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Category results for "Revenue"

Advertising | Perspectives | Revenue | Supporter Spotlight

The bad ad problem: balancing short-term profits and long-term success

There are telltale signs that digital publishers haven’t embraced a user-first approach to monetization. Frequently, these unwelcome surprises come in the form of bad ads. There’s a subtle, yet crucial safety issue at play – that of the end user, and to publishers.  

Bad ads have become more tangible in recent years. They range from offensive and unpleasant imagery to off-brand messaging. Unfortunately, they have a raft of negative effects. These include user churn, widespread user complaints, and a serious dent in monetization.

In 2021, 76% of publishers reported ad quality challenges affected user experience.  Sixty-six percent of publishers reported that ad quality issues impacted their revenue, underscoring how vital it is to adopt a user-first approach. 

User experience expectations are changing, and working practices must keep up. Considering fundamental recent shifts in user sensitivity and expectations, we can’t expect outdated approaches to remain effective. 

The brand suitability question 

With 35% of publishers experiencing worsening ad quality challenges, the pressure is on for publishers to consistently deliver on-brand experiences. In the last 12 months, the definition of brand safety has evolved. These days, the focus is on the distinction between brand safety and brand suitability. It’s no longer enough for publishers to wonder, “Is this creative acceptable for a premium publisher?” The question now must be, “Is this acceptable for my audience, my message, and the content on this page?” That is the philosophy behind a user-first approach. 

Poor ad quality threatens the publisher-audience relationship. However, nearly half of all publishers say they lack the tools to control the ads that appear across their digital properties. Misleading links in ads are the primary type of low-quality ad publishers are seeing – 48% of publishers say they’ve seen such ads. Almost as many (44%) of publishers report witnessing fake news in ad content, 28% reporting links to sites with security threats (malvertising), 31% reporting violent content, and 27% reporting explicit or offensive content. 

Publishers are brands too 

To cultivate strong relationships with their audiences, publishers must deliver engaging, relevant advertising that works for their brand. And every ad counts towards retaining user loyalty, engagement, and ultimately, monetization.  

Publishers require custom controls to maintain their standards and values because there is no universal guide for what counts as a “good” or “bad” ad. In fact, publishers are demanding customization, with 47% reporting they need “more control and transparency” from their ad quality tools. 

Real-time protection against off-brand ads is essential to maintaining a positive user experience. Realtime ad quality protection enables publishers to avoid advertising that is inappropriate for their brand’s unique sensitivities and values but may be fully appropriate for another brand. Today, advertising must be aligned with a publisher’s brand based on its sentiment, tone, and messaging.

A dynamic need 

It is nearly impossible for a publisher to regain a user’s trust once the user has seen an ad that contradicts the publisher’s tone or looks suspicious, or especially if the user clicks through to a deceptive ad and lands on a scam website. In the world of brand suitability, it’s often “one strike and you’re out.” 

While an overall approach to brand suitability, trending topics, and news or event cycles is a must, continual diligence is needed. A user-first approach requires that publishers roll up their sleeves and assess suitability on the ground to ensure their audience’s experience remains on-brand. In short, brand suitability is not static. 

Publishers don’t have to start from scratch. Real-time ad quality tools that provide granularity exist to eliminate the heavy lifting. Setting content parameters and reviewing ads on a site is not merely a maintenance task for ad ops. It’s a vital component of a publisher’s business strategy. 

The way forward

Publishers have devoted time and resources to assure brand-safe environments for advertisers. Now, publishers must remember to devote the same attention to brand suitability for their own brand and users. Going forward, a user-first approach requires publishers to align page content and ad content, and consider them holistically. That control requires full visibility into all ad content on each page, as well as granular customization for their unique audiences. 

Boosting ad quality translates into revenue upside and enables a brand to stand out. When a user-first approach informs ad quality decisions, the benefits are felt by publishers and users alike.

Advertising | Perspectives | Revenue | Supporter Spotlight

Publishers can’t afford to ignore data leakage

The problem of data leakage is one often not well known or understood by publishers. Therefore, addressing data leakage is rarely prioritized. This particularly true if the pressure to monetize their inventory is high and resource is limited. But what does data leakage mean? And are there ways publishers can protect their data from leaking? It’s crucial that publishers learn more about this problem and about the solutions available that help prevent it.

Data leakage typically occurs when a brand, agency, or ad tech company collects data about a website’s audience and subsequently uses that data without the initial publisher’s permission. The core concern with data leakage is that it causes a publisher’s ad inventory to depreciate in value. If bad actors collect data about a publisher’s users, they can use this information to target these users elsewhere — potentially on cheaper inventory. In other words, programmatic spend is diverted from the original publisher. This results in a reduction in demand and, therefore, a lower yield.

Data leakage can happen transparently with the publisher’s knowledge or consent. For example, a company might request that a publisher install code on their page that allows data to be gathered about their users in exchange for something else such as a minimum spend commitment. In some cases, this might be considered a commercially worthwhile proposition providing the appropriate regulations are complied with.

More frequently, however, data leakage does not happen transparently. In the context of programmatic, this usually occurs when publishers choose to work with numerous technology partners in an effort to maximize revenue and yield. There frequently a correlation between the number of partners a publisher chooses to work with and the risk of data leakage.

How data leakage happens

There are a few ways data leakage can happen:

Open RTB bid requests

Data leakage can occur when Supply Side Platforms send bid requests to Demand Side Platforms via using the OpenRTB protocol. This contains a wealth of information about the user, the content they are consuming, the device they are using, their cookie id, where they are located to mention a few. (See the Site, App, User, Publisher, Content Objects). Much of this is information integral to the programmatic auction process. However, it could be used to profile users and target them elsewhere. How much this actually happens is unclear. It may even occur unintentionally by machine learning, bidding algorithms.

Cookie syncing or tracking pixels

Data leakage can also happen when a third party gets access to a publisher’s page either via cookie syncing or a tracking pixel. A pixel is an invisible piece of code that marketers or ad tech platforms use to track users, apply campaign strategies such as frequency capping and monitor performance. Pixels can also collect information about a publisher’s audience. Unfortunately, that can be used to enable the targeting of those users elsewhere.

Today, the vast majority of players in the programmatic digital supply chain are reliant on third-party cookies for user identification and for campaign targeting, optimization, measurement, and attribution. Cookie synchronization is a process that is required to communicate user identity between platforms.

The problem of data leakage arises when platforms that publishers work with give other platforms that have no direct relationship with the publisher access to the page to cookie their users. That platform is then able to build user profiles, which allows them to reach that audience elsewhere without having to buy any media on the original publisher.

How to ensure your data is protected

One way to prevent data leakage is for advertisers, agencies, ad tech companies and publishers to have legal contracts that stipulate who owns what data and how other parties can use it. You might be protected contractually. But how do you monitor and enforce these contractual obligations in practice?

Publishers can also leverage tools that track which platforms are dropping unnecessary pixels or bringing unwanted data collectors. These tools can be used to undertake periodic audits to identify where data leakage is happening. Alongside, publishers should implement policies and practices to qualify, monitor and deal with bad actors.

How to balance the risk and rewards

It is important that publishers find the balance between a closed, safe environment and a risky but sustainable monetization strategy.

With the impending “cookie apocalypse,” publishers are already opting to work with identity providers that are not reliant on third-party cookies to ensure they maintain a healthy programmatic revenue stream and protect themselves from data leakage. Next-generation identity solutions provide a foundation for user identification, which is fundamental to campaign targeting, optimization, measurement and attribution. They also offer new safer mechanisms and tools that limit the amount of data leakage.

When choosing a provider, check that they have built mechanisms that will only assign your users an identifier if they have consent to do so and only share those identifiers with the platforms you have authorized. Finding the right identity provider today can help you prevent data leakage, respect consumer preferences and local privacy regulations while facilitating sustainable monetization.

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Featured Post | Revenue

Can freemium ever be free? Paywall strategies from news, B2B, and B2C

Is there such a thing as a free lunch? For online audiences looking for news, metered and freemium paywalls offer a little taste of the feast that exists beyond the paywall. And if we’re honest, savvy online audiences know that there are ways and means to get at the content behind those paywalls for free, too.

But for the publications that are looking to monetize digital audiences through a paywall, how much to give away for free is an inevitable discussion. Beyond the public service implications – such as The Atlantic and The Financial Times making much of their pandemic information free-to-access – the point at which the paywall kicks in is a constant consideration for digital media companies. Consider all the attention The Economist received for reducing the number of articles readers got for free – from five to three – back in 2019. At the time its MD of global circulation Marina Haydn said the focus was on providing “value over volume.” 

It’s a constantly evolving conversation. Better, more accurate modelling tools allow for flexibility of paywalls based on user habits and demographics, so even within the same publication there are different amounts of “free.” Similarly, there are many sites where the “cost’ of access isn’t monetary, but instead the time and data cost of handing over user information at the registration wall.

There are as many options as users, and often multiple in use across the same publication. But which content is always free at certain publications, and is there best practice for what should always be free in different publishing verticals? How do hard news, B2B and B2C shake out?

Always free

According to the Reuters Institute “more than two-thirds of leading newspapers (69%) across the EU and U.S. are operating some kind of online paywall.”

There is an excellent argument to be made that most news content online should be free to consume at the point of publication. In the article ‘The Truth Is Paywalled But The Lies Are Free’ Nathan J Robinson states that while news paywalls are justified, we need to reappraise that in light of the new economies of disinformation online. 

Given the number of recent revelations about the role of advertising-based outlets in disseminating disinformation, it’s more important than ever that we examine how news sites can act as a bulwark against that trend.

Despite these concerns, of the largest quality news publishers online only the Guardian has a direct audience revenue model and also remains free. But there are other digital publishers that are primarily user-funded that make free news at point-of-consumption a core pillar of their offerings.

Eurogamer, the UK-based consumer news and analysis site, recently launched its own subscription or ‘supporters’ service. Notably when announcing the move its editor-in-chief Oli Welsh was clear that the content that was free-to-access would remain so; its new content would be “additive”:

“One thing we decided very early on was that we didn’t want to lock all of our work behind a paywall. We wanted to keep it freely accessible to everyone. So, inspired by the example of The Guardian (as well as of some of our competitors), we’ve created this supporter program where subscription is entirely optional, but comes with a bunch of (hopefully attractive) benefits, ad-free viewing first and foremost among them.”

That additive model is very similar to that of The Independent, which also creates subscriber-only content while allowing the majority of its content to be free-to-access. It brands the content behind the paywall as ‘Independent Premium’ – which matches Eurogamer and many other titles using the partial paywall model. 

Similarly, back in 2016 the Telegraph abandoned its metered paywall in favour of its current model, which has certain types of content that are always free. It then has a premium option on top and certain perks of registration that encourage users to sign up.

Nor does the free content necessarily need to exist in the same medium as the paid-for content. Quartz, for instance, still offers its newsletters for free while gating some content on its site behind the paywall. It currently has around 27,000 subscribers. 

For news publishers of any stripe, then, the option is there to have a certain amount of content that is always free. That could be, as with the Guardian, from a purely ethical perspective or, as with Eurogamer, because other revenue sources afforded by free access are still a big part of the overall mix.

Never free

This is the easy one. Many of the most well-known subscription success stories have a hard paywall at their heart. In fact, in many cases, any free content that isn’t purely promotional is anathema to their publishing strategies. 

That’s especially true for B2B and business information publishers, which mostly never lost sight of the value of their own expertise. Despite that, even among news publishers the hard and fast paywall remains notably rare. Of the biggest subscription success stories, only the Financial Times, The Wall Street Journal and a handful of others really embody the hard paywall ethos.

It is, as has been pointed out, a fantastic option if you have a rich seam of proprietary information or data, or occupy such a rarefied niche that few if any competitors exist alongside you. 

Free enough

Consumer-facing magazine brand Condé Nast has ultimately said that it wants all its brands to be paywalled. That’s a huge bet upon the ability of titles – mostly based around lifestyle and hobbies – to convert people to paying readers, and on the back of a metered model. But it’s not a contention without some supporting evidence.

On the back of WIRED going behind a paywall in 2019, its editor Nicholas Thompson said that: “I think it can work for every Condé Nast brand. I don’t think it can work for every brand. Think about Forbes, which has this very lucrative contributor network. No one’s going to subscribe to the contributor network, in part because there isn’t really an identity or a style or a voice – why would you subscribe to that?”

But the ability of free, premium content to act as an antennae for potential future subscribers shouldn’t be overlooked. For both the freemium and metered models – which are neck-and-neck alongside one another in terms of popularity in the EU – that free-to-access content puts readers at the beginning of the funnel to a full-blown subscription.

That’s especially true for consumer magazines, which rarely occupy the sort of rarefied niche that would enable a hard paywall. Over the course of the pandemic research from Jellyfish found that UK tech and gaming titles saw a rapid growth in digital subscriptions (268% YOY) – of which most have a metered paywall model.

It would be foolish to say that the never-free model works best for B2B exclusively, or that a metered model is the definitive best for consumer magazines. There are exceptions to each rule, and often the individual brands themselves play around with which content is free at any time.

Advertising | Perspectives | Revenue | Supporter Spotlight | Video

OTT monetization needs to adapt fast or die slow

Streaming TV may have killed cable － but where do we go from here? After the pandemic-induced streaming boom, consumers are cancelling subscriptions at record rates. As viewers grapple with rising prices and an explosion of subscription services, OTT players should embrace the potential of ad-supported streaming in order to survive an increasingly competitive market.

OTT on the up

The OTT (over-the-top delivery of TV and film via the internet) industry is booming. In 2017, approximately a third of U.S. adults cited streaming services as their main means of consuming television. Double that for people aged 18-29. During the pandemic, streaming television has continued to display incredible growth. In 2020, screen time overall was up almost a third on the previous year. Viewers watched streaming services, such as Netflix, Amazon Prime Video, and Disney+, for one hour and 11 minutes per day. Also, 12 million people joined a service they had never used previously. Three million of those viewers had never previously subscribed to any TV streaming service at all.

A changing paradigm

The mass adoption of streamed OTT services coincides with a fundamental change in the television business model. While television has traditionally been funded largely by advertising, most streaming TV platforms have instead opted for a subscription-only model. For traditional TV providers transitioning to streaming, this choice is understandable, given the abundance of legacy technologies that cannot easily be switched towards an advertising-based SVoD. New players like Netflix, by contrast, have made a strategic decision not to offer an ad-supported subscription.

OTT overload

The subscription model appears to be working well enough for Netflix, the undisputed market leader. The problem lies in the explosion of alternative streaming platforms. In 2020, the average viewer was subscribed to nearly eight streaming services, compared to six in 2019.

Netflix raised the prices of their memberships in 2020 and may well do so again. The result is that the monthly cost for consumers of streaming tv is increasing, as both the prices and number of services go up. There is an inevitable tipping point where paying multiple subscriptions becomes too expensive for the viewer and they will choose to let some go. Many have already crossed that threshold: 36% of Americans plan to cancel streaming subscription services in the next 12 months. And the most common reason – by far – is the price of service.

Ad-supported gains ground

Although subscription dominates, ad-supported streaming services have seen substantial growth during the pandemic. Research by Deloitte found price to be a key factor in consumer streaming decisions. Most consumers (65%) want cheaper ad-supported streaming options (up from 62% pre-Covid). And, of those who did, more than 50% preferred ad-only streaming. Sixty three percent of respondents in a PwC survey said they would be willing to sit through more ads if it meant cheaper subscriptions. Providers offering ad-supported streaming now include The Roku Channel, IMDb TV, Discovery plus, CBS, and Hulu, to name a few.

Sell smarter ads

Part of the appeal of the subscription-only model lies in its apparent simplicity. For established television providers, transitioning their advertising model from cable to digital presents many technical challenges.  For those providers who have embraced ad-supported, a combination of white-glove and programmatic ad sales are the norm.

However, a new approach is also gaining popularity: self-serve advertising platforms. Inspired by the walled gardens of Facebook and Google, self-serve ad platforms allow OTT providers to sell their ad inventory through a branded, automated marketplace. This allows them to tap into the massive SME ad spend that currently drives digital ad growth. SMEs increasingly favour self-serve solutions, and for OTT brands with their own platforms, less value is lost in the infamously murky “black box” programmatic supply chain.

Roku, for instance, sells home screen banner ads, Roku screensaver ads, and video ads via their self-serve platform Roku Ad Manager. Ad Manager is designed to be a smarter, simpler, and more cost-effective way of managing channel promotional campaigns within the Roku ecosystem. It is just one of an increasing number of self-serve platforms popping up among OTT brands.

The other important aspect of ad-supported streaming is that it’s not simply a return to the dark days of regular, irritating ad breaks (as still found on linear TV). OTT providers that adopt ad-supported models are innovating the user ad experience to make it more effective and less obnoxious. Hulu, for instance, runs pause ads. This non-disruptive, non-intrusive user-initiated ad experience appears only when viewer presses pause when watching content. That’s a far cry from the ad breaks of old, and an indicator that ad format innovation is an essential part of the new streaming experience.

Ad-supported is inevitable

As OTT prices and the number of platforms continue to rise, consumers are increasingly looking for flexible, low-cost alternatives to meet their streaming needs. For OTT providers, offering only subscription models means that they price themselves out of the market for cost-conscious cord cutters.

We are not likely to return to the days of constant ad breaks and linear TV. Rather, the future lies in the flexible middle ground where consumers can pick and choose from a selection of price models: subscription, ad-supported, or a hybrid of both. OTT providers need to embrace ad-supported streaming － the sooner, the better.

About the author

Johan Liljelund is the Executive Vice President at DanAds based in Sweden. Johan is an entrepreneur with more than 20 years of experience in developing technology towards the media industry and a pioneer in the digital advertising industry enabling publishers to streamline and efficient their internal processes on a global market.

Advertising | Perspectives | Revenue | Supporter Spotlight

Two ways publishers can increase digital ad revenue from news content

The media is covering news from more angles, and at more depth, than ever before. The Tokyo games generated a flurry of content that spanned fashion, mental health, gender equality, politics, and more. (And let’s not forget the athletes and actual events!)

The summer games reflect how big news events typically branch out across industries, lifestyle categories, etc. Sometimes, the link between what would be considered a critical piece of news and everything else is tenuous.

Unfortunately, in the pursuit of absolute safety and stringent brand preservation, many advertisers err on the side of caution. They employ rigid brand safety practices that lead to overblocking, which diminishes the yield publishers need to bring the important conversations to the fore. As a result, many advertisers sit on the sidelines as journalists explore the various facets of evolving news. Unfortunately, that even includes topics that could be on-brand for many advertisers.

News content holds digital advertising’s future

The advertising industry’s pullback associated with Covid-19 coverage early last year illustrates the negative impact this can have on publishers, advertising brands, and the overall consumer experience. In early 2020, traffic to major U.S. news sites jumped more than 50% compared to the same period the previous year. However, that increase in visitor time and attention did not provide a corresponding revenue increase because many advertisers were steering clear of any content referencing the virus.

The root of the problem lies in the “blocklist.” This simplistic brand safety tactic prohibits ads from being served based on keywords appearing in URLs or nearby content. According to news reports, “coronavirus” was the number-one term on industry blocklists. In fact, more than three thousand advertisers have blocked ads from appearing near it.

Despite these challenges, there is ample opportunity for publishers to move the conversation past purely transactional ad sales and take more active control of their content strategy. By offering curated inventory packages that are both contextually relevant and brand suitable, publishers are able to address advertisers’ brand safety concerns. They can provide also advertisers with greater control over the audiences they are reaching and the content they are aligned with.

Adapting advertising to the news ecosystem

Overly restrictive blocklists impact publishers and advertisers, yet the news will always have complexities and nuances. However, according to GroupM, “There are simple ways to advertise in news without compromising brand safety. But to avoid hard news, or even bad news, flies in the face of the facts.”

Adapting to fast-paced news cycles requires you do the following:

1. Gain insights and control

Evolve from the brand safety of yesterday. Focus instead on understanding the context of the content surrounding brand messaging. Contextual Intelligence tools help advertisers and publishers understand and evaluate billions of webpages and other digital content. This allows them to evaluate supply and identify brand-suitable environments for advertising based on overall page context, not a single word or meta data.

For example, many advertisers might decide they are comfortable with ad placements around current content related to topics like personal hygiene, cleaning, telework, streaming entertainment, food delivery, education, cooking, books, games, or exercise. While each marketer needs to determine its own standards for brand suitability, this type of related content may be appropriate.

In an interview, Edwin Wong, SVP of Insights & Innovation at Vox Media, noted that: “When quality content is matched with people’s passions and interests, it creates a much richer picture of who the audience is, why they are there and what motivates them. When we do this right, we no longer base contextual targeting on just the individual, an individual action, or an individual piece of content, but on what our platforms deliver for the audience holistically. It changes the retroactive perspective of targeting and makes context targeting future-facing.”

2. Provide meaningful ad measurement

Establish baseline metrics

Two primary benefits emerge from consistent monitoring and accounting for viewability, invalid traffic, and brand-safety reporting across your campaigns. First (and very importantly), you protect your advertisers’ brand dollars. Second, effective brand safety will be dynamic. Brand suitability takes page context and intent into account to address continuous content evolution.

Life beyond verification

Connect your campaign to data sets that reveal meaningful impact so that attention becomes an outcome to pursue in tandem with traditional KPIs such as viewability and verification. More broadly, marketing campaigns need an industry ready for new metrics to gauge cross-channel impact beyond just verification.

Measure across channels 

Publishers and platforms will look to brands to maintain consumer loyalty and trust in their expertise. This calls for both robust content and multichannel dissemination.

Evolve KPIs to gauge true engagement and impact

Innovative marketers who experiment with formats beyond traditional social media posts and editorial-style content learn more because verification alone won’t tell you about impact post-view. As marketers seek further control over their ad spend and a better understanding of campaign efficacy, measuring advertising outcomes like consumer attention will become crucial.

When you move measurement beyond ad verification to attention, you’ll show advertisers how your inventory helps them drive success and hit their KPIs. That’s a surefire way to keep them coming back for more.

Drive more revenue through agility

Changes to ad targeting, data collection, and privacy regulations will continue to challenge the digital advertising ecosystem to evolve and bring new solutions to market that support its future. The ability to stay agile and adapt to the changing industry will be critical for publishers while increased collaboration across the ecosystem will provide not only innovation, but an increased customer experience and the need every stakeholder to rise to the occasion.

Advertising | Perspectives | Revenue | Supporter Spotlight

What publishers need to know about the crypto ad market

While the cryptocurrency market has been growing at a steady rate over the past few years, it has recently exploded – and shows no signs of slowing down. Estimates show the industry will hit $4.94 billion globally by 2030. That’s more than triple its size of $1.49 billion in 2020. 

With such a large market, it’s a no-brainer for advertisers whether they be crypto platforms, providers or innovative merchants – to take advantage. There may be no bigger sign that the door is wide open than the fact that Google, just this summer, loosened restrictions on crypto ads after banning them in 2018. As money flows into the category and advertising becomes more accepted and possible, it presents a big opportunity for publishers to capitalize on a growing and lucrative ad market. 

Meet the crypto advertisers

According to our own data at MediaRadar, we’re seeing that bear out. In 2020, there were just 27 digital currency companies who purchased ad digital display or print ad space. In 2021 that number increased 159%. New companies include BitYard, Anatha, BitTrust IRA, Phemex Limited, and Gemini. Existing advertisers, like Coin Mobile App, Hex.com, Bakkt Marketplace, Nexo, and Celsius Network, continue to spend. This growth will only continue and to the benefit of the overall ad ecosystem. 

Source: MediaRadar

Supporting the industry is the increased credibility it has seen in recent years. We know Google has shifted its view on it, but it’s not the only major company. 

Tesla invested $1.5 billion in Bitcoin back in February, and that caused the cryptocurrency market cap to surpass Google’s stock. Tesla founder Elon Musk has always been a crypto advocate – despite brief moments of doubt. In fact, his backing of certain currencies has caused them to skyrocket. 

Breakthrough business

Beyond bleeding edge players like Tesla and Musk, legacy businesses like McDonald’s are now accepting crypto for payment. So, there’s a more accepting audience for crypto ads. And, with all the different cryptocurrency formats out there, it’s easy for advertisers to try and market one people haven’t tried yet. The same goes for crypto platforms. 

However, in such a crowded market, how do crypto brands break through? What are advertisers doing to market crypto to the public, especially when there are plenty of people who still don’t know what crypto is or how it works? And what types of publishers are benefitting? 

This year, crypto companies advertised across digital and print formats, with most spent on digital (86%). However, 14% of spend has been in print. In 2020, there was no investment in print, which marks a substantial year-to-year change. 

This indicates that the industry is growing and is striving to reach a broader demographic by advertising in The Economist, Bloomberg Businessweek, Car and Driver, and The Globe and Mail. Note, of course, the audiences of these publications. They’re often more business and tech-savvy. Also, they likely follow the crypto category or are more receptive to trading crypto than the average person. Publishers that feature these audiences can win ad dollars from the growing number of crypto brands eager to invest. 

Follow the money

Still, while crypto is beginning to mainstream and broaden its outreach, crypto advertisers haven’t shifted to the ultimate mass marketing channel – linear TV. There has been some experimentation, of course. However, according to our research, TV was the least popular channel for cryptocurrency companies. In comparison, the majority of advertising spend from traditional banking services in 2020 and 2021 – think Capital One, Chase Freedom, Chime Bank, and CitiBank – has been on TV ads. 

Beyond the channel, the format in which crypto brands deliver their message is similarly important. One way to engage their audience effectively is with contextualized messaging. According to BuySellAds, “those in the cryptocurrency industry are more likely to engage with advertising from contextual advertising networks that display contextualized messaging and is relevant to what they’re viewing, is honest, and doesn’t utilize forms of tracking.” The best crypto ads are native and tightly aligned to the format and content. For publishers seeking to partner with cryptocurrency brands, this is critical intelligence when pitching formats and capabilities. 

Moving forward, enterprising publishers can take advantage of the crypto ad explosion. With a growing number of competitors, platforms and players, there is a massive opportunity here to build business and grow revenue. 

Featured Post | Revenue

What the Hot Pod acquisition signals for Vox Media

There is no doubt the media industry can be pretty cutthroat. Publishers are always looking for new ways to generate revenue and compete with big tech, which dominates the digital advertising market.

Increasingly, media companies are diversifying revenue through subscriptions. So, when news broke that Vox Media acquired the Hot Pod newsletter, many focused on the fact that this would be The Verge’s first paid-for product. But there’s more to it. This is a story of friendship, partnership, trust, and serendipity – all of which form a strong foundation for growth.  

According to The Verge’s editor-in-chief, Nilay Patel, the idea to acquire Hot Pod came about because it’s founder Nicholas Quah decided it was time to move on. Quah took on a full-time position as a podcast critic on Vulture, a Vox Media title, and was ready to shut down the baby he’d birthed back in 2014. But Patel had other ideas.

“Rather than just shut down Hot Pod, I suggested Nick sell it to Vox,” explains Patel. “It was an ideal opportunity. We like Nick. We like Hot Pod. And Nick knows us, he knows our work, and he trusts us with the product that he built. It seemed like the natural home for Hot Pod. I’m not sure a paid product on Verge would have happened otherwise. The pieces just fell together.”

Learning curve

This new acquisition, which increases Vox Media’s growing arsenal of brands, wasn’t purely philanthropic – after all, they have a business to run. Patel says The Verge team had been thinking about moving into paid product for some time. It was all about finding the right product, at the right time.

“Nick’s legacy Is strong. So, we have the right product and the right audience” says Patel. “This will help us learn how to deal with a paid product, without the challenge of having to build the product as well and verify two things at once.

“We have a lot to learn, but we are looking at this as a test. When we have more experience in this area, we can create new paid products down the line.”

Another key piece in the puzzle was Ashley Carman, senior Verge reporter, who will take over as lead writer of Hot Pod. Carman is a respected name in the industry, thanks to her essential reportage of podcasting and audio.

“Ashley turns up in Hot Pod all the time, as she is one of the best podcast reporters,” says Patel. “Plus, she has worked with Nick in the past, so there is a lot of inbuilt trust and the audience know her. This means the transition should be seamless, which is another potential risk that is lowered. We wouldn’t have done this deal without her.”

Value proposition

Trust is a word that comes up time and time again when talking to Patel. It’s clear that this is one of the reasons The Verge has amassed a loyal audience of over 50 million. That and the fact it delivers award-winning content – for free. Content across all of Vox Media – including The Verge, Recode, Polygon and more – has been free to access since its launch a decade ago. (Though about a year and a half ago, they began soliciting reader contributions to help support their journalism.) The company merged with New York, which does have subscription-based brands, in 2019.

The combined media organization boasts a roster of fan favorites, reaching audiences obsessed with tech, gaming, music, food, lifestyle and – of course – the city that never sleeps. It has also been building up its roster of newsletters and a formidable slate of podcasts. The Hot Pod acquisition adds another brand with deep insider knowledge that fans trust, which the company believes they will pay for.

“We have a very large, free audience at The Verge. And we are proud of that” says Patel. “They will continue to be well served with free content. But in addition, we will offer Hot Pod, which is a great product.

Vox plans to keep the subscription price for the newsletter at $7 per month. However, it is offering paid current subscribers a three-month subscription to New York magazine, which Quah also works for. So, what does Patel think The Verge audience will make of this new paid-for product?

“We realize you can’t just charge for more stuff. You have to charge for content that is useful and valuable. We think Ashley can deliver a lot of value that is worth paying for.”

Growth plan

Patel says they have a load of new ideas for Hot Pod, such as reviews of software and services that the podcast industry runs on, more features, and a broader focus on technology – rather than just podcasting. But first they plan on managing the transition in a way that ensures the audience feels “cared for.”

“Over time we will make changes, with a focus on improving user experience,” he explains. “Hot Pod is already a must read. We want to make it a definitive must read.”

“Verge has a huge team, with 70-plus people in the newsroom behind us. So, we can bring new, exciting things to Hot Pod. But before we start instituting change, we are going to prove we deserve the audience and their money.”

Open ecosystem

After all, bigger isn’t always better. Sometimes taking an independent, trusted product and giving it big backing turns out to be the beginning of the end. Hot Pod’s new host, Carmen can attest to that. One of her recent investigations offered some insights into ways this can take shape. She took a look at how podcasting’s big bad boy Joe Rogan was faring after signing a $100 million exclusive deal with Spotify. Carmen cleverly tracked indicators on social platforms and found that Rogan’s influence has actually decreased since joining the podcasting giant.

Until now podcasting has largely been the domain of independents and creatives using open platforms to distribute and market their work. But the big tech companies know there’s money there and they have arrived in force.

“At The Verge we don’t actually think that dynamic is good, which is sympatico with the Hot Pod audience and what Nick’s ethos was,” says Patel. “There is a vibrant, open eco system of creators that makes the internet and our culture what it is.”

Once again, it’s all about building trust with your audience – and not just attracting big names or making changes for a fast buck. “So much of what is good about podcasting is the democratic access to distribution. And, as distribution channels become more tightly controlled, we will see aggressive ways of pushing back.”

“For us, the story is the push and pull between what people like and what the platform companies want to do, and how they do it. And Ashley is very focussed on that story.”

Meanwhile, the company will take its first crack at a subscription product amidst a newsletter (and podcasting) boom. And with its latest acquisition, Vox Media continues to experiment and innovate – while focusing on supporting creators, quality journalism, audience engagement – and trust all-around.

Advertising | Featured Post | Revenue

As podcasting soars, advertising follows

Although the pandemic has revolutionized many of our media consumption habits over the past 18 months, one thing has become increasingly clear: podcasts are not going anywhere. Even as new work-from-home regimes supplanted daily commutes at the height of the pandemic, audio programming continued to find its way into the ears of its consumers.

According to The Infinite Dial, an annual report released by Edison Research and Triton Digital earlier this year, over eighty million Americans ages 12 and up (roughly 28% of the U.S. population) are weekly podcast listeners. That’s a 17% increase in listenership, which is sizable compared to the 9% increase recorded from 2019 to 2020. 

Source: Edison Research/Triton Digital

“Let me be the first to admit — the increase from 24% to 28% year-over-year did surprise me,” said Tom Webster, SVP of Edison Research and co-author of the report. “In a year in which absolutely nothing was normal, podcasting grew even more than it had the year before.” 

Once society enters a truly post-pandemic era, Edison Research’s Webster is confident that listenership will remain loyal, particularly with the resurgence of the daily commute. “Habits are habits. And when people go back to the office, we’re going to see a lot of these habits stick.” 

A formidable playing field for ad spending 

Advertisers are banking on this habit retention and focused audience attention. The podcast advertising market continues to rise steadily, quarter after quarter. By next year, the global podcasting industry is anticipated to reach $1.6 billion.

Source: Magellan AI

While leading podcast providers like Spotify have reported less users than they projected for the second quarter of 2021, their advertising sales are up 110% from last year. Congruently, their ad revenue has jumped from 10% to 12% in the past 12 months. 

“It’s clear to me that the days of our ad business accounting for less than 10% of our total revenue are behind us. I expect ads to grow to be a substantial part of our revenue mix,” Spotify CEO Dan Ek told investors in a conference call last month. 

According to research conducted by Magellan AI, podcast spending in the second quarter of 2021 rose by a sizable 22% from the first quarter of this year, a 40% increase year-after-year. It’s worth noting that, according to Magellan AI, sports podcasts added the most new advertisers in Q2 than any other genre. 

Source: Magellan AI

Impactful advertising

Which brands packed the biggest ad-spend punch? For longtime podcast listeners, direct-to-consumer brands like HelloFresh, Casper Mattresses, or BetterHelp may come to mind. Although, in recent months, larger corporations have risen to the top of the list of biggest ad spenders. 

What makes the podcasts so valuable to advertisers, especially the behemoth brands that seemed to have gone “all in” on podcast advertising in recent months? (In particular, what’s in it for those like Amazon or Geico, which seemingly have no lack of demand for their products/services?) 

“When you look at that [podcasting] audience, that audience is typically more affluent, more educated, has a higher disposable income. So, it’s very attractive to advertisers,” according to Damian Radcliffe, digital media analyst and professor of Journalism at the University of Oregon. “The other big factor here is that podcast advertising tends to be pretty limited & there’s a value in that exclusivity for podcasters which is quite appealing.”

Source: MagellanAI

A season of exclusive brand extensions

As the podcast industry continues to rise in listenership and sponsorship, we can also expect a growing wave of corporate partnerships and exclusive podcasting networks. This month, HBO Max and WWE both announced they would be launching exclusive podcast programming for their subscribers. 

HBO Max will be producing a number of ad-free podcasts as in-app exclusives to subscribers, beginning with “Batman: The Audio Adventures,” a scripted series featuring the voices of A-list actors Jeffrey Wright and Rosario Dawson. HBO already has over 25 network-specific podcasts that expound upon its programming including “The Chernobyl Podcast” and “Allen vs. Farrow.” However, “Batman: The Audio Adventures” will be the first audio program exclusively available to HBO Max subscribers beginning this fall.

WWE has teamed up with The Ringer, a subsidiary of Spotify, to create an exclusive audio network specific to wrestling-related content, in what will be a multi-year audio content partnership

“I think this is a model we’re going to start to see also in the podcasting space,” explained Radcliffe. “Instead of this content being available and distributed via an RSS feed to any number of podcast platforms it’s going to be locked in, behind a paywall. The only way [listeners] are going to be able to access it is by taking a subscription to that platform.” Radcliffe also points to an interesting development that’s emerged over the last couple of months, the ability to subscribe to specific shows with a paid relationship.

As media Goliaths and corporations continue to expand their purview to the podcasting sphere, brands across every industry are finding ways to appeal to even the most obscure of consumer niches. Considering that some podcasts have as much listenership as prime-time television viewership, there is no lack of ‘big fish’ in the podcasting pond. All advertisers need to do is find ways to reel them in. 

Best practices for embracing the ‘podvertising’ future

Focus on presenter reads

The Super Listeners 2020 study from Edison Research found that 48% of respondents reported paying greater attention to podcast ads than any other form of media advertising. A big reason for this is due to presenter reads. 

“If you look at things like presenter reads as a format…It is seen as a very effective way to reach an audience because it feels more integrated into the show, a more seamless part of the content,” explained Radcliffe. “It doesn’t feel as intrusive as ads coming in the same way as pop-ups, banner ads online, or TV advertising.” Radcliffe added that when it comes to presenter-read advertisement, tone matters. If advertisement copy is read casually and informally, it has a tendency to be less obtrusive to listeners. 

Select podcasts that make sense for your brand 

According to Radcliffe, “As [podcast advertising] continues to grow and as we see more specialized content being offered, that creates more opportunities for targeted advertising.” Although, Radcliffe was quick to emphasize an overlap in listeners and brands’ target consumers. “There has to be a cultural fit there. A fit in terms of style and content.”

Benchmark ROI with listener discount codes

If you’ve ever listened to a podcast, you may have heard advertisements that provide discount codes to listeners of the show. Not only do these discounts incentivize potential consumers, they are “quite a quick way to get a benchmark of ‘Is this advertising working? Am I actually converting listeners into consumers of my product?’ which matters a lot to advertisers,” said Radcliffe, adding, “They know exactly where that consumer has then come from.”

For larger brands, small conversion rates can still be valuable

 “Because the reach of a lot of these shows is large, brands don’t need a large percentage of conversion,” Radcliffe articulated. “Their equivalent ‘open’ rate could be small but because brands have got scale in terms of that audience reach. That could still be very valuable for them.” 

Perspectives | Revenue | Supporter Spotlight

Never-subscribers are hiding in plain sight. What are you doing about it?

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:

  1. Who are the dead end users?
  2. What are the additional options available beyond discounting or custom-bundles?
  3. If users were given additional options, would fewer users subscribe?
  4. If users were given additional options, would there be fewer sleepers?
  5. 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.

Advertising | Perspectives | Revenue | Supporter Spotlight

How dynamic creative optimization delivers advertising results

Today’s online consumers expect ads to show them what they want, when they want it. An overwhelming 80% of shoppers say they’re more likely to make a purchase when a brand offers a personalized experience, while 70% say they’re more loyal to companies that demonstrate a clear understanding of their personal needs. So it’s not surprising that personalization has become a must for digital marketers.

To deliver these kinds of highly targeted and hyper-relevant marketing campaigns at scale, savvy advertisers use innovative display ad technologies like dynamic creative optimization (DCO). Powered by a combination of dynamic, data-driven content and automated machine learning, DCO is quickly becoming one of the most effective strategies for delivering the types of personalized campaigns that today’s online audiences demand.

How DCO works

DCO is a type of programmatic advertising technology that gives marketers the ability to optimize dynamic creatives in real time. It creates a highly personalized experience tailored to the user’s needs, at that exact moment, by using data that’s collected when the ad is being served. The system updates dynamic elements instantly to provide content that’s most relevant based on a broad range of data signals. These include location, weather, gender, device, buying behavior, and where the user is in the buyer’s journey.

One of the reasons DCO is so effective is because the process is completely automated and continuously improving itself. AI takes care of multivariate testing and automatically optimizes ads based on data. This not only improves performance but also allows marketers to produce a high volume of ad variations quickly and at scale. DCO is also easy to implement when integrated with a data management platform (DMP) for access to data feeds and a creative management platform (CMP) for access to creative assets like copy, images, and display.

Getting it right: 5 best practices for dynamic creative optimization

While DCO is a hands-off marketing tool in many respects, it does require some forethought and strategy for success. To make the most of your next campaign, keep the following best practices in mind.

1. Meet customers where they are

Successful DCO campaigns adapt to the audiences they serve at every touchpoint. This includes determining where users are in the sales funnel and displaying creatives that best match that mindset. For example, creatives served to customers close to action might feature harder-selling pitches than those designed for higher-funnel consumers. You can also use conversion tags to track your creatives’ performance in the buyer’s journey and replace poor performers with new variations that might catch customers on their way out.

2. Include contextual elements

Use data triggers like location, time, and weather to keep campaigns grounded in a user’s environment. For example, images for a fast-food restaurant can be set to reflect time of day, displaying breakfast sandwiches and coffee in the morning and fries and burgers in the afternoon. Or a retailer can recommend umbrellas and Wellies during a rainstorm and sunscreen and visors on a sunny day.

3. Diversify your assets

DCO gives you the opportunity to test a wide range of creative assets and it’s important to take advantage of this technology and use it to the fullest. The more diverse your variation of CTAs, headlines, images, and other creative assets, the more your campaign will benefit from DCO.

4. Trust the machine

As the “O” in DCO implies, one of the biggest advantages of the technology is that it’s specifically built to optimize your creatives. But the platform only has as much control as you allow it. Resist the urge to make ads too busy and overload them with as many products as a template will allow. Trust the DCO platform’s AI to do its job and select the most effective elements for the moment based on data.

5. Review performance

While DCO handles the minutiae of multivariate testing, it’s up to you to examine your campaign as a whole and determine if it needs adjustment. Make time to review your creative’s performance data regularly so you can identify the elements that are most effective in driving engagement and optimize your strategy accordingly.

Deliver on expectations

DCO is a must-have tool for creating highly targeted and personalized dynamic ads. Using a powerful combination of advertising display and analytics, the technology helps brands deliver the right message to the right customer at the right time. It drives engagement and increases brand loyalty by creating the contextual relevance that today’s consumers not only prefer, but have come to expect.

Perspectives | Revenue | Supporter Spotlight

3 Innovative ideas to fuel subscription success

For over 100 years, newspaper and magazine publishers made money in three basic ways: advertising, newsstand sales, and periodic payments from subscribers who awaited the latest news delivered  to their doorsteps. Most innovation in the publishing space revolved around the editorial content delivered to consumers rather than how people consumed that content. 

Then digital hit, and it changed everything. 

News and entertainment are widely available for free online. And the emergence of programmatic ad networks and news aggregators have put immense pressure on ad revenue. This means publishers need to shift toward a subscription-based revenue model if they want to survive—and thrive. 

Bringing in new subscribers and building durable relationships with them starts with revenue diversification. You need to segment the audience to focus on those subscribers that will drive higher LTV (lifetime value). And you must have a customer-first mindset. 

Your north star: delivering value in unique ways across the entire subscriber journey. The path to success: innovation. Here are three ways to deliver compelling digital experiences that’ll not only drive subscriber growth, but also encourage your subscribers to stick around for the long haul.

1. Diversify your revenue streams   

Publishers that offer more flexible subscription plans, innovative acquisition strategies, and hybrid offerings will win over those that only offer rigid pricing models or limited product offerings.

Offer newsletters and companion subscriptions

One way to remake subscriptions for the digital era is to provide new offerings that didn’t exist decades ago. Consider, for instance, Morning Brew, theSkimm, and the many successful Substack offerings. Well-written, targeted newsletters are an increasingly popular way to consume information. They are also a great way to drive additional revenue, be it through subscriptions or sponsorships. 

You might also consider developing a companion subscription product to your content offerings. GQ, for example, recently introduced its quarterly “Best Stuff Box.” It features electronics, grooming products, and accessories geared toward the same audience that reads GQ.

Drive interest through events

Events are another great way to drive interest in your subscription products (and to drive revenue on their own). You could hold a live event be it free or paid, virtual or in-person. This might be an in-depth interview with a celebrity or luminary. It could also be access to your on-staff experts, or gatherings of like minded audiences. Then you can use the resulting email list to nurture and help add new subscribers to your core offerings. 

2. Segment and personalize your offerings to drive LTV higher

While driving subscriber growth matters, you want to focus your efforts on those subscribers who will stay with you for the long term. Segmenting your audience into logical cohorts and targeting the most promising ones will help you both reduce your acquisition costs and ensure more sustainable growth.

Create and analyze subscriber cohorts

Start by looking at your existing subscriber base. Take a deep dive into the data to understand the characteristics of those subscribers with the highest LTV: Are they subscribed to a particular plan? Are they in a particular age range, income level, or geographic location? Perhaps they tend to take advantage of other offerings, like events or newsletters. Look at what’s working and optimize your subscription offerings appropriately for the cohorts you’ve identified.

Understand churn to boost retention

Looking at the “winners” won’t tell you the whole story. A big part of optimizing your efforts for the highest LTV is understanding who’s churning and why. Identify your “subscriber cliff, which is the point at which subscribers tend to churn. Then, work backwards to understand why they’re churning. Whether it’s due to a price increase, the expiration of a promotional introductory offer, or something else, you now have a starting point for your retention efforts.

Make increasing LTV everyone’s priority

Part of driving higher LTV is ensuring every member of your team is responsible for success across the entire customer lifecycle.  Reorient people’s roles around the whole customer journey. For instance, compensate your sales reps based on your subscribers’ product adoption and retention rates, instead of just the price of the deal close.

3. Embrace a customer-first culture, even if you have to rethink your product

To effectively digitally transform your business, you need to be willing to blow up your “sacred cows.” Ignore everything you thought you knew about your product offerings. It’s time to rethink every aspect of your offerings and reorient yourself around what your subscribers demand.

Rethink your product

First, your digital subscription need not be a one-to-one remake of your physical subscription. Say you’re a newspaper: instead of forcing subscribers to pay for access to the entire paper, maybe charge a smaller fee to allow them to access only certain sections, a set number of articles per month, or particular features (just the crossword, for example). Others may not care as much about access to your current journalism but crave access to your archives.

Offer bundles

Another way to orient your product offering around your subscribers is by partnering with a complementary brand (whether publishing or not) and offering a bundled subscription. The New York Times, for instance, partnered with Spotify a few years ago to offer a joint subscription to music lovers that was cheaper than the combined cost of both companies’ subscription plans.

Enact a cultural shift

To adopt a customer-first mindset, recognize it requires incorporating a new product culture and retraining your employees. For many publishers used to “doing things the way they were always done,” this will likely feel scary. But staying static in the way you monetize your offerings makes no sense, not when consumer expectations change so quickly or your competitors are able to move on a dime.

The pay off

The shift to digital has brought with it a tidal wave of change in consumer habits and expectations. The playbooks that served publishers so well for decades just aren’t that relevant anymore. By offering innovative bundles, unique subscription offerings, and creative merchandising models, publishers can build durable subscriber relationships and deliver value across the subscriber journey. 

The road to publishing subscription success is paved with a variety of revenue streams. It requires a focus on subscribers that’ll drive high LTV. And it requires a rethink — and possible overhaul — of your product and company culture. No one said it was easy. But it is sure to be worth it. 

Advertising | Perspectives | Revenue | Supporter Spotlight

When browser extensions attack: Meet LNKR, an ad ecosystem nightmare

My toddler and I share a love for the misadventures of Shaun the Sheep. In particular, we love the episode where sheepdog Bitzer is cleaning the farmhouse window. But the Farmer keeps pointing out specks that Bitzer, try as he might, cannot see.

After countless elaborate attempts to clean the windows, Bitzer notices a chunk of dirt on the Farmer’s coke-bottle glasses. The windows were spotless. The Farmer’s smudgy glasses caused him to see phantom blemishes and incite a great deal of (highly entertaining) chaos on the farm.

Recently, this episode came to mind when talking to a DSP about why a slew of their ads were being blocked on various publishers sites (by a different ad quality provider). The DSP shared the report with us. As we examined the wide variety of blocked ads, we confirmed they were clean. There was no cloaking or malicious code, no compromised landing pages. They were basically spotless. After some analysis, it clicked: We were witnessing fallout from LNKR.

LNKR is the smudgy glasses problem transported to digital media. However, it is far more devious and likely to wreak havoc throughout the digital advertising ecosystem.

The trouble with browser extensions

At heart, LNKR is the browser extension heir to the malicious toolbar, a classic form of adware. Browser toolbars tended to create extra ad slots on publisher pages to serve ads. (These sometimes came with even more noxious malware.) However, LNKR simply injects malicious code right into one or more existing ad placements—on top of publisher-served ads. Most often, the malignant code prompts an auto-redirect with a fake software upgrade or antivirus tool download. (Surprise—it’s really more malware!).

Consumers knowingly (perhaps looking for some unique feature like “change text into pirate speak,” ya landlubber), or unknowingly, install a browser extension with LNKR code. Once that’s done, the LNKR operators can deliver redirect code into any ad slot at any time when the infected browser visits any website. If the malicious code is injected and the redirect is served, the consumer comes under attack.

Reputation and revenue

To compound the problem, they they’ll think that the publisher they just visited served them malvertising. The publisher’s brand is damaged even though it had nothing to do with the attack. (That character defamation also gets passed upstream to the SSPs and DSPs serving ads to the user.)

A publisher’s bad-ad blocker may shut down legitimate ads because users with the LNKR-infected extension have unwanted code injected on top of them. That could rob publishers of revenue. That’s because every single ad campaign served to the infected user will be mistaken for malware and slapped away.

If not corrected at the user level, or discounted from malvertising reporting, most eligible creative sent to an infected user will eventually be blocked. Thus, the scenario in the be bad ads ad infinitum. SSPs will scream at DSPs for pushing malware through the pipes when the accused advertising creative and supply chain is legit. This can further come back to bite the publisher if SSPs pause or cut off relationships with lucrative DSPs.

The publisher and its demand partners end up becoming patsies for LNKR’s bad deeds, because with these malicious extensions… The malware is coming from inside the browser!

A greater danger

Of course, this confusion damages relationships between AdTech platforms. (And let’s face it, they already have serious trust issues). But beyond that, it muddies the waters for malware hunters. More and more innocuous ads are falsely labeled malvertising. This distracts ad quality providers from the job of tracking down the real bad apples—which are always employing clever new evasive measures to avoid detection.

LNKR also represents more of a danger to consumers beyond a malware delivery channel. The browsing of infected users can be tracked and LNKR can also grab search parameters when a user employs any kind of search engine. LNKR has already exhibited the ability for advanced microtargeting. It can infect actual web pages where a user has write access, enabling it to spread to additional users.

Worse, information from infected browsers—as well as access to them—is sold on the dark web to malevolent actors with more malignant schemes. Indeed, LNKR is a key player in the ransomware ecosystem. It’s an ideal tool for extracting personal data that can be exploited for great harm.

Consumer awareness is critical

Distinct LNKR incidents, with each one accounting for thousands of individual hits, have been on the rise since the beginning of 2021.

LNKR is an effective malvertising tactic. The number of incidents (which can account for thousands of individual hits) detected by The Media Trust has been swelling since the beginning of 2021. Nipping this ever-growing threat in the bud relies on something that’s long been difficult for the digital advertising industry: consumer education.

Browser extensions are sticky. And consumers often forget what they’ve actually installed. Unused extensions can easily pile up and extension apathy is exactly what the bad actors behind LNKR prey on. That’s where the smudgy glasses issue hits full stride: infected consumers keep getting hit with redirects. They also have no idea that a browser extension causes the issue, let alone which specific extension.

Alongside software updates, operators of the main browsers often prompt users to check their extensions to make sure they’re only housing ones they want. In addition, users need to keep their approved extensions updates—not always a simple task. But older versions of extensions can have unseen vulnerabilities and be compromised.

The rest of the industry needs to spread the truth wherever possible. We must explain that LNKR is a bigger threat than just some annoying redirects. Extension hygiene may not be sexy, but it’s key for an overall good experience on the web and helping you stay clear from malware and unwanted data tracking.

Cleaning up the LNKR smudge

Publishers, though, need to demand more from their bad-ad-blocking services. Ad quality providers must be able to identify LNKR and confirm blocks are not false positives, discount LNKR from bad-ad counts. In addition, the creative blocker needs to ensure it’s stopping the delivery of adware that will further spread the LNKR menace. That’s right: They must block pop-ups, scams, and ads distributing unwanted programs.

Finally, being able to recognize LNKR and alert publishers’ upstream partners ensures less legit creative gets caught in the crossfire. Discounting LNKR in malware reports will limit ire between AdTech partners that could eventually impact publisher revenue.

In real life, a little microfiber cloth makes quick work of a blemish on your glasses. Unfortunately, wiping browsers of the LNKR smudge is going to be a complex, industry-wide struggle. The first step, however, is widespread acknowledgement of the danger at hand.

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