Every time there’s a big change in how Apple, Google, or Facebook works with publishers, a touch of panic can be felt in the air. Yet, we’ve all survived seismic shifts from these companies. From Facebook’s deprioritization of publisher content in 2016 to Apple’s recent iOS 14.5 release, we’ve absorbed the shock and made it through. But, as an industry, we always act like the next change might be our last. Now, Apple is specifically coming for email. It’s placing limitations on location and IP targeting that could make it more difficult to use personalization for some iPhone audiences… and the cycle repeats.
Yet, like all of the sky-is-falling fears before it, Apple’s latest move is nothing to panic about. The truth is that these changes are merely a distraction from the real work that publishers do every day to connect with their audiences through great content and great experiences. If change occurs to a specific algorithm or a particular measurement metric, that doesn’t alter the core of the business, which is to deliver value to an audience.
Embrace change for good
The old saying that “change is the only constant” is a well understood truth within the industry. But these changes tend to happen in rapid succession, making it near impossible to keep up if publishers are always in reaction mode. Nearly every year, digital experiences a seismic shift — from GDPR and other privacy regulations to pending cookie deprecation from Google. Rather than cling to what we have, we should be working to create stability from the inside out.
For example, open rate data will become skewed with the Apple iOS 15 release. It’s the core metric used to determine opportunity, in particular for advertisers. When this metric is threatened, fear rears its ugly head. If we can’t effectively track opens, should we begin to track clicks? If we do, does that mean publishers like Axios, who have a product-oriented approach to newsletters, should entirely scrap their email strategy that works? Should they start prompting their readers to “click to read” simply so they can track that user? Of course not. That fear should not determine a course of action.
Audience behavior won’t change. The desire to consume quality content in quality email experiences won’t change. The needs of our audiences must remain at the forefront of everything we do.
As an industry, one way to do that is to collectively accept that KPIs will change — on both the buy and sell side. The sooner we do, the sooner we can collectively move forward. Together, publishers can meet to determine a matrix of KPIs, and discuss with groups like the IAB which metrics are in danger and how to push up more stable metrics so that everyone, including advertisers, can move forward despite industry changes.
Stability through zero-party data
Change might be the only constant, but audiences are the only source of the truth. Both publishers and advertisers rely on audience engagement to hit their goals. Yet few use direct audience insights as a source for measurement and KPIs. The more publishers understand their audiences, the better they are positioned to create stability for the long run.
Zero-party data is the best way to make that happen. Defined as data that publishers explicitly receive from their audience as part of a clear value exchange, zero-party data is more valuable than first-party data such as search or browsing preferences.
More than ever, people are aware of the value of their own data. In a 2021 Merkle survey, 76% noted that they would be willing to fill out a short survey in order to get a better online experience. Taking a page from retail, personalization is proven to lift sales. Thrive Market, an online grocery store, weaves data collection into their entire online experience, using quiz elements to guide shoppers and then shape the content and offers they get in return.
Value remains constant
This focus on the direct value exchange between consumer and brand can be applied in the publishing world to great effect. Rather than just passively observe what readers pay attention to, more brands should be actively asking, engaging, and personalizing. The data that’s collected not only improves content personalization and audience targeting, it creates a foundation of insights that can be used to optimize reader experience. And that data is only as good as the last ask, publishers need to continually ensure they’re up to date on people’s ever-changing preferences.
Zero-party data shows how engaged audiences are, how much they’re willing to share, what they like, and what they want. For example, The Independent collected insights from subscribers in a New Year’s wrap-up newsletter that ended up producing a brand new newsletter focused on climate change. The team asked subscribers about which topics resonated the most in 2020. While the pandemic ranked at the top, they were surprised to see how many also cared about news about the planet.
Publishers have survived so much change in the digital world and we can certainly survive more. But rather than just focus on surviving, let’s actively build out a position of strength and move away from the passive, reactive moves of the past. When given the chance, people want to engage with publishers to make their experience better. Let’s own our own success, once and for all by actively prioritizing that relationship.
About the author
Allison Mezzafonte has worked in the media and publishing industry for 20 years and is currently a growth consultant, as well as a Media Advisor to Sailthru. A former publishing executive for Bauer Media, Dotdash, and Hearst Digital, Allison serves as a strategic partner to media clients.
In an advertising ecosystem that often can seem complex and opaque, digital publishers must find ways to stand out from other websites that offer advertising.
The industry has developed several resources to foster greater supply chain transparency and help publishers take greater control of their inventory, stand out for their commitment to quality and earn more revenue. It is important for digital publishers to be aware of these resources and integrate them into the selling process to maximize revenue opportunities.
Here we look at some of these resources and share how they benefit publishers and buyers.
1. Private marketplaces
Programmatic technology has made it easier for marketers to buy advertising at scale. However, not all exchanges provide them with publishers that have been vetted by a trusted organization.
Private marketplaces give buyers access to quality inventory while participating publishers also benefit from higher CPMs and by knowing the ads placed on their sites are from legitimate marketers.
You’re probably aware of TrustX, a premium private marketplace developed by Digital Content Next. It offers buyers access to inventory directly from more than 250 member publishers, bypassing resellers and intermediaries. Similar exchanges are taking hold globally including The Ozone Project in the U.K. and the Maple Network Exchange in Canada. By joining a premium private marketplace, publishers can find strength in numbers and greater exposure to buyers looking to buy inventory from quality publishers.
2. Industry programs
Several organizations have created programs to identify publishers that have taken steps to stand out, whether that’s by providing transparency, offering quality local journalism, or integrating industry standards and best practices into the buying process.
The Alliance for Audited Media’s Digital Publisher Audit is an in-depth, continuous audit of a publisher’s website traffic and business practices to verify that a publisher is effectively minimizing ad fraud risk. This new assurance solution addresses ad fraud at the publisher level and complements other industry initiatives like private marketplaces. We include all AAM-audited digital publishers on the AAM Audited Domain List, which can be downloaded from AAM’s website. It can also be found at the IAB Tech Lab Transparency Center, a resource that buyers can access to learn more about sellers and the compliance programs and industry standards they adhere to.
The Local Media Consortium is an association of local newspapers, broadcasters and online news outlets committed to quality journalism. The LMC Local News Advertising Inclusion List includes thousands of local media advertising opportunities for national brands.
And finally, The Trustworthy Accountability Group sets standards that promote greater supply chain transparency and includes organizations from across the industry including brands, agencies, publishers and tech providers. The TAG Registry lists members that are committed to increasing trust in digital advertising.
By taking part in these programs, publishers can be easily identified by media buyers who access these resources to build inclusion lists and prioritize quality partners.
3. Supply chain validation
Publishers also can use industry tools to easily gain insight into who sells their inventory and discover ways to make the process more efficient.
The IAB Tech Lab develops solutions to bring greater transparency to the supply chain through tools such as ads.txt (app-ads.txt) and sellers.json. The organization recently launched a new service that analyzes publishers’ ads.txt files to validate who is authorized to sell their inventory. Supply Chain Validation allows publishers to verify that their ads.txt file adheres to technical specifications by alerting sellers when issues arise such as an incorrect or missing entry, which can lead to missed revenue or an unauthorized sale. The service also compares the publisher’s ads.txt file to their selling partners’ sellers.json files to determine if there are any inconsistencies between the two. The results are then published in the Transparency Center and are also available from the IAB Tech Lab via an API.
As a premium publisher, it is important to integrate industry solutions into your selling strategy to stand out to advertisers. Putting the right processes in place will give your site — and your ad sales efforts —the best chance for success.
When it comes to the future, increasing user registrations and building robust first-party datasets should be at the forefront of every publisher’s strategy. Building first-party data unlocks a publishers’ ability to increase user loyalty, activate their audience, monetize their content, and improve their editorial strategy.
However, according to a recent survey from Teads, 65.3% of publishers say they are not planning on increasing the usage of logins to gather first party data. Why is that? According to the report, they’re worried about a “potential disruption of user experience.”
It’s a valid concern: 67% of customers say poor user experiences are a reason for churn.
It doesn’t have to be this way. Many leading publishers are leveling-up user experiences on their website by creating social experiences and using personalization to create a seamless registration and log in process. These publishers stand to attract and grow an audience of loyal readers. Let’s take a look at how they’re doing it.
Three tactics to engage loyal audiences
1. Give users a reason to register with immersive social experiences
Stand-out content will always drive readers to a publisher’s website. Increasingly, though, readers are looking for other ways to interact and engage once they’re done reading an article.
Today, the publishers who are creating social experiences on their website see more registrations and greater retention rates. At OpenWeb, we’ve found that publishers who create these experiences have users who spend 35% more time on-site. They are 450% more likely to return month-after-month, and drive 4x the revenue as the average user.
There are a number of ways that publishers can create social experiences. Many are adopting engagement tools like one-click polls where readers can weigh in on the article they just read. Others are producing interactive ask-me-anything style interactive forums (AMAs) with authors or journalists. Another effective social experience is hosting a comments section. When publishers invite readers to interact in quality conversations where they feel valued, they’re more likely to register and return again and again.
2. Use active personalization to provide value and keep users coming back
Users not only crave engaging social experience, they’re loyal to publishers who “get” them.
That’s why more publishers are creating personalized content experiences to drive registrations and loyalty. In fact, 88% of marketers believe that audiences now expect personalization. One of the most effective ways that publishers can provide value to their users is through active personalization, or personalization that allows users to self-select their favorite authors, topics, and more.
Readers who receive targeted content tend to stay on-site longer, return more often, and view more content. They also provide publishers with more information about their content preferences, allowing publishers to take advantage of rich first-party data insights. One of the great things about personalized experiences is that, with the right tools, just about any publisher can create them—even those without a comments section.
3. Optimize your first party data success strategy
First-party datasets will play a pivotal role in every publisher’s future. In fact, they’re absolutely critical for any sustainable strategy, particularly in light of cookie depreciation. Through exceptional user experiences, publishers will drive more registrations. This will, in turn, allow them to collect more robust and accurate first party data which ultimately enables them to provide additional value to their audiences. In other words, all roads lead to a loyal, active community.
Time to interact
So if you’re still contemplating how to navigate the cookieless future, start by evaluating your user experience and ask these questions:
What opportunities are there to create social experiences and build a thriving, active community?
How can we leverage personalization to provide targeted content experiences for readers?
With this approach, publishers stand to see more registered, active users and higher retention rates, like Salon has. Thanks to immersive social experiences on their website (including a comments section), they built a loyal community of active users—and boosted their retention rate 4X.
The bottom line? Give users exceptional experiences and see exceptional results.
About the author
Joel Bejar is the Vice President of Business Development at OpenWeb.
After two years, London Fashion Week is back with crowds, front rows, and shows. And the welcome strut of models on the catwalk brings with it the potential for great strides forward in making the industry more representative of society.
The British fashion industry has taken up a diversity initiative born in the BBC’s London newsroom but made it their own. Indeed, they’ve innovated in ways that could be trendsetting for newsrooms, content teams, and the fashion publications devoted to their work.
The partnership with the BBC’s 50:50 Project began that to the BBC’s Director of Creative Diversity June Sarpong joined the BFC’s Council. In September 2020, she became part of a newly formed BFC diversity and inclusion steering committee, which initiated the discussions of how 50:50 could be used to collect representation for the fashion industry.
Twenty design businesses signed up to use the 50:50’s data collection model at this September’s London Fashion Week. They were asked to collect diversity data from their teams represented at the event, which the BFC will collate. The results will be fed back to designers to support their future decision-making.
Katie Rawle, the BFC’s Senior Business Development Manager and co-lead for the Council’s 50:50 initiative, said, “Our initial thoughts about taking on 50:50 was how it could be empowering for designers. We’re empowering them to add further consideration to their decisions based on the data sets we give back to them.”
Sarpong believes that the success 50:50 has had within the BBC (and elsewhere) will positively impact London Fashion Week. According to Sarpong, “50:50 encourages all businesses to make more conscious choices around their teams from full time employees to the freelancers employed at shows, from models, to stylists, hair and make-up artists, communications and production teams.”
The BFC’s program adheres to the 50:50’s core principles: Collect data to effect change, measure what you control, never compromise on quality. These are the same cornerstones used by more than 100 partner organizations across the globe.
As Rawle said, collecting data to effect change for the fashion industry is all about informing designers’ future decision-making. September’s London Fashion Week will set the benchmark for them and the industry at the tri-annual event and they will then seek to improve their previous performance where necessary. The BFC has pledged to publish the industry’s data after 18-months. Critically, this aligns with the 50:50 ethos: Change not only happens – but is seen to happen.
Beyond a superficial makeover
The fashion industry has advanced the “traditional” 50-50 model in that the design businesses also collect data on their behind-the-scenes staff. This includes everyone from the design teams themselves to hair and make-up, models, production, and communications.
Yvie Hutton, the BFC’s Director of Membership and co-50:50 lead, said the decision to use 50:50 for off-camera contributors was inspired by an improvement in the editorial sphere over the last five years. She believes a similar evolution is happening behind the scenes in the world of fashion – but would like to confirm it in numbers. And if it turns out more change needs to happen, transparency can only help.
“50:50 is such a great way to look at all the different sort of stakeholders that make up the industry and come together for a major event,” she explained. “It will give us a better understanding of whether people’s perceptions match the reality.”
Saul Nash AW21
Tailored collation
So how does the BFC’s adapted version of 50:50 work? Most of the 50:50 media partners monitor their content through perception and collecting that data on aggregating spreadsheets. This allows daily output that is simple, fast and can fit into a content-makers’ workflow. However, London Fashion Week is collecting its data through QR-codes.
Hutton explained that any contributor could simply scan the QR code on their phone and fill in a self-declaration survey there and then. She says that this method of data collection fits better with the industry’s current practices and for capturing off-catwalk representation. As with the media’s approach, it also allows data to be collated quickly and fed back to designers to support short-term and future decision-making.
Newsrooms looking to garner more actual data – as opposed to audience perception data – may want to consider the QR collection method. Sending it to a contributor before transmission or publication will allow them to use the data in real-time, which could be quite powerful.
A deeper look
In addition to extending the data collection on the who, the BFC have also widened the scope of what characteristics they are monitoring. They’re examining not just what the audience can see but those behind the scenes.
Rawle explained that, as with 50:50, they are monitoring gender, disability and ethnicity However, they have also included socioeconomic diversity (SED). Fashion, like the media and other creative industries in the UK, has been identified as lacking employees from working-class backgrounds.
“There’s this idea about creative industries that they’re a meritocracy and that you just work hard and you can make it and that isn’t the case,” she said. “I think we have to acknowledge that and that was one of the things that came out of the 50:50 pilot [at June’s London Fashion Week]. People were keen for us to capture it socioeconomic diversity, as well as the other characteristics.”
source: Social mobility in the Creative Economy
A recent report on social mobility in the creative economy highlighted how what Rawle describes here mirrored in the media. According to the research by PEC, 28% of those in film, TV, video and photography are from working-class backgrounds, while 41% come from what they describe as “privileged backgrounds.”
Fashion forward
At the very least the partnership forged between the media and the fashion industry through 50:50 is a powerful one. We share a common goal to create products that better reflect our world. And, as we see through each of our partnerships, there is much to be done, and much to learn.
In the case of the BFC’s approach to 50:50, they added in the element of class and economic diversity. To date, 50:50 has not been used to understand class as it is impossible to accurately perceive. It is interesting to consider the possibility of the BFC’s simple QR survey offering a means to capture this or other diversity dynamics.
We will be watching the BFC’s progress with interest, especially the BBC’s 50:50 external partners lead Miranda Holt. She has been working closely with the BFC and hopes their work will have an impact on representation within the media in the long-term from a different angle.
“At 50:50 we talk about how the media alone can’t change the representation our audiences see, hear and read,” she said. “Our pool of experts, spokespeople and contributors come from across a multitude of industries and sectors. If those people are not reflecting society, then it impacts our ability as content-makers to represent all. So, when industries – such as fashion – take steps to ensure their sector is representative it will have an impact for us. It will mean the media’s coverage of fashion can also better reflect our world.”
The emphasis, believes, Holt is on long-term. And Hutton agreed, pointing out that the British fashion industry’s 50:50 journey is just beginning, and that it will take time to create the change to which they aspire. There is no shortage of ambition. In two years’ time, she hopes the work being done now – not only with 50:50 but with other commitments on diversity and representation – will result in an industry that is not elite, but genuinely open to all.
“We’re playing a long game here and we all appreciate that this is an ongoing conversation,” Hutton said. “It’s not going to be an overnight success. It feels like it’s the very beginning of something that could be significant and it’s exciting to be part of it – to be at the forefront.”
Opening art credit: palmer//harding AW2120 (British Fashion Council)
Current uncertainty about the tech underpinning digital media has left most of us wondering what happens when cookies disappear on Chrome. It’s easy to forget that Safari and Firefox deprecated cookies a long time ago. This, in turn, created a natural test bed for newer and better post-cookie technologies. The good news is that these changes create opportunity and prospects for a better industry. If you are a publisher, here are two truths and a lie for you to consider, and five ways to ensure your business is not disrupted.
Truth one: Don’t count on FLoCs
Google has said its FLoCs are private and can be used as a proxy for enhancing traffic with data. But, Google has only released the results of a single test on this black box technology, which has murky methodology and opaque applicability. Even Google’s publicized test showed results less effective than cookie-based advertising.
Meanwhile, Google has been hit with criticisms that FLoCs use consumer data without consent. The company postponed its testing in Europe, where the technology may not comply with GDPR. Over the summer, it became evident that Google is becoming mired in uncertainty around the technology. It’s actions also raised concerns around Google’s market dominance. Bottom line: If you were counting on FLoC, you may want to take another look at your options.
Truth two: Don’t count on context
The same can be said for those leaning towards going all in for context. These state-of-the-art circa 2006 solutions don’t just limit the breadth of data you can associate to a profile. However, they almost always curb the concept of identity to a single domain.
Contextual providers are telling you that without cookies, third-party data will vanish (which is not the case). First-party data will be much more valuable, they continue. The thesis is that first-party data is like gold, becoming more valuable when it becomes more scarce. This ignores a fundamental economic truth in marketing: A marketer can afford to pay only her target acquisition cost and not more. A dearth of data means the marketer may need to pay a lower CPM on less-enhanced impressions. If she can afford to pay $5 CPM for “women”, then $2.50 will be the max that can be paid for “people”. Those digital impressions aren’t like gold — they are more like gold-bearing ore. The value depends on the assay.
Lie: Programmatic was/is/forever will be bad
Contrary to what we often hear, programmatic has been good for non-gigantic and independent publishers. Most non-giants don’t have the scale to hire a sales force, or the traffic to attract marketers without aggregation, or enough contextual insights to sell that traffic for what it was worth. Smaller publishers rapidly adopted programmatic five years ago because it gave them the opportunity to be paid based on what their traffic did somewhere else.
Programmatic is often criticized for data leakage in the bidstream and allowing buyers to come in with more insights on traffic than the publisher. But let’s remember the volume of impressions surfaced in the auction gives sellers inherent protection against cherry-picking. If impressions are better characterized via third-party data, bidders can find that auto intender among a “lover-of-cats” crowd that had been relegated to air freshener promos. The publisher selling the cat lover should want that asymmetric knowledge in order to get the best bid.
Five ways you can prepare for a cookieless future
So how in this new and changing landscape, should publishers sustain monetization when cookies are completely gone? Here are my top five recommendations of the very real steps publishers can take to prepare for 2023.
There’s a chance that Google has pushed back the cookie deadline because it needs more time to refine its own tools, with the intent of preventing or abolishing third-party ID interoperability. Take every opportunity to be vocal about your right to bring your own tech to the party.
New identifiers emerging in the marketplace will promise scale and interoperability — but you’ll need to test any solution early. Real interoperability is elusive, but out there, so exercise caution.
The industry may see great value in the 40% share of the browser market that Chrome doesn’t own. You can start testing solutions with Safari and Firefox today.
Delaying the adoption of new identity solutions may simply prolong the headaches from the third-party cookie model. Third-party cookies are costly to sync, carry privacy risks, and take more time to show ROI than newer technologies. Don’t hope for Google to provide another reprieve.
Definitely use context in your strategy. It’s data. You have it. Use it. Context should be part of the monetization equation. However, be realistic that context alone won’t save you. It simply can’t compete with technology that delivers richer information across domains. Don’t get hung up on old solutions just because they’re familiar or wrapped in a sexy new buzzword like “edge computing”.
It’s not all doom and gloom for publishers in the next two years. For independent publishers, the cookieless future is filled with opportunity. Just don’t embrace the false narrative that your traffic is inherently gold. You need the right tools to make sure your assay is strong, realizable, and increasingly lucrative.
Even before Google sent brands and publishers slow-walking to wean themselves off third-party cookies back in early 2020, both the buy- and sell-side had a data problem.
The issue has been that publishers and brands have historically managed audience data in siloed systems. Therefore, critical information surrounding ad revenue, subscriptions, content engagement, and customer profiles is all stored separately.
However, to create truly relevant experiences for consumers, any digital businesses must be able to tie all this data together in privacy-compliant ways to achieve a full picture of the customer journey. The IT department no longer governs data and analytics to the degree that it once did. So, commercial teams like marketing, sales and finance now have the opportunity to more heavily influence these areas than ever before.
Time to get your data analytics in order
Next year will be the last full one brands and publishers have before third-party cookies expire. So it is the perfect time to fully get your data analytics in order. Here are nine criteria to consider when rethinking your strategy.
1. The ability to customize your data model
To begin piecing together data from multiple touchpoints, it’s important to first introduce a unified data model approach across the organization. A tailored data model that covers the entirety of a business’s objectives as well as those of the different company stakeholders provides access to a reliable 360-degree view of customer data. This enables any team that needs to tap into the data to create immediate value, improving speed to market and the ability to react to trends faster.
2. Access to live, quality data
Whether you want to integrate with other technologies or enlist your data science team to work on a special project, you want to ensure you have streamlined access to fully denormalized, real-time data. This reduces query time and improves targeting and personalization, while avoiding the costly joining of disparate databases.
3. Enriched data that does deeper
Make sure you can automatically correct, enhance and remove data based on third-party metadata and advanced processing rules, with no retagging necessary. This will allow you to do more with your behavioral data to explore different perspectives that can inform your business decisions.
4. A universal tag for data hygiene and cleanliness
Tag health is critical for proper data cleanliness and consistency. Many businesses have multiple tags running. That increases the number of server calls and overall time spent on tag management. By instead leveraging one universal tag, you can duplicate traffic across various sites to a virtual site with 100% accuracy and for half the cost.
5. No data sampling
Data sampling is the practice of analyzing a subset of your traffic data, which is used to estimate the overall results. Instead of gathering all the data, you only get access to a limited sample. That means that any analysis you carry out after that will be an assumption based on existing patterns. Having a complete set of data to analyze boosts accuracy and canunlock previously undiscovered audiences.
6. Compliance with all privacy regulations
This might seem like a no-brainer, but with evolving and emerging laws, it’s easy to fall into violation when it comes to data privacy. Ensure whatever tool you work with is compliant across all of the global privacy regulations and that you can tweak your consent model as needed.
7. Integration across your stack
Your data is only as good as it is useful. If you are using disparate systems to manage and activate it, there is a chance of data loss, inaccurate customer views and privacy non-compliance. Ensuring interoperability across all systems streamlines execution and management while reducing business risk.
8. Democratization of data
Once you know your data is clean and accurate, make it available to everyone in your business who needs to act on it. You want to keep the end user experience in mind when choosing the right tools. Whether you use dashboards, data exploration tools, smart alerts when anomalies occur or direct API feeds for personalization, make sure they are user-friendly.
9. Professional services help
Even if you have an in-house analytics team, ensuring all of your data flows through your systems well might require additional support. The best technology vendors will have robust professional services teams that can help you implement your analytics strategy. This includes determining your KPIsand measurement approach in addition to best practices that drive both compliance and results.
It’s prime time to harness the true power of all the data at your disposal. With the right technology and talent, you can fast be on your way to turning insights into action that drives additional business value — more website traffic, subscriber, and revenues.
The future of digital advertising might just revolve around the matter of trust. But before publishers take on that question, they should consider this one: Why is Big Tech working so hard to build trust in their respective walled gardens?
Take Amazon (please!). They’re rumored to be creating a universal identifier restricted to their ecosystem. Google’s proposed FLoC targeting, presented as the evolution of 3rd party cookies, might be reimagined before it even launches over privacy concerns. But surely whatever takes its place will only serve to strengthen its monopolistic hold on advertising. Apple is pushing to present their core OS’s as privacy-focused — all while maintaining their typical “advantageous” relationships with the app developers that build and support large parts of their ecosystem. All are effectively fortifying the garden walls while working to convince the public of their respective trustworthiness.
This new-found obsession should come as no surprise to publishers: Trust is a key ingredient in the secret sauce of ad revenue growth.
Anecdotally, we know this to be true, and the numbers don’t lie. Privacy is the #1 driver of influence and engagement on social media platforms. Brands and agencies are cutting advertising budgets due to trust issues: Of those who decreased ad spend on one or more major ad platforms, 35% cited concerns over ethical handling of user data.
A shining opportunity for publishers
In a new trust-based world of content and advertising, publishers start with a few crucial advantages.
First, publishers enjoy implicit goodwill from their audiences, which converts to business. More than two-thirds of consumers are more likely to engage with an ad in the context of a publisher they know and trust. Second, publishers have the advantage of knowing the types of content readers want to engage with. Most notably, publishers own the new “oil” of advertising: 1st party data.
What is the opportunity for publishers? It’s a chance to differentiate themselves from Big Tech as the embodiment of stewardship with regards to consumer data. In short, publishers must buck the status quo and adopt a strategy where the audience is no longer for sale. Sell the site and sell the content. Maybe even leverage audiences on the backend to improve content experiences or implement new rate types. But no matter what, protect audience’s trust in publishers audiences by implementing a privacy-first approach.
Capitalize with balance and control
Successfully seizing this opportunity will take balance and control.
Balance subscription and ad-supported strategy.
A paywall that is too high limits exposure and hamstrings new audience gains. However, too much advertising hurts a brand’s value and, most of all, the audience’s trust (that they won’t be constantly blasted with ads).
Control the quality of the user experience
Ad clutter diminishes trust by reneging on the promise of a good user experience. But control also means an increased cognizance of demand sources. Due to its inherent reliance on 3rd party cookies, programmatic demand should be a last resort. And these demand sources should provide the tools necessary to preserve brand-safe environments.
Trust is the answer (and the question)
How does the industry enable publishers to build and maintain trust? The simplest solution may be to step aside and let publishers create quality content. The role of industry tech platforms, in turn, is to support publishers without adding complexity. All the while, brand safety is table stakes: Any digital distributor should guarantee it (full stop).
Of course, tech platforms must enable publishers to meet their business objectives. They should support multiple pricing models and offer broad customization options for demand sources. Again, this is because publishers know best in a new world of 1st party data and heightened demand for sophisticated content. (Read: the opposite of standard display).
The guiding principle? Trust. The differentiator from Big Tech? Trust. Our final thought? Trust us on this one.
How many publishers do you have a paid subscription with? While you may be a paid subscriber with one or two digital publishers, you remain a “never-subscriber” from the lens of the next publisher. The 2021 Reuters Digital News Report states that the majority of people pay for one subscription (for content from publishers and local papers), and that the median number of subscriptions for U.S. consumers is two.
To digital publishers, never-subscribers mean lost revenue. But in today’s digital-first world, where ad revenues are unreliable and subscription fatigue is mounting, should never-subscribers remain a lost revenue opportunity? The answer lies in implementing dynamic paywalls.
A typical dynamic paywall journey looks like this: Place a first-party cookie so you can track user visits. Then, give the visitor access to a few pieces of metered content. After a set number of articles, it’s time to show a registration wall. Then, as soon as those views are up, it’s time to show the “all you can eat” subscription paywall/offer.
Many users traverse this journey but for those that don’t subscribe, publishers tend to “rinse and repeat” the same journey. Some publishers might try discount offers for “all you can eat” subscriptions or even suggest custom-bundles at lower price points before allocating dead end users to the “rinse and repeat” pool.
Untapped revenue opportunities
Despite visit recency and frequency metrics, there are users who defy registration, subscription, or custom-bundle offers even after relentless efforts by the publishers. These dead-end users are your never-subscribers. And there are hoards of them. There are also those users who churn after the subscription trial period is over, or sleepers who churn at the beginning of the month when they evaluate their credit card bills. All of these users offer an untapped revenue opportunity.
Putting never-subscribers (dead end users and churned users) back in the “rinse and repeat” bucket is hardly a strategy. However, there are a few questions that needs answers before a real strategy for never-subscribers can evolve:
Who are the dead end users?
What are the additional options available beyond discounting or custom-bundles?
If users were given additional options, would fewer users subscribe?
If users were given additional options, would there be fewer sleepers?
If users were given additional options, would it accelerate subscription churn?
Dead end users could be visitors with high visit frequency who subscribed elsewhere. They might be casual visitors referred via social media. Or perhaps they are low frequency visitors from international geographies. The mix differs for each publisher, but retrospective analysis of user journey data should yield quick segmentation of never-subscribers.
Extending the user journey with discounted subscriptions or custom-bundles are good options for users approaching a dead end. But how do you know how much discounting would suffice? Or what custom-bundle offers will work for the user?
Unbundling solutions
To get this understanding, publishers have to unbundle the existing content pool to evaluate the true worth of each piece of content. Extending to unbundling solutions such pay per content provide insights for custom-bundles. They also provide substantial revenue streams for the long term.
Understanding the direct impact of unbundling solutions on the publisher’s existing subscription business requires sustained experiments and aligned goals between departments. For example, subscriber numbers dominate reader-revenue headlines.
However, they fail to focus on subscriber retention or revenue. Marketing teams could be focusing on increasing pageviews without any consideration about the quality of the audience which converts into subscriptions. The editorial team on the other hand could be working in a silo without any revenue linked objectives.
Playing the long game to win
Improving audience engagement and customer-lifetime-value are high level goals that every department’s KPI should be linked to. For example, changing the KPI to net new subscribers and average revenue per subscriber are better health barometers of the reader-revenue business. New subscribers per-1,000 pageviews focuses the marketing team’s efforts on quality audiences. And, average time spent per page allows editorial teams to focus on quality content for their audience.
No publisher can escape the fact that subscriptions are a long game. The Google News Initiative reader revenue playbook carries an ominous message:
“For some of the [news] organizations we’ve worked with, the transition can take years if not decades. But it’s achievable. For many news organizations, converting just 3-5% of readers into paying subscribers or contributors can support long-term sustainability”.
Therefore, understanding never-subscribers and the monetization opportunities that lie within is a long game too! But why is it that publishers are ever so quick to dismiss the never-subscriber cohort and bring them back into the “rinse and repeat” pool for subscriptions? It turns out that extending the user journey with unbundling options might bear more fruit.
About the author
Abhishek is a Co-founder & CEO of Fewcents, fintech-for-publishers that brings incremental reader revenue from “Never-Subscribers.” He is a seasoned business leader and technology product manager. He has worked in management consulting with PwC and Altman Solon in Boston, USA before moving to Singapore permanently. In Singapore, he started his own venture, Shoffr, a digital marketing solution that provides online to offline attribution for digital marketers. In 2019, Abhishek sold Shoffr to Affle, a publicly listed ad-tech company in India. After solving the advertiser’s offline attribution problem, Abhishek has now set his eyes on solving the content monetization problem for online publishers.
