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Innovation | Perspectives | Supporter Spotlight

Deliver Olympics coverage that engages the ‘purpose generation’

The Tokyo 2020 Olympics heralded the digital transformation of Games coverage. Fans no longer need to stay glued to the TV to see what they want. Nor do they have to or solely rely on news titles to keep them up to speed on the big picture. Younger audiences in particular consumed highlight clips rather than watching linear coverage and followed their favorite athletes on social media to gain a more in-depth, behind-the-scenes insights. In fact, the IOC clocked 6.1 billion digital engagements on Olympic social media channels during the competition.

Four years later, as we approach the Paris event, these trends are again set to influence international consumption of Olympic content. News and sports organizations have already learned from these new social media-inspired audience dynamics, with live blogs offering a valuable means of competing with social channels for mainstream media share of voice. The delivery of real-time, snackable content that enables interactivity will continue to be essential in 2024 Olympics coverage. Still, there are also new, broader issues to address to capture audience share – particularly among Gen Z, or ‘the purpose generation‘.

Beyond the sport

Olympics coverage is no longer simply about sport. Athletes and governments have always used the Games to spotlight pertinent social and political issues, from Black Power and anti-apartheid to LGBTQI. Now, younger generations increasingly see the potential for activism from the sidelines. Environmental sustainability and the participation of transgender athletes have emerged as important topics for Paris 2024. There’s also likely to be an impact from the substantial political tension caused by the Russia-Ukraine and Israel-Hamas conflicts on the event. Newsrooms will need to have one eye on the sport, and one eye on the bigger picture to ensure audience engagement.

News providers covering the Olympics must, therefore, up their game (pun intended), adopting audience-first strategies that cater to the needs of Gen Z and beyond to ensure they compete in the race against social media for audience share. They must deliver authentic, personalized, and interactive content that addresses both the event and the wider issues surrounding it.

Incorporating multiple, intertwined storylines to provide greater depth and insight and encourage engagement will be vital. By doing so, they can boost traffic, dwell time or subscription conversions and encourage brands keen for Olympics association to spend money on advertising.

Prepare for the marathon, not the sprint

However, with the Games lasting two weeks and spanning 320 different competitions across 32 sports, it’s no easy feat to keep audiences up to date on the sports that interest them, provide athlete and behind-the-scenes insights and tune into the wider news stories that intersect with the Olympics. Newsrooms must, therefore, box clever when it comes to delivering on audience expectations.

Live blogs offer an important starting block to help reach this goal. They allow newsrooms to create an engaging and responsive experience tailored to the audience’s preferences by offering real-time updates, encouraging active participation, and enabling a multimedia-rich format. But live blogs can also go beyond real-time news to deliver much more.

Curated content to meet multiple audience needs

The beauty of the live blog format for long events such as the Olympics is that it allows content to be curated, drawing on a range of mixed media to tell the wider story and showcasing numerous perspectives in easily digestible snippets. From integrating Q&As with athletes and coaches for greater depth of insight to fans’ social media posts, multimedia clips of key moments or retrospective and contextual news bits relating to the environmental, political and social issues surrounding the games, live blogs can effectively serve a wide range of audience expectations.

The 2022 European Championships ably demonstrated how live blogs can communicate complex event information in simple terms for spectators, volunteers and employees. From rain delays and available transportation to coverage of medal winners, funny anecdotes and heart-wrenching athlete stories, reporters delivered both range and depth of coverage, harnessing the live blog’s visual storytelling power to share close to 600 photos of what made the event so unique. Custom tags allowed each post to be categorized so that users could easily search for and access the information they wanted.

User-generated content (UGC) creates a more engaging and inclusive narrative beyond just text. Surveys, polls, unique social media hashtags, and live comment blocks all enable a two-way flow of information. Stufffrequently uses this to good effect in their live blog coverage, giving its passionate sports community the chance to engage on topics such as the All Blacks World Cup Squad Announcement, and the team’s return home. This involves audiences in the reporting process and establishes a sense of community to strengthen the media-audience relationship.

Live blogs also allow individual journalist and editorial styles to shine through, creating further audience bonds. We see many young journalists creating social-style videos to tell stories, with their personalities influencing how viewers consume content. DER SPIEGEL’s reporters demonstrated the power of personality in their coverage of the FIFA Women’s World Cup in 2023, expressing personal opinions, cracking jokes and reacting with emojis in a lively dialogue. This gives the audience a deeper understanding of the people behind the content, injecting personality and making it more relatable and authentic.

On your mark, get set, go!

The evolution of Olympics coverage reflects the changing preferences of audiences, particularly younger generations. As we look forward to the Paris 2024 Olympics, it’s clear that news and sports organizations must continue to adapt to digital and social media consumption to compete. In order to capture and maintain audience engagement, a focus on delivering real-time, interactive, and curated content that addresses both the sporting events and the broader social, political, and environmental issues surrounding the Games is crucial.

Live blogs have emerged as a valuable tool for providing both real-time and in-depth coverage while catering to diverse audience needs and preferences. As newsrooms prepare for the marathon-like coverage of the two-week event, prioritizing audience-first strategies will be essential to ensure a meaningful and immersive Olympic experience for all. Leveraging live blogs during the Games enables publishers to inform, educate, engage, and connect with audiences on a new level.

Advertising | Revenue | Supporter Spotlight

A post-cookie revenue risk and revenue replacement playbook

Regardless of how many times Google delays its cookie phase out, publishers need to understand what’s at stake for them in the advertising ecosystem post third-party cookies. Media companies also need to be aware of the various data operations strategies then can experiment with to position themselves for success as first-party data moves to the fore.

ArcSpan Technologies analyzed the extent to which the looming deprecation of third-party cookies in digital advertising requires publishers to revamp their audience data operations in order to maintain and grow their sales results. Through quantifying the expected data monetization disruption that digital media companies face over the coming 12-18 months, we found that there are proactive solutions that offer ways publishers can mitigate material revenue losses.

Publisher revenue impact

What’s at stake for media companies

  • CPMs on Google Chrome will decrease 42%: Based on the value of programmatic advertising over the past eight months based on the presence of third-party cookies (“3PC”) across browsers.
  • Google Chrome 3PC deprecation puts 25% of publisher’s total revenue at risk: The impact of a 42% decrease in Google Chrome CPMs translates to a 25% overall revenue loss for median publishers in the study.

ArcSpan’s study to measure the impact of cookie deprecation

To measure the potential impact of impending third-party cookie deprecation, ArcSpan analyzed data across a number of top-tier and mid-tier publishers. By dissecting publisher revenue according to channel, browser and cookie presence, we were able to identify the portion of revenue most vulnerable to cookie deprecation.

The analysis looked at the revenue distribution between Direct Sold and Programmatic channels, of which Programmatic is expected to experience the most pronounced revenue impact. ArcSpan observed an average distribution of 20% of revenue stemming from Direct Sales, while 80% was sourced through the programmatic channel.

Next, we analyzed the percent of programmatic impressions and revenue in which third party cookies were present. While these impressions comprised 68% of total programmatic impressions, they accounted for 80% of programmatic revenue. Finally, we isolated the revenue attributable to Chrome browsers in which third-party cookies were present.

CPM decrease with no third-party cookies present

Among the publishers analyzed, a median of 60% percent of total revenue was associated with programmatic impressions delivered via the Chrome browser where third-party cookies were present. This portion of revenue will thus be the most impacted by CPM decreases in the event that third-party cookie deprecation occurs without viable and scalable alternatives.

The analysis further quantified the potential revenue impact by observing CPM differences based on whether third-party cookies were present or absent. According to our research, impressions lacking third-party cookies cleared at 42% lower CPMs. To summarize, ArcSpan identified a potential scenario in which 60% of publisher revenue could decrease by 42%, netting a 25% decrease in overall revenue.

Revenue risk grows to 35% amongst heaviest programmatic and Chrome-driven publishers

While a potential revenue decrease of 25% represents the median in our research, the range of outcomes can vary greatly across the publisher spectrum. ArcSpan highlighted a quartile of publishers who were most at-risk as a result of cookie deprecation. Publishers in this quartile tend to have greater than 95% of revenue sourced via programmatic, and greater than 85% of programmatic revenue coming from Chrome programmatic impressions with third party cookies. For this quartile of publishers, the total revenue at risk increased from 25% to 35%.

Advertising success without third party cookies

Leading media companies are developing strategies to both prepare for a future without third party cookies and mitigate potential revenue losses under those conditions. These strategies typically take the form of a portfolio management approach and upgrading publishers’ revenue operations tools with a focus on first-party data quality, accuracy and scale.

These options can support both direct and programmatic revenue:

First-party revenue best practices
  • Develop a first party data strategy: Publishers are creating compelling first-party audience segments by processing and organizing contextual, content consumption, engagement, and offline data signals. Publishers are also investing in collecting first party data from their users by offering on-site engagement tools such as surveys and polls, while more premium publishers have been able to acquire registered and even subscription users. They can then develop differentiated data product offerings to both earn data premiums and grow direct sales.
  • Participate in audience curation opportunities: In this scenario, publishers with and without a direct sales team can feed audiences into curated deals that meet the buy-side needs to target consistent audience definitions at scale across multiple publishers. By partnering with the right platforms, publishers can leverage A.I. and machine learning to automate site content and data processing to create scalable audiences with accuracy and consistency.
  • Establish an identity framework: Testing different identifiers to determine open auction uplift is critical for publishers. There needs to be a consistent approach to onboard alternative identifiers and measure their incremental impact in programmatic transactions under different scenarios (type of browser, SSP, etc).
  • Incorporate first-party data signals in the bid stream: While still evolving offerings like Google PPS and Prebid SDA offer an opportunity to push high quality data signals into the bid request and potentially positively influence bidding behavior.
  • Explore dynamic flooring: Publishers can leverage machine learning in conjunction with their proprietary data signals to optimize programmatic auction prices.

These options have different degrees of impact and different levels of effort to implement. But as a portfolio, they will help drive incremental revenue in a changing environment.

Although Google has (repeatedly) delayed the timeline for Chrome third-party cookie deprecation, leading publishers are keenly aware that they cannot become complacent. ArcSpan’s research highlights the revenue at stake in the event publishers are forced to accept the level of CPMs that are associated with cookieless impressions today. Regardless of a publisher’s level of readiness, it is important that they identify tools and platforms that can comprehensively address the portfolio of strategies that will enable them to protect and grow their revenue.

Perspectives | Supporter Spotlight

How media companies can stand out in an AI age

The introduction of AI-generated search results is just the next step in a long line of the platforms moving more of the audience interactions behind their walled gardens. This is an accelerating trend that’s not going to reverse. Google began answering common questions itself in 2012, Meta increased its deprioritization of news in 2023, and now some analysts are predicting that AI search will drop traffic to media sites by 40% in the next couple years.

It’s a dire prediction. Panic is understandable. The uncertainty is doubled by the sheer pace of AI developments and the fracturing of the attention economy.

However, it is important to know that this is another situation in which it is critical to focus on the fundamentals. Media companies need to develop direct relationships with audiences, double down on quality content, and use new technology to remove any inefficiencies in their publishing operation. Yes, the industry has already done this for decades. However, there are new approaches in 2024 that can allow publishers to improve experiences to attract direct audiences. 

All-in on direct relationships

When there’s breaking news, is the first thought in your audience’s mind opening your app, or typing in your URL? Or are they going to take the first answer they can get – likely from someone else’s channel?

Some media companies view direct relationships as a “nice to have” or as a secondary objective. If that’s the case, it’s time to make them a priority. 

Whether direct relationships are already the top priority or not, now’s a good time to take a step back to re-evaluate the website’s content experience and the business model that supports it. Does it emphasize—above all else—providing an audience experience that encourages readers to create a direct relationship with your business? 

When the cost to produce content is zero, quality stands out

This brings us to the avenue that drives direct relationships: your website, and your app. Particularly as search declines as a traffic source, these become the primary interaction space with audiences. We’ll follow up next month with frameworks for your product team to use to make your website and apps more engaging to further build your direct audience traffic. 

It’s no longer about competing for attention on a third-party platform—for example through a sheer quantity of content about every possible keyword. It’s about making the owned platform compelling. Quality over quantity has never been more important. 

Incorporating AI into editorial workflow

As the cost to create content is increasingly commoditized via the large language models (LLMs), the internet will fill up with generic noise—even more so than it already is.

Content that’s actually of genuinely high quality will rise in appreciation, both by readers themselves and the search engines that deliver traffic to them. Google is already punishing low quality content. So are audiences. The teams using LLMs to generate entire articles, whole-cloth, are being downgraded by Google (and this approach is not likely to drive readers to you directly either). 

But AI does have its uses. One big challenge in generating quality content is time. Ideally, technology gives time back to journalists. They’ll have extra time to dig into their research. They may gain another hour to interview more sources and find that killer quote. Editors have more time to really make the copy pop. The editorial team has more time for collaborating on the perfect news package. The list goes on. 

AI is perfect for automating all the non-critical busywork that consumes so much time: generating titles, tags, excerpts, backlinks, A/B tests, and more. This frees up researchers, writers, and creatives to do the work that audiences value most, and deliver the content that drives readers to return to websites and download apps. 

This approach has been emerging for a while now. For example, ChatGPT is great at creating suggestions for titles, excerpts, tags, and so on. However, there’s a new approach that’s really accelerating results: Retrieval Augmented Generation (RAG).

RAG is the difference maker when it comes to quality

The base-model LLMs are trained on the whole internet, rather than specific businesses. RAG brings an organization’s own data to AI generation. Journalists using ChatGPT to get generations will get “ok” results that they then need to spend time fixing. With RAG, they can focus the results to make sure they’re fine-tuned to your particular style. That’s important for branding, and also saves creatives time to use for other things. 

The next level not only uses content data, but also performance data to optimize RAG setups. This way, AI is not just generating headline suggestions or excerpts that match a particular voice, it’s also basing them on what has historically generated the most results. 

In other words, instead of giving a newsroom ChatGPT subscriptions and saying “have at it,” media companies can use middleware that intelligently prompts LLMs using their own historical content and performance data.

Do this right and journalists, editors, and content optimizers can effortlessly generate suggestions for titles, tags, links, and more. These generations will be rooted in brand and identity, instead of being generic noise. This means the team doesn’t need to spend time doing all that manually, and can focus on content quality. 

Using RAG to leverage the back catalog

Media companies have thousands upon thousands of articles published going back years. Some of them are still relevant. But the reality is that leveraging the back catalog effectively has been a difficult undertaking. 

Humans can’t possibly remember the entirety of everything an organization has ever published. But machines can. 

A machine plugged into the CMS can use Natural Language Processing (NLP) to understand the content currently being worked—what is it about? Then it can check the back catalog for every single other article on the topic. It can also rank each of those historical articles by which generated the most attention and which floundered. Then it can help staff insert the most high-performing links into current pieces.

Similarly, imagine the same process, just in reverse. By automating the updating of historical evergreen content with fresh links, new articles can immediately jump-start with built-in traffic. 

Removing silos between creation and analysis

While Google traffic might be declining, it will nonetheless remain important in this new world. And in this period of uncertainty, media organizations need to convert as much as possible of the traffic from this channel while it is still operating. 

We call this “Leaving the platforms behind.” Media companies should focus on getting as much of the traffic from search and other channels into first-party data collection funnels as possible. This way, they can build enough moat to continue floating if any or all of these traffic channels completely disappear. 

Most teams today have dedicated SEO analysts who are essentially gatekeepers between SEO insights and content production. The SEO analysts aren’t going anywhere any time soon. But the new table stakes are that every journalist needs to be able to self-serve keyword insights.

It is important to use analytics tools that bring search console data directly to the approachable/easy article analytics page that the editorial team already knows how to use. Ideally, analytics tools should connect keywords and other platform traffic to conversions, so everyone on your team can understand their impact on leaving the platforms behind. 

Done well, you’ll create a feedback loop that evolves and improves your content in a way that resonates with readers and machines.

Quality is all that matters

This is not the first “all hands on deck,” moment for the media industry. That being said, what we’re seeing is that the barometer of success is a truly aligned strategy and execution that brings product, business development, and editorial teams together to pursue creating first party relationships with audiences. The organizations that have little brand identity, and pursue traffic instead of subscriptions, are suffering—and will likely continue to do so.

Advertising | Supporter Spotlight

Google’s delays give publishers time for identity experimentation

At this point, publishers know the cookie deprecation drill. You’d be forgiven if you’ve forgotten the very first deadline Google set for deprecating third-party cookies in Chrome. (It was Q2 2022. Believe it or not, they originally announced that deadline in early 2020.) We’ve seen Google extend the deadline twice since then. And they’ve done it yet again. We’re looking at a 2025 deadline, and once more, the digital industry needs to plan and act as though the third time will indeed be the charm. 

A shock? Probably not, all things considered. A disappointment? It certainly is for publishers. In reality, publishers have been building their data strategies over the last few years as though each cookie deprecation deadline will be the one. The stakes are simply too high to call Google’s bluff, considering its dominance of the ad market. 

But while it’s easy, even understandable, for publishers to feel frustrated by this stop-start process, it’s important to remember every delay gives independent tech providers more time to advance their own identity solutions, and gives publishers more time to experiment and test identity solutions. Digital professionals may consider Google the “800-pound gorilla.” However, by extending the cookie deprecation deadline, it might very well end up losing a few pounds.

To some publishers, Google’s latest move on cookies feels different. According to the company’s official statements, they’ve pushed the deadline to get ahead of compliance and regulation concerns. But as they have in the past, publishers suspect Google is punting because their own solution still isn’t positioned to dominate the identity market. If the old 2024 deadline had stuck, Google would risk ad spend shifting away from its walled garden. 

The truth is, Google’s Privacy Sandbox hasn’t caught on in the way some in the industry might have expected. DSPs aren’t spending enough there, and publishers aren’t seeing enough transactions for the Sandbox to be considered “dominant.” Lotame, for one, hasn’t tested the Privacy Sandbox, simply because we’ve seen zero interest and demand from our marketer clients. So why is that? One likely answer is that publishers and advertisers are seeing other cookieless IDs performing as well as or better than the Sandbox itself.

Google hasn’t cornered the market on identity, and the industry is better off for it. Publishers’ revenue needs and business goals are not uniform, so having multiple identity options can improve their chances of finding the solution that helps them thrive and compete in the media ecosystem. When we look at the third-party cookie deprecation timeline, it doesn’t matter “who started it.” What matters is this delay opens the door for more innovation, more options in the marketplace, and more time for publishers to explore those options. 

We can’t deny that casting a wide ID net – testing multiple solutions – requires time and resources. But some leading publishers are finding that non-Google IDs are providing them a revenue lift already, and are delivering today while the Sandbox remains a question mark. 

It’s just not in publishers’ best interest to sit around and wait for Google to solve their – and its own – identity problems. Publishers need to take matters into their own hands and use this time for testing and experimentation. For those who have found taking action to be daunting, this delay is a gift, and a chance to locate tech partners who can serve their specific needs. Other IDs are demonstrating it’s possible to solve for identity, preserve user-privacy, and drive ad revenue. The time to double down on identity testing is now. Publishers may have to wait for Google, but they can’t wait for performance.

Advertising

Are you ready? Two-thirds of publishers aren’t prepared for a cookieless future

The digital media landscape is on the brink of a transformative shift with the impending phase-out of third-party cookies. Despite Google’s latest delay, adoption is slow while the urgency for adaptation remains high. Teads recently undertook a survey to shed light on the preparedness of global publishers. It reveals a striking disparity in readiness and confidence, and found an alarmingly low level of digital media companies that are prepared for the state of advertising in a cookieless world.

The current digital ad landscape

Teads surveyed 555 publishers across 58 countries, uncovering critical insights. Alarmingly, only 32% of publishers are actively preparing for the cookieless advertising future. This indicates a significant portion of the digital media industry is delaying action, potentially waiting until the deprecation’s full impact becomes unavoidable. However, some organizations are taking proactive measures to be ready for the change. 

Confusion and confidence

Our survey reveals that 53% of publishers feel overwhelmed by the numerous cookieless advertising solutions available, and only 28% feel confident in their understanding of the new landscape. This confusion is a significant barrier to effective adaptation. Heather Carver, Chief Revenue Officer at Freestar, notes the importance of developing durable technologies and strategies. “We’re using this time as an opportunity to strengthen our cookieless solutions. We’re focusing on developing durable technologies and strategies that will remain relevant regardless of cookie policies.”

Anticipating the financial impact

Publishers expect the financial implications of the cookieless transition to be substantial. Approximately 45% of publishers expect a significant decrease in ad revenue, with a 120% increase in concern year-over-year. This is underscored by findings that cookieless traffic not only fills less but also yields less, putting revenue streams at risk.

Login struggles

Despite the many challenges media companies face as they prepare for a cookieless advertising future, there is a positive outlook among some publishers. About 44% see the transition as an opportunity to leverage their first-party data and enhance content quality. Furthermore, 37% of respondents appreciate the privacy benefits of cookieless solutions expressing confidence in finding new ways to monetize their content. 

Preparation and proactive identity solutions

As publishers adapt to this brave new world, many are experimenting with cookieless solutions and leveraging first-party data to set themselves up for success in the years to come.

Kedar Prabhu, VP of Product Management at Dow Jones, highlights the importance of leveraging first-party data in a world with or without cookies. “By focusing on the wealth of data generated by our direct and long-standing relationships with subscribers, we’ve not only prepared ourselves for the post-cookie world but have also unlocked new opportunities for growth and engagement,” Prabhu said. “We can offer our advertisers targeted, effective ad placements based on direct audiences composed of known users and enriched with real, meaningful insights into preferences and behaviors, all while maintaining the privacy standards that our customers and regulators expect.”

Similarly, the IAB is undertaking efforts to develop standards that support the industry’s transition. Angelina Eng, VP of IAB’s Measurement, Addressability & Data Center, emphasizes the need for robust guidelines: “We see this as a critical time to advance our guidelines and frameworks to support the industry’s transition,” Eng said. “We’re accelerating our efforts to develop standards that address the needs of a cookieless web, ensuring that all parties can navigate this shift smoothly.”

Other publishers, like Freestar, are using this time as an opportunity to strengthen our cookieless solutions. “We’re focusing on developing durable technologies and strategies that will remain relevant regardless of cookie policies,” Carver said. “The extension doesn’t change our momentum. But it allows us more stability for testing and implementing these solutions.”

Tier-specific insights and strategies

The survey also highlights differences in readiness and strategy among various tiers of publishers:

Tier 1 Publishers: Leading the Charge

  • 52% believe the changes offer an opportunity to differentiate through first-party data and content quality.
  • 62% have a signed-in strategy, and 38% employ dedicated resources for cookieless solutions.
  • 74% engage directly with advertisers using first-party data.

Mid-Tier Publishers: Strong Adaptation

  • 74% engage directly with advertisers through first-party data.
  • 32% have a strong grasp of the evolving digital landscape.
  • 36% have specific resources for exploring cookieless technologies.

Lower Tier Publishers: Facing Challenges

  • Greater dependence on industry solutions like Seller Defined Audiences (SDA).
  • Only 22% have a strong understanding of the shift towards a cookieless advertising framework.
  • 17% are testing cookieless alternatives, reflecting a slower response to industry changes.

As Simon Klein, Global SVP of Supply at Teads, states, “Despite Google’s recent announcement, the phase-out has only been delayed until early 2025, and the reality of a cookieless world is here,” Klein said. “This data underscores the urgent need for industry-wide adaptation and the critical role of innovative solutions in this transition.” 

Digital media executives must adopt innovative technologies and forward-thinking strategies to successfully navigate the realities of a cookieless world. While many are in a wait and see holding pattern, there’s no time to waste. This isn’t a question of when. This change is inevitable. Proactive publishers are not only poised to be ready for the cookieless future of digital advertising, they are employing solutions that are helping them do better business today. 

About the author

James is a data leader with over 20 years of experience in digital advertising. As the Global VP of Data at Teads, he leads a team focused on data-driven solutions and the cookieless transition. He previously held senior roles at Microsoft, Verizon, AOL, and Yahoo, excelling in data-driven marketing strategies. A fellow of the Chartered Institute of Marketing, James enjoys racing cars, cooking, and traveling.

Advertising | Supporter Spotlight

How automation harmonizes tech-enabled creatives and ad ops

Digital media has always been marked by the intersection of creativity and technology. Unfortunately, in many cases that intersection has been a bumpy one. Today, however, there are automation solutions that can allow these two sides of the media business to work together and do better work as a result.

The digital publishing business is at a pivotal crossroads. On one hand, an explosion of creative possibilities facilitated by technologies like artificial intelligence (AI) are enabling personalized, dynamic content at scale. On the other hand, lies the intricate realm of ad operations, where complexity remains consistent, and efficiency and precision are paramount. The gap between creative potential and operational capability must be closed if digital media firms are to compete and scale effectively in today’s market.

The path to a solution starts with an exploration of the relationship between tech-enabled creatives and ad ops and ends with a question: How can organizations strategically synchronize right-brain creativity with left-brain operational efficiency in publishing? The answer is to level the playing field with the power of automation. Bringing both sides of publishing into perfect, tech-powered harmony does more than just streamline workflows. It empowers media firms to navigate the rapid pace of market changes, paving the way for maximum efficiency and operational excellence.

AI’s impact on the publishing business

Reaching the right customer at the right time with the right message is becoming a critical component of advertising success. So critical, it’s driving publishing companies to embrace advanced technologies, particularly AI technologies, to create content at scale like never before. The surge in tech-enabled content combined with the end of third-party cookies is forcing ad ops teams to re-evaluate their operations to keep up. Here’s a closer look at the impact of AI on content creation.

AI enhanced content production and customization at scale

By harnessing AI’s power to analyze data and recognize patterns, publishers can turbocharge content creation, crafting high-quality texts and visuals that are deeply engaging. This tech-enabled approach enhances content production and enables precise audience segmentation. It delivers hyper-personalized content at an unparalleled scale across various formats. All of which substantially boosts efficiency and the impact of content strategies.

How AI affects brand engagement

The creative advancements powered by AI are also profoundly influencing consumer interactions with brands. Relevant, engaging content that aligns with audience preferences and values can substantially boost brand engagement. Engagement which can potentially turn into revenue for brands. The downside is, it creates even more operational challenges for ad ops teams trying to keep up. 

Operational challenges with tech-enabled creatives

To reap the benefits of tech-enabled creatives, publishers must fully grasp the challenges they pose to ad ops teams. This understanding is crucial for implementing effective solutions and maximizing the value of creative content in digital media.

Pressure to scale

Traditional manual processes in ad ops (campaign setup, trafficking, performance tracking), become bottlenecks when faced with the scale and speed of AI-driven content production. The pressure to scale operations to match the pace of content generation increases, requiring an equally robust systems in ad ops.

Complexity management

The complexity of content tailored for different audience segments requires meticulous management throughout its lifecycle. Automated systems capable of managing the detailed workflows and large datasets of ad ops are essential for keeping pace with production, and achieving maximum ROI.

Risk of siloed functions

Another significant challenge is the risk of siloed functions within organizations. When advanced creative tools operate independently from operational capabilities, it can create gaps that lead to inefficiencies and missed opportunities.

Creative outputs must seamlessly integrate with ad ops systems to prevent campaign delays, performance tracking issues, and scaling challenges. Such disconnects hinder adaptability, affecting competitiveness and growth. Robust automation reduces friction between sales and ops teams translating to improved morale, higher productivity, fewer fire drills, and ultimately – happier clients.

Clearly, there is a critical need for automation. Without integrating automated systems, ad ops teams face delays, increased make-goods, and ultimately a failure to capitalize on the content’s potential.

An Integrated approach nets tangible benefits

As the digital media landscape evolves, integrating advanced automation tools with creative production capabilities becomes increasingly critical. It not only enhances operational efficiencies but also serves as a key driver of revenue growth and scalability. Let’s take a look at the tangible benefits automation can deliver.

Quickly adapting to market changes

With AI’s rise, and content production dramatically increasing, ad ops teams struggle to quickly adapt to market changes. However, according to Theorem’s research, 79% of ad ops professionals think their tools need improvement, and 69% feel digital advertising processes need enhancement. Implementing advanced, automated systems can empower ad ops teams to meet the needs of a constantly evolving market more effectively.

Enhancing data flow

Automation also significantly improves the flow of information between creative teams and ad ops. Centralizing information, as noted by 59% of ad professionals, ensures that data from campaign performances is quickly available to refine ongoing and future campaigns.

Automation drives revenue through operational excellence

Automation not only streamlines operations in ad ops, it significantly enhances ROI. 55% of ad pros in our research noted time-consuming processes as a major pain point. Another 36% reported complex processes slowed their pace of work. By automating tasks such as campaign setup, monitoring, and optimization, businesses can minimize costly mistakes and make-goods that are directly impacting bottom line revenue.

There is also the tangible reward of time saved as a direct result of automation. 56% of ad pros believe implementing automation saves valuable time. Time that can be redirected towards creative and strategic initiatives.

Navigating innovation with automation: the strategic advantage

Media organizations need to remain competitive and responsive in an industry driven by rapid technological advancements. Embracing the symbiotic integration of tech-enabled creatives with automated ad ops can lead to marked improvements in campaign outcomes and overall business performance. Implementing automation isn’t merely about keeping pace. It’s about setting the pace in the journey towards more synchronized, efficient, and responsive operations in publishing. Now is the time to act, to innovate. This will empower your team and your organization to lead now –  and well into the future.

Advertising | Revenue | Supporter Spotlight

How publishers can use predictive audiences to grow revenue

Publishers have faced intense headwinds in recent years when it comes to protecting and growing revenue streams. However, there are some equally powerful tailwinds that the industry needs to acknowledge and embrace to put publishers on a viable path forward. Perhaps the most significant one is predictive audiences. 

Predictive audiences, supercharged by growing AI capabilities, offer publishers multiple paths to increased revenue. Even more importantly: sustainable revenue. Let’s explore why that is, and the ways in which publishers can incorporate these capabilities into their monetization plans. 

A sustainable path within a landscape of crumbling identifiers

When Google announced its latest stay of execution for third-party cookies, some publishers breathed a(nother) sigh of relief. Third-party cookies have long been seen as an understood path to revenue thanks to their role in enabling cross-site ad targeting. However, this capability has been in decline for years. In fact, the reach and accuracy of third-party cookies has become increasingly limited. 

Publishers don’t need a replacement for third-party cookies. They need something altogether better. And that’s where predictive audiences come in. By fueling growth based on the strength of a publisher’s first-party data, predictive audiences offer a path to revenue that’s both in a publisher’s control and can be strengthened over time. 

The premise behind predictive audiences for publishers is fairly simple: By taking a publisher’s first-party data (i.e., everything the publisher knows about its audience), the publisher can build models capable of predicting likely behavior in current and potential new users. These predictions can be used to create better user experiences while simultaneously opening more and deeper monetization opportunities.

Here are a few areas where predictive audiences’s power to help publishers drive revenue has become most evident. 

Growing ad dollars

For many publishers, the fastest path to revenue growth is to look beyond their sites to find additional high-value inventory for their advertisers. By using their audience data as seed data, publishers can leverage predictive audiences to identify users beyond their own walls who are likely to behave like their known audiences. Working with external partners, a publisher can make these models and their resulting segments available for advertisers on demand as an extension of their audience. 

Growing Yield

Predictive audiences can also be leveraged to greatly help publishers make more from their inventory within their walls. By combining first-party data with contextual and engagement signals, publishers can fuel robust data models that predict which ads will perform best when served to a given audience. Such an approach tends to deliver far more relevant results than can be achieved with third-party data, enabling publishers to improve the yield on their inventory. Such models can also fuel ad personalization that drives better results for advertisers and higher premiums for publishers.

Growing Audience

Beyond direct revenue, publishers can also tap into predictive audiences to grow their user base. Such growth helps expand their first-party data assets and inventory, driving greater revenue downstream. The mechanisms for fueling audience growth are similar to those for driving more ad dollars: Publishers can model their data to help them predict the behavior of unknown users. By activating that data, they can drive interested audiences in hopes of converting them to loyal visitors. 

A bright future paved with predictions

The ability of these predictive audience strategies to drive publisher revenue has a lot to do with the level of first-party data the individual publisher brings. Of course, not all publishers are on equal footing when it comes to first-party data assets. Some have been capturing and building their first-party data practices for years, enabling them to fuel strong predictive models and broader identity graphs that can reach across their properties. Others—publishers that have not invested nearly as heavily in their first-party disciplines—are looking for off-the-shelf solutions that can help them take advantage of predictive audiences’s power all the same. 

The AI-driven future will favor publishers that prioritize robust first-party data practices, but the race is far from over. Regardless of where an individual publisher stands with its first-party data assets, there’s still time to build out the needed strategies that can fuel growth through predictive audiences. By doing so to capture the right data and signals to fuel the strongest models, publishers can chart a more sustainable (and monetizable) path forward.

Advertising

The resurgence of rich media ad products

Let’s travel back in time to the digital publishing world of 2014 when programmatic was just beginning its march to ascendancy. At that time, it accounted for just 52% of display-related advertising revenues. Flash video ads still had two years of life left! And digital media consumers were enamored with interactive rich media ads.

High-impact, creative ad formats from a decade ago peacefully coexisted alongside premium publishers’ content (remember the corner peel?). But as the open programmatic marketplace took off, many of those compelling ad units died out as publishers sought to fill pages with easily transacted, low-yield static banners. 

It’s time for a rich media revival in advertising

Publishers and advertisers are beginning to question the value they get from OMP. As more advertisers limit their programmatic spend and more publishers shift strategies toward direct sold ads, flexibility and customization of ad formats becomes paramount. 

Here’s why high-impact rich media creatives are poised for a comeback:

Rich media ads engage users who are primed to tap, swipe, and scroll

TikTok, Tinder and countless other apps have shaped how users behave online. While static ads can lead to banner blindness, compelling interactive rich media executions that give users something to do can increase dwell time and brand engagement. Top ad features that drive engagement include:

It’s easier than ever to run rich media ads without being disruptive

High-impact units once thought to be disruptive – such as wallpapers, immersive page takeovers, floaters – seem less so now. Today’s web viewers battle pop-up video players, cookie banners, adhesion units, and multiple ads in viewport at once. A new generation of high-impact rich media units can reset the balance between user experience and ad revenue. 

When done well, these ad executions command top CPMs and allow publishers to reduce ad clutter… and they’re actually creative! We’ve worked with partners to develop formats for numerous ad campaigns that showcase premium creative that’s truly one-of-a-kind. For example, last July we helped Vulture create a high-impact homepage takeover for Starz announcing the new show “Minx.” 

A super billboard ad with video appeared atop the page and triggered an overlay of a champagne bottle bursting through the main story image. The “tear apart” of the homepage revealed an animated poster for the show, before reverting to the homepage again. The ad performed 6x better on a key metric versus a standard ad. Though bold, a single high-impact execution like this one, instead of a page cluttered with ads, can be more memorable and generate far more revenue. 

High-impact immersive ads combat banner blindness.

First party data and dynamic rich media creative are a powerful match

Savvy publishers are incorporating first party data not just into audience targeting but also into the actual creative being served. Rich media ads can turn data into powerful, personalized ad executions. Data-driven creative and optimization capabilities enable publishers to combine first party data with advertiser data feeds for real-time ad customizations. 

Imagine selling an airline a campaign that can dynamically show available frequent flier miles and flights this weekend from a viewer’s closest airport, and videos of that destination. Combining relevant data plus arresting creative assets like video or animations, and executing it via a single ad tag, lets publishers sell high impact ads at higher CPMs, without creating complexity for ad engineering or operations teams internally.

Programmatic ad containers with low quality fill hurt your site’s brand (and revenue)

If you’re a premium publisher, the ad experience on your sites should also be premium. But overreliance on programmatic fill can litter your site with Temu carousels. Publishers that are investing in direct sold ad programs can’t treat creative as an afterthought. Make impressions more valuable by offering interactive, rich media ad products that engage users and give your advertisers options for delivering their message in a compelling way.

Versus open programmatic fill, direct-sold rich media ads give publishers more control over their inventory, command higher CPMs from advertisers, and offer more compelling features and creative that resonates with users.

The rich media revival will lead to improved ad quality and revenue

Advertising is still the major revenue lever for media executives. Shifting focus to direct sold ads requires a thoughtful rebalancing of the ad products portfolio to ensure publishers are offering effective, compelling ad experiences that connect with users and meet the goals of advertisers. High-impact, rich media formats offer the flexibility, customization, and performance that will command higher CPMs. And, unlike a decade ago, they’re easier than ever to efficiently execute.  

About the author

Shawn Pokorny is an ad operations veteran with 15+ years of experience designing and managing display ad campaigns for major publishers including Paramount, Yahoo!, PGA Tour, Dotdash Meredith, The Guardian, and more. He leads Clipcentric’s campaign services team.

Advertising | Supporter Spotlight

TikTok’s troubles are an opportunity for media companies 

As the digital landscape faces the potential U.S. ban of TikTok, media companies are presented with a unique opportunity. TikTok has rapidly emerged as a dominant player in the advertising market, even rivaling giants like Meta, Amazon, and Google. Needless to say, open web publishers have felt the competition as well. However, TikTok’s uncertain future offers an opening for media companies to attract brands that are currently spending on TikTok and are seeking more stable alternatives.

With that in mind, my company, MediaRadar, conducted a comprehensive analysis of ad trends on TikTok to better understand patterns that could help media companies strategically position themselves during this transitional period. We found some useful openings in the ad market as well as some tactical tips for publishers positioning themselves to offer digital advertising alternatives. 

Overview of the digital ad spend

Before we get into TikTok, let’s table set the digital advertising marketplace: since January 2023, total media spending overall in the U.S. has reached $184 billion, with $150 billion spent in 2023 and an additional $33.5 billion in the first quarter of 2024. The primary sectors driving this investment are Retail, Technology, Media & Entertainment, Medical & Pharma, and Finance. They accounted for 49% of the total, contributing over $55.8 billion. This represents 56% of the $100 billion invested during this period.

Advertising expenditure on TikTok

On TikTok, advertising expenditure reached $3.8 billion in 2023, with nearly $909 million added in the first quarter of 2024. This brings TikTok’s total ad spend since January 2023 to $4.7 billion, which makes up just under 3% of all U.S. media ad revenue during this period. 

Yes, TikTok’s market share is modest. However, its impact is significant, especially in engaging dynamic and visually-oriented industries such as Media & Entertainment, Retail, Technology, Beauty, and Professional Services. Brands in these sectors alone have spent over $2.4 billion on the platform, representing 51% of TikTok’s total ad buys.

TikTok experienced significant growth in the first quarter of 2024, with spending increasing 13% from $805 million in the same quarter of 2023. Monthly increases were 18% in January, 4% in February, and 19% in March.

The top 1,000 advertisers in 2023 significantly increased their investment, spending $340 million on TikTok—up 47% year-over-year. These advertisers accounted for 37% of the $909 million spent on TikTok in the quarter. For comparison, the top 1,000 brands in digital media overall spent nearly $6.4 billion in Q1 2024, marking a 20% decrease from the previous year.

Advertising opportunity for digital media companies

In April 2024, President Joe Biden signed a law that put restrictions on TikTok in the U.S. Even though it may take a while to play out, the uncertainty alone is likely to create opportunity for digital publishers to woo advertisers seeking alternatives to the platform. The challenge is not just to capture ad dollars but also to prevent them from flowing into platforms like Meta (Instagram and Facebook) and Snapchat, which are poised to benefit from any shifts in the digital landscape. 

Here are three key takeaways for publishers to help win those migrating dollars. 

1. Embrace and promote snackable, short-form video content

TikTok’s success is largely built on its short, engaging video formats that appeal to younger audiences. Publishers should develop and showcase their own versions of these video formats that are optimized for quick consumption and designed to keep the audience coming back for more. By demonstrating the ability to produce compelling short-form content, publishers can attract brands interested in engaging the digitally native audience that thrives on quick, impactful visuals and storytelling.

2. Emphasize the advantage of brand safety

In a digital advertising landscape where brand safety continues to be a major concern, publishers have a distinct advantage over platforms like TikTok, known for their UGC which can often veer into controversial territory. Publishers should highlight their controlled environments and rigorous content standards, presenting themselves as a safer alternative for brands that want to ensure their ads are displayed in a reputable context. This is particularly persuasive for TikTok’s largest advertisers, who are likely larger brands who deeply care about their brand and its equity. 

3. Highlight the direct link between content and consumer action

TikTok has proven effective at driving sales and conversions through innovative ad formats and integrated shopping features, like TikTok Shop. Media companies should also capitalize on this trend by promoting how their content can drive consumer action. This involves showcasing success stories and case studies where advertising with them has led to measurable increases in sales or conversions. By articulating how their platforms facilitate a seamless journey from content engagement to purchase, publishers can appeal to advertisers looking for clear ROI on their ad spend.

By focusing on these strategies—leveraging formats that appeal to the TikTok audience, ensuring brand safety, and demonstrating a direct path to consumer action—publishers can effectively redirect advertising dollars to their platforms as they become available.

Advertising | Supporter Spotlight

Cloudy with a chance of innovation: reinvent the future of advertising



Google’s timeline for phasing out third-party cookies has had more push-backs than delayed flights at a snowbound airport. After several postponements became a running joke within the industry, Google made a move earlier this year to deprecate the first 1%, signaling that this time, they might actually achieve liftoff. Alas, they have announced yet another delay. 

As we navigate these changing winds, it’s critical for those of us in digital advertising to not just sit in the departure lounge. We need to take the pilot’s seat. We must steer towards innovative and sustainable cloud-based analytics solutions that ensure our industry’s longevity and compliance with ever-tightening privacy regulations.

As we ready ourselves for the final boarding call on third-party cookies, the data-driven digital advertising landscape is like an airport bustling with opportunities and challenges. Signal loss, stringent privacy laws, and changing regulations are the headwinds we face. It’s time to pilot innovative cloud-based analytics solutions that ensure profitability and compliance. Like skilled pilots, we must navigate these skies with precision and foresight, because in the digital age, stalling in the air is not an option.

Harnessing cloud infrastructure for enhanced data management

For publishers, having a deep and comprehensive understanding of their audience is crucial: It’s the jet fuel for our campaigns. Achieving this in the current digital ecosystem requires managing from a control tower approach: overseeing a vast array of data across multiple SaaS partners and vendors. 

Cloud-based analytics solutions provide scalability, flexibility, and security needed to handle any situation, allowing publishers to navigate the complexities of digital media operations smoothly. By integrating with SaaS vendors that operate within the same cloud infrastructure, publishers can enjoy streamlined processes and seamless data management across platforms. Such integrations facilitate data sharing without compromising privacy, enhancing collaborative efforts to deliver personalized and relevant advertising experiences. 

Case study: leveraging cloud-based analytics for audience insights

Consider a publisher who manages several properties and monetization strategies, from subscription-based models to ad-supported formats. By partnering with a cloud-based SaaS vendor, publishers dive into the value of their users by accessing sophisticated analytics tools that provide deep insights into behavior and preferences. This allows publishers to precisely adjust their advertising campaigns and content strategies, optimizing engagement and maximizing revenue opportunities. Effective use of these analytics can enhance user experience and drive profitability, demonstrating the substantial value of integrated, data-driven decision-making in digital publishing.

Customer 360 strategies: integrating insights for tailored offerings

In today’s fast-moving digital environment, understanding and anticipating customer preferences is crucial. It’s like predicting weather patterns for smooth flights. Implementing integrated marketing strategies that consolidate audience insights on a unified platform allows publishers to tailor their offerings more effectively. Such data-driven strategies enable publishers to not only meet the diverse needs of their audience but also attract and retain advertisers by demonstrating superior audience engagement and conversion potential. 

Embrace the cloud for future success

The digital advertising industry has some turbulence ahead, faced with significant technological and regulatory changes. By embracing cloud solutions and leveraging the expertise of integrated SaaS vendors, publishers can position themselves for success in a post-cookie world. The time to act is now—by innovating proactively, you can turn these challenges into opportunities for growth and continued success.

It’s often said that having your head in the clouds is a bad thing. However, in digital advertising, it’s exactly where you need to be. Let’s get together, and maybe find some silver linings along the way.

About the author

Manny Balbin, a seasoned veteran with over 15 years in digital media and advertising, currently shapes vision and strategy for BI products at Switchboard Software. Switchboard’s data engineering automation platform aggregates disparate data at scale in real-time for better business decisions. Prior to Switchboard, Manny led Product, Ad Technology, and Revenue Operations at Freestar, PMC, and Quantcast.

Revenue | Supporter Spotlight

Power media revenue and retention with renewal strategies

As media organizations manage shifting consumer behaviors and economic uncertainties, sustainable revenue growth remains a top priority worldwide. Understanding the intricacies of subscription retention, as well as what resonates with your audience, has never been more crucial. Given the critical importance of retention, we are seeing revived interest in the lifetime value of digital subscribers, which requires robust renewal strategies.

These days, audience insights are powered by a combination of acquisition volumes, price points, and rebounding retention rates. We analyzed extensive data from the publishers we work with at Piano from the past five years and discovered a notable resurgence in efforts to retain subscribers. This signals a strategic pivot for many publishers, who are re-prioritizing retention-centric initiatives to build loyal subscriber relationships and fuel long-term revenue growth.

Annual vs. monthly subscriptions

Consumers understand the benefits of choosing an annual offer over monthly: discounted pricing, uninterrupted service, and premium add-ons. However, our benchmark data also outlines intrinsic advantages for publishers when focusing on annual subscriptions, which shows annual users sticking around twice as long as monthly subscribers. It also reveals their annual term retention rates are nearly double those of monthly users.

Further, the duo of better retention rates and higher overall spend only compounds over time: at the end of three years, these annual subscriptions are worth 60% more than their short-term counterpart. It is easy to see the allure of deploying this type of offer strategy and explains why optimizing retention is a pivotal driver for sustained publisher growth.

Source: Piano, Inc.

Paid trials and renewal strategies

In the not-so-distant past, free trials were all the rage. However, over time, this approach did not lead to the desired stickiness. On the contrary, paid trials can leave a lasting impact not only because they offer a compelling introductory price point for new subscribers, but also provide publishers with valuable insights into consumer behaviors. By taking this approach a step further, and combining paid trial offers with annual subscriptions, publishers gain long-term users of premium products, while driving more opportunity to build loyal subscribers. Piano’s data demonstrates that paid trial subscribers are more likely to renew in year three, ultimately driving a higher lifetime value.

Reduce active churn

Once paid trials are in place, the next step is to prevent active churn, as cancellations can often occur early. As an example, auto-renewal cancellations are about 14% on day one and can rise to 38% within the first sixty days of a trial. To reduce this, immediate onboarding and communications should take place to build engagement between the subscriber and the product. Sending a welcome email, reminding users of the benefits, and highlighting top content are a few ways to keep consumption high.

In fact, even when a price increases at the renewal phase, building rapport with the subscriber can improve retention. Our aggregate client data reveals that implementing price increases of 15% to 20% for annual digital subscribers drove an increase in overall revenue of 6% to 14%. Even with a slight dip in retention that a price increase may spur (typically around 5% to 8% churn), it can still be offset with the revenue gains earned from the overall higher price point. Leveraging a grace period message that alerts potential access loss, has helped many media companies earn worthy renewal success rates.

Another fundamental of churn reduction is an interception at the point of auto-renewal and providing an offer to retain the customer when the churn behavior begins. As an example, The Daily Beast began integrating a “save” notice when the subscriber clicked on “cancel auto renew” where the customer is shown a downgrade offer to interrupt the cancellation and attempt to save the subscriber. When implementing this functionality with several publishers, we have seen up to 16% save rates on would-be lost subscribers.

Smart, effective renewal strategies are critical to capturing active subscribers and overall revenue growth. Through targeted retention efforts and personalized outreach, including regular touchpoints during a customer’s lifetime, publishers can nurture subscriber relationships and encourage continued loyalty, while reducing churn.

Renewal strategies retain customers

This is not meant to imply that the path to sustainable revenue growth will be simple. However, by refocusing on paid trials, retention, and active churn prevention—all while adopting a comprehensive approach to subscription management—publishers can approach their subscription models with confidence and build strong long term relationships with audiences.

Revenue | Supporter Spotlight

Diversification strategies for the news media industry

Despite the fact that the industry has been discussing the importance of revenue diversification for at least a decade, news media organizations remain largely undiversified. In a recent study examining the financial sustainability of the industry, we found that publishers (on average) recorded 84% of their revenue from just four sources: print consumer revenue, print advertising, digital subscriptions and digital advertising. Although publishers anticipate growth in other verticals, specifically events and eCommerce, these revenue streams are negligible. Therefore, they are unlikely to be a like-for-like replacement to falling print and digital advertising revenue in most markets.

That being said, few media companies would object to multiple revenue streams that complement their core business model. In practice, however, media revenue diversification can prove difficult (and expensive) to execute, dilute your brand/value proposition and divert attention away from the core product or business unit. In this article, we will explore how news organizations can structure their thinking about diversification initiatives and explore common best practices when it comes to execution.

How media organizations can think about the path to diversification

We find it helpful for news organizations to think of diversification on a spectrum, where there is a continuum of options for news organizations both in terms of the audience segments they can target and the products they can create. These news media companies can (and often do) concurrently pursue multiple diversification initiatives, which can be plotted at different intersections on the spectrum. This spectrum is visualized in the first image.

On the x-axis is a spectrum of product options. The furthest left on this axis are the products that the organization is most known for. For news organizations, these are typically products that fulfill the core news need: accurately informing people of what is going on in the world or their community in real-time. These products include daily newspapers and news websites (such as ft.com). As you go further right across the x-axis, you expand to other products that meet other needs. 

On the y-axis is a spectrum of audiences. At the bottom of the axis are core target audiences. For news organizations, these are typically people who are deeply interested in knowing what is going on in the world on a regular basis. As you go up the y-axis, you expand into audiences that don’t fit your existing or target audience demographic. 

To bring this framework to life, we plotted a selection of the Financial Times’ diversification initiatives to give a sense of how news organizations can expand within and beyond their revenue diversification frontier (second image).

Best practices when it comes to media revenue diversification

As we mentioned previously, successfully executing a news media diversification strategy is hard. There is no single playbook for how to successfully execute a diversification strategy in the news media industry: success is dependent on the organization, its current position within the market and the overall market context. However, there are a few common traits that we observed when looking at the most successful organizations:

Speak to target audiences/clients and understand their needs

You need to have a good grasp of the needs within your target segment. Never start from the perspective of your own objective – e.g. “Let’s expand into America”, “let’s build a subscription mode” – as this could lay waste to product market fit. 

Understand and leverage your distinctive edge

Your distinctive edge is something that you can provide your audiences or clients with that few or no other organizations can. A distinctive edge might be access to a leading journalist, knowledge of a specialist topic area, ability to produce content in a particular style or format, being home to a difficult-to-reach audience, having a well-respected and trusted brand or something else.

Acknowledge your diversification frontier

Every news media organization has its own revenue diversification frontier. We define a diversification frontier as the “comfortable limit” within which an organization can credibly and effectively expand, based on its brand and internal capabilities. Although companies can expand beyond their diversification frontier, these initiatives are risky and should be approached with caution.

Consider your optimal timing

Media organizations should avoid only exploring diversification initiatives when they become imperative. Rather, organizations should be continuously exploring opportunities for diversification, especially if they are in positions of high revenue concentration or they are experiencing systemic market decline in one of their revenue verticals.

Start small, iterate, gate investment and track key performance indicators

Not all revenue diversification initiatives are going to work. News organizations must avoid exposing themselves to unnecessary risk as a result of overconfidence or overinvestment. Instead, news organizations should run experiments to test new products or their ability to serve new audiences. Gating investment, creating independent advisory boards and setting and measuring performance against key performance indicators are all established ways of ensuring this in practice.

Underwrite new initiatives via upfront payments if possible

Often the best ideas can garner financial support at the concept stage, helping to underwrite the cost of the new initiative, reduce the upfront investment and risk and reveal demand. In practice, this involves reaching out to the most engaged audience members or most loyal advertising clients and asking them to support a new concept. Although this is not a possibility in every instance, it can be extremely effective.

Manage the wider business and be more than the sum of your parts

Once a diversified business model is achieved, the work does not stop there. In fact, successfully managing a revenue portfolio that is equal to more than the sum of its parts is very challenging. Brand uniformity, operating models, organizational design, culture, incentives, investment and financing are all critical aspects to consider and manage.

The future of revenue diversification in the news industry

Revenue diversification will remain top of mind for the news industry as concerns around declining referral traffic, gen-AI disintermediation and a challenging advertising market persist. 

We anticipate that successful media and news companies will increasingly diversify into adjacent revenue streams and products. We believe that this offers news media organizations the ability to develop more resilient and sustainable business models that fund quality journalism. You only need to look so far as Schibsted’s success and their mission statement to see what this extended future might hold: “We empower people in their daily lives.”

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