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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.”

Advertising | Supporter Spotlight

How streamers can optimize viewer experience through ad podding 

Today’s viewers are used to watching their favorite content across a variety of platforms and services. And an increasing number of these are ad supported. Ad-supported environments are a win-win for all parties: audiences enjoy content at a lower price, brands connect with highly-engaged viewers, and content providers keep improving the value of their inventory while boosting revenues. However, in order to reap these benefits, it’s vital to ensure that ads augment, rather than detract from, the viewer experience.  

Ad podding technology enables media companies to balance quality viewing with brand results. This article will explore how digital publishers can best design their ad pods in order to craft optimal experiences for viewers. We’ll focus on three areas: pod length, structure and ad frequency. 

On ad pod length: less is more, but there is a sweet spot 

It’s crucial that ads do not feel like a disruption to the viewing experience because this can create a poor environment for brands to connect with viewers. With this in mind, digital publishers will do well to limit length when ad podding.

Consumers perceived one and two-minute ad pods as less intrusive than longer pods, according to FreeWheel’s report, Designing A Better Ad Pod. When an ad pod hit three minutes, the number of viewers citing the ads as intrusive doubled. Ad recall was specifically impacted, dropping by half when viewers watched three- rather than two-minute pods. 

Despite the overall impression that limiting ad pod length pleases audiences, there may in fact be a sweet spot. Just under two-thirds (62%) of viewers said that two minutes of ads met their expectations and almost half (45%) of participants who viewed one-minute ad breaks reported that they were shorter than they had anticipated, according to the same report. 

Digital publishers should also keep in mind the importance of aligning ad pod durations with content length. The report additionally found long pods in the middle of shorter-form content to be less tolerated than pods that were proportionate to content length. And, according to another FreeWheel report, The State of TV Advertising Viewer Experience, a correlation between ad and content length was a preference for almost 72% of respondents. 

Building brand recall with ad architecture – consistency is key 

It’s not only ad pod length that impacts viewer experience; digital publishers need to turn finer attention to the length of each ad within the pod. Our Designing A Better Ad Pod report found that consistent duration of single spots enhances the overall ad experience. Over half (56%) of respondents felt that pods with a combination of 15-second and 30-second ads seemed longer than expected. Meanwhile, when ads were the same length within pods, this figure dropped to 41% for pods containing only 15-second ads, and to 21% for pods with only 30-second ads. 

Varying ad length is sometimes necessary to meet brands’ needs and budgets. However, our  findings suggest that publishers stand to create a better platform for audiences to engage with ads by prioritizing consistent ad lengths within a pod. 

Viewers’ preferences even extend to what qualities they see in an ad. When ads were placed with others of the same length, participants were 7% more likely to see them as cutting-edge and innovative, and 5% were more likely to say they liked the ads. This data is likely grounded in predictability being pleasing to audiences – viewers are more able to relax and immerse themselves in the content rather than being distracted by elements of surprise in ad format. 

Ad podding uses ad frequency to surprising effect 

In an era where publishers and advertisers alike are wary of the impact of over-exposure to ads, frequency is top of the agenda. Viewers have low tolerance of excessive ad repetition. A full 67% say they are irritated by seeing the same ad more than once within the same ad pod and visual attention plummeting when they are exposed to the same ad within two minutes. 

To mitigate this issue, publishers can use frequency capping to control how often an ad is seen. The frequency can be set the length of content or for a defined amount of time such as one impression per 30 minutes. In fact, capping was applied to over half (54%) of all streaming ad placements in the first quarter of 2023. 

However, the risks of frequency might be overestimated, especially when ads are not repeated within the same pod. FreeWheel’s report reveals that when viewers saw the same ad twice in a single 30-minute program, ad recognition and brand purchase intent increased by 22%, and remained at a high level even after three exposures within a 30-minute program. When evaluating measures of engagement – quality and ad liking – the report found that ads were rated similarly even if audiences were exposed to creative up to three times in one program. 

Our research into ad podding has highlighted some instructive and often surprising findings on its impact on viewers engagement and favorability. And it points to the need for digital publishers to carry out careful calibrations across ad pod size, architecture, and frequency in the ads they serve to their audiences. 

Viewers’ habits and preferences are always evolving, but agile and future-facing digital publishers can harness such insights and further optimize the viewer experience while providing brands with the results they need. 

Advertising | Supporter Spotlight

3 Trust signals that help publishers stand out from MFAs

One topic making headlines in the digital media and advertising industry is made-for-advertising websites. The industry has tried to define them. Studies have been developed to determine how much MFAs are costing advertisers (15% of all ad budgets, according to the ANA). Tech providers have tried blocking them from media buys. Though that has caused some pushback from legitimate publishers’ sites, which might resemble MFAs on the surface (but are anything but). Despite all these efforts, a recent report from Adalytics showed that ads are still reaching MFAs.

The industry is starting to realize that a one-size-fits-all approach to weeding out MFAs doesn’t work. Media buyers and tech providers are taking a step back to re-examine their selection of media partners. Instead of automatically blocking publishers that don’t fit specific criteria, they’re looking at media more granularly and adding approved publishers to inclusion lists.

What are advertisers seeking in a publisher partner? Broadly speaking, they’re looking for media brands that have created quality ad environments that are seen by real audiences. But different buyers use different criteria and technologies, which lead to inconsistent and disparate outcomes. So: How can publishers take control of the narrative and demonstrate why they should be rewarded for their quality content?

The answer: media companies should implement trust signals, especially those developed and backed by the industry. Here are three trust signals designed to help publishers stand out to buyers for their commitment to quality, transparency, and accountability, and earn advertisers’ trust and business.

Trust signal #1: Industry certifications

Several industry groups, including the Media Rating Council, IAB Tech Lab, Trustworthy Accountability Group and the Alliance for Audited Media, have developed compliance programs to recognize publishers for meeting industry standards for ad measurement, brand safety, ad fraud and sustainability. Publishers that complete these programs demonstrate their commitment to transparency. It shows that they have processes and systems in place that deliver accurate and reliable data advertisers can trust.

Many of these industry certification programs require independent validation that a publisher has implemented industry standards and best practices to earn certification. Independent review and validation provide additional assurance for media buyers and publishers.

Trust signal #2: Brand safety tools

With advertisers becoming increasingly concerned about brand safety, solutions have been developed to highlight publishers committed to creating safe content and environments.

The Journalism Trust Initiative was developed by Reporters Without Borders in collaboration with the industry. It provides a blueprint for certifying media outlets for their adherence to industry standards to produce ethical content. JTI’s certification program includes third-party verification and differentiates quality media for their commitment to these standards and best practices.

Trust.txt is an industry framework developed by the non-profit JournalList to help tech platforms and advertisers make associations between publishers and the industry organizations they belong to including Digital Content Next and AAM. Participants in the program add a Trust.txt file to their website directory, which acts as a machine-readable map to help advertisers, tech platforms and search engines connect legitimate publishers with respected industry organizations.

The Ad Fontes Media Bias Chart® rates publishers for their political bias and reliability and lists them on an interactive chart. Publishers verified by a third party tend to be rated among the most reliable. They can use their rating to show media buyers their reliability and trustworthiness. Media outlets rated at the top of the media landscape can take their ratings to the next level and achieve certification from Ad Fontes for consistently providing reliable news and information.

Trust signal #3: Industry memberships

Membership in an industry organization is another signal of trust that differentiates quality publishers from other websites. Industry memberships require investment and often adherence to a code of ethics. Publishers that join and participate in industry associations stand out for their commitment to supporting and advancing the industry.

As digital advertising evolves and becomes more competitive, standing out for your good work becomes even more crucial. Demonstrating your commitment to industry standards and best practices by participating in the industry programs mentioned above is essential for communicating your value to advertisers.

As media buyers become more focused on curating their inclusion lists, it is critical to showcase your commitment to quality and transparency. Adopting these trust signals differentiates premium publishers and valued media brands in a competitive market and fosters a healthier ecosystem for advertisers and audiences alike.

Advertising | Supporter Spotlight

Data collaboration gives power to the publishers

Over the last few years, publishers and digital marketers have been preparing their data capabilities to withstand third-party cookie deprecation and heightened privacy regulations. Data scarcity is the challenge. And the clear solution is data sharing between trusted business partners who stand to benefit mutually. 

No wonder we’ve seen a variety of data clean room options emerge as a means for publishers and advertisers to share and match audiences. But now, the industry is taking a much-needed step forward. Data collaboration platforms have emerged as essential tools for marketers’ new customer acquisition efforts. And publisher data is what makes successful collaboration possible.

The deep data insights that marketers can gain from publishers is of heightened value right now. This puts publishers in the driver’s seat, giving them leverage in the ad buy and positioning them as essential partners to marketers. Deepening these partnerships allows publishers to win commitments and preferential deals from marketers.

For any media executives that are wary about sharing their data, it’s time to take a closer look at the controls that are possible today. Publishers can safely and privately permission parts of their audience, pseudonymously, for purposes of learning, analysis, modeling, and segmentation. 

Contrary to one lingering misunderstanding in the industry, clean rooms are built for more than authentication alone. They are, in fact, useful to media companies even if they don’t have a great amount of emails to use as matching identifiers. Data collaboration allows businesses to unify and analyze data from any internal sources – breaking down old data silos – along with data from external partners. 

Even if publishers don’t have a lot of data on email, they can still benefit from this technology. In fact, this data can include subscribers who log-in, as well as data from content consumers who don’t need to authenticate for access. All of this can considerably grow the amount of data available for analysis and activation, a more comprehensive solution than most traditional clean rooms alone. It can also be a more direct and less resource-heavy arrangement than what some data clean rooms offer. 

The value in a fuller picture of the buyer’s path

Of course, as with a clean room, a data collaboration platform is only as effective and valuable as the data that goes into it. And the overwhelming share of brand marketers will find that because they have limited touchpoints with consumers, they have a limited view of the buyer’s journey. CPGs, for example, are big digital spenders whose overall ROI is threatened by their shortage of direct interactions with consumers. 

And for any industry vertical, the longer the path to purchase, the larger the marketer’s data blind spots. It’s easy to imagine the implications for industries like automotive, real estate, or travel and hospitality: The consumer will spend a great deal of time researching their purchases, but the brand doesn’t own the data from the overwhelming bulk of sites and apps where that engagement happens. Publishers do. 

Therefore, publishers play an absolutely crucial role in data collaboration. They have the leverage in this scenario to drive greater value from the data that they own and marketers need. When marketers are able to analyze their consumers’ browsing patterns across platforms and devices, they can develop a deeper understanding of consumer behavior and preferences, which can make targeting and personalization more relevant and effective.

Newfound scale brings newfound ad revenue opportunities

To envision how data collaboration works, consider how a brand might start with data from their qualified leads – logged-in or deeply engaged users on their own sites and apps – and combine it with a publisher’s data. Keep in mind that many data collaboration platforms rely on an identifier, such as a hashed email, for matching purposes. But this will limit a business’s statistically significant data set to be analyzed. It’s important to open the field to a larger data set – which will entail finding the options that work beyond email identifiers to enable a greater audience overlap. 

Patterns in content consumption unlock consumer interest insights that might not have otherwise been obvious or intuitive to marketers. For a real estate company, for example, the marketer won’t be able to overhear in-person conversations between prospective homebuyers and realtors. But content consumption habits can help suggest what a buyer’s longer-term concerns might be – interest in colleges, financial planning, and products for children of specific age groups. Content consumption insights can also provide a wealth of information that enables targeting and personalization on pages that are relevant to the individual consumer, but not directly related to the brand’s own vertical. 

Without data from publishers, marketers simply wouldn’t be able to fill out the consumer’s profile this way and reach them in a wider variety of relevant settings. Media companies are now empowered to present a bespoke data package to a preferred advertiser partner, full of uniquely valuable insights and recommendations. And the monetization benefits go beyond attracting new advertisers and drawing existing advertisers closer. There’s also an opportunity for publishers to increase CPMs overall, in tandem with the increase of their data’s value to advertisers.

Becoming an advertisers’ essential partner

Throughout the industry’s process of reshaping how data is used, most businesses have found that first-party data tied to email identifiers, taken on their own, simply aren’t sufficient. Publishers’ data leverage in the ad marketplace becomes even greater with data collaboration platforms. In exchange, publishers can deepen relationships with their preferred advertisers, position themselves to bring new partnership ideas to the table, and win newfound ad spend from brands in verticals and markets they may not have even considered before. 

Through data collaboration, media companies can grant advertisers the ability to discover, reach, engage, and retain their best consumers efficiently. They are able to effectively save advertisers from wasted spend, irrelevant targeting, and reliance on multiple point solutions. That’s a very valuable proposition in today’s data landscape, where consumer attention is fleeting. Publishers need to take advantage of powerful data collaboration solutions to cement their place in marketers’ budgets and in the media marketplace well into the future.

About the author

Dave Chokshi Lotame

Dave Chokshi is Director of Client Services at Lotame, responsible for managing enterprise publisher accounts in the North America region. Dave brings nearly a decade of industry experience to his client services role, having worked at Comscore and PGR Media. 

Advertising | Revenue | Supporter Spotlight

Advanced media strategy: navigating the first-party data shift

With the imminent demise of third-party cookies, the digital media industry stands on the brink of a seismic transformation that will create pressure for publishers to adapt quickly and efficiently. In my role at Dow Jones, as head of advertising product and technology, the urgency to transition towards first-party data and contextual advertising wasn’t just about staying ahead; it was a necessity to ensure our continued success in the digital realm.

This urgency is underscored by a stark reality: according to a 2023 Teads survey, only 16% of publishers felt prepared for the cookieless future. When Google announced the Chrome Cookie Deprecation in Jan. 2020, it became abundantly clear to us at Dow Jones that decisive action was needed to navigate this uncharted territory.

Facing the dual challenges of maintaining our revenue streams and upholding audience privacy, we envisioned a future where we relied exclusively on robust first-party data and developed a comprehensive game plan to bring that vision to fruition. This wasn’t just about adapting to a new set of rules; it was about reimagining our approach to digital engagement and advertising in a way that respects our readers’ desire for privacy and control over their own data.

Building an advanced advertising strategy

As a leading global business and information company that publishes trusted brands like The Wall Street Journal, our strategic vision was predicated and relied upon our subscription business, including the core high-quality audience of dedicated subscribers that serve as our core readership. We evaluated every aspect of our digital footprint, from the ways we engage with our audience to the methodologies behind our ad targeting. This wasn’t a simple process. It required a fundamental reshaping of our operations, systematic execution sustained over time, and a significant investment in new technologies and skills.

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. We’re now in a position where 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 (not to mention regulators) expect.

Challenges and opportunities in cookieless digital advertising

However, this shift hasn’t been without its challenges. It’s been critical to strike a balance between maintaining innovative forward momentum and overcoming technical hurdles in a privacy-compliant manner that requires a judicious and collaborative approach to data. 

Despite this, the shift away from third-party cookies has presented numerous opportunities. We’ve been able to forge deeper relationships with our advertisers by offering high-quality audience signals, innovative new products and services built on those audiences, and the analysis that demonstrates value and outcomes.

A future built on trust and transparency

As we look to the future, it’s clear that the key to success in the digital media space is a combination of innovative technology and a commitment to user privacy. By focusing on first-party data and contextual advertising, publishers can navigate the post-cookie landscape.

Moreover, the importance of systematic and open collaboration cannot be overstated; engaging with experienced partners and technology providers, especially those who have proactively tackled the challenges of this new digital ecosystem, can provide you with fresh perspectives and new opportunities for growth. For digital media executives navigating this shift, remember: the future belongs to those who prepare for it today.

Advertising | Supporter Spotlight

Better ads, fewer tradeoffs: insights from a creative director

As a longtime creative director in digital advertising, I consistently saw the same challenges across publishers: tension between revenue and creative, between premium ad offerings and relentless efficiency, between trying new approaches and sticking to the playbook.

Here are three insights I often share our clients now that I’m at Clipcentric to show that digital publishers don’t need to view these perceived tradeoffs as either/or dilemmas.

You can reduce ad inventory without sacrificing revenue. Really.

It sounds counter-intuitive, but many digital publishers have successfully reduced ad inventory without sacrificing revenue. Fewer ads on a page creates a better experience for the audience, and higher-quality, premium ads command a premium for the advertiser.

One of Clipcentric’s partners currently fills about 20% of its inventory with direct-sold advertising, but that 20% accounts for almost 80% of its ad revenue. Trading programmatic pennies for direct-sold dollars works. Another partner recently reduced overall ad inventory by 50%, but didn’t sacrifice revenue at all.

More ads don’t always equal more money. Shifting available ad inventory away from open programmatic to direct sold, and then offering compelling, premium units for those ad slots, gives you more control over your revenue and creates a better experience for advertisers and audiences.

Premium publishers should serve premium content and premium ads.

Premium publishers invest a lot in building an audience around top-shelf digital content that keeps audiences coming back for more. But serving low quality ads next to that content can diminish the entire experience of a site or app.

We’ve all encountered a poorly placed programmatic belly fat ad next to a piece of premium content. Even running house ads that promote your own content (for example, from your branded content studio) can sometimes be preferable to low-revenue, low-quality ads on a premium site.

However, in addition to elevating the look and feel of your site, premium ad offerings can effectively differentiate you from the competition and help your ad sales team close more deals. Aligning features from different ad products to advertisers’ KPIs (a dynamic map in the ad unit to drive in-store traffic; a countdown timer or in-banner add-to-calendar feature to raise awareness of an event) allows you to quickly respond to RFPs and develop ad proposals that truly excite clients.

A prime example of this from my time at CBSi was when a client wanted to position its brand in a memorable way. CBS Sports had a popular fantasy football league. We proposed targeting fantasy football users with personalized ads that included each user’s fantasy team name and feedback on their draft choices. The advertiser loved the idea, and it was something only CBS Sports could offer. We linked our fantasy API  to the ad unit (with Clipcentric’s help) and developed a unique offering that the advertiser loved – and that perfectly aligned with CBSi’s own content.

Custom ads don’t require in-house engineering – just the right tech partner.

In my publisher days in creative services, there were so many times the ad sales team approached me with requests for complicated ads:

  • “Can we create a quiz?”
  • “Is it possible to put multiple videos in one ad?”
  • “Can we create an interactive game inside a 300×250?”
  • “Can we use our data to change what’s in the ad?”
  • “Can we put a flying dragon on the page? Okay what about four flying dragons?”

…and so on. There was no shortage of ideas, but with limited resources there was a hesitancy to say yes.

Publishers often streamline ad product offerings into their simplest form so ad ops teams can run very lean and produce ads efficiently. But that often leads to always saying “no” to advertisers who want anything beyond ordinary. Saying “yes” can unlock revenue premiums and demonstrate to your advertisers that your pub is responsive and collaborative and can deliver not just the audiences they want to reach, but the creative that will engage them. 

Ads with advanced creative features – dynamic video, data-driven features, all kinds of interactivity – can drive CPM premiums without needing to develop or retest an entirely new ad unit. At Clipcentric, we work with publishers to develop flexible ad containers that are tested and approved for their sites. Inside those containers, (almost) anything goes. The right partner can help you respond to custom requests to make an advertiser’s vision come to life.

Many media executives probably already know all these things. But sometimes it’s difficult to choose a path that seems more complex than what an organization is used to. Fewer ads, of higher quality, with better features and higher CPMs are not nearly as complicated to pull off as most publishers think. Ad operations professionals, myself included, welcome the opportunity to put real creativity back into ad products.

About the author

Jeff Hill was a director in ad operations and creative services for 15 years at major digital publishers like CBS Interactive and Red Ventures. He joined Clipcentric in July 2023.

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