Earlier this year, VIX was acquired by Spanish-language content leader Univision. It was the culmination of a six-year journey, which started out as my effort to disrupt, well, Univision.
Around 2015, I stumbled upon the statistic that Latinos would soon represent 20% of the United States’ population. It spoke to me because my Texas roots meant that Hispanic media had always been a part of my world. Pretty soon, I had decided that my next media venture would be creating a mobile-focused streaming service for what appeared to be a drastically underserved U.S. Latino digital media audience.
By the time that our Pongalo service launched as a $5.99 per month subscription offering for U.S. Latinos, I had rounded-up digital rights to thousands of hours of Spanish-language content. I’d also assembled a group of shareholders and mentors who included some of the smartest people in media. That meant that the Pongalo team could tap into a deep bench of expertise from folks like former MTV Networks Vice Chairman, who has Puerto Rican roots, Herb Scannell, and former Univision digital chief Kevin Conroy.
Like all good success stories, we promptly fell on our face. But we learned. We learned that building a video streaming technology platform is not for the faint of heart. We learned to license not only U.S. content rights, but also long-term international rights. That’s because our eventual expansion across Latin America presented a massive opportunity. And we learned that we absolutely did not want to compete with deep-pocketed players like Apple, who were making noises about coming into the subscription streaming space.
We eventually added Discovery Communications veteran Rick Rodriguez to our team. And, after borrowing a bit from the early playbooks of TubiTV and Pluto, Pongalo quickly evolved into the free, ad-supported streaming space. When it did, every metric went through the roof. Despite our early stumbles, we had clearly found the right model.
The race to scale
By 2019, scale had become the name of the game in media. In a world where Disney needed to buy Fox to gain scale, even a dominant spot atop AVOD in the still-unproven Latino digital media market wasn’t part of the conversation. If Pongalo was ever to be acquired by a larger media organization (and I believed it should be), we needed scale.
So, about a year ago, we combined Pongalo’s streaming service with Rafael Urbina’s VIX. Rafael had built a powerful social media megaphone of almost 100 million Latino Facebook followers. He’d also put together a potent ad sales team of over 50 people stretched across two continents. By the time VIX was acquired by Univision in 2021, our streaming service offered more than 20,000 hours of content that entertained millions upon millions of Latinos each month.
Today, the VIX team, now under the leadership of new Univision CEO Wade Davis, also helps to manage PrendeTV, Univision’s recently launched free, premium ad-supported streaming service. And the results have been spectacular. Early indicators tell us that PrendeTV and VIX are finding eager, content-hungry audiences across platforms.
The still-untapped opportunities
Our success (so far) does beg the question, however, of why no major media company had previously built a standalone service that focused on the free streaming opportunity for U.S. Latinos.
To be fair, Latinos have traditionally been easy to overlook in favor of general population audiences, who have always seemed to capture all the oxygen in the front-page streaming stories. But in a day and age of always-improving data, we now know that that was foolish.
According to the 2020 LDC U.S. Latino GDP Report, if the economic contribution of U.S. Latinos was its own country, it would be the eighth largest in the world. That would exceed even Italy, Brazil, and South Korea. In fact, between 2017 and 2018, the U.S. Latino GDP’s growth exceeded that of non-Latinos in the U.S. by more than 4.5x. Yes, 4.5x! That would make it the single fastest-growing GDP in the world during that period.
With this immense opportunity in mind, media companies need to be thinking about how they can capture a share of these vast U.S. Latino revenues.
Keep moving
Mobile is one of those places. Latinos drastically over-index for having mobile devices, and those devices tend to be their primary connections to the internet. But many media companies seem solely focused on delivering connected TV experiences. And despite PrendeTV and VIX’s many successes, Latinos still remain underserved on mobile. And they will likely continue to be so until the industry can create media products that play by the unique rules of a mobile-first experience – mainly simplicity.
For instance, at one point, most major media companies continued to push TV Everywhere apps that required an engineering degree to authenticate. We were the first to remove registration entirely from the VIX app. That meant that we had to innovate clever ways to build data around our audience. But if the premise of AVOD is to show ads to as many people as possible, why put up barriers?
The payoff for media companies in targeting Latinos is data. The genius of Amazon comes down to, “Since you bought this, you might also like this.” And the opportunity around underserved Latinos and mobile is similar. It’s a treasure trove of data just waiting for companies that are willing to lean in – in-language and in-culture. That data translates into revenues.
Over my six years navigating Pongalo, then VIX, and now Univision, I have heard countless voices encouraging media companies to target Latinos because it creates more diversity in our audiences. Undoubtedly, that’s a true and powerful reason in and of itself. But, with that, you will also make more money. That’s a reason media companies can not only understand, but it’s one that they need to capitalize on.
Abut the Author
Rich Hull is Senior Vice President of Univision, and President of VIX, Univision’s recently acquired digital media subsidiary. As a digital and traditional media company founder, operator and investor, Rich has constantly led the innovation of new ways for delivering content and empowering diverse voices. Rich previously collaborated with DCN Editorial Director, Michelle Manafy, on their multi-award-winning book, Dancing With Digital Natives: Staying in Step With the Generation That’s Transforming the Way Business Is Done.
The demise of third-party cookies offers an opportunity for the digital advertising industry to rebuild on a better foundation. This is particularly true for publishers who are willing to leverage the right approaches and technologies to monetize their audiences and protect their data.
When Google announced its deprecation of third-party cookies in Chrome, advertising technology providers, industry consortia, and Google itself started to work on alternatives. The goal is to build solutions that ensure addressability without compromising privacy compliance.
Finding a valid alternative to the cookie is particularly important for publishers and ad tech platforms operating in the Open Web. Google and other Walled Gardens can count on billions of authenticated users to deliver personalized ads. However, the rest of the industry needs to find alternatives that enable them to address users efficiently to stay competitive.
Publishers can already see what a non-addressable internet looks like. In Safari, where third-party cookies are already blocked, media owners see their CPMs decrease by 50% as compared with Chrome.
Two popular approaches to identity
Today, there are two popular approaches to solving the identification challenge in the post-cookie world. One is based on cohorts and the other uses pseudonymous universal identifiers.
The cohort-based approach
Google has been working on its Privacy Sandbox. This collection of proposals is aimed at preventing individual user information from being shared with the ecosystem. The initiative focuses on local data processing. The goal is to provide technology platforms with APIs to collect aggregated data about user profiles, as well as aggregated campaign performance data. According to Google, the mission of the Privacy Sandbox project is to “Create a thriving web ecosystem that is respectful of users and private by default.”
Grouping users in cohorts may give the illusion of compliance because, arguably, you cannot individually address people. But this is not the real problem. This approach prevents publishers from engaging in a real conversation with people about the value exchange between their data and the services they receive. Moreover, it doesn’t offer transparency and control to consumers. They have no way of knowing in what group they have been added and why. They also lack the ability to remove themselves from a cohort.
The approach based on pseudonymous universal identifiers
The other method available is based on pseudonymous identifiers that are created when a user opts in to share some pieces of information with the publisher or authenticates on a website. This information can be used as a consistent identifier by all the websites that have collected and passed along the advertising value chain. Brands can use the ID to collect information, deliver messages and measure the performance of campaigns.
Pseudonymous identifiers can be created using different types of information and require users’ consent to comply with data protection regulations. When publishers can provide signals such as hashed email addresses or login IDs, these can be used to anchor consistent identifiers across the websites that have collected them.
Most of the time, email addresses and login IDs are not available. With this approach, probabilistic algorithms use passive identification signals, such as IP address and the device’s user agent string that are shared via the HTTP Protocol. This enables the ability to infer the uniqueness of a user across websites. This method can be particularly useful to address and monetize users that are not ready to authenticate yet but are willing to share some level of information with the website.
Why one approach is better than the other
Unlike the Privacy Sandbox, universal identifiers work in all browsers, not just Chrome. Thousands of publishers that are keen to monetize their cookie-less traffic on Safari today and in all browsers tomorrow have already adopted universal identifiers. Chrome’s Privacy Sandbox, on the other hand, is still a set of proposals at their infancy stage. And, so far, they’ve only been tested by Google.
So why would you sit still and wait for Google to develop and test its Privacy Sandbox when universal identifiers are already available and working? Even more so, why should publishers and the rest of the industry rely on an alternative that will further increase its dependency on the tech giant and, most likely, work on Chrome only?
By partnering with the right identity providers, publishers monetize cookie-less traffic in Safari today and prepare for the post-cookie world.
Choosing the right universal identifier
So, if you decide to try the universal identity approach, the first step is to choose which ones to use. As of today, there are over 25 different identifiers that publishers can test in preparation for the cookieless world. No publisher will have the bandwidth and resources to try them all. So, below are some questions and considerations that can help to select the most suitable options for testing.
Privacy and transparency
Does the identifier use privacy-by-design technologies to capture consumers’ data privacy preferences? And does it give consumers the option to opt-out in the future if they decide to revoke data processing access? Make sure that your identity solution provider can guarantee your users’ privacy protection and control over their data.
Data protection
What about your data? What mechanisms does the identity solution provider have in place to ensure the information that you’re sharing in the bid stream is only accessed by your authorized monetization partners? Data leakage was one of the main concerns with third-party cookies. Ensure that your identity partner can safeguard your and your users’ data.
Footprint and adoption
How many platforms have adopted the identifier? An identifier is useless if ad tech platforms are not using it. If you’re considering several identifiers, verify they have enough footprint to provide some results. Most user ID modules are available on Prebid. (See how many platforms have adopted each of them.)
Cross-domain linking methods
What methods does the identity solution provider use to link IDs across domains? Most of them use deterministic methods and are only able to link authenticated users. No matter how many logged in users and email addresses you have, you will always have unauthenticated users visiting your website. So why miss on the opportunity to monetize that audience if they are willing to be addressed through passive identification signals?
Prepare today to thrive tomorrow
There are only a few months left until cookies are deprecated by all browsers. If you haven’t started testing universal identity solutions yet, start now. You can already see what the cookie-less world looks like in Safari so use this to your advantage. Utilize Apple’s browser as your testing ground and work closely with your monetization partners to understand what solutions bring the best results and why.
Streaming video has long been synonymous with Netflix. However, ad-supported services (AVOD) has started growing in share. According to Nielsen, a third of U.S. streaming households use a AVOD service today, and that viewership is only going to continue to grow this year.
Amid this growth, it’s worth looking at what successful AVODs are doing to break through the noise and succeed. Who better to learn from than Hulu, one of the original AVOD platforms? Here are some things that set Hulu apart from the pack and that other streamers should pay attention to:
Hulu’s tiered structure
Streamers that launched in 2020 bet big on gaining subscribers. So, they gave their platform away for free or in bundled deals. However, we’ll soon start to see subscribers question whether they really need every service they’re subscribed to, especially as the pandemic comes to an end.
Platforms that offer tiered options, including a much cheaper or free ad-supported version, will emerge victorious. With an ad-supported model, consumers are less likely to cut a platform when reviewing their entertainment budget. Hulu is ahead of the pack as it already has a tiered model with an ad-supported offering at a mere $5.99 per month.
They make up the revenue because CTV is very attractive to advertisers today given its popularity among consumers. Hulu has been able to take advantage of this trend with major brands. Our platform found top advertisers on Hulu during February 2021 include DraftKings, Samsung, Mercari Mobile App, Verizon, Kia, Taco Bell, T-Mobile, TurboTax, HelloFresh and Geico.
Hulu’s innovative partnerships
It’s not just the tiered model that set Hulu up for success, Hulu has also made a number of strategic and competitive partnerships to take on other streaming giants. Of note, in 2019, Disney acquired 21st Century Fox, which included the 30% stake Fox had in Hulu, giving them a 60% stake. This meant investment in original programming increased significantly.
Taking advantage of the rise in audio streaming, in 2018, Hulu and Spotify announced a bundling partnership that gave users a discounted rate to two very popular platforms. Finally, earlier this year, Hulu entered an agreement with ViacomCBS (rebranded to Paramount+) to include continued carriage in the live TV service of CBS broadcast stations. This also includes CBS Sports Network, Pop TV, Smithsonian Channel, and the CW, as well as continued distribution of Showtime as an add-on.
Hulu as a linear TV substitute
Network partnerships are key for making customers happy. One of the most critical factors of these partnerships is the turnaround time for linear television shows appearing on Hulu. This all depends on what network the show is from, and what type of subscription the customer has.
For example, Fox, ABC, ABC Family, and ABC News shows will generally be available the day after broadcast on Hulu, otherwise they are only available eight days after broadcast online. For a cord-cutting country, this is an invaluable value add. It is worth noting that this is separate from the live TV programming that the platform (which launched in May 2016). Even if the viewer doesn’t subscribe to Live TV, they will have access to new shows the day after they first air.
Content is hugely important on streaming channels. As we see other streaming services launch, it’s important to note the differences in content. For example, Netflix is known for offering the widest selection of movies. Hulu offers a larger collection of current-season TV shows and a smaller selection of movies. This means different viewership and advertisers know it. A full 60% of Hulu advertisers are not advertising on any other ad-supported OTT platforms. These stats tell us that Hulu’s advertisers are unique and that they find value in Hulu’s audience.
As the pandemic comes to an end and people head back into offices and social activities, now is the time for streamers to open an ad-supported tier, develop strong partnerships and differentiate their content offerings. Despite the change in the time spent at home coming soon, we predict that AVOD platforms like Hulu will only grow in popularity as a channel for marketers to reach engaged audiences. The lessons that Hulu can teach new streamers at this time are priceless.
Privacy regulations and browser updates are restricting the use of personal identifiers and customer data gathered via third-party cookies. Needless to say, this is causing no little disruption to the way the digital advertising industry works today.
To prepare for this privacy-focused future, publishers will need consent-based audience data. Brands will have to adapt the way they target and measure campaigns, and identity solutions. And technology providers will need to solve these challenges as updates continue to roll in.
As data deprecation continues — and the deadline for the removal of third-party cookies in Chrome draws near — we partnered with Forrester to research how brands and publishers are preparing. The project surveyed 100 advertisers and 100 publishers in the US and UK. We asked about their current data strategies, with Forrester providing analysis on the future of customer data in advertising and how the industry can realign itself successfully. It shows that within the oncoming threats, there are opportunities for publishers and brands who have access to first-party data.
Privacy regulations are a concern, but solutions are underway
Data deprecation is an ongoing issue. New regulations and frequent browser changes, including the recent announcement from Google banning alternative identifiers in the bidstream, are creating a certain amount of chaos. These changes will dramatically change the way people are targeted on the web. And brands are feeling the impact.
The Forrester research shows that 73% of brand respondents are very concerned about increasing privacy regulations. And 69% are concerned or very concerned with the restriction of third-party cookies in major browsers. However, despite this high level of concern 41% of brands are still relying “mostly or exclusively on third-party data” to target their audiences.
Brands know they need to take privacy seriously. But time is running out to reduce their use of third-party data and test first-party data strategies. Some work has begun, 36% of brands say they are starting to explore accessing publishers’ first-party data. They are also starting to move away from relying on third-party data. Yet, more advertisers need to look at alternative ways of targeting. They should work closely with publishers to incorporate their first-party data.
There’s an opportunity for publishers to partner with advertisers
Publishers are working hard to build-out their data monetization capabilities. They’re keen to supplement their subscription and ad revenue through advertiser partnerships. The research shows that 95% of publishers surveyed have started building their first-party data monetization strategies. However, only 28% are ready now with an established, implemented strategy.
Identity and tracking individual across the internet — knowing their every move — isn’t the only route to understanding consumers. Publishers understand their audiences and are building cohorts — a group of users that share some common attributes or behaviors — from their first-party data insights. This will give publishers an opportunity to build direct relationships with buyers, as publisher cohorts are privacy-safe. They allow advertisers to continue to target and reach audiences post-cookie, across platforms.
Publishers are primed to take action. Half of those surveyed believe increasing privacy restrictions will allow them to work more closely with advertisers. Access to consented, granular data on their audiences will strengthen their advertiser relationships, especially as first-party data becomes even more valuable to brands.
But convincing brands to test, trial and book campaigns with this cohort-based audience data is vital for this closer partnership model to succeed.
Publishers must proactively showcase the power of their first-party data
In order for brands to wean themselves off third-party data, they need scalable, relevant audiences. They also need partners that can help them reach those audiences across all buying platforms.
Brands should look to publisher cohorts to test first-party data campaigns. They need to be open minded about how they can reach new audiences as the industry rebuilds itself for the future. While publishers have gained significant ground in establishing their strategies, brands will need to find trusted partners. Publishers that are proactive about collecting their first-party data and sharing their work with brands are the ones that will benefit most.
Instead of replicating the old ways, publishers and brands should see this as a chance to build deeper relationships and prepare for buying via cohorts that don’t identify and track people as individuals. It’s time to embrace a future based on first-party data.
Relationships matter. As humans, we diverge from acting out of self-interest to accommodate the people with whom we have relationships. This might mean little things like saying “thank you” or holding the door open for the person behind you. It could be bigger things like buying a birthday gift for a friend or helping a neighbor in need.
People make sacrifices every day for those they care about. And, in any kind of relationship, there is some level of accountability. If I am jerk to a grocery store clerk, the five minutes during checkout could be really awkward or that person might decide to double-charge me for an item. Being rude to my server is not likely to speed up my dinner order. If I’m inconsiderate of my wife, I will probably be miserable until I make amends. These sorts of simple relationship dynamics play out hundreds of times every day.
The relationship business
Commercial relationships have similar dynamics. From my perch at DCN, I see premium publishers working hard every day to earn the trust and loyalty of consumers. News organizations employ journalists, who investigate and check facts, and editors, who vet content and ensure rigorous standards are followed. If they mislead, they can be held accountable by under libel laws. If they fail to engage and inform, they lose traffic and advertisers or subscribers.
Movie companies hire directors and actors to create humor, drama, or horror to entertain consumers. If they don’t do so, their movies fail to draw at the box office, they command lower fees for other distribution channels. They lose money.
Whether it’s weather, health, sports, or financial information, publishers in every vertical and across every medium work hard to create quality, compelling consumer experiences. In all of these cases, the publisher’s brand is closely tied to the content because the publisher is trying to build a relationship. And, as with any successful relationship, trust and accountability are key to developing a deeper commercial relationship with people as well.
Responsibility issues
Some of the currently pressing public policy issues have arisen in areas where there is little accountability to consumers. One big example is Section 230. It was enacted into law in 1996, as part of the Communications Decency Act, when the burgeoning tech industry was a darling of all politicians. Things have changed dramatically since those halcyon days with multiple members on both sides of the aisle introducing legislation to overhaul or eliminate Section 230.
Ironically, Section 230 was intended to empower platform companies to take responsibility. Instead, this liability shield tends to be used mostly by companies who can’t or won’t take full responsibility for their services. Tech companies tend to use Section 230 to avoid taking action. Backpage was one of the highest profile examples. However, Facebook regularly invokes the legal protections to avoid responsibility for the toxic content flowing across its services.
It’s not a coincidence that news organizations are far less reliant on Section 230 than platforms, because they stand behind their content. Content is their calling card and if customers reject it, that relationship is over.
Accountability issues
Consumer privacy is a hot topic these days because there are big tech companies building profiles about consumers behind the scenes with little transparency or accountability. From hyper-targeted advertising to potential discriminatory offerings, consumers are increasingly aware that they are being manipulated and their data is being used for myriad unexpected purposes.
Consumers have generally felt fine about their data being used within the context of a relationship with a company – e.g. ensuring the site or app loads properly on their device, remembering log-in information, or recommending new content. However, when data is used outside of that relationship, consumers react negatively. Hence, the blowback for Facebook around Cambridge Analytica. These public policy spats underscore a key difference between companies that have direct relationships with consumers versus those that are intermediaries. Direct relationships create accountability.
Building business with relationships
Accountability is an inherent part of direct relationships. That said, solid relationships provide opportunity as well.
The most visible sign of the power of direct consumer relationship is the growth of subscriptions. The New York Times and Netflix are notable success stories. However, hundreds of other media brands are finding loyal audiences that are more than willing to pay for premium content.
In addition, publishers with trusted brands are well-positioned to thrive in a world where privacy laws and tech controls increasingly restrict web-wide data surveillance. Whether it’s GDPR in Europe, CCPA and CPRA in California, or the handful of other states that are actively considering privacy laws, policymakers are trying to give consumers greater control. They seek to prevent the kind of unexpected data harvesting that happens outside of a consumer’s relationship with a company.
At the same time, key companies are rolling out privacy-friendly features. Apple built Intelligent Tracking Prevention (ITP) into Safari and is preparing to unveil App Tracking Transparency (ATT). Both are designed to crack down on companies following consumers everywhere they go online. However, they do allow for tracking within a consumer’s direct relationship with a company.
Google announced that Chrome would follow the lead of every other major browser in blocking third-party cookies. To be clear, there are a lot of suspicions about whether Google might try to give itself preferential treatment here. But, at its core, it looks like a positive move toward consumer privacy.
Real relationships
Companies with direct, trusted relationships have an opportunity. This window of opportunity, especially for news providers, could not come at a more important time for publishers — and for our society. The news industry has taken a beating in the last decade or so as intermediaries aggregated publishers’ content and retargeted audiences. Big tech platforms incentivized scale over trust. On top of that, there has been a raging debate about the impact of platform-driven disinformation and algorithmic bias on our democracy.
Well-paid lobbyists for some big tech companies are actively working to deflect accountability. However, publishers are embracing the direct, trusted relationships (and the ensuing accountability) they enjoy with consumers. News organizations continue to produce and stand behind quality journalism – researched, fact-checked and vetted. Local news publishers are leaning into what has always made them unique – critical context and deep understanding – to serve their communities.
Strong relationships are built on open, honest, accountability. They are built on trust. For quality media brands, this is nothing but good news.
The demise of identifiers such as third-party cookies or Apple’s IDFA presents both challenges and opportunities for publishers. Some complain performance marketing will take a hit. This would force marketing teams to refocus on delivering product excellence and ditch bait-and-switch schemes that promised audiences better experiences than they delivered.
Others praise the advance of a more privacy-oriented approach to targeting that will finally prioritize consumer preference. They point to a “golden opportunity for a re-imagining of digital advertising.” Companies would reap the benefits of an ecosystem that isn’t tied to tracking a user’s every move, nor beholden to GAFA. Publishers who wisely embrace this worldview are also taking impressive steps to leverage their valuable direct relationships with audiences.
For some, including Vox Media, Condé Nast and, most recently, Penske Media, this means offering up their own first-party data directly to advertisers. For others, it means leaning further into digital subscriptions. Subscriptions offer publishers a proven monetization model in a post-pandemic environment that has seen digital advertising collapse and revenues driven by paid content rise through the roof.
But winning with a subscription model is hardly a walk in the park. This is more keenly felt at at time when marketing departments may need to spend more resources to collect and leverage customer data to clinch the sale
Driving conversions and convincing consumers to commit to a recurring cost for content demands publishers do their homework and innovate. They must build the capabilities to understand their audience, identify valuable users likely to take the plunge and define clear pricing (at the level subscribers are willing to pay). What’s more, they should muster the resources and resolve to develop, deliver and continually improve a great product that meets customer expectations.
Continuing with our series of video interviews, I talk to Sheri Bachstein, global head of IBM Watson Advertising and GM of The Weather Company. Bachstein has overseen a wildly successful pivot to paid as part of a larger move to diversify revenue at the IBM-owned property. Since launching a premium subscription offering just 18 months ago, The Weather Company counts nearly one million paid subscribers, a figure Bachstein says is seeing double-digit growth every quarter.
Bachstein shares her step-by-step journey to subscription success, including insights on tailoring the product to the consumer, targeting potential subscribers and building a winning customer service team. She also reveals her take on the future of advertising and a call to action for the media industry at large.
WATCH OR LISTEN TO THE FULL INTERVIEW
Peggy Anne Salz, Founder and Lead Analyst of Mobile Groove, interviews Sheri Bachstein, global head of IBM Watson Advertising and GM of The Weather Company.
FULL TRANSCRIPT
Peggy Anne Salz, Founder and Lead Analyst of Mobile Groove interviews Sheri Bachstein, global head of IBM Watson Advertising and GM of The Weather Company:
Peggy Anne Salz: Does it pay to pivot from an ad-supported model to subscriptions? Well, my guest gives us the inside track on the strategy that has allowed subscriptions to become the fastest growing line of revenue in the company. It’s impressive. And we’re going to spotlight some of the step’s publishers can follow to diversify their revenue streams. But first, of course, a bit about us. I’m Peggy Anne Salz, mobile analyst, tech consultant, frequent contributor to Digital Content Next, which as you know is a trade association serving the diverse needs of high-quality digital companies globally.
And now to my guest, she is the Global Head of IBM Watson Advertising and The Weather Company. And The Weather Company is an IBM Business. It offers the most accurate actionable weather data insights to millions of consumers via digital products that we’ll be hearing more about from The Weather Channel, weather.com, as well as Weather Underground. And previously, she was the global head of the consumer business there and was responsible for product management and design, content development, and global expansion across the organization on the weather’s owned and operated properties. So Sheri Bachstein, welcome to Digital Content Next. It’s great to have you here.
Sheri Bachstein: Hi, Peggy. How are you?
Salz: Good. And even better because we’re going to zero in on, I think the question of the hour, the pivot. It’s a time of transition, accelerated change, and you’ve made a move. And I think a lot of publishers are thinking about this move, which is diversifying your business model, specifically ad-supported to subscription, as I said. In a nutshell, why the pivot, Sheri?
Bachstein: So we just found that we want to continue diversifying revenue, it’s really just that simple. You know, to have a business and if you have a bulk of your revenue coming from one stream, that’s dangerous, especially in changing times. And so we started on a diversification path, actually several years ago. And really subscriptions was the next thing in that funnel of what we’re trying to do to diversify.
Salz: I said at the top, it has paid off. I know the numbers. Our viewers don’t. So why don’t you share some of those numbers that show just how subscriptions are evolving?
Bachstein: Yeah, so our subscription business launched about 18 months ago. So I think we’re still just starting, I like to say, because I think that’s a short period of time, and we’ve rolled it out on our apps. And actually, just next week, we’ll be rolling it out on our web platform as well. But in a very short time, we are approaching a major milestone with a million users that are subscribers to our business, and you know, it’s taken other publishers twice as long to reach that volume. So we’re really pleased with the number of subscribers that we’re getting. And then if you look like our quarter-to-quarter growth of subscribers, it continues to be in the double digits. So every quarter bringing on more subscribers.
Salz: That is amazing because this is a time where you’re asking someone to commit to a recurring cost. But it must be that way because they’ve gotten the value proposition or rather, they grasp your value proposition. How important is the product in this mix?
Bachstein: It’s extremely important. It’s the foundation of a subscription business, you know, the value exchange you have with the consumer, very important. With subscriptions, I feel that value strengthens. You actually have higher expectations as a subscriber. I know I do in my own personal apps that I subscribe to. You have a higher expectation. So it’s really important that the product live up to that expectation and that your customer service, very important as well, that you’re able to connect with those consumers if they do have a problem and resolve that very quickly. So the value exchange is very important, whether you’re doing a subscription business or you’re actually doing an ad-supported business.
Salz: I do want to get to those steps, step by step so that publishers can benefit or at least think of a roadmap that they can be following as they make this shift from ad-supported to subscription. But let’s take just a step at a different perspective, just zoom out a little bit because another big question is not just how do I get more value out of my customers, my users, my readers, my audience, but also, what are we doing right now? Because pretty soon the way we do this marketing is going to change very drastically. So from your perspective, what are some of the ways that this shift from cookies and identifiers and toward privacy-first might actually represent an opportunity for publishers because you have certainly grasped that?
Bachstein: So I do agree Google does plan to deprecate the cookie, and so that will go away. But really, I think as it relates to identifiers, identifiers is a really broad word because there’s a lot of ways to identify someone. It could be an email, a lot of different data points. I don’t necessarily see identifiers going away. What I do see is how we use those identifiers is what’s changing. So what’s happening is we’re moving from a society where we had consumers opt-out to a society where we’re having them now opt-in. So that gives them more choice, more transparency upfront, and really the decision of how they want to share their data.
Consumers should have control of their data. So again, we’re really moving into an opt-out society as it relates to advertising and targeting and giving consumers that choice.
Salz: What can you share about what has worked for you and what maybe other publishers need to get right? Because one thing you’ve done is, for example, really focused on getting the product, right, as you said, but there are other aspects of it.
Bachstein: So first, we did exhaustive customer research and listening. We asked our customers, one, “Would you pay for a weather app?” That’s first and foremost and what percentage would. And then secondly, “Okay, if you paid for it, what are the features that you would pay for? What is it that you want?” So we really listened to our customers. And that’s the part of the plan, the product plan came from that. Then we did testing, we did learning, and we kept improving. So a lot of testing went into what’s the right price, you know, to charge for a subscription app?
Again, asking the consumers, “How much would you pay for this feature? So when I think about what are three tips I could give to fellow publishers because I think us helping each other is really important to protect the open web. First takeaway for me is get rid of those perceived inconveniences for your customers.
So for my customers, those that start their day with us, end their day with us looking for weather, some of those customers, they just want to get into the app, find out what their weather is and move on to plan their day, mornings are very busy for a lot of people. And so they felt that ads clutter their experience that it was in their way, so we removed them in the premium experience. So that’s one tip.
The second tip, trusted human expertise is highly valuable. So how can you humanize the information that you’re giving? So for us, you see all this weather data, but how do you give context to that? How do you humanize that weather data for those that want more in-depth coverage?
And so we’re working on that, how to humanize that. And really the third thing is really around what you said before, the product.
Salz: That is really interesting, Sheri. I mean, I know it makes sense to ask the users. I wouldn’t say I would ask the user about the price, but that is surprising because I’ve also read a lot of research that we are actually more willing to pay a price that is higher than even, in many cases, the app developers, the companies themselves would charge. So it does make sense.
The humanizing of the information, now that is intriguing. Is that saying that you tap a team of writers, of journalists, of experts and trying to get that into the app? Because I think our publishers would be really interested in this at a time when, yes, we can automate a lot. And we’ll get to that in a moment. But this human part doesn’t seem to be something that you can automate or in any way streamline. This is roll up your sleeves, get down to work. How are you doing it?
Bachstein: Yeah. So for us, obviously, we’re unique in the weather space. But we do have some consumers that they want more information. So they want a meteorologist to explain, why is an outbreak of tornadoes actually happening? We actually are doing a test right now and we’re using Twitter to do the test where we had a meteorologist create a very short video that really explained how we forecast a tornado, what are the three elements that we look for in forecasting a tornado and describe it so people could see better like on a radar map those areas that may be under a tornado threat. And the response has been great. For those people who like to geek out on weather, they love having that extra information.
And news organizations could do it as well because you have journalists like yourself that have amazing expertise. And how do you take that story, just one level deeper, to really dig in with your consumers around more information that they might want? So almost, probably, getting into some debate, I would imagine, in the news world. So I think there’s ways to do that. But I think, for some, it might be easier than others. But you’re right, it’s something that’s unique. It’s not something I would say that can scale to millions. But if it’s a unique offering, someone’s really willing to pay for it, you could probably get a premium for that.
Salz: Exactly. And that’s the point because subscribers are the valuable users. They’re willing to pay. They’re worth customizing to. Interestingly enough, they also leave a very interesting data trail. They’re frequently engaging with the app or service. They show behavior patterns like no other. That’s why they are the valuable users. What are some early signs for you of a high-value user so that we can also help other publishers focus their efforts and investments?
Bachstein: So we are doing a couple things to really help target who are those consumers that want to be subscribers? One of the things that we’re doing is around propensity modeling. So who are those subscribers that really have an interest in a more premium experience? And so we’re looking at that, we’re using machine learning to do that. We didn’t do it in the early days. We kind of had this one blanket promotion that we did. And we learned a lot from it. Again, it’s that test and learn. And then we learned, “Well, we really need to just focus on these consumers that would be interested in this.”
Same thing that you do in advertising, right? The whole premise around understanding the consumer by the data that they share is so a brand can connect with the consumer. And that’s what publishers do, they bring the two together. So that same type of targeting information is important as you do a subscription business.
Salz: And you’ve leveraged AI to create a more compelling product as I understand it. What has actually worked for you? I mean, you’re lucky, you’re sitting on the source with your AI abilities within Watson, but what has worked for you?
Bachstein: So the propensity modeling I just spoke of, we’re just rolling that out so we can better target the right consumers so we’re not burdening people seeing our promotions who aren’t interested. So that improves the experience. But the other thing that we did is on the IBM Watson advertising side, which is the other part of my business, we’ve created ad-tech solutions rooted in Watson AI.
One of those solutions is a predictive real-time dynamic, creative solution. So I actually took that tech and used it on the publishing side, I’ve got to use my own products, to drive subscriptions. So what that really did was it enables you to create a lot of variations of an ad. So you put in a few images, call to action, and then using AI, it’ll target consumers differently based on what we can learn about them with the information that they share or their behaviors.
And it’s been an amazing tool for us. We actually did a test by using that ad tech. We got three times the number of subscribers than when we just did a normal promo doing it manually on our own.
And so it’s really been beneficial to use AI because you can put all of this data in there. It does the work for you and delivers amazing results. And frankly, we offer that ad-tech to everyone. Any publisher can use it, any DSP, SSP. So we are creating open ad-tech solutions that can drive business for a marketer or brand or it can help a publisher increase their subscription business or even their loyalty programs.
Salz: That is really interesting because dynamic. That’s the key here. It needs to adapt to the users. And actually, publishers need to adapt to this as well. So you’ve also called for industry-wide collaboration on privacy initiatives as we move into our cookieless future. Why is it important for publishers to be a part of those conversations?
Bachstein: It’s extremely important for actually everyone in the ad ecosystem, publishers and ad-tech providers, to be part of that conversation. What’s happening right now is you have about…we have two states. We have Virginia, we have California that have come up with their own privacy laws. There’s another 12 that are thinking about doing that by the end of the year. What happens is we get a patchwork of laws, really challenging for publishers. It’s not scalable to have different laws for different states. It’s really, really hard to be able to scale that and to do that.
And so, me along with many other publishers and leaders within this space, including the IAB, DCN, we are pushing for federal legislation so we can all be working from the same laws, the same rules. And then we have to clear up some of those rules as well. There’s a lot of gray areas when it comes to this. So let’s all be working on the same definitions of words. Very important that we’re all working together so we can become our consumer privacy focus. None of us are saying that we shouldn’t do that. We all think it’s a good idea. Let’s do it together in the right way, and let’s build some consistency across publishers so consumers know exactly what to expect.
Salz: Good point. I’m based in Europe where we’re still figuring out.
Bachstein: Yeah. But at least all of your countries got together and put it together, GDPR. There are still some gray areas, no doubt. But at least you guys took that step to do that, which is important.
Salz: What can help publishers better understand and even stop churn before it starts? So it’s about understanding subscriber behavior and reducing churn.
Bachstein: Yeah, so definitely two parts to any subscription business. There’s acquisition. I think consumers will say, “Well, I’ll try something once,” or, “I’m up to try something.” And certainly, you can give free trials. That’s been a technique that’s worked really well for us. But then the retention side, a really big part of the business. We’ve been fortunate to have retention as high as 75%, which is much higher than the industry. But it all comes down to the product. If you are delivering on the expectations that a subscriber has for your product, you will retain them.
And so, again, it’s really having a great strong product. We’re choosing to enhance the features and give them more as subscribers. So are we improving their experience? And so we found that to be really successful with retention. So we definitely pay attention to that. But I also feel customer service is important. When your subscribers have an issue, you have to respond to them. They are paying money out of their pocket and so they deserve to be listened to and to have their problems troubleshooted as quickly as you can. And so we definitely have made a big investment to focus on our subscribers to make sure that if they have issues that we are solving them for them very quickly.
Salz: You really do love a challenge in your job. What’s the hardest part of your job?
Bachstein: Oh, well, how much time do you have, Peggy? No. It’s funny, I think for every leader, you have to have a strong strategy. And it’s got to be a focused strategy. And then you have to stay focused on that strategy. That can be challenging sometimes because the world around you is changing. But if you really believe in that strategy, only working on that. Stop working on things that just don’t align to that. It’s very important, not only my business but all of IBM is doing that as well.
Salz: What do you see overall as the biggest opportunity on the horizon for publishers?
Bachstein: I absolutely think the biggest opportunity is the use of AI, especially in the ad-tech space. Using AI to really bring together the brands and the marketers with the consumers in a way that uses all different types of signals that doesn’t rely on the cookie is just a really big step forward. And one of the reasons I think so is because AI has the ability to predict. So the cookie only tells us what happens in the past. With AI, we can actually go forward, and we can predict, and we can forecast. And so being able to do that with AI is just, I think, a really great tool and it really has a bright future. I really feel it’s a transformational part of the industry. And really is a new tech that we need to embrace.
Salz: And to your point, I mean, advertising…which works, I’m not saying it’s broken, but through using cookies, identifiers, IDFA, we’re looking backward. And with AI, we’re going to be looking more forward, more predictive. So it does make a lot of sense to say that the opportunity is to understand what I may be doing, what I may be wanting, and to target that rather than maybe my past behavior.
Bachstein: That’s right. It’s all about a new technology, a new foundation or backbone to the ad industry, having it be AI instead of what we’ve been using in the past with cookies. It’s a way forward. I mean, advertising is not going away, but it is evolving. And we can be smarter, and we can use better technologies to connect consumers with our brands and marketers.
Salz: And speaking of connecting, Sheri, it was great to connect with you today. Thank you so much for sharing. How can people stay in touch with you if they want to maybe continue the conversation or understand a little bit more about tips, they can follow to move their app from ad-support to subscription?
Bachstein: Yes, reach out to me on LinkedIn. You can find me on LinkedIn. I’m happy to have a chat. And I’d love to just know what other companies are doing as well and how can we collaborate and work together?
Salz: Absolutely. Well, thank you. And thank you for tuning in. More to come of course in the series. And in the meantime, be sure to check out all the great content, including a companion post to this interview at digitalcontentnext.org and join the lively conversation on Twitter at DCNOrg. Until next time, this is Peggy Anne Salz for Digital Content Next.
Header bidding has become an essential component of most publishers’ ad monetization strategies, enabling better inventory fill rates and higher revenue. It allows publishers to receive bids from multiple trading partners at the same time. Contrast this to the traditional ‘waterfall’ method of trading, in which inventory is passed to ad networks sequentially.
Five critical metrics
Header bidding is a success story because it improves on what came before. But that doesn’t mean it is optimized to drive the best possible results for each publisher. The following five metrics can help publishers evaluate the health of their header setup. They will also provide insight into how they can use this information to further increase revenues.
1. Page Load Speed (the time it takes to fully display the content on a page)
Header integrations can be client-side or server-side. (Very simply, client-side header bidding sees all the auction-related activity takes place on the user’s browser, while in server-side bidding this happens on a standalone ‘auction’ server.)
As a general rule, client-side increases the audience match rate. (This, in turn, increases CPMs and monetization potential). But it also increases page latency. Server side reduces latency. However, this is at the expense of the match rate. When it comes to selecting which ad stack to go live with, publishers are forced to choose between prioritizing revenue and maintaining the user experience.
For most publishers, a combined approach that leverages both client and server-side setups is optimal, but it needs to be fine-tuned regularly. Ideally a publisher will have an A/B testing framework that moves client-side partners to server-side one-by-one, testing the efficacy in both locations (client versus server). By measuring for revenue, CPMs, page performance, viewability, and bidder timeouts between the test and control groups for the integration locations, the publisher can find the optimal balance to ensure maximum revenue.
For example, an SSP might have a tendency to time out in a particular region when it is called directly from the browser. A successful combined approach might see the publisher permanently move this SSP from client to server side in this specific geolocation. A/B testing, which can be carried out by the publisher or a partner, will show revenue remaining the same and the page latency being reduced. Using this technique with MediaGrid partners, we’ve seen load times reduced by up to 50% and viewability increase by more than 10%.
2. Timeout Rate (how often bidders fail to return ad auction bids within the publisher time limit)
When a bidder fails to return a bid within the timeout limit specified by the publisher, the bid is said to have “timed out.” The timeout rate indicates how often a bidder fails to return a valid bid response within the required time period (i.e. while the page is waiting for it) compared to how often it achieves this. When viewed alongside the bid rate and win rate, timeout rate can help publishers understand the opportunity cost of retaining a particular bidder. Bidders with a consistently high timeout rate harm the site’s user experience and the publisher’s revenue-generating ability.
Historically, publishers grouped all ads on a page and sent them to demand partners in a single request, with one universal timeout. While this reduces page latency, it also increases the likelihood of timeouts and may also reduce the fill rate and user experience.
A better way to manage timeout rates is to group ads based on page position (above the fold, below the fold for example). Then, send these in separate requests to demand partners, with different timeout windows. By tracking timeouts, a publisher can see the time frames in which partners respond. Those with shorter response times can be grouped in ad calls for above the fold inventory. Partners with longer response times can be placed in a second ad group lower down on the page.
The slowest partner may still be a strong revenue generator for below the fold slots, even if they do not bring anything incremental to the table for above the fold inventory. Using this approach, rather than a single request one, we’ve seen 10% higher CPMs and a 20% increase in bid rates.
3. Fill Rate (impressions served versus requests received)
Google Ad Manager (GAM) has traditionally prioritized direct sold campaigns. This means they will be served before line items that have been assigned a lower priority (even if the lower priority items have higher CPMs). These lower priority programmatic ads will get fewer opportunities to compete in auctions. This can adversely affect a publisher’s fill rate, and therefore revenue.
Publishers can achieve higher fill rates within their header bidding integrations by rethinking how they set line item priorities within GAM. This can be particularly important during periods when media buyers are looking to spend budgets (at the end of a quarter or the financial year, for example).
Traditionally, line items are set up in descending priority tiers: Sponsorship, Standard, Network, Price Priority, and House as the lowest with header bidding scoped to run only as Price Priority line items. However, this setup is far from ideal since high CPM header bids are unable to compete with direct sold campaigns.
To correct this, publishers should start by identifying the CPM threshold where the header bidding fill rate of the line item stops growing proportionally to the price tier. (Note, this is data that can be obtained from GAM reports or the SSP’s bid density reports, which include both impressions and bids).
Using this value, publishers can change a line item’s GAM priority tier from Price Priority (which is where header bidding lines are historically placed) to Sponsorship or Standard. This will increase its priority. It will, therefore, increase opportunities to complete in auctions. Based on analysis carried out for our publishers, the CPM threshold tends to be between $15 and $20. Publishers can create higher priority line items for open exchange bids above the CPM threshold value ($20 for example) and let them compete with direct sold inventory.
Uplift can be measured by tracking CPM and spend per line item priority type (Sponsorship, Standard, Network, etc) on a daily/weekly basis. We’ve doubled fill rates when header bidding lines greater than $20 CPM (or the respective monetary value for that publisher) are set at Sponsorship / top Standard priority.
4. VAST Impression Rate (video ad impressions versus bids)
The IAB VAST specification aims to ensure that video ads run in the way a publisher wants, regardless of which website and device they are being shown on. But the high number of technical integrations increases the likelihood of a VAST error in the time between the advertiser winning the auction and the ad being served. Our experience shows that, across the board, 13% of video supply results in errors and no revenue.
Monitoring the VAST impression rate lets publishers know whether video ads are playing. Then, it helps them to mitigate errors if they are not. Setting up a VAST waterfall combines video ads sequentially to ensure an ad is always shown (by having a fall-back VAST ad unit pre-prepared in case a failure results in the first unit not running). Publishers hesitant about investing in VAST waterfall development work may want to encourage their SSPs to support this technology as it also positively affects the video impression rates. MediaGrid partners utilizing this technique have seen 14% increases in VAST impression rates.
5. Downstream Match Rate (match rate between DSPs and requests from the publisher)
With no direct end-user relationships (and therefore no first-party data), SSPs and DSPs rely on cookie matching to “sync” the users that are common to all trading partners. The cookie sync determines a match rate, i.e. the percentage of shared known users. This usually averages 50-80% between each downstream participant. With higher match rates, publishers can command more advertising revenue.
Cookie syncs are often performed “downstream” in the media trading chain (publishers to SSPs, SSPs to DSPs, DSPs to brands). Unfortunately, the reduction in match rate between downstream trading partners (that are not directly connected to the publisher) is compounded at each step. This can result in a loss of revenue for the publisher.
For example, the typical match rate that a publisher has with a connected SSP is 70%. If that SSP has a 60% match rate with a DSP, the overall publisher to DSP match rate is only 42% (i.e. 60% of the SSP-to-publisher 70% match rate). From the DSP’s perspective, it may make sense to only bid on the matched 42% of inventory coming from the publisher, saving on hardware costs by not listening to the unmatched traffic.
Historically, publishers only deploy syncs with partnered SSPs, increasing the user matching with the SSPs. This however also has the side-effect of allowing the SSP to control matching with all other downstream partners. This may not be the best way to achieve the highest match rates. An alternative approach is to include a direct sync with the downstream DSP partners in addition to the SSPs, increasing the match rates with media buyers.
By syncing data between the publisher and every downstream trading partner, such as its top trading DSPs, the publisher can match user data directly with the DSP, improving the match rate and revenue with those key trading partners. Publishers on the MediaGrid using this approach have seen downstream match rates increase almost threefold, with revenue following a similar path.
Measurement for success
When looking to create an optimal header bidding setup, publishers should track as many health metrics as they can. Improving just one of them can increase revenue considerably. And because these metrics can make such a large impact on their business, publishers should not be shy about asking their SSP partners for input, data access, or support.
Armed with more data and solid benchmarks, publishers should create an on-going testing program that regularly and intelligently experiments with the header setup to find the optimal balance for maximum yield (which will change over time).
In early March, Google announced that it was committing to its FLoC method of targeting and would not support alternative identifiers in any of its adtech products. The industry had a small, and understandable, panic attack.
Don’t worry. This is good news. There are still a lot of alternatives available for each use case. Alternatives include cohorts, contextual, authenticated identity, and probabilistic identity.
Cohorts
FLoC (Federated Learning of Cohorts) is technically the addition of a semantic classifier to the Chrome browser. It will scrape page content and URL data and qualify users into small segment groups based on their navigation history. Everyone’s still being tracked, but now only by Google.
It’s a pretty blatant data land grab. Google is using the specious legal argument that if a consumer browses the Internet with Google Chrome, all of the data collected while they browse is the first-party data of Google. Publishers, marketers, and most importantly users of the internet should take a careful look at what Google is doing.
Critical questions:
Is the algorithm that builds these cohorts going to be open to publishers and partners for investigation?
How exactly will Google decide what cohorts to qualify users in? And how can we be sure they won’t be the cohorts that make Google the most money?
How will Google differentiate between valuable and less valuable scraped content?
If one company controls the advertising of, the discovery of, the navigation of, and the monetization of the internet, how is this not an antitrust issue?
Are cohorts privacy safe and are there controls for the consumer? Why, for example, has the Hague flagged FLoC as potentially non-GDPR compliant?
If it’s neither privacy-compliant, nor competitive, nor pro-publisher, then what’s FLoC’s value to the industry?
Contextual targeting
Contextual has gained a lot of traction in recent months. There are some that think contextual targeting is a privacy carte blanche. The truth is a little more complicated. Contextual does not require user consent as long it’s scoped to a single page of content.
However, as soon the context of more than one page is combined, even in session, even on a single publisher’s site, it becomes tracking. Thus, it carries the same legal burden of consent as any other tracking method. Further, without cookies, device IDs or other third-party identifiers, contextual has obvious struggles. These include precision, scale, frequency capping and, most importantly, measurement, which is critical to attract spend from advertisers.
Our recent survey of publishers and advertisers found more than 69% of U.S. publishers are bullish on contextual targeting as a replacement for audience targeting. However, 66% of advertisers disagree. That’s a big enough divide to question placing all bets on context.
Authenticated identity (deterministic)
Authenticated, or deterministic, identity requires the user to provide a known piece of personally identifiable information, such as an email address. To obtain that email address, publishers, data providers, and brands ask consumers to log-in or register to a site/app to access free content, deals, or other services.
There are a lot of worthwhile pros here. Because it can be tied to a person, it’s a highly accurate solution and great for targeting and measurement. Additionally, user consent is easy to track, which allays privacy concerns.
However, how much of the web requires logging in? Early estimates expect the authenticated web to capture 10-20% of users. Scale is a real issue. Some publishers have a clear advantage in the authenticated lane. The vast majority of publishers will struggle to drive authentication, while others have built their value around free and open content. Without deep technical and monetary resources to draw on, authentication could be a game-over for many.
Non-authenticated identity (probabilistic)
To capture the rest of the 80% of the open web, publishers can use non-authenticated identity. This is better known as probabilistic ID. The tech behind the probabilistic method assigns a cluster of devices and browser signals to an ID that can be moved via established pipes into activation channels. Publicly available, IAB-approved signals can include IP address, time stamp, or browser user agent.
Probabilistic identity is the perfect complement to deterministic identity. Probabilistic is data minimized with no email, home address, or phone number required. It scores points for consumer privacy and ensuring that no brute force attack on an encrypted ID can reveal an email or a phone number.
Unfortunately, probabilistic identity is also widely misunderstood in the industry. While it does rely on IP address, some misconstrue it as fingerprinting. In fact, probabilistic identity has no more or less privacy burden then multi-page contextual targeting that leverages a first-party cookie. IAB Europe Transparency and Consent Framework 2.0 stipulates that “with consent, vendors can create an identifier using data collected automatically from a device for specific characteristics, e.g., IP address.”
Certainly, it’s up to you to pick the best solution for your business. That said, it always makes sense to diversify your toolset to capture the most revenue possible. It’s too early to tell which tools will perform best for which marketers. So, having all of them at your disposal allows you to work with more brands.
Many white Americans—and American corporations—were shocked into a recognition of America’s ingrained racism, past and present, by the brutal drama that played out in 2020 on the blacktop of a Minneapolis street and under the knee of a former police officer.
The callous murders of George Floyd, Breonna Taylor, and countless other Black Americans spurred millions to finally take a close, honest look at their communities, schools, and businesses. Eyes turned to newsrooms as we sought to understand why the media’s depiction of these institutions do not reflect the diverse reality of our lives.
History lessons
Echoing uprisings in the streets, we saw similar uprisings within America’s newsrooms. The inequities seen in our communities parallel those long in place in media institutions. And our news coverage and the framing of news stories and issues reflect these biases.
Racial disparities in America are older than the Constitution. They began with America’s original sin of chattel slavery. Tremendous leaps and bounds have been made in the fight to realize the promises in our founding documents for all Americans. Yet those words—that all are created equal—remain aspirational.
The Institute for Journalism Education was born out of this aspiration, of the struggle to ensure all segments of our society are fairly, accurately, and equitably represented. This applies not only to the halls of Congress, but to the pages and screens of our journalistic institutions.
Long before the ubiquity of “DE&I” initiatives and Black Lives Matter marches, Washington Post journalist Robert C. Maynard recognized that white men dominate America’s media organizations. Declaring “We must desegregate this business,” Maynard and eight other journalists founded the institute to train and lift up journalists of color. Robert Maynard’s ineradicable legacy as a true pioneer was solidified when the organization he helped create was posthumously renamed the Robert C. Maynard Institute for Journalism Education.
Amplifying voices
The Institute’s flagship program, the Maynard 200 Fellowship, is about building a new and lasting legacy for entrepreneurs, leaders, and storytellers of color who will shape the future of journalism in America. What we are seeing across journalism right now is a modern-day Civil Rights Movement for journalists of color.
In response, we must foster substantive power, belonging, and agency within the institutions that tell the stories of our society and our world. Through Maynard 200, the institute aspires to empower journalists of color to lead and grow organizations to have cultures of belonging. These leaders will help ensure that media organizations continue to serve our democracy. To do so, they must accurately represent the minds, souls, histories, and perspectives of all Americans.
Like many organizations, we’ve had to pivot following public health protocols due to the ongoing recovery from the global Covid-19 pandemic. That means that, for the first time, Maynard 200 will hold an all-digital training component to serve more than 40 diverse media professionals as fellows across the country. The program provides them with tools to elevate their own digital voices through panels, dialogues, and events.
Diversity and equity
For decades, Maynard has been the standard-bearer of aspiration and expertise in its primary mission of making newsrooms reflect America. It has led the re-envisioning, and advancing, of what it really means to be “diverse.”
In fact, Maynard has flipped the prevalent DE&I convention upside down, by bringing equity to the forefront. Without equity, diversity is only performative. By focusing on equity, Maynard has forged a longstanding record of training and advancing individuals from a varied diaspora of racial and ethnic communities throughout newsrooms and media organizations across the country.
Maynard conceived the “Fault Lines” framework for facilitating honest discussion about highly charged issues, through an understanding of how people with different perspectives can view something in completely different ways. In other words, the way we perceive the world and experience each other is filtered by our own backgrounds and experiences. Thus, diversity of perspectives produces a strength greater than the sum of each individual alone.
We belong
And, as a result of Maynard’s framework, a new narrative has emerged: the necessity and power of belonging. It is not nearly enough for organizations to check a diversity box with new hires. The perspectives and backgrounds and ideas that each individual brings to the table must be fully absorbed into the culture and decision-making of the organization itself. Inclusion alone is surface-level; inclusion can be as empty as toleration. But when you belong, you can feel it. And the implications can be felt in the work you produce.
For the Maynard Institute, pursuing belongingness is about far more than mere integration. Belonging creates the kind of atmosphere where people of color can feel empowered and entitled to bring their full selves into the newsroom, including their history and their perspectives, rather than feeling pressured to contort themselves to fit existing narratives.
Maynard 200 is the institute’s answer to the breakdown in the pipeline of training and jobs for journalists of color. In the wake of the Great Recession, years of progress were decimated in a matter of months. The ongoing public health crisis vis-a-vis the pandemic, America’s widening racial disparities, and the division and hate provoked by the Trump administration have only increased the urgency and salience of Maynard’s cause.
Writing a new story
Repairing all of this damage requires institutions of journalism to be active participants in the dismantling of structures of systemic racism—rather than the enablers of inequity and oppression.
Media organizations can be part of the solution. From the stories they tell, to the sources they use, to the framing of what is news and who is newsworthy, the media is a powerful component in our nations racial reckoning. We believe that strong diverse leadership is critical for this to occur. And so, with this year’s Maynard 200, we renew our commitment to supporting the growth and equity for future media leaders. And it is our belief that these leaders will make an impact that will resonate across all sectors of American journalism and media.
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