic to their owned and operated platforms and true ownership over the customer journey including the underlying transaction and customer data.
Publishers also want to take back control over the pricing, bundling, and messaging for their services from the distribution platforms. This allows a trusted publisher to extract and retain more subscription revenues by controlling their highly-valued brands and, importantly, the customer data from before, during, and after their subscription relationship.
Putting things in perspective
For decades, the vast majority of digital content was available for free.
Meanwhile, Netflix built its business on spending (many would say excessively) on licensing and creating content. It helped rebuild the consumer appetite for quality content and experiences worth paying for. However, when we consider the implications of the company’s recent subscriber losses, we should not be so quick to predict a ripple effect across subscription-based businesses as a whole.
While a couple of news publishers, and a handful of other streamers count their subscribers in the tens of millions, the reality is that most publishers count theirs in the tens or hundreds of thousands. Thus, the basis for comparison with Netflix’s 220 million subscribers is specious at best. That’s like comparing a slowdown in Coca-Cola’s beverage sales to my kids’ driveway lemonade stand.
And the behavior of younger consumers points to a healthy appetite for great content and a willingness to pay for it. Now is not the time to panic, pivot, or radically shift your subscription strategy in Netflix’s wake. Instead, trust in the value of quality content well-delivered in trustworthy settings and know that audiences will be right there with you.
It’s not hard to see that digital advertising is undergoing another paradigm shift. Spurred by pandemic-fueled online use and continued cyber-driven attacks, consumers are becoming more aware of internet dangers. From ransomware and credit card theft to scams and inappropriate content, consumers have had enough.
Recognizing this sentiment, brands seek to showcase how they contribute to building a better world as evidenced by multiple initiatives covering diversity, sustainability, and responsible programming. For publishers, this consumer-first mentality extends to the online environment, where brands are looking to safeguard consumer expectations of privacy and security.
Welcome to digital trust and safety.
A new era in digital
Digital trust and safety requires understanding and addressing the harmful content and/or conduct experienced by consumers when accessing websites/mobiles apps. This ranges from how digital products are built, managed, and promoted through to how they make consumers think, feel, and act. In effect, it’s all about putting the consumer at the center of decisions regarding their online experience.
This thinking is critical when you consider the different risks faced by different consumers, especially the more vulnerable members of society, e.g., elderly, children, technologically naive.
Layer on the reality of targeting and national security risks become apparent as government and military employees are consumers, too.
Accepting responsibility for the consumer experience transforms how the industry—brands, AdTech, publishers—approaches its contribution to the consumer experience. Instead of focusing on activity that affects a business (viewability, ad fraud or brand safety), you prioritize actions that impact the consumer to build trust. As Conny Braams, Unilever’s Chief Digital and Commercial Officer recently acknowledged, “The currency in Web 3.0 is not crypto, it’s trust.” It has become clear: Digital trust and safety is the next phase in the digital evolution chain.
The evolution is underway—just look at the new and growing crop of job titles on LinkedIn.
Factors driving digital trust and safety
Going beyond ad fraud, content moderation, bots and other brand-oriented initiatives, digital trust and safety is all about the consumer. It is driven by security, data privacy, and trusted content.
Security: Protecting consumers and their devices from malicious, anomalous, compromised, or non-compliant code that enables distribution of backdoors, credit card theft, ransomware, cryptomining, etc.
Data privacy: Guarding against unauthorized tracking of consumer activity, especially when performed by unknown parties
Trusted content: Ensuring the substance of the experience doesn’t endanger consumer well-being, e.g., false claims, misinformation, online scams, etc.
With digital at the nexus of companies and consumers, there’s nothing more important than safeguarding the user experience. It’s more than ad fraud and blocking ads. This focus on safety and security encompasses the entire consumer experience.
Adopting a consumer-first approach isn’t hard, but it does require unwavering dedication. Once executives agree that consumer well-being is important, this thinking will cascade to permeate all aspects of the business. All it takes is consistently asking and documenting the impact on consumers for key touchpoints and commercial initiatives, from product introduction and feature development to marketing promotions and customer service. This guiding principle will add clarity to and inform decisions. It can also serve as a competitive differentiator elevating your business in the eyes of the market.
It’s your move
Government leaders and regulators are listening. Various initiatives are underway to protect consumer online experiences: UK Online Safety Act, EU Digital Services Act, ban on surveillance advertising, more limits on data collection, and more.
Collectively, the industry needs to stop harmful activity as it enters the digital ecosystem and ultimately before it is served to consumers. Frankly, it’s the right thing to do. That’s how we engender trust, and a trusting consumer will buy more (90% of consumers would buy more from a brand they trust).
Ask yourself: Are you willing to put the consumer first when it comes to digital? I’m game. Are you?
When the sole motive is profit, publishers fail. Clickbait creative may generate short-term revenue, but it sharply degrades user experience. When publishers put consumers at the center of their monetization strategy, revenue follows.
Digital publishers must recognize that user protection and user experience go hand in hand and act on the sizable gaps left in both. We define clickbait as creative engineered to intentionally elicit clicks through manipulation and psychological engineering via sensationalist text or imagery. With 85% of the ads served today delivered through programmatic channels, entry points are exploitable enough that 56% of publishers now regularly face clickbait ads on their sites.
When confronted with clickbait campaigns, users won’t hesitate to write off a publisher’s brand. Audiences will bounce from the site or avoid clickbait. So, even short of full scale audience alienation, clickbait damages the site’s metrics, which will discourage high-quality advertisers from buying inventory, and ultimately sinking CPMs and overall revenue. GeoEdge research revealed that in 2021 over three-fourths of publishers’ sites user experience was harmed by poor ad quality and 66% reported bad ads impacted their bottom line.
Securing landing pages from scams
Rooting out clickbait requires close scrutiny that goes beyond just the creative. The greatest risk to user protection is often found on an ad’s landing page. Once a user clicks on a salacious creative, they are often tossed to an entirely unrelated landing page that might be pushing a range of scams from investment schemes and counterfeit products to miracle cure products and services. Recent GeoEdge research in collaboration with Wizzco revealed that 81% of publishers are concerned that poor ad quality may cost them their users. Publishers agreed that quality pertains to ads and landing pages alike, with 65% stating that ad content and landing page safety are equally important.
While there is a range of intermediaries along the supply chain between advertisers and end-users, keeping a page clean of clickbait ads is a publisher’s responsibility. A user-first approach to monetization requires that publishers own all touchpoints with their audiences, from the editorial content to the ad content and all accompanying landing pages. Publishers can implement technology to tackle the three leading clickbait cases including:
Financial scams use deceptive tactics to take advantage of financial products and services, including cryptocurrency and other investment opportunities.
Misleading product offers typically include listings of unverified products and services promising miracle cures and results most commonly falling under health and wellness.
Brand infringement offers well-disguised counterfeit versions of trusted goods by impersonating brands or businesses, advertising them at low-cost prices.
The future of publisher monetization
Every publisher maintains different standards for brand-suitable advertising, but the threshold for user protection is not subjective. Publishers’ primary purpose is to deliver valuable content to audiences. Therefore, the same attention must be put into curating ad experiences as into editorial content. Building a holistic user experience enables you to achieve meaningful, relevant engagement and increase user lifetime value.
It can be easy to overlook all of the places that users interact with your brand, so securing every touchpoint is crucial to a successful user-first approach to monetization. Enforcing user protection standards requires real-time technology to ensure landing page content, and ad content meets publisher standards.
It’s up to publishers to implement a user-first approach, educate their teams about the risks of clickbait ads, and find the right partnership to provide transparency in a complex supply chain.
The value of the trust relationship between the publisher and the user cannot be overlooked.
The strength of this foundation is what determines publishers’ long-term profitability.
Trust is elusive of a simple measurement. However, publishers must begin to recognize the cost of negative ad experiences. While the long-term future of publisher monetization is programmatic, we must be careful not to sacrifice audience loyalty in favor of short-term revenue.
Lately, there has been much investor handwringing over CTV investments. With Netflix’s latest results, some worry that if Netflix’s growth has stalled, the prospects for everyone else may be diminished as well. This is why the same day that Netflix stock came down 35+%, there were also (albeit much smaller) declines in other broadcast stocks too.
But the concerns may be misplaced. If YouTube can build a $28.8B annual revenue advertising business, without subscriptions, surely there’s hope that Netflix and other media brands with strong content catalogs can build and sustain ad-supported offerings.
The YouTube business
To better understand the YouTube business, MediaRadar took a look at the mix of YouTube’s current advertising. For this analysis we reviewed pre-roll, mid-roll and post-roll ads from the largest 3,000 YouTube channels across 33 content categories through a panel of over 2 million users.
What we found was a robust, growing business, with significant lift in advertising revenue the trailing year, but also the number of advertisers, across most product categories, was up. Alphabet Inc, which owns YouTube, recently released FY 2021 numbers. The economics look strong. The company grew revenue 47% in 2021, up to $28.8B. Almost all of this was from ad revenue, with very little from subscriptions. The implications for all broadcasters and publishers is meaningful.
Some view YouTube as a platform only, not as content creator. But this is not quite right. YouTube is a platform of course. But they also invest aggressively in their influencers and third-party content creators. While they don’t finance scripted shows, they don’t leave content creation to chance. They do this by providing physical space, the latest tech, upfront grants, and even assign a manager to advise creators once they hit a certain number of followers. As reported by the WSJ in October 2021 they note YouTube employs 1,000 full-time managers assigned to the top 12,000 creators. With this in mind, there are takeaways for others on how to build a hybrid approach to content creation.
YouTube advertising findings
The industry verticals with the most concentration of ad spend include entertainment, technology, retail, finance, and pharma. Altogether, these categories accounted for 60% of ad placement, and each segment increased > 30% YoY from 2020 to 2021.
Retail and ecommerce advertising are up significantly year-over-year. We observed an increase in ad spend within this category of 109% from 2020. Unlike in certain categories, in retail we continued to see steady growth throughout the year. The Retail Category increased advertising on YouTube by 60% in Q3 2021 and 91% during the Q4 2021 holiday rush.
YouTube’s music content was the most popular in both 2020 and 2021 with advertisers. YouTube benefits from strong renewal rates, but also from new clients. 52% of advertisers in music YouTube channels were new in 2021.
Everyone knows Travel advertising would be up. YouTube did not disappoint. Advertising investment in the Travel vertical grew by 270% YoY from 2020. Some of the ad spend was from kid-friendly vacation destinations and theme parks like Disney World and Discovery Cove. Ad spend increased 8x year-over-year.
Content is key to advertising growth
Next, we looked into YouTube’s programming channels to see what content categories are helping to drive growth of the platform. Interestingly, the most popular among advertisers were the same in 2020 as 2021 – music, kids, society and culture, and gaming.
YouTube’s music content was the most popular both years among advertisers. Furthermore, 52% of the companies investing among YouTube’s music content were newcomers to the category.
Another trend we uncovered was within “kids” content. Advertising investment among travel vertical grew by 270% YoY from 2020. Most of the ad spend was from kid friendly vacation destinations and theme parks like Disney World and Discovery Cove. Ad spend increased 8x among this group.
What’s next?
As we move through 2022 and into 2023, we expect retail ad spend to continue growing on YouTube. YouTube will continue to be a hot-spot for advertising among retail brands.
While ecommerce has had an increasing presence for years, the pandemic likely accelerated this possess by uncovering new technology to help making digital buying easy. YouTube has had success with shoppable experiences, and we expect to see more of them.
Publishers have long understood the value of affiliate revenue and shoppable content. The opportunity here – as demonstrated through YouTube’s success – is to evolve this into video and CTV offerings as well.
It will be interesting to see how the “new normal” plays out post-pandemic. Obviously, the industry and buying behavior has been forever changed. The online video market is also becoming cluttered with numerous CTV and OTT options. Even Disney+ and Netflix are launching advertising-based models. The constantly evolving market will impact the way video is consumed and the methods advertisers need to use to promote their products.
The combination of content and commerce is a strong one. And, as we are seeing throughout the streaming space, content drives audience interest. And audience interest drives ad sales success. YouTube’s success illustrates the opportunity for ad-supported streaming success.
True digital natives, Gen Z grew up with smartphones, social media, and video on demand. “Understanding Gen Z’s media experiences and entertainment preferences is a priority for publishers,” Michelle Manafy, DCN’s Editorial Director, observed, “ because they provide a proxy for the future of digital media.”
Not to be confused with millennials, Gen Z’s outlook and media habits are very much their own. A powerful demographic — and audience — in its own right, Insider Intelligence noted Gen Z is expected to constitute more than one in five (20.2%) of the U.S. population in 2022. With nearly 70 million tweens, teens, and young adults falling into this category, “Gen Z is the most racially, ethnically, and sexually diverse generation in history.”
So, what do we know about this demographic, and how can publishers best reach and engage with them?
1. Understand their social media habits
Given that this group was “born digital” it is no surprise they are active users of social media. One key segment of this demographic, teens, spends around four hours a day on social media new research from Piper Sandler shows. This latest semi-annual Taking Stock With Teens survey also revealed TikTok is teens’ favorite social media platform (33%) surpassing Snapchat for the first time (31%). Instagram ranks third (22%). YPulse’s social media monitor reports that, although Gen Z’s use of platforms such as Facebook, Instagram, and Snapchat increased slightly last year, “no platform has seen growth comparable to TikTok’s in 2021.”
Gaming platforms and emerging social spaces also present some intriguing possibilities. For example, YPulse found Gen Z is more than twice as likely as Millennials to use platforms such as Discord (34% vs. 15%) and Fornite (25% vs. 10%). They are also less inclined to use products like Facebook (42% vs. 75%) and Facebook Messenger (42% vs. 62%) although that may change as they get older.
With roots in gaming culture, but not exclusive to gamers, Wilson argued, “digital campfires have become a force defining not only how Gen Z audiences connect, but also how they experience and shape the culture at large.”
“For that reason, marketers can no longer afford to ignore them,” she said. The same argument can be made for publishers and other content creators too. Twitter Spaces, live streams, and AMAs are just the mainstream tip of this intimacy iceberg. Other platforms like Roblox, Geneva, and Discord should also be on your Gen Z radar.
That means “you must earn their trust, as they need to believe in your product as well as your purpose,” according to Erik Huberman, the Founder & CEO of Hawke Media, a full-service, award-winning marketing consultancy headquartered in L.A.
For media players, that may mean everything from providing more behind the scenes stories on Instagram Stories, as well as having a more defined voice on issues that matter to Gen Z. Those subjects include climate change, social justice and the wider uncertainties faced by this generation; uncertainties impacting Gen Z’s economic prospects and their mental health.
Having a voice on such matters may challenge traditional journalistic concepts of neutrality and objectivity, but can be clearly seen in outlets such as VICE, Complex, and The Recount. These are publishers I find many of my Gen Z students naturally gravitate towards because of this.
4. Lean into theircontent preferences
Video, mobility, and short-form content all matter to this cohort. DCN’s research established the primacy of video. Gen Z values video over other media platforms by a margin of around 2-to-1.
More than half of their daily video viewing is on Netflix and YouTube (both 30%) Piper Sandler showed.The research also found 87% of teens own an iPhone; with 87% expecting an iPhone will be their next phone too.
“Gen Z typically have an attention span of just 8 seconds,” the IAB reported, “a few seconds shorter than millennials, who come in at approximately 12 seconds.” From Under The Desk News on TikTok, to Axios’ penchant for bullet points (a format they’ve trademarked as Smart Brevity®) and the emergence of audio “microcasts,” no medium is immune to this short-form trend. Given that it’s not just Gen Z with infinite sources of distraction and entertainment available to them in the palm of their hand, short-form’s prevalence is only likely to grow.
5. Find fresh ways to make it pay
“The number of those [Gen Z] investing in cryptocurrency in the US increased by a whopping 200% since Q2 2020,” GWI highlighted last month. This presents intriguing possibilities for outlets seeking new content verticals, as well as new ways to secure reader revenue.
As I demonstrated in a list of 231 Ways To Make Media Pay, publishers such as the Chicago Sun-Times, Time, and The Marginalian (formerly Brain Pickings) have already been experimenting with cryptocurrency payments. More widely, Gen Z’s propensity to consume media on platforms like Netflix, Hulu, and Spotify may mean they’re more in the habit of paying for premium content.
Examples of tipping on social media, via The Information
In a similar vein, the tipping culture manifest in parts of the creator economy also offers some fascinating possibilities. Publishers may want to tap into Gen Z’s relationship with influencers and above-average propensity to use platforms like Discord and Twitch where this type of functionality is baked in.
Lastly, as more and more publishers seek to add e-commerce into their revenue mix, the emergence of social commerce — and Gen Z’s growing habit of not only drawing inspiration from social networks but then purchasing products and services directly through them — is another area publishers must pay heed to.
Implications for publishers
For content creators chasing after Gen Z consumers, the data suggests it is important to be active on newer, more visual, video-led social networks like Instagram and TikTok. At the same time, YouTube remains the most popular social media channel used by Gen Z and the rest of us, a traditional platform many publishers do not make the most of.
And it’s not just social video attracting Gen Z. Spotify’s data shows that Gen Z (and millennials) actively use audio to access diverse viewpoints and to find out about social issues, potentially creating a space to dig deeper and offer more long-form content.
Embracing these platforms, certain characteristics of the gaming ecosystem, as well as the style and tone of voice Gen Z expects from much of the media they consume, is essential if publishers are to develop long-term relationships with Gen Z. Given their size and purchasing power, Gen Z is a group no publisher can afford to ignore.
The need to evolve in the digital advertising world isn’t anything new. But the end of cookies has driven much speculation and we’re here to debunk some of the uncertainty that comes with it. Given the amount of discussion on the subject of cookies and identity solutions that’s taken place, it’s not surprising that certain common misconceptions have arisen. Let’s clarify what you need to know about identity and address the question of a critical factor in digital advertising: addressability.
“I can wait until the last minute.”
As tempting as it may sound to see what happens when everything is said and done, that approach isn’t in anybody’s best interest. As we’ve discussed before in “Why preparation is key,” solving for identity won’t be a quick fix or happen at the push of a button. Re-strategizing your approach to programmatic advertising requires a series of tests, trials, and adjustments to get it right. This process takes both time and effort. The sooner publishers lock in new solutions and curate new partnerships, the sooner the buy-side can adapt. These steps will enable us to enter 2023 as a unified industry with a tried-and-true approach for success.
“I can only choose one identity provider.”
It’s not uncommon to have one provider for varying solutions. While you may only need one CMP for consent or one DMP for audience segmentation, the same doesn’t necessarily apply to identity. As you evaluate who to leverage for direct deals or contextual targeting, consider as many identity providers as you see fit.
Many publishers scout out a handful before narrowing it down to three to five during the research and development phase. From here, you should test to see which best suits your needs. While you become more familiar with your first-party data, adding additional partnerships enable extra coverage and support. It also allows you to finesse your approach and keep what serves you in your new advertising strategies.
“Identity is an additional stream of revenue.”
When discussing addressability, revenue often arises during conversation. Why wouldn’t it mean more revenue if you’re adding another partner to help you identify and target your users? Additional revenue may be a happy byproduct. However, it’s important to set the right expectations in terms of objectives and results.
Identity should serve as a privacy-first solution to identify and address users that would otherwise be unreachable once third-party cookies are gone. Thus, acting as an alternative means to continue to do what has taken place for years past. A different connection equals a new and improved bidding logic rather than an extra stream. When publishers can address an otherwise blind user, they will see increases to bid rates and bid CPMs in otherwise blind environments.
“I can’t leverage identity since I don’t have emails.”
A theme around email addresses has emerged. Unfortunately, this theme is taking precedence over the real issues here. Yes, having emails is the strongest connection for buyer preference. However, there’s more than one way to address a user that isn’t tied to email alone. Direct deals and contextual targeting can take you part of the way. Identity aids as another layer to help bridge any remaining gaps.
You can start with identity, end with identity, or choose identity alone and regardless – it will take you just as far. The good news for publishers and advertisers alike is that identity allows you to target your end-user and target them 100% of the time. Thus, allowing for both addressability and scale. Some partners may only support hashed emails, whereas others can support declared and inferred signals. This is the common currency that will take you all the way and then some. It is crucial to understand what you’re working with and who or what you need.
“I’ll let the identity provider do all the work for me.”
Third-party cookies allowed publishers to put their advertising needs in the hands of others. Thus, letting them focus on other efforts in parallel. The role of conjuring up a game plan is now in the hands of the publisher. SSPs will still play a role and will continue to be there in support. Yet, it’s now up to the publisher to understand their data and make the best use of it for their own return or gain.
Adopting an identity partner alone isn’t a solution. Identifiers should empower publishers to protect their data and protect their users while using said data to convert into currency. Identifiers enable publishers to have the means to address their users in a safe and controlled environment. However, what they do with those IDs is in their court. Use the time to gain a better understanding of your first-party data and ensure the rest of the ecosystem is equipping itself with support.
At the end of the day, we all have the same goal which is why working together is the best approach. Publishers can make the most of their advertising strategies by confronting these common misconceptions in the name of addressability. With the right finesse, breaking down these barriers ultimately paves way for a future that educates, enables, and empowers media owners to address more users at full scale. As well as allowing them to maximize their value of inventory with a new form of currency. The coming changes allow for new and exciting opportunities, should they be properly seized, and should proper expectations be set.
Just a few weeks ago, Think Premium Digital in Australia launched part three of their research into the effectiveness and competitiveness of premium digital video. As the ex-CMO and ex-CEO of GroupM, I love to see the investment in quality research to help lift the performance of marketing and challenging out of date thinking.
This latest report, called “Not all time spent is equal,” looks at time spent on a platform vs. the advertising attention on that platform. The research shows that time spent on a media platform is not the same as time spent consuming advertising. Publisher premium digital video performed the best in terms of ad exposure and ad attention – beating out YouTube and social platforms.
The research also found that just because consumers are spending hours and hours on a media platform doesn’t automatically qualify it as a great place to advertise to them. The study highlights that ad attention (the time that eyes were on the ad), rather than time spent, should play a more important role in media channel selection. Time spent on a platform is not a suitable proxy for advertising effectiveness and should challenge agency planners to think differently about digital planning.
The new way to choose marketing channels
The obvious question becomes, if time spent is no longer the driving forced behind where advertisers should spend their money, what factors should they take into consideration. Here are three important factors to understand before making a channel choice:
Time spent on platform – Total time spent converts to 10.2% ad exposure for premium video compared to 4.5% for YouTube and0.7% for Social Video.
Ad exposure opportunity – Ad exposure for premium video is 2.2X more than YouTube and 16X more than Facebookin an average hour.
Ad attention is what drives engagement and behavior change – An hour on premium video generates 5 mins of ad attention; 2.6X more than YouTube and 25X more than social video.
Notice time spent is still a consideration – but only part of the equation.
Why attention matters
“Attention” is getting a lot of attention in marketing, advertising and agency discussions – as it should. The pressure on marketing dollars to truly deliver impact and business results has never been higher and selecting the right channel and environment is critical. This is an area where multiple research studies have shown that premium digital video on premium publisher’s sites deliver best in class results.
If the publishing industry ever wanted insights and results to help drive transformation of their video offerings to be a perfect match for advertiser needs, these are those insights. Building premium digital inventory should be every publisher’s priority. Premium video refers to short- and long-form video housed in the digital environments of known and trusted media brands that are brand-safe and offer meaningful scale.
Dr. Duane Varan, CEO of MediaScience, said about this latest piece of research, “Here, we’re looking specifically at these video ads appearing and trying to understand those differences. Similar research needs to be done across 100 other variables. But attention is a good starting point, because if you don’t have attention, you don’t have anything else. Attention is the start of the conversation.”
Dr. Varan added, “As we’ve consistently demonstrated, environments matter. The case for premium video continues to strengthen with this research showing its ability to deliver ad exposure and even more importantly, advertising attention.”
Rethinking your media strategy
Venessa Hunt, General Manager of Think Premium Digital in Australia, wasn’t surprised by the findings given consumption behavior. Where the disconnect comes from is that people aren’t looking at the full picture in the planning processes, she said.
“It’s often frustrated me when we talk about time on reach and exposure to advertising, because they are such different things. If a client is paying for time on a platform, or the ability for time on the platform, it doesn’t potentially benefit the brand. But if the ad isn’t even there, you’re using the wrong data to start that planning process.”
Hunt expected this kind of exposure and attention would become a factor in industry decision making, though she admitted the industry isn’t there yet. Measuring attention is problematic and variable.
“For now, though, we have to start changing the conversation around the planning,” Hunt said. “Why are we spending so much on this platform over another? We’re using time spent as the justification, and the fact everyone is there and there a lot. Sure they are, but there are no ads. Changing the mindset around planning ad exposure and ad attention as opposed to platform exposure and attention is key.”
