Digital media continues to transform the way people consume news and information. Native digital news organizations have become a vital source of information for many people around the world. With fierce competition and the role of social platforms as intermediaries, how can digital native media businesses grow, develop, and publish information with greater independence and sustainability? New research, Project Oasis, from Sembra Media, examines the trends, impact, and sustainability of independent digitally-native news organizations.
To help support the growth and sustainability of independent digital native news organizations, the report includes a searchable media directory. This database includes 530 digital native news organizations in more than 40 countries across Europe. It contains information on the types of stories each organization covers, their funding sources, and their audience reach ‒ showcasing the need for diverse voices and perspectives.
The directory is a valuable resource for journalists, editors, and publishers looking to connect with other independent digital native news organizations. It provides a way to easily find and share important stories and sources that offer diverse perspectives, which are essential to accurately informing audiences.
Challenges
Project Oasis highlights some of the many challenges facing native digital news organizations. One of the biggest is the struggle to achieve financial sustainability. Many of these organizations rely heavily on one or two funding sources, such as donations, subscriptions, and advertising. However, the report found that these sources of funding can be unpredictable and unstable, which can makes it difficult for organizations to plan their future. The research identifies the need for two to six revenue sources as optimal for native digital news organizations to be sustainable and remain independent.
Another challenge facing independent digital native news organizations is the need to build trust with their audience. Many people are skeptical of the news they see on social media and other online platforms. As a result, there is a greater need for independent digital native news organizations to establish their credibility and build trust with their audience.
Optimism
Despite these and other challenges, the report finds reasons to be optimistic about the future of independent digital native news organizations in Europe. These include several key trends that are shaping the future of the industry, including the growing importance of mobile and social media, the rise of video journalism, and the increasing use of data and analytics to inform reporting.
The research also focuses on identifying profitable business models for independent digital native news organizations. These models include advertising, subscriptions, memberships, events, grants, and partnerships.
An advertising-based model is the most traditional revenue source for digital news organizations. Competition from big tech platforms like Google and Facebook presents a difficult ad sales marketplace for smaller players. However, advertising is still a viable revenue source for digital news organizations. Digital news organizations should differentiate themselves by focusing on building high-quality content, engaging audiences, and offering first-party targeted advertising solutions to advertisers.
Subscription models require high-quality content that engages the reader and convinces them to pay for the content. There are also membershipmodels, which offer a more community-focused approach to revenue generation. Memberships typically offer readers access to exclusive content, events, and other perks, in exchange for a regular fee. The report notes that membership models can be particularly effective for organizations with a strong and loyal following.
Events-based revenue models involve hosting conferences and workshops to generate revenue. The report notes that events can be an effective way to build relationships with readers and generate revenue. However, they require significant resources to organize and execute successfully.
Grants and philanthropy in funding independent digital news organizations are also available. The report notes that grants and philanthropic funding can be an effective way to support journalism that is not commercially viable. Organizations must carefully maintain their editorial independence and avoid conflicts of interest. The report also notes that there may be viable partnershipsand collaborations between digital news organizations and other media outlets, as well as non-media organizations. Partnerships can offer benefits such as shared resources and expertise, as well as access to new audiences and revenue streams.
Future focus
As the digital marketplace continues to evolve, independent digital native news organizations will play an important role in shaping the future of journalism, filling news gaps, covering underserved communities, and combating mistrust and disengagement.
The Project Oasis report and its searchable media directory offer important resources to support the future of independent digital native news organizations. The research provides a comprehensive look at the challenges and identifies opportunities for sustainable growth. The directory also provides a valuable resource to help protect democracy by sharing resources, collaborating on projects, and amplifying each other’s voices.
Every once in a while, a trend rippling through the digital media industry that springs up from the trade publications and into general-interest media. The launch of ChatGPT has been one of those times. AI content generation feels like more than ones and zeroes to media consumers at large. It feels tangible, even visceral, because it has direct ramifications on the production of content itself. Clearly media leaders need to make their voices heard in order to help guide the conversation for users as well as AI developers.
It would appear every Big Tech business wants in on AI chat to power search. But like identity and privacy, media companies are not about to sit back and watch which of the tech giants “wins” generative AI. They need to understand how AI will change content consumption, how they can use it to their advantage, and how to keep walled gardens from absorbing more of their revenue.
A new era for the search business
We’re seeing real and atypical disruption today in AI chat’s applications for search. Bing’s ChatGPT search function removes the onus of poring over multiple search results, and simply generates what feels like a coherent response upfront – be it right or wrong, strong or flimsy, fair, or biased. And history shows that human nature tends to prefer convenience over perfection. Search providers are already investigating how AI search may be monetized, to avoid losing out on the serious revenue search advertising traditionally has delivered (58% of Alphabet’s total revenue last year, for those keeping score).
That brings us to media companies’ reliance on search traffic to monetize their own sites and content. The prospect of users being disincentivized from visiting publisher sites to verify and provide context for information looks ominous to publishers. Today, 26% of all publisher traffic comes from search, in an environment where open web publishers are already competing against walled gardens for traffic and advertisers are reducing their budgets. And as it stands, not all AI search tools link back to their sources, and marketers are still trying to understand how the AI search ad experience should appear. And while search bots already crawl publisher pages, AI chatbots present a less balanced exchange between publisher and search engine.
Publishers that control their data have an advantage
Let’s avoid tunnel vision here, though. Publishers’ imperative to soften any blow to revenue from search traffic overlaps with their existing efforts to reduce reliance on revenue from the programmatic open market. Those efforts involve building loyalty among users and advertisers alike. For users, publishers are offering subscription packages, exclusive newsletter content, and the like. For advertisers, they’re offering private marketplaces and direct deals. Publishers can better navigate AI disruption by continuing and evolving those business strategies. They need to position themselves as sources of trustworthy, high-quality content worthy of the lifetime audience loyalty that can grow CPMs and incentivize deeper advertiser relationships. And AI has real benefits for those strategies.
If and when search becomes a less reliable source of traffic for media companies, they’ll need to ramp up efforts in driving traffic from channels such as social and video. In finding the best channels and business partners, they can turn to AI to analyze large volumes of first- and second-party data, and to do lookalike modelling. Leading publishers have already been doing this as part of their data strategy for withstanding third-party cookie deprecation. Advertisers are taking bold data strategy steps, too, and have the resources to be very advanced here. Publishers should compare notes with their brand partners to learn how to best leverage AI and machine learning for predictive audience creation, modelling, data cleaning and processing, and probabilistic matching.
We’re also seeing publishers take interest in generative AI’s capacity to accelerate and personalize content production, with human staff overseeing and completing the job. AI can do some of the lifting on lower-level SEO writing, bolster production of sponsored content, and source background from the publisher’s content archives. With ad revenues dipping on account of economic pressure, publishers are actively seeking new workflow efficiencies and content initiatives simultaneously without cutting headcount.
IP law will establish new limits for AI crawling
While we’ve all heard chatter about AI displacing human creative talent, media companies have more leverage than they might appear from a slight distance. That human-created input that drives AI output is guarded by intellectual property law. Rights holders are pushing back, and we can expect to see more robust IP regulation, and even technology that protects content from being scraped by AI tools, coming into play in the near future.
But publishers shouldn’t simply wait for regulators to clear up these issues. That’s a path with unpredictable length and outcomes. At the top of publishers’ to-do lists should be bracing for shortfalls in search traffic, powering their data resources, and finding applications for AI to embolden content production. And Big Tech businesses should be forewarned: AI can’t be a higher priority than the sustainability of the digital publishing business that generative AI models depend on. An input of quality content makes the difference between useful output and unappealing nonsense.
In an increasingly crowded and competitive landscape, media companies are constantly seeking new strategies to increase revenue and customer loyalty. Bundling can play an integral part in achieving these goals. By combining multiple products or services into a compelling package, bundling can unlock new subscribers and revenue streams, as well as help reduce churn.
According to Meredith Kopit Levien, Chief Executive Officer of The New York Times Company, bundle subscribers pay more over time and are less likely to cancel. As a result, bundling can support strategies for customer acquisition and retention. Subsequently, it’s currently an area of growing strategic focus for many media companies.
Here are seven features that can strengthen your bundling strategy:
1. Make it financially compelling
You may not realize it, but you’re probably already bundling.Many publishers offer products, such as combined print/digital subscriptions, at a discounted price. These are often attractive to audiences due to minimal price differentiation, and dual access can improve their experience of your product(s).
For publishers, this also opens opportunities to sell advertising across both mediums. This can be especially valuable given the importance of print advertising, and the premium it can demand compared to digital.
The Seattle Times demonstrates this principle by offering a Digital +SundayDelivery subscription for the same price ($4.99 a month) as their digital-only package. Bundling in the Sunday print edition, complete with home delivery at no extra cost, is potentially very persuasive for readers.
Alongside appealing pricing, a further tactic media companies can deploy involves highlighting the benefits each subscription tier – or bundle – offers you.
In doing this, publishers typically point to subscriber-only content such as articles, newsletters, podcasts and events, or access to their archives. In many cases, this content is not available outside the requisite subscription bundle. And that’s a benefit that publishers are keen to emphasize.
Interestingly, the New York Times also utilizes a different approach, by stressing what you don’t have access to. This is most explicit for those accessing their news-only package (see below). The FOMO here is potentially very real, making an upgrade to “All Access” seem like good value.
It’s hard to say exactly what role this tactic plays in their continued subscriber growth. However, the company added one million new subscribers in 2022. Commenting on this, CEO Meredith Kopit Levien observes that “with each passing quarter, we saw more proof that there is strong demand for a bundle of our news and lifestyle products, hitting records on both total bundle volume and the share of new subscribers choosing the bundle.”
3. Prioritize building your stack
The cost of living crisis means that many people have less money in their pockets. To offset this, households are looking carefully at their expenditure and cutting back where they can. CNBC reports that Americans are more likely to cut back on groceries and gas than subscriptions. But this headline overlooks how low down the subscription food chain non-streaming content is.
Given publishers’ emphasis on reader revenue and subscriptions, this belt-tightening brings with it a certain vulnerability. To offset this, it is incumbent on media players to ensure that their offering is one consumers feel they cannot afford to cancel.
To help them do this, Greg Piechota, Researcher-in-Residence at INMA, suggests three ways media companies can add value to their bundle: build, buy or borrow.
Using The New York Times as a case study, he charts how the Gray Lady built Games and Cooking; bought The Athletic in 2022 (it costs $7.99 a month to subscribe to independently) and borrowed products in the form of a 2017 link-up with Spotify whereby new All Access subscribers also got Spotify Premium for a year. Bundling in Spotify for free (mirroring a similar initiative by The Times of London in 2014) arguably made their core subscription offerings more attractive to younger audiences. That means it may attract a new demographic of paying subscribers.
4. Flaunt your assets
Alongside the approaches outlined by Piechota, we should also add peacocking. Media companies with deep portfolios can prominently display this to potential suitors (i.e. subscribers) by creating bundles that tap into the sheer breadth of content at their disposal.
We have already seen this in the form of the Disney Bundle, which includes Disney+, Hulu, and ESPN+. These three content-rich services are considerably cheaper when purchased collectively. The “trio” bundle also comes with ad and ad-free versions too, another model that more publishers can emulate. (NB: ESPN+ comes with ads regardless of the package.)
In Europe, Scandinavian media giant Schibstedhas also put this notion into practice. They launched “Full Tilgang” in Fall 2022, a bundle of their Norwegian titles including national, regional and finance news, alongside magazines and their podcast platform PodMe.
For national subscribers, this regional and local content is a potentially useful value-add that they might not otherwise have consumed. It’s a model other companies might look to replicate. twipe reports that Schibsted is rolling out a similar model in Sweden.
Of course, not every outlet has the deep pockets – or the smorgasbord of content – enjoyed by The New York Times, Disney or Schibsted. Nevertheless, many outlets can deepen their bundles via partnerships.
These can come in a myriad of different forms. Digiday has outlined how partnerships with non-publisher brands – such as financial and educational institutions – are being employed by The Wall Street Journal and The Washington Post. Business Insider has also followed suit. In 2020 they offered holders of certain American Express cards a free 12-month subscription.
Tie-ins with other business and tech providers can also be seen. Major League Baseball has a long-standing partnership with T-Mobile, providing free subscriptions to MLB.TV (worth $149.99 a year) to T-Mobile subscribers. And in 2014, The Sun, a British tabloid, struck a deal with the UK mobile operator O2 to offer 02’s 4G customers content from soccer’s Premier League that gives them a glimpse of The Sun’s content which, in turn, might encourage some users to become subscribers.
It’s common for publishers to offer bundles with other titles in their stable. The Wall Street Journal offers a package featuring its Dow Jones stablemates Barron’s and MarketWatch. More interesting perhaps are partnerships with other content providers.
In the past, I’ve seen smaller outlets – like my local NPR affiliate KLCC –offer a free subscription to larger publications (like NYT and WaPo) as part of their membership model. For smaller players, this association may bring some extra cachet, or provide an additional incentive to nudge people over the line by taking out a membership or donating.
Even bigger players can successfully adopt this approach. The Weather Channel is a seldom talked about subscription behemoth, with over 1 million subscribers. It recently partnered with several organizations to offer bundles providing “companion subscriptions.” This trend may only become more prominent.
Looking ahead – where bundling might go from here?
And what of that future? Given the need for media companies to attract new audiences, as well as retain subscribers and maximize income from them, bundling will remain integral to reader revenue strategies. Here are two further ideas worth considering.
1. Explore different pricing models
In 2019, the advent of dynamic paywalls prompted Piano CEO Trevor Kaufman to ask, “Has AI brought an end to the metered paywall?”. New York Media and Neue Zürcher Zeitung (NZZ, Switzerland) are some of the outlets that have used this model, harnessing variables – such as your location, device type and browsing history – to determine when users hit the paywall.
Taking this to the next level, The Atlantic recently started using this technology to shape the price of their bundles. Dynamic pricing can be used when signing people up and for retention. For the latter, prices for renewal are determined based on the probability of a subscriber’s subscription lapsing.
“It is a concept worth exploring,” suggests Subscription Insider, although they stress the “biggest risk is how consumers will feel if or when they find out about it.” How will consumers feel if they get different prices to sign-up (or stay), each time they click on the site?
At present, audiences are at the mercy of bundles offered to them by publishers. But what if it were possible to build your own bundle?
Let’s say I just want the newsletters and audio provided by The Economist? Or I want to bundle The New York Times’ Cooking and Games subscriptions, getting them for less than two individual subscriptions?
Similarly, if I have a $25 a year standalone subscription to Politics with Charles P. Pierce on Esquire, what If I could cherry-pick additional elements to bolt onto my politics subscription?
I cannot do that at present, and this type of choose-your-own-adventure model might be technically tricky. However, personalization could enable me to subscribe to content by topic, writer, location, beat, or sports team that matters to me.
Of course, it may risk cannibalizing the take-up of other more expensive bundles. However, it might also hold strong consumer appeal, especially those for whom existing packaged offers are not compelling enough.
Moving forward, bundling is here to stay, supporting subscription strategies by playing a role in consumer attraction and retention.
Fundamental to this is making your bundle attractive and distinctive from your competitors. Subsequently, adding value to the bundle may well shape acquisition strategies, be that for talent (and the newsletters and podcasts they may front) as well as other properties.
At the same time, consumers need to be attracted by price and value proposition, this includes access to content and services they may not currently consume, but might if it’s bundled in.
The use of free trials, as well as partnerships with other media companies and brands, can be a way to get a customer’s foot in the door. Meanwhile, dynamic pricing and opportunities for personalization could become key tools to keep them there.
By bundling multiple products or services together, publishers and media companies can offer greater value to customers and increase subscriptions. There’s no hard and fast way to do this, but these seven steps demonstrate how all publishers can potentially use bundling to drive revenues and improve customer loyalty.
The climate crisis is on everyone’s mind. But journalists have an extra burden when it comes to the biggest challenge of our time: telling the story. Traditionally, this has been a tough topic to tackle because it is big, complex, and even polarizing. However, the media seems to have turned the corner when it comes to climate coverage — learning how to walk the fine line between doom and gloom, education, and impact.
Climate coverage: How it started
Reuters’ “Journalism, media, and technology trends and predictions 2023” report reminds us that media hasn’t always achieved the right tone when it comes to climate coverage: “The news media are routinely criticized for covering these stories breathlessly, without joining up the wider dots or following through on the lasting consequences. Others argue that the media have too often treated climate as a discrete subject, rather than as an integral part of wider political and economic decision-making.”
Meanwhile, attempts to present “both sides” of the climate story have ultimately led to a credibility problem and audiences with a distorted perception of the issues at hand. A Northwestern University study “found that false-balance reporting can make people doubt the scientific consensus on issues like climate change, sometimes making them wonder if an issue is even worth taking seriously.”
With the problems clearly articulated, the media has taken note and is adjusting accordingly.
Climate coverage: How it’s going
Better coverage of the climate crisis takes many shapes, but there are some overarching goals. An EBU News report, “Climate Journalism that Works: Between Knowledge and Impact” suggests journalists must help “audiences find the facts, understand the magnitude of this crisis, and discover opportunities to act.” For many organizations, that means dedicating resources to climate coverage.
The Reuters report found that 49% of respondents have created a climate team. Among them is The Washington Post. Speaking at Aspen Ideas: Climate, Sally Buzzbee, executive editor, explained why the Post developed a “Climate Solutions” section. “We’re trying to actually capture what we see as a change in the audience and push that forward to what journalism is needed now,” said Buzzbee.
In order to provide the kind of journalism the world needs now, Austrian publishers “recently got together to create a set of guidelines for newsrooms including the accurate use of language, coverage of solutions as well as problems, separation of fact and opinion, and the creation of resources and structures to support better coverage across disciplines,” according to Reuters. In practice, that’s translating into bigger staffs and a wider lens through which the media is examining the climate crisis.
One of the key ways editorial teams are rethinking how they cover environmental issues is by recognizing the need to find the climate angle in every beat. As the EBU News report puts it, “the protection of our planet and our lives must be the frame through which all of journalism operates—just as it is with democracy or human rights.” And the media has gotten the message. Reuters found 44% of respondents are “integrating dimensions of the climate debate into other coverage (e.g. business and sport).”
Making climate coverage a priority isn’t just a moral imperative, it’s good business. Buzzbee said that she’s seen a shift in recent years and that audiences are hungry for this kind of coverage. On the same panel, Katharine Viner, editor-in-chief of The Guardian, said that climate coverage is a revenue driver. In fact, The Guardian noticed readers often donate to the publicly supported organization immediately after consuming content about climate change.
Significantly, organizations like The Guardian also seem to understand the importance of establishing credibility by walking the walk when it comes to climate. Reuters found that 33% of news executives say they have taken steps in the last year to improve sustainability. For some, that means reducing their carbon footprint and putting out a sustainability report. At The Guardian, Viner said they have committed to no longer taking ad dollars from fossil fuel companies, to show readers “we mean what we say.”
Opportunities remain for climate coverage
As the media finally finds firmer footing on this topic, it’s only natural to wonder what’s next. Well, there are still challenges to be met. “People from the climate units keep telling us, the gatekeepers at the news desk pay lip service, but they don’t really get it,” Mark Hertsgaard, Executive Director and Co-Founder at Covering Climate Now, told EBU. “They still think it is optional.”
This may be changing as more newsrooms put together climate teams and instruct every desk to look for climate-related angles to the stories they tell. Still, to break through the noise, journalists should think about better ways to tell those stories. Other Reuters research found that“more people say they pay attention to documentaries (39%) than to major news organizations (33%) for information about this topic. This is the case across all markets in the aggregate, as well as across age groups.” This suggests that there is an opportunity for long-form content that takes the time to deep dive into the intricacies and nuances of climate science. If a documentary is out of the question, think about other visually compelling ways to tell the story.
Reuters also states that, “audiences express more interest, pay more attention to climate change news, and feel more inclined to support journalists taking a stand in places where the direct impacts of climate change are acutely felt.” This makes sense. However, it may also suggest that driving home the story requires journalists to find the local angle. That makes it the role of local journalists especially important in this fight.
Moving forward, news organizations cannot afford to fumble the ball on climate change. Whether you look at it from an ethical or an economic point of view, finding ways to reach audiences with environmental stories is a must for every editor.
Subscription fatigue is a major concern for media brands, as top performers consolidate their market position, while new challengers vie for audience attention. Add to that the current economic downturn, and media businesses are rightly concerned about churn rate and revenue. According to recent research, two out of every three people surveyed have canceled at least one service in the last year.
To combat subscription fatigue, media brands need to focus on providing clear value propositions and high quality content, as well as giving consumers more flexibility and control over their subscriptions.
“We have identified two pain points for consumers,” says Sheri Bachstein, CEO of The Weather Company and GM of IBM Watson Advertising. “The first is managing tons of subscriptions in multiple places, and the second is the cost of those multiple subscriptions.”
Innovative bundling solution
One solution is subscription bundling, which can help lower both pricing to the consumer and investment from the brand. Bundling is most viable and financially rewarding when a brand is part of a larger media portfolio, such as Disney or Apple Services. However, not all businesses have such clout.
The Weather Company has come up with an innovative solution by developing a platform that enables bundling across media portfolios. “We are striving to disrupt the subscription economy by going across media companies that aren’t traditionally connected,” says Bachstein.
These bundled subscriptions are another way for the Weather Channel to provide additional value, by aligning with brands that help people make more informed decisions in their daily planning. One surprising collaboration is with ratings organization Consumer Reports.
“The Weather Channel helps consumers make daily decisions about their day, and Consumer Reports does the same thing, by offering valuable information and services. So it was a very natural fit,” explains Bachstein. “I expect we will see more collaborations like this in the future, but it is certainly one of the first.”
This latest bundle helps consumers access the latest weather along with news, ratings or shopping information in one location. Other partnerships include USA Today, MightyNest Shop and TripAdvisor Plus.
A compelling package
“It’s unusual to have different companies together, offering discounts on a bundle, but our partners are carefully chosen,” states Jason Fox, VP Chief Digital Officer at Consumer Reports. “Both the Weather Channel and Consumer Reports are highly trusted, non-partisan organizations, so we compliment each other well. You could call us ‘post partisan’ as we represent the larger demographic of society and we are proud of that.”
As a non-profit organization, subscriptions make up the bulk of Consumer Reports’ revenue. Therefore, Fox says it’s critical to bring their product to a new audience, while creating a more compelling package for their current customers in order to reduce churn,
“The average U.S. consumer is willing to take out between five and eight subscription services,” Fox explains. “The likes of Netflix, Disney Plus and larger media companies, such as The Wall Street Journal and New York Times take the bulk of this, so we are fighting for remaining slots.”
In addition to driving subscriptions numbers, Fox says the bundle with the Weather Channel is part of their wider growth strategy. “It’s about brand awareness and getting our name out there as a leader in the space,” he says. “While this is an ancillary benefit, and not the main reason for this partnership, it’s an important part of our growth strategy.”
Bachstein agrees that partnering with businesses who share the same mission and values helps strengthen their brands overall, while leveraging their audiences. “I honestly can’t think of a reason to not bundle,” Bachstein states. “You extend your reach, extend the brand and extend your direct to consumer relationship. And if the technology is already built for you, as it is with the Weather Channel, then it’s a win win.”
Subscription innovation
So, what should media executives be thinking about when evaluating the opportunity to bundle?
“It’s important that both brands complement and trust each other,” says Bachstein. “You don’t want to share a competitive space, you should be adjacent verticals, with shared values and orientations. That’s the sweet spot. To use cable channels as an analogy, you want to have a portfolio approach that offers a value proposition to your consumers.”
Value is key in the current climate. Statista predicts that by 2025 there will be 1.5 trillion subscriptions in the US alone, with the average person spending $1k a year on subscription services. However, consumers increasingly want more value, more advanced features and a more premium experience.
“At a high level it’s really important for a company to think about subscription innovation,” says Fox. “It’s one thing is to set up a paywall, but anyone can do that. It’s about what makes you distinct from others. I really believe that in the world of commoditised content if you are not offering something special it will be a hard sell to create a meaningful subscriptions business. This idea of coming together and offering something greater than we can do individually, is really powerful.”
As publishers strive to reach revenue targets, the open programmatic market has cast a shadow over publishers’ ability to nurture their audiences. With the continued rise of mobile-first and in-app advertising, revenue growth in 2023 requires that media companies take a new approach that views advertising as a means to enhance consumer experience, rather than distract – or detract – from it.
Sticky audiences
In an age where audiences are inundated with content, publishers and app developers struggle to create “stickiness”. Here, stickiness refers to when users choose to stay with your product in a competitive environment because of the value it offers.
Mobile app stickiness is a metric that measures user engagement with an app. “Stickier” users mean lower churn rates, greater opportunities for upselling and cross-selling, higher customer lifetime value, and more customer referrals. Your audience will stick with you as long as there’s no compelling reason for them to stray. Irrelevant, offensive, or off-brand ad experiences are all reasons that users lose interest.
The key is demand optimization. It ensures brand suitability, ad relevance, and builds effective feedback loops that put audiences’ needs first.
Getting to the heart of churn
The lines that define a safe and engaging ad experience have never been clearer. One poor ad experience is all it takes to result in quick app abandonment. However, publishers rarely hear from 96% of their users. For every complaint logged, there are countless users who quietly slip away to explore competitors’ offerings.
Malicious ads, unwanted ad content, and disruptive formats cause a drop in engagement and a disconnect with brand identity. These issues manifest differently from app to app, even the offerings of a single publisher.
Most app publishers (93%) report that bad ads lead to negative reviews of their apps in the app store, and 71% of publishers say low-quality ads have driven users to uninstall their apps altogether. The impact is especially felt by gaming app publishers, with 57% sharing that bad ads have caused players to stop playing for good.
The need for flexible controls
The question remains: What can publishers serve to ensure long-term audience engagement?
Engaging, brand-suitable ads look different from app to app. Sites and apps that cater to teens have vastly different brand suitability standards than those for adults. Even among adult audiences, ad content standards vary greatly. What’s acceptable on a dating app may be damaging on a finance or gaming app.
When it comes to ad quality, it is crucial to have the autonomy to craft and fine-tune one’s guidelines. The ability to exclude certain content is a must-have for any publisher who wishes to maintain control over their ad experience.
Not only are many ad experiences offensive and disruptive, they are increasingly less relevant, as they are based on assumptions about audience preferences. Publishers must implement a sustainable feedback loop with audiences to efficiently tailor ad policies to user feedback. Publishers can turn to AI powered technologies to keep up with user preferences and constantly shifting expectations for in-app experiences.
Preserving publishers’ power position
Silent churn echoes louder than a scream. After enduring too many poor ad experiences, users simply opt for an alternative app. Publishers require visibility into the ads that appear in their apps, along with controls to ensure ads are relevant and engaging.Ultimately, the stickiness of your app is a powerful engagement metric that indicates long-term mobile app health. Appropriate, engaging ad experiences are the key to attracting stickier users who are more likely to become brand loyal. The result is a sustainable monetization strategy that will empower and benefit publishers and their audiences alike.
According to Statista, around 3.4 million apps are available on Google Play Store. Additionally, the Apple Store has about 2.2 million apps.
The high number of mobile apps signifies a serious revenue-driving opportunity for media companies. App Annie’s State of Mobile Report 2022 shows that mobile ad spending hit a colossal $295 billion in 2021 (23% growth from the previous year).
Whether you are considering moving into mobile, or simply want to up your game, here are answers to the critical questions publishers will have as they consider in-app ad monetization.
Which ad formats work the best for in-app monetization?
Ad technology has come a long way since its inception, and multiple ad formats are at publishers’ disposal. Choosing a suitable ad format can be difficult – but it’s essential.
Many app developers stick to banner ads because they are the most widely deployed ad format. But to maximize revenue, it is critical to keep up with the times. Nowadays, there are a variety of engaging ad formats that retain users and keep their app experience intact.
We recommend that publishers explore rich media ads, interstitial ads, native ads, and rewarded ads. Experimentation is key, and the best way to learn what works best for your app’s inventory is through a split test. Here are some ad sizes that have historically performed well for our app publishers:
Banner Phone (320×50)
Medium Rectangle (300×250)
Fullscreen Interstitial Portrait (320×480)
Fullscreen Interstitial Landscape (480×320)
Is gamification of ads an ideal solution?
Gamification allows users to interact with ads in fun and engaging ways. By turning ads into mini-games, audiences are more likely to enjoy interacting with them, and even be more likely to remember the advertised products or services.
This technique is similar to rewarded ads, except that users actively play a game instead of simply watching an ad. This helps keep their attention and provides a sense of satisfaction or accomplishment once the game is completed.
Overall, the gamification of ads is a solution that could help address user fatigue with more traditional advertising methods.
Instream vs. outstream video ads: what works?
In-stream ads are played within the same video player that a user is viewing video content. Outstream ads, on the other hand, are served on a display ad unit and do not require a video player.
So, which one is right for you? It depends on your goals, budget, and available video content inventory. If you want to drive more revenue with high eCPMs and improved click-through rates, then in-stream video ads may be a good option. Outstream ads may be a better choice if you want guaranteed viewability and enhanced user engagement for the app users.
How to pick the right ad format type for your app?
Not all apps are equal, so they all need a different ad format depending on the app’s design and niche. For example, native ads fit best for an app like Instagram, where users can slide past an ad in their feed without disrupting their user experience. At the same time, rewarded ads work best for gaming apps because they incentivize users to stick around for an ad or two to get a reward that will enhance their game experience.
Figuring out what kind of ad formats give you the highest conversion rate can take time. Obviously, we believe that partnering with an ad monetization platform will help enormously. (For example, this can help you easily A/B test your app inventory to see which ad format works best.)
However, if you’re looking to optimize ad revenue in-house, here’s a table we created that’s based on rigorous testing of billions of ad impressions across hundreds of apps. It’ll give you a headstart.
Niche
Best ad format
Gaming
Rewarded
E-commerce
Native
Social media
Native
Fitness
Interstitial
Travel (bookings, information)
Sticky
On-demand service apps
Native/Interstitial
Video streaming
Instream
News/Blogging
Outstream + Sticky
Final thoughts
In-app advertising is one of the most effective ways to reach mobile audiences. Given that people spend more time on mobile apps than on the web, in-app advertising offers publishers an excellent opportunity to improve ad engagement and performance. In-app ads will continue to grow in popularity in 2023, but they are only effective if they don’t disrupt the user experience too much. Thus, publishers must do their research and due diligence to create a scalable strategy. Above all, prioritize the user experience and find a balance between revenue and returning users.
About the author
Kean Graham is the CEO and Founder of MonetizeMore, a leading ad monetization partner for web publishers and app developers. Under his leadership and guidance, the company has scaled to 15B+ monthly impressions for over 1000+ publishers worldwide.
Content may want to be free, but that’s not always a sustainable business model. So, what content are users — especially the highly coveted younger demographic — willing to pay for, and why? It’s a broad question but one that’s worth trying to answer.
Massive amounts of time and money have been spent trying to figure this out. So we are aggregating many of the most salient data points to find out what younger generations are opening their virtual wallets for — and what they can do without.
Gaming
Gaming is hugely popular among all generations — especially for young people — and it holds more meaning than mere entertainment. According to 2022 research by Deloitte, 80% of U.S. adults report playing video games, and the practice is almost universal among younger adults: a whopping 96% of Gen Z and Millennials identify as gamers. The study on media trends in the United States, United Kingdom, Germany, Brazil, and Japan found that these young adults play 11 hours per week. 57% of Boomers and Mature audiences identified as gamers in the same survey, reporting an average of six hours per week gaming. Gen Z adults rank video gaming as their favorite entertainment activity in all countries surveyed.
More than three-quarters (78%) of U.S. gamers in Deloitte’s study report that the practice relaxes them; 61% said gaming helps them express themselves. In addition, 59% agree gaming has helped them through a difficult time, and 53% say gaming keeps them connected socially. These numbers show video games’ importance to people’s lives, especially the more immersive, complex games.
Gaming also leads users to discover other media content. For example, in Deloitte’s survey, 51% of U.S. and 71% of Brazilians said they often discover new music while gaming. While online immersive gaming worlds like Second Life are typically free to join, gamers often choose to spend money on branded virtual goods or even physical merchandise bought in-world. In-game live events such as music concerts are popular, with a quarter of U.S. gamers attending an in-game event last year. According to Deloitte, 82% of those attending live in-game events have made a purchase because of the event. Worth noting is that 65% of the purchases were digital goods, and 34% were physical merchandise, an indication of the overlap between real-world and virtual selves.
Over half of Gen Alpha and Gen Z players have spent money on a game over the past six months, according to a recent report by Newzoo, and 33% of them did so on a mobile device. While young users appear less likely to pay upfront for games on mobile devices due to the prevalence of free games, they are likely to spend money in-game for virtual goods such as currency, gear, or characters. Newzoo reports these are a particular draw for young users, with 93% of Gen Alpha and 91% of Gen Z gamers reporting having made such purchases over the past six months.
According to Voxburner, the most popular games among Gen Z are Minecraft (76%), Call of Duty (73%), and Fortnite (68%). Roblox and Animal Crossing are also popular. While the mobile versions of these games are free or low-cost to install, companies are raking it in via ads and in-app purchases. For example, Fortnite made over $9 billion in its first two years, even though it is free to join and optional purchases such as skins are aesthetic with no impact on gameplay.
Streaming Video on Demand (SVOD)
Perhaps habituated by customizable gaming experiences, younger audiences seem to be customizing their video streaming experience — at least when it comes to spending. As a result, younger users of SVOD services are more likely than older users to churn through services — by joining and then canceling, sometimes repeatedly, according to Deloitte.
The study found Gen Z consumers are especially sensitive to more expensive services, engaging in “churn and return” — repeatedly canceling and rejoining. This behavior enables them to acquire desired content — like a new season of a favorite series — while avoiding paying for a service when they aren’t using it. In the U.S., 35% of Gen Z users and 38% of Millennials surveyed had canceled and renewed streaming video services during the last 12 months, compared to just 7% of Boomers and older generations.
Similarly, a Morning Consult study demonstrated users of all ages prefer ad-sponsored content that is free or lower cost to higher subscription costs — and Gen Z adults are the most cost-averse when it comes to monthly fees. Only 16% of Gen Z adults surveyed spend more than $30 a month on streaming services, compared to 31% of Millennials. These findings suggest ad-funded tiers could cut churn rates, as subscribers are unlikely to cancel a service with no monthly fee.
Research also suggests that combining media offerings is appealing to younger users. For example, 51% of Gen Zs and Millennials in Deloitte’s survey indicated they would stay with their SVOD subscription if it included gaming, a music service, or another SVOD service.
Social Media
While social media platforms offer free admission, time spent there often leads to purchases. Deloitte found 70% of people in the U.S. say they follow an influencer, and more than half of Gen Z and Millennials say these influencers sway their purchasing decisions.
Social media ads are highly targeted and personalized. More than half of American respondents, 72% of Brazilians, and about 40% in the United Kingdom, Germany, and Japan surveyed by Deloitte say they see ads on social media for products or services they have been seeking. Additionally, 39% of Japanese respondents say that shopping is among the top three activities they engage in on social media.
News
Research by The Knight Foundation found most U.S. Gen Z and Millennials surveyed (65% and 64%, respectively) said it is fair to pay for news, at least under some circumstances. Only 39% of Boomers agreed. About half of Gen Z and Millennials say it is reasonable for news organizations to charge for events; 37% of Gen Z respondents say it is reasonable to charge for exclusive or special content.
Although Gen Z through Gen X report paying less attention to all forms of news compared with the national average, more Gen Z and Millennials say they are willing to pay for news in the future, compared to older generations (22% of Millenials versus 12% of Boomers). Conversely, younger audiences were also more likely to agree that news should be free for all users via government funding and/or private donations: 30% of Gen Z agreed news should be free, compared to 17% of Boomers. Gen X and Boomers are more likely to agree it is fair to support news through advertising (38% and 31%, respectively) than Gen Z (20%).
Research from the American Press Institute’s Media Insight Project showed Gen Z and Millennials are more likely to pay for streaming services that include news content (57%) than pay for news directly (28%).
According to the Knight report, 52% of Gen Z — compared to 45% of Boomers— say they look elsewhere for news content when encountering a paywall. About twice as many Gen Zs (10%) as Boomers (6%) and the Silent Generation (5%) say they try to find the story on social media instead. In addition, boomers (29%) and Gen X (33%) are more likely to skip the news story altogether when encountering a paywall compared to Gen Z (21%). So while younger adults may believe it’s fair for news organizations to charge fees, they also appear to think it’s fair game to try to evade those fees by seeking similar content elsewhere.
Key takeaways for media companies
Young consumers avoid paying for costly subscriptions by churning through the service. Therefore, SVOD companies should explore low-cost or free ad-supported tier options less likely to be dropped by frugal users.
Young people tend to be committed gamers willing to spend money on in-game enhancements. So bundles and perks that include gaming could help SVOD services — and other media companies — retain more subscribers.
While younger generations believe it’s fair for news providers to be publicly funded and/or charge for unique content, they also seek news elsewhere when faced with paywalls. A twofold approach of bundling subscriptions while enabling premium single-serving content to be purchased ala carte may succeed with younger users who expect interconnected experiences with optional or customizable payment options.
Younger audiences may be highly sought after, but their preferences are pretty straightforward. Publishers paying attention to these desires can build packages that cater to them and build a loyal audience for years to come.
Amid growing uncertainty about the economic environment, it is wise for publishers to consider how to thrive and strengthen their revenue during the potential downturn. With economic uncertainty ahead, it is vital to understand how brands look to invest in marketing during 2023 to build a portfolio of offerings that support these strategies.
The situation
Typically marketing budgets decrease during an economic downturn. However, based on research done by Deloitte earlier this year, marketing spend has grown substantially over the last year. And, despite uncertainty at present, some bright spots stand out.
In the same Deloitte study, marketers stated they plan to increase their spending on DEI initiatives by 10.8% on average. And Hubspot reports that 83% of marketers are investing in higher-quality content. They also report that 80% of marketers expect to maintain or grow their budget for various inbound marketing activities – including content marketing, SEO, social media, and more – to reach and influence consumers at every stage of the buyer’s journey.
This data shows us that publishers would be wise to strengthen their content offering. These can include native advertising, sponsored content and even contextual targeting, all of which are ideal to help brands deliver their stories across publisher channels to reach these audiences.
The consumer perspective
Even at a potential downturn, brands seek opportunities to attract, delight, and engage. Therefore, it is essential to consider the reader and consumer preferences to support these efforts. So we must ask ourselves: what do consumers prefer?Ultimately they want to focus on the content they are trying to consume.
According to an eMarketer report, over 40% of American adults think online ads seem to be aggressively following them. And this has led consumers to take control of their digital experience, with close to 47% of internet users now using ad blockers because they think there are too many ads online, according to GlobalWebIndex.
However, according to a survey by Time Inc, close to 90% of younger internet audiences from Gen Z, millennials, and Gen X say that they prefer custom content, including native ads online, instead of traditional ads. This is an opportunity.
This data shows that consumers are actively seeking ways to improve their web browsing experience and limit the distractions from the content they are seeking. We believe this will lead advertisers to start looking for strategies that do not distract from the reader experience to reach these consumers and improve campaign performance.
A crisis of trust
Unfortunately, these days display ads just aren’t that effective: click-through rates are at just 0.05% across all platforms. This decline started years ago, and it is because consumers have lost trust in display; in fact, over 54% of users say that they don’t click banner ads due to a lack of trust.
Now, let’s look at social media. One reason that platforms like Facebook have come to dominate digital advertising is that they are able to provide advertising experiences that are seamlessly integrated into the consumers’ content. They offer opportunities for long-form editorial engagements, lower funnel activities like click-to-download, and short-form top-of-funnel branding executions, such as Instagram stories.
But the reviews of social channels are not all bright either. Consumers increasingly distrust social platforms. According to Statista, 66% of consumers express concern about the accuracy of the content they see on social media.
Even with this in mind, however, marketers are looking to invest more in short-form content. Hubspot found that 33% of B2C Marketers already invest in short-form content. While another 33% have yet to, but plan to do so for the first time in 2022.
What we see is that there is an appetite for this content. And, given growing distrust in social media, brands may be actively seeking ways to scale their efforts on the open web.
What do publishers offer to the industry? Trust
Publishers have built a robust ecosystem and relationship with their audiences. As we have said before, this trust can be utilized as a point of differentiation, especially when competing against programmatic offerings. When ad dollars are invested into more strategic initiatives, publishers must lean into the inherent trust they have built with their user base.
To thrive during any potential downturn, publishers need to create offerings that support the strategies brands are investing in for 2023. At the same time, they must maintain the inherent trust they have built with their audiences. To do that publishers must consider the following:
Privacy First
Focus on solutions that don’t rely on third-party targeting. Rather than using invasive data practices, use content to attract, delight, and engage. This allows you to provide contextually relevant advertising solutions so brands meet their customers where they are in the purchasing journey.
Prioritize Premium
Brands will look for unique ways to reach their customers, break through the noise, and remove the blindfolds of banner blindness. For digital publishers, that could mean leaning heavier on executions, such as sponsored content that allows brands to tell their stories, from new products to use cases and any DEI initiatives. Give brands the ability to scale their story beyond their audience and benefit from the trust publishers have built with their readers.
Integrate Short-form Content
As mentioned above, brands seek to invest in short-form content. To build a diverse revenue portfolio, publishers can offer solutions to run executions similar to Facebook and Instagram stories or TikTok’s short-form videos. This will allow advertisers to scale these strategies outside social channels within trusted environments.
With a downturn ahead, or not, aligning to meet brands where they are seeking to invest in 2023, will result in a win for publishers. Understand that content moves the needle for consumers. Advertising that places quality messages within trusted content will rise above the clutter. In particular, short form content offerings will allow publishers to integrate the social environment brands are seeking into the publisher site experience.
Faced with challenging economic realities, more publishers are looking to artificial intelligence to improve content performance and ensure that each cent invested generates the maximum return. AI can increase ROI in many ways — two stand out for publishers: optimizing decisions at scale using real-time and granular data, thus leading to better performance and yield, and automating tedious, repetitive tasks, thus reducing expenditures of time and cost required for these processes.
There is a perception that only larger publishers can successfully integrate AI and automation, given their greater financial resources to invest in developing and implementing AI systems. But advances in AI technology mean this is no longer the case. Ready-made, third-party AI solutions require far fewer resources and can be implemented within the existing framework of a publisher’s workflow, producing great benefits for publishers of all sizes.
Let’s examine how AI benefits content distribution strategies in particular and outline five ways publishers are incorporating AI to reduce costs and boost ROI.
AI in action
Newsweek adopted automation to save time on curating and sharing content to social media while boosting reach and performance. By integrating artificial intelligence into its workflow, Newsweek saves over 20 hours per week while doubling referral traffic from Facebook.
“It takes a lot of time out of the day to post new content, recycle a ton of content, and everything else you’re supposed to do in an 8-hour workday,” Adam Silvers, Newsweek’s Associate Director of Strategy explained, highlighting why the team initially turned to automation, and why AI has become indispensable to Newsweek’s workflows: “There’s no question about the benefit.”
Five ways automation can reduce costs for publishers
Scale and enhance teams’ output at no additional cost: Not all publishers have the resources to dedicate staff to managing and optimizing content distribution. For these small teams, AI can be a cost-effective solution to ensure coverage without additional staff investments.
Publishers can automate the entire workflow of distributing content — from selecting content to writing and posting messages at the optimal time — without requiring human involvement. Email — another key distribution channel for publishers — can also benefit heavily from AI, allowing publishers to fully automate the entire process of curating, personalizing, and sending newsletters.
Non-profit news outlet San Antonio Report takes advantage of intelligent automation to power its social media presence without a single staff member dedicated to social media, saving on people costs while generating important online engagement with its content.
Automate to extend coverage without requiring more resources:Large and small newsrooms alike use automation to fill gaps and supplement their existing structures. Publishers such as the South China Morning Post (SCMP) augment their social media teams with automation to save time and cover unsociable hours. With a global audience, SCMP uses automation to ensure 24/7 coverage and remain responsive to trends or stories that break overnight or on the weekend without needing to invest in out-of-hours staff.
Use AI to maintain referral traffic and revenue despite algorithm changes:Facebook is the most important social media platform for publishers by a long shot. Despite news of slowing user growth, Facebook generates the most traffic for publishers from the largest global audience.
Understanding the intricacies of Facebook’s algorithm is therefore vital, especially as the company makes fundamental changes to the way in which content is surfaced. Social media algorithms are constantly changing, from slight tweaks to substantial overhauls. By employing AI technology, publishers can stay responsive to these changes with software that monitors vast datasets to discern patterns and trends. They can react quickly to the findings. Publishers using AI in this way ensure constant and automatic protection against platforms’ algorithm changes that can severely impact referral traffic and, therefore, ad revenue.
Use AI to extend content’s lifespan and value: Every story requires a significant investment to produce, and AI is helping publishers ensure they extract maximum value from each piece by optimizing reach and exposure.
One example comes from social media. Reposting stories on social platforms is a highly cost-effective means of maintaining a robust supply of social content, leveraging a publisher’s archives, and increasing engagement. Our research shows that reposted content offers significant value, gaining an average of 67% of the clicks a piece generated the first time around.
But it is more complex than just reposting the best-performing articles. AI constantly calculates the right time to post (an aspect as important as the content itself in generating engagement) and reshares posts automatically, earning additional exposure at no extra cost.
Use AI to avoid costly guesswork and gain new insights: Understanding your audience is perhaps the single most important element of a social media strategy that drives ROI. AI has a few important uses in this regard.
Publishers like Hello! and The Telegraph run A/B tests on Facebook posts, not only to increase performance but, in the case of The Telegraph, to demonstrate the efficacy of certain stylistic choices, such as a shorter headline.
AI-powered testing can work hand-in-hand with journalists, editorial and social media staff to generate greater ROI from audience development by automating the process or even suggesting subjects to test based on algorithmic analysis.
Publishers are also using AI in a similar way with their email newsletters. AI solutions can run continuous and complex multivariate tests to better optimize emails for individual subscribers, testing everything from the ordering of content to layouts and fonts. In this way, publishers are increasing engagement with their newsletter campaigns — a key aspect of keeping subscription numbers high — without needing to invest more time.
The bottom line
As their cost decreases and use cases multiply, AI solutions will become only more prominent within the industry.
AI technology can fulfill multiple roles: data analyst, social media manager, and audience development manager, to name but a few. By leveraging its power, publishers can generate significant efficiency gains, reduce costs, and free up vital human resources to focus on activities that elaborate their distinct value proposition and ultimately drive ROI.
About the author
Antoine Amann is the Founder and CEO of Echobox, the leading solution for publishing automation used by 1,500 brands worldwide to automate and optimize content curation and distribution.
Uncertain market dynamics are forcing many businesses to shift course. But how many publishers can actually point to hard data to say that they’ve not only radically altered their business practices, but those changes have made a material impact in how they drive revenue?
That’s exactly what Kevin Turpin and his team have done at National Journal. They’ve engineered a complete overhaul of the company’s business model. From a traditional media advertising model, to an information services company with an ever-growing number of digital products and services, they’re helping government affairs professionals navigate policy, politics, and people.
Over the course of that evolution, the share of National Journal’s revenue from advertising went from 50% to 3% in just five years as the company shifted its business model to membership subscriptions and custom research engagements.
Turpin joined 3Pillar Global’s Innovation Engine podcast to talk about this remarkable digital transformation and share some learnings that can help anyone looking to spark digital innovation at their own organizations.
1. Invest to differentiate, not just improve
Tighter competition makes digital transformation a necessity. But that transformation needs to have a purpose. National Journal knew that it had to “buckle down” and invest in being competitive. But the company first had to step back and decide who it was competing against.
Turpin recalled a direct quote from National Journal’s chairman David Bradley, “Always make the investment to be different in kind, not degree.” So rather than try to be faster or better than their media competitors, the National Journal team looked at the bigger picture. Google and Facebook were altering the market, making it “harder and harder to be successful in that ecosystem, especially if you’re producing something that was only different in degree,” Turpin said.
“Our decision was, let’s choose the hard road and let’s recreate. Let’s create anew what National Journal is and that really pushed us to certainly the more aggressive approach, which was totally transforming what our business was,” he said.
2. Failure to evolve opens the door to disruption
Digital transformation isn’t a one-time decision. It requires constant evolution to keep pace with other competitors. Once National Journal realized that its transformation would move it away from a traditional ad-supported media company to an information company, it began looking at the kinds of services that it could provide its member clients.
Once again, Turpin and his team did this with a great deal of intentionality. Customers’ market challenges do not stay the same year after year, and the future of the company depends on keeping up to date with what its members need to succeed.
“You can get shifted out of a budget line if you’re not sure what challenges are driving your members at a given time,” Turpin said.
To develop the products that have become National Journal’s main revenue driver, Turpin’s team always starts by listening to member needs. They want to know where the puck is going so they can help their members now and in the future.
“We always start with asking our members questions like, ‘What’s keeping you awake at night this year? What new things are you investing in that you didn’t invest in a year ago, that you didn’t invest in five years ago? What’s the number one priority that your boss is asking you to complete this year?” Turpin explained.
3. Transformation is only possible with accountability
Sustainable transformation can be challenging with limited resources. National Journal’s process is to make sure that its products are actually meeting the needs of its customers, and that requires the discipline to see each product launch all the way through, but also to admit when something’s not working.
New solutions that come under consideration must be additive, rather than stretching the market. National Journal never launches new products “just to do new.”
Another critical component is sticking with products to ensure that products scale and are set up for long-term success. Turpin advises companies to avoid leaving a launch product too early, as well as admit when they’re wrong if it’s quickly clear that a product just isn’t meeting the market’s needs.
“I found it’s a lot better if you get to that answer earlier in the process by sticking with it than letting it languish for two years and then coming back in and having to make sure it fits your decisions,” Turpin said.
Not every company will follow the same trajectory as National Journal. However, any publisher can undergo a digital transformation that sets it apart from the competition and positions the brand for growth.
It seems we’ve entered an era where an increasing ratio of stories on the advertising industry are opining on what new regulations may come to pass or when big tech companies will (or won’t) deprecate third-party cookies. With so much coverage focusing on external pressures, it’s easy to fall into the trap of forgetting what lies at the core of digital advertising: the consumer.
What regulators and big tech alike are providing aren’t, at their essence, constraints on the advertising ecosystem but rather the opportunity for consumers to choose how their data can or cannot be used for digital advertising. And when given that choice, consumers are increasingly acting in ways that protect their own data privacy.
What publishers need to know is that this means advertisers are facing an environment where half of users are browsing in environments that restrict cookies (Safari, Firefox, etc.). Of those who are browsing in Chrome, 40% disable tracking on their own. This leaves only 30% of the open web available for targeting with advertising. As consumer choice grows, so will the percentage of audiences that are traditionally unaddressable.
Luckily, publishers are better equipped than any other part of the ecosystem to directly connect with consumers. Largely, consumers aren’t objecting to their data being used responsibly by the website they’re on or the app they’re in, but rather they’re opting out of being tracked across the internet by adtech or big tech. This means an overwhelming majority of consumers’ data is visible to the publisher alone.
Protecting consumers and revenue alike
The evolution to more responsible marketing practices — where data is secure by design — is primed to benefit publishers. With that, there needs to be a focus on solutions that are grounded in user consent and choice in order for publishers to be able to operate sustainably and protect both their consumers and their revenue.
The right data infrastructure and insights gives publishers 100% addressability and the tools to activate audiences consistently across all media transaction types. This means publishers are uniquely equipped to offer advertisers the opportunity to extend the scale of their own data by partnering directly to activate first-party audiences.
Publishers’ rich audience data enables advertisers to reach high-value audiences with targeted messaging, without infringing on user privacy. This is invaluable to advertisers, helping them to continue reaching consumers with relevant content, even as addressability declines. For example, U.S. News’ first-party audience data allowed its advertisers to see an uplift in engagement of up to two times by activating valuable cohorts.
Further, Bauer Media’s Illuminate offering has been shown to positively affect user perceptions and purchase consideration. Post-campaign research for a leading manufacturer showed a 44% increase in users who said they would be highly likely to buy from that brand, compared to non-exposed.
How publishers benefit from user privacy
It’s clear that the close proximity publishers have to their audiences is transforming the digital advertising ecosystem. What publishers do with this opportunity will redefine how they are able to successfully activate and monetize their users in the future.
We’ve entered an era where publishers are responsible for user privacy practices when it comes to the collection, management, and usage of consumer data. They serve the needs of consumers who are growing increasingly aware of how their data is used as well as advertisers looking to buy across highly addressable publisher inventory.
Fortunately, this ecosystem is also one where publishers will be fairly compensated for the value they create, as they are positioned to provide addressability, relevance, and scale for advertisers. And these advertisers are seeing results.
By working directly with publishers, a global beverage CPG brand course-corrected over-indexing in Chrome, helping solve its addressability problems and reaching double the audience that was previously hidden in Safari. That same campaign was also able to deliver 2.1x the number of impressions served in Safari vs Chrome, which resulted in a 21% lower CPC and a 123% higher CTR compared to the benchmarks.
Publishers and advertisers must work together to restore consumers’ trust in their data privacy. Concern needs to go deeper than worrying about the deprecation of the third-party cookie or simply meeting regulatory compliance. Building consumer trust comes from publishers seeking consent and data solutions that are secure by design.
About the author
Isabella Jenkins is a Client Revenue Partner at Permutive. Isabella supports publishers on new Permutive products and features to ensure their platform use aligns with their data strategies. Isabella has over six years of experience in adtech, previously heading up Client Success at Captify.
