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Advertising | Industry-Research

Programmatic advertising has a quality problem

In the ever-evolving world of programmatic advertising, marketers’ quest for transparency and efficiency is paramount. The 2023 ANA Programmatic Media Supply Chain Transparency Study found that marketers have major concerns about the quality of programmatic buying. The report identifies that approximately 15% of programmatic spending and 21% of impressions appear on low-quality made-for-advertising (MFA) websites. And while marketers include 4,500 MFA sites on exclusion lists, few provide inclusion lists of quality sites for their advertising campaigns.

The study also reveals that the main problem centers on accessing and analyzing data log files. In fact, only half of the 67 initial participating advertisers (52%) owned direct DSP data access through their contracts. For the remaining advertisers (48%), their access to DSP data was mediated through their agency’s DSP contracts.

As background, 67 ANA member companies agreed to participate, but 46 encountered legal issues or could not access their log data from DSPs, SSPs, and Ad Verification providers, effectively barring their participation.

The research identifies additional issues and recommends a more transparent and efficient open web programmatic marketplace. It is based on log-level analyses across $123 million in spending with 21 advertisers and 35 billion impressions and supplemented with 35 qualitative interviews with supply chain intermediaries.

Recommendations

The report observes several operational challenges in programmatic practices. It also offers corrective steps to get more value from the programmatic ecosystem.

Information asymmetry and waste

The study identifies information asymmetry as a significant roadblock to achieving transparency in the programmatic supply chain. Advertisers often lack crucial information about the quality of media inventory sold in auctions, leading to overpayment, inefficient decision-making, and wasteful media investments.

To address this issue, advertisers must demand access to comprehensive and reliable information about the media inventory they purchase.

Data access challenges

Despite the growing interest in data-driven marketing, many companies struggle to access log data from demand-side platforms (DSPs), supply-side platforms (SSPs), and ad verification providers. This lack of data access creates transparency issues, inefficiency, and wastage.

Advertisers should establish direct data access contracts with primary supply chain partners to maximize transparency and gain control over their media campaigns.

Misaligned incentives

The study reveals that advertisers often prioritize cost over value in purchasing programmatic media. Chasing cheap cost-per-thousand-impressions (CPMs) may seem attractive initially, but it often leads to downstream issues in ad quality.

Advertisers must balance cost and quality to avoid wasteful investments and focus on the value their media buys deliver.

Website overabundance

The study shows that campaigns utilized an average of 44,000 top-level domains, raising concerns about fraud, viewability, and brand safety.

Advertisers should streamline the number of websites used while ensuring fairness for small or minority-owned service providers. By reducing the number of websites, advertisers can concentrate on high-quality inventory and mitigate the risks associated with excessive website usage.

Low-quality made-for-advertising websites

The study highlights that low-quality made-for-advertising (MFA) websites, which are created simply to generate ad revenue through sensational headlines and subpar content, accounted for 21% of impressions.

Advertisers must evaluate the suitability of MFA inventory for their brands and consider their tolerance for including such sites in their campaigns. Striking a balance between reach and brand safety is crucial.

Sustainability concerns

Programmatic advertising has a notable environmental impact due to its energy-intensive nature.

Advertisers can contribute to sustainability efforts by making more productive and non-wasteful media buys. Certain website types, especially MFA sites, generate higher carbon emissions. Advertisers should prioritize sustainability in their media buying strategies and opt for environmentally conscious platforms and vendors.

Importance of log-level data (LLD) analysis

The study emphasizes that improved data matching and analysis can significantly reduce the “unknown delta,” which refers to unattributable ad spend.

Leveraging log-level data allows advertisers to achieve a zero-percent delta, gaining valuable insights into their ad spend and performance. Analyzing log-level data empowers advertisers to make data-driven decisions and optimize their media investments effectively.

Manage the supply chain

The ANA report emphasizes the importance of properly managing the programmatic supply chain. This enables advertisers to make informed decisions based on transparency and data-driven insights. Further, it allows advertisers to analyze ad impressions’ impact on consumers and evaluate the financial transaction between the publisher and the overall value delivered to the target audience. This way, advertisers can optimize their campaigns and publishers can improve the ad placements and enhance the overall effectiveness of the advertising.

Effective advertising is not simply a question of reach. While programmatic advertising allows for efficiency and scale, marketers must manage the supply chain in order to make the most of their investment.

Industry-Research

U.S. media sees some promising signs, despite ongoing challenges

In an era where digital media, social platforms, and cutting-edge technology constantly redefine how we consume and interact with news, understanding the dynamics of the news ecosystem is crucial. Each year, Reuters Institute’s Digital News Report  aims to unravel these transformations, provide insights into future challenges and uncover opportunities for news organizations. Remarkably, this year’s report reveals a notable resurgence in news interest and trust within the United States, following a significant decline witnessed in the previous year.

News engagement and trust

According to the report’s U.S. survey, 73% of respondents report accessing news at least once per day, a 6-percentage point increase from the previous year. This rise in news consumption highlights a recovery from the “tuning out” phenomenon that followed the Trump presidency and the height of the COVID pandemic. Although news engagement remains below the peak levels observed during those periods, recent increases offer hope for a rebound.

Moreover, the survey reveals that interest in the news is recovering somewhat, while trust in the news is also experiencing a significant rebound of 6 percentage points following last year’s lows. These findings indicate a positive shift in public sentiment toward news organizations and their credibility.

Local and national news challenges

Despite the signs of increased news engagement and trust, the news industry continues to grapple with economic turmoil. Gannett, the largest newspaper chain in the states, announced a 6% reduction in its U.S. media division, resulting in approximately 200 job cuts. This move follows previous layoffs of 400 employees at Gannett publications. The local news sector is most affected by the closure of over 360 newspapers between late 2019 and May 2022, predominantly weekly newspapers serving small to mid-size communities.

Recognizing the importance of local news, efforts to preserve it are proliferating. These initiatives include the adoption of non-profit and diversified commercial business models, the establishment of start-up labs, and the availability of local and national funding opportunities. There is also a trend towards returning to local ownership, as communities recognize the value of having a reliable and independent local news source.

The news industry’s difficulties extend beyond the local level, with major national media organizations also experiencing difficulties (and the media industry as a whole suffering from record level reductions). CNN announced layoffs affecting hundreds of employees, including discontinuing live programming on HLN, its sister channel. National Public Radio (NPR) cut 10% of its staff and stopped production on four popular podcasts due to a $30 million budget deficit. Vox Media laid off 7% of its workforce, and BuzzFeed closed its entire news division, citing a lack of support from major platforms.

Subscription growth

On a more positive note, the U.S., the subscription landscape for news consumption is thriving, with around 56% of subscribers opting for two or more subscriptions. Additionally, the popularity of platform-based news subscription products, including Apple News+, with 18% of U.S. subscribers, is also rising. Interestingly, this trend of multiple subscriptions is not limited to the U.S. Australia, Spain, and France are also witnessing a surge in second subscriptions.

Within the U.S., 8% of subscribers are willing to pay for newsletters written by individual journalists or influencers, while 5% opt for podcasts or YouTube channel subscriptions. This trend of paying for content from independent creators is still predominantly within the U.S. market. The willingness to invest in personalized newsletters and content from individual creators suggests a growing demand for alternative news sources and a desire for unique perspectives. Although currently more prevalent in the U.S., this trend could expand to other markets as news consumers seek specialized and personalized content.

Social media shifts

The report finds declining engagement with Facebook and the rise of TikTok and a range of other video-led networks. Younger audiences show a weaker connection with news brands’ own websites and apps than previous cohorts – preferring to access news via side-door routes such as social media, search, or mobile aggregators.

Social media as a news access point continues to raise concerns about the potential impact on the diversity and quality of news. With algorithms often prioritizing engagement and clickbait-style content, there is a need for critical evaluation of the information consumed through social media platforms. News and media literacy education remain crucial in equipping individuals to discern credible news sources and navigate their social media-driven news consumption.

A.I. impacts journalism

Debates persist among journalists and researchers regarding the challenges and opportunities posed by A.I. in journalism. Some news outlets, such as BuzzFeed, are using A.I. to create travel guides and quizzes, while Bloomberg has launched its own GPT (Generative Pre-trained Transformer) tool. Nevertheless, many journalists and newsrooms still have concerns about generative A.I.

Amidst a challenging landscape, the Digital News Report 2023 offers encouraging findings of news interest and trust making a comeback in the U.S. Despite economic difficulties and workforce reductions, there are also positive signs, such as a rise in subscriptions and newsletters, which highlight the growth of sustainable paths in journalism.

Industry-Research | Video

Publishers focused on audience, automation and video

In today’s fast-paced digital world, media companies face intense competition across many different platforms. Echobox, a provider of social media management tools, offers new research, “Publishing Trends 2023,” highlighting media businesses’ priorities, challenges, and opportunities. The top three priorities for content companies include finding new audiences (53%), automation and AI (50%), and video content (47%). Staying ahead of the Facebook algorithm (53%), declining traffic (47%), growing digital subscriptions and diversifying revenue streams (both 34%) were commonly cited challenges.

Echobox surveyed a targeted sample of 32 leading media companies across the world. This global perspective includes respondents from 20 countries in Europe (67%), the Americas (20%), and Asia (13%).

Platform usage

Instagram emerges as a vital channel for publishers in 2023. In fact, the study shows that 66% of respondents believe Instagram will play a more significant role in their business this year. Publishers recognize the value of leveraging Instagram’s visual nature for content promotion and audience interaction.

TikTok is also gaining prominence, with 59% of publishers turning to this platform for video content distribution and audience engagement.

Media brands recognize the importance of capitalizing on the visual nature of TikTok and YouTube. By investing in video production and distribution, the report suggests that media companies can enhance their content offerings and attract a wider audience.

However, challenges persist on platforms like Facebook, primarily due to its lack of algorithmic transparency. Approximately one-third of media companies view Facebook as vital, and they want to maintain visibility and reach on this platform. Unfortunately, the opaque evolving nature of the platform requires publishers to constantly adapt their strategies, remain vigilant of algorithm changes, and seek alternative avenues to engage their target audience.

Embracing newsletters

Newsletters remain an area of growth for many media businesses. The report highlights that 56% of respondents plan to expand their newsletter offerings or start producing newsletters in the coming year. Publishers understand the value of direct communication and engaging subscribers in off-platform vehicles. By crafting compelling and personalized content in newsletters, media businesses can establish stronger connections with their audience and help drive traffic to their websites.

AI attraction

The report indicates that 63% of media companies acknowledge the growing importance of AI for their businesses. AI-powered tools and technologies offer immense potential to streamline operations, optimize content distribution, and enhance audience targeting.

Publishers can leverage AI to automate repetitive tasks, personalize content recommendations, and gain valuable insights into audience preferences. Media companies using AI can unlock new efficiencies, improve engagement, and achieve better business outcomes.

Ending third-party cookies

When thinking of the impending demise of third-party cookies in 2024, less than half of the respondents foresee a significant impact on their business. Specifically, 31% do not anticipate any effect and 13% state that they don’t rely on third-party cookies. Of the 50% of publishers anticipating significant impacts, half report they are prepared while the other half are not.

The Echobox report does highlight that, though the growth of newsletters has slowed, the first party data insights they provide does provide a means to offset the loss of third-party cookies.

Future focus

The results of Echobox’s 2023 publisher survey does show a certain amount of continuity from last year, as traffic remains a concern along with Facebook, while newsletters continue to demonstrate value. This year did see significant economic impacts as well as uncertainty around the role Twitter will play for media companies and advertisers. The report finds that publishers are investing resources in a wider array of social platforms in an effort to diversify their own audience demographics and to position themselves for increased adaptability to weather the evolving social landscape and consumer consumption trends.  

Industry-Research

Research reveals conflicting needs from news consumers

News consumers want deeper understanding of their communities and more variety of topics covered. However, they also prefer short-format stories that appear on platforms they already use. Opinions of adults in the United States and the United Kingdom align when it comes to lingering distrust of news and fatigue with politics combined with preferences for quick and convenient news, according to two new studies.

U.S. adults want better representation, practical news

A qualitative study of 5,000 U.S. residents by the American Journalism Project offers unique perspective due to improved inclusion of harder-to-reach demographics such as lower-income, minority and immigrant communities. The study used one hundred community ambassadors to reach people across the country who are not typically among the high-information news consumers often represented in surveys. Focusing on what residents want from local news, the ambassadors gathered input via focus groups, phone calls, and text messages.

Overall, U.S. adults surveyed expressed the following needs:

  • News that is local and can be acted upon
  • Reporting that understands their communities and more fully reflects them
  • Content that is convenient to find and use
  • Better representation of young people, people of color, LGBTQ+, and immigrant communities within news organizations
  • More fact-based coverage, less opinion.

Respondents from lower-income communities, communities of color, and/or immigrant communities said they want local news reporters to engage more deeply with them, preferably including journalists who are from their communities. They want news organizations to report on a wide range of topics in their neighborhoods, not just crime. Where there are safety issues, they want practical guidance to protect their families and advocate for change. They want local news to be of and with their communities, to report news that accurately reflects the totality of their lives and is useful to people in their communities.

Spanish-speaking respondents made the point that language translations alone do not compensate for an absence of insider perspective. English-language learners also want news media to understand that whatever language is being used to report news, immigrants care about a variety of news topics, not just immigration-related stories.

While some U.S. respondents expressed distrust for “the media” at large, especially when it comes to national news coverage of political stories, they also voiced a desire to have a central place to rely on for facts and information. Some said they trust community organizations that provide direct services more than news outlets because those entities seemed to care more about their needs. This aligns with the stated desire for news that provides concrete actionable resources.

U.K. adults want trustworthy, convenient news

Some parallels surface in the study of 2,000 U.K. adults by Tickaroo, a live blogging and video platform. The study found the following trends among U.K. news consumers:

  • Diminishing trust in news
  • Declining interest in political news
  • Preference for consuming news on mobile devices
  • Preference for shorter-form content

U.K. adults expressed concern about misinformation, “fake news,” and spin. 31% said they do not trust the news very much, 55% say they retain some skepticism about the news, and 8% said they hardly trust the news at all. According to Tickaroo’s quantitative research, U.K. users’ reasons for not trusting news ranged from the perception that journalists create spin (43%) to concerns about misreporting (42%) and claims of “fake news” (34%).

Where the U.K. and U.S. studies align

Both recent studies found elevated levels of distrust in news as well as a preference for short-form content. U.S. and U.K. residents expressed fatigue with negative news and politics, and both groups are concerned with getting factual news with less bias.

Aligning with those in the U.K., U.S. residents studied admitted that they often do not seek out news, preferring news to fit into their daily routines and be easily available on platforms they already use. These platforms include popular social media sites, email, and even messaging platforms and text messaging groups.

“Trust Kits” offer guidance for newsrooms

To combat distrust, news audiences need to know how facts are sourced, how newsrooms decide which stories to cover, and which pieces are meant to be read as opinion. Transparency is the lynchpin of these concerns.

Assistance to improve trust in news can be found in Trust Kits launched by Reynolds Journalism Institute and the American Press Institute. Tips focus on the following solution areas:

  • Increasing engagement by listening to and reaching new audiences
  • Making ethical guidelines public and correcting mistakes
  • Explaining how coverage decisions are made and sourced
  • Clearly distinguishing between fact and opinion content
  • Strengthening newsroom culture

It is a balancing act to foster a deeper understanding of communities and provide more varied coverage while also summarizing content into bite-sized packages and appealing formats. However, it is a challenge that must be addressed to reach and maintain news audiences.

Diversity, Equity & Inclusion | Industry-Research | Supporter Spotlight

Growing audiences–and your media business–through diversity

Is our organization serving the right audiences to expand the reach and impact of our journalism? Are we fulfilling our social mission to inform the public and represent the variety of viewpoints of our society? Are we relying too heavily on one type of reader to sustain us financially in the future?

Those are some of the questions that dominated the discussions over the course of FT Strategies and Google News Initiative’s Audience Diversity Academy. In this inaugural six-month programme, six publishers across Europe came together to better understand and address the needs and behaviors of younger and women audiences. This article summarizes our approach and subsequent report, Seizing the diversity opportunity: enabling growth in the news business.  Here, I will focus on strategic guidance, and you can read the full report for  case studies, practical experiments and more.

Why should I care, you ask? 

Besides being preoccupied with questions similar to our participants’, the social turmoil that rippled from societal uprisings across newsrooms in the U.S. continues to cause further pressure. Heavily influenced by uprisings following the #MeToo movement and murder of George Floyd, America’s media organizations are reckoning with the lack of diversity internally and in their coverage. There’s significant room for improvement to be sure: for example just one woman’s voice exists to every 1.7 male voice in stories and the 21% of women of color in the population is reflected by just 3% of editors in politics. 

For the skeptics out there, addressing such organizational and coverage disparities can lead to commercial upsides, among other things. Growing diverse audiences and ensuring a more diverse organization can help your company respond to changing consumer behaviors and economic headwinds. It can also help organizations proactively gain a foothold in the increasingly aggressive battle for talent.

So how can I seize the opportunity of audience diversity?

Our framework below was crucial to building an audience diversity strategy for the participants:

Start with a clear case and diversity goal, backed up by leadership

There are many aspects to consider when baking audience diversity into your strategy. However, a few influential leaders working with a group of highly engaged employees, who strongly identify with the mission, is a great place to start. This means ensuring enough traction at the top to prioritize audience diversity and communicate across the business, while the grassroots can generate practical ideas and excite colleagues. The publishers who moved ahead quicker are those who created a clear goal with hypotheses to test, measuring their progress with defined metrics.

Create regular, authentic mechanisms to listen to your audience and act on their feedback

Journalism is no longer a monologue; the more you invite the underrepresented segments to be part of a conversation, the more heard they feel and the better you understand their needs. Go beyond ad-hoc feedback such as with regular initiatives to collect qualitative and quantitative information such as interviews, surveys, newsroom tours, video calls, website analytics. Make sure you can include audience suggestions on the content and product in your strategic activities in order to create a more diverse proposition. At the FT we have an Audience Engagement team that advocates for high quality, diverse readers.

Sustain the effort to connect to an audience with content for them, experienced in ways that suit their needs

While it is important to avoid negative media stereotyping, underrepresented segments should have access to authentic, equitable and representative content. Having the data in the newsroom to track coverage across communities, how they engage with the stories and the amount of voices, images and sources included can shine light on the limitations of existing content and encourage more diverse commissioning decisions. 

This partly lies with the newsroom. But marketing, product and data should work in cross-departmental teams to ensure there is a variety of tactics to acquire and retain audiences. For example, we found that women are often confined by time, so offering them alternative methods of consumption, such as audio or newsletters, strengthens their engagement with the product.

Reflect the society you serve in your organizational make-up–but look beyond hiring

It is challenging to create a diverse product without a diverse employee base to weave their ideas in stories, design, production and delivery. However, we found that publishers look at their employee data split by (e.g.) gender and tend to conclude they are 50:50. Certainly, you should recognize this achievement. However, it is also critical to examine how employees from minority groups feel at the workplace, how many progress upwards, and what their tenure is, in order to measure your ability to both acquire and empower talent. We experimented with a group of women writing on rotation a newsletter on topics that matter for women. The results showed better individual recognition and a higher uptake of the newsletter by women readers.

I want to note that we cannot reduce diversity to simply age and gender, and diversity is the first step in a long journey towards a more inclusive and equitable audience and organization. However, for the purpose of the programme, we focused on age and gender to make our efforts most impactful. We believe that the approach and the learnings are applicable to other diversity aspects.

Diversity is not simply about representation in the newsroom, or in the content we produce. It serves our readers by better reflecting society. And it serves our business by attracting a broad talent pool, and better meeting the expectations of our audiences. 

About the author

Rumyana is a manager at FT Strategies, and has worked with large media & publishing companies across Europe. She led FT the Google News Initiative Audience diversity programme, and also has experience in content strategy and engagement tactics. She was recently part of the Financial Times’ Audience Engagement team supporting their audience diversity initiatives. Prior to joining the FT, Rumyana was a consultant at KPMG.

Industry-Research | Video

Understanding consumer choices in the evolving TV market

Consumers grapple with an overwhelming array of choices and confusion in an era of rapidly evolving streaming services. The streaming landscape has recently witnessed significant shifts, with established players like Netflix and Disney+ introducing ad-supported tiers, Peacock discontinuing its free tier, and anticipation around the impact of Netflix’s crackdown on password sharing.

In this context, HUB’s Best Bundle study aims to shed light on how consumers adapt to the evolving TV/streaming space and land upon the the ideal combination of services that suit their viewing needs. It delves into the extent to which viewers opt for linear versus on-demand services, ad-supported versus ad-free experiences, and subscription-based versus free streaming services. By examining these variables, the study aims to decipher consumers’ choices when constructing their personalized bundles.

The research shows a notable decline in the average number of TV sources used by respondents from 7.4 in 2022 to 6.4 in 2023. This decline suggests that consumers are consolidating their streaming services and opting for a more streamlined approach to their TV viewing experience. While the average of TV sources declined, the overall demand for streaming services remains robust.

Though the use of streaming remained the same compared to last year, responses with an MVPD bundle dropped to 55% versus 62% in 2022. Consumers continue to embrace streaming as their primary source of entertainment, and the decline in the number of sources used does not imply a decrease in consumption. Instead, it signifies a more focused and curated approach to streaming, where viewers prioritize quality over quantity.

Evolving landscape

Interestingly the largest segment of viewers (63%) continues to be those who utilize a combination of traditional and streaming TV sources. This remains consistent with last year (64%) and indicates that traditional TV sources remain relevant in the face of the streaming revolution.

The study reveals that 27% of viewers plan to add a subscription to their existing lineup, which is higher than the figure in 2021 (21%). While this shows a continued consumer interest in expanding streaming options, it also suggests a slight decrease from the previous year, as 33% of viewers intended to add a subscription in 2022.

Furthermore, more than half of respondents (57%) state that they have utilized at least one free-with-ads (FAST) TV service, which aligns with 2022 findings. This suggests that despite the proliferation of subscription-based services, free platforms with advertising support continue to attract many viewers. Cost-saving advantages of free services are attractive, and advertisements for access to content are tolerable.

The study also highlights a decline in the percentage of viewers who use three or more of the largest subscription video-on-demand (SVOD) platforms. In 2023, only 43% of viewers report using three or more of these SVOD services, compared to 50% in the previous year.

Hub’s Best Bundle research points to a nuanced streaming landscape, with viewers seeking a balance between traditional TV sources and streaming platforms. While streaming services are immensely popular, traditional TV sources still play a significant role in viewers’ entertainment consumption. The addition of new subscriptions indicates that viewers are willing to explore and invest in streaming services, although the growth rate has slowed slightly compared to previous years. Further, as the streaming landscape continues to evolve, service providers must take note of viewers’ shifting preferences. Streaming platforms can attract and retain viewers in an increasingly competitive market by offering diverse content, personalized recommendations, and competitive pricing.

dcn digital media subscription tracking header image
DCN-Research | Revenue | Video

New DCN consumer research: Digital Media Subscription Tracking

Full research report for DCN members only. Register to or login to download (on desktop see top right corner of page, on mobile the top center). Download buttons will appear at the top and bottom of the page.

DCN Members can access the video of today’s virtual event – a review of the study’s topline findings here.

Digital media companies recognize the important role of subscription-based models in monetizing content effectively. Understanding consumer behavior to support this business model is crucial for attracting and retaining subscribers, optimizing user experiences, and staying competitive. DCN’s new consumer subscription study: Digital Media Subscription Tracking offers a deep dive into consumer subscription behavior and covers a wide range of digital subscription services, including SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio – and usage metrics for AVOD and FAST services. The report is DCN members only, please login or register to access (on desktop see top right corner, on mobile the top center).

The Q1 2023 report is available to all DCN members; all subsequent waves will be exclusive to DCN Benchmark participants as part of their Benchmark’s suite of reports offering timely market intelligence each quarter.

This quarterly research, conducted with Screen Engine/ASI, will identify trends and track market penetration, shifts, and growth in the rapidly changing media landscape. The first wave, Q1 2023, surveyed 1,893 adults 18+, representing the U.S. Census population by age, gender, race, and ethnicity. The sample was online-only and represented approximately 89% of U.S. households and adults 18+ with access to the Internet.

Category penetration

One of the study’s key findings is that the U.S. had more than one billion paid subscriptions in Q1 2023 across the digital media landscape – SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio. This indicates that almost all online U.S. households (97%) subscribe to one or more digital media subscription services. On average, households subscribe to approximately nine different pay services when combining all seven digital media services measured in this study.

The SVOD service category has the most subscribers, with nearly a 60% share of total pay subscriptions, followed by MVPDs and vMVPDs, digital newspapers, digital magazines, and digital audio services. The study also indicates that 29% of all subscribers plan to add one or more services next quarter, while 26% plan to cancel one or more, with MVPDs potentially continuing to decline and vMVPD subscriptions potentially increasing.

The study also highlights that free, “ad-only” AVOD and FAST services will continue attracting more traditional media consumers, who tend to be older and watch more linear TV. SVOD with ads and AVOD services will provide a much-needed incremental and growing revenue stream, especially as growth for pay-only services that don’t carry ads slow their subscriber penetration.

Demographic appeal

The demographic profile of digital media service subscribers shows that the heaviest concentration of subscribers for all services combined are slightly younger (P18-34), more male (M18-34), more diverse (Hispanic and African American), family-oriented (parents with children under 18), higher income (households with income $150K+) and slightly more educated. This demographic profile is extremely attractive for advertisers, making the launch of more digital “hybrid” (pay + ads) services likely.

The Digital Media Subscription Tracking study offers digital content companies essential consumer research to support new revenue models and pricing strategies to stay competitive and retain their subscribers.

Please reach out to me at [email protected] with questions about the Digital Media Subscription Tracking study.

Full research report for DCN members only. Register to or login to download (on desktop see top right corner of page, on mobile the top center). Download buttons will appear at the top and bottom of the page.

DCN Members can also access an on-demand video of the study results.

Industry-Research | Revenue

Tips and tactics for the growth of digital native media

Digital media continues to transform the way people consume news and information. Native digital news organizations have become a vital source of information for many people around the world. With fierce competition and the role of social platforms as intermediaries, how can digital native media businesses grow, develop, and publish information with greater independence and sustainability? New research, Project Oasis, from Sembra Media, examines the trends, impact, and sustainability of independent digitally-native news organizations.

To help support the growth and sustainability of independent digital native news organizations, the report includes a searchable media directory. This database includes 530 digital native news organizations in more than 40 countries across Europe. It contains information on the types of stories each organization covers, their funding sources, and their audience reach ‒ showcasing the need for diverse voices and perspectives.

The directory is a valuable resource for journalists, editors, and publishers looking to connect with other independent digital native news organizations. It provides a way to easily find and share important stories and sources that offer diverse perspectives, which are essential to accurately informing audiences.

Challenges

Project Oasis highlights some of the many challenges facing native digital news organizations. One of the biggest is the struggle to achieve financial sustainability. Many of these organizations rely heavily on one or two funding sources, such as donations, subscriptions, and advertising. However, the report found that these sources of funding can be unpredictable and unstable, which can makes it difficult for organizations to plan their future. The research identifies the need for two to six revenue sources as optimal for native digital news organizations to be sustainable and remain independent.

Another challenge facing independent digital native news organizations is the need to build trust with their audience. Many people are skeptical of the news they see on social media and other online platforms. As a result, there is a greater need for independent digital native news organizations to establish their credibility and build trust with their audience.

Optimism

Despite these and other challenges, the report finds reasons to be optimistic about the future of independent digital native news organizations in Europe. These include several key trends that are shaping the future of the industry, including the growing importance of mobile and social media, the rise of video journalism, and the increasing use of data and analytics to inform reporting.

The research also focuses on identifying profitable business models for independent digital native news organizations. These models include advertising, subscriptions, memberships, events, grants, and partnerships.

  • An advertising-based model is the most traditional revenue source for digital news organizations. Competition from big tech platforms like Google and Facebook presents a difficult ad sales marketplace for smaller players. However, advertising is still a viable revenue source for digital news organizations. Digital news organizations should differentiate themselves by focusing on building high-quality content, engaging audiences, and offering first-party targeted advertising solutions to advertisers.
  • Subscription models require high-quality content that engages the reader and convinces them to pay for the content. There are also membership models, which offer a more community-focused approach to revenue generation. Memberships typically offer readers access to exclusive content, events, and other perks, in exchange for a regular fee. The report notes that membership models can be particularly effective for organizations with a strong and loyal following.
  • Events-based revenue models involve hosting conferences and workshops to generate revenue. The report notes that events can be an effective way to build relationships with readers and generate revenue. However, they require significant resources to organize and execute successfully.
  • Grants and philanthropy in funding independent digital news organizations are also available. The report notes that grants and philanthropic funding can be an effective way to support journalism that is not commercially viable. Organizations must carefully maintain their editorial independence and avoid conflicts of interest. The report also notes that there may be viable partnerships and collaborations between digital news organizations and other media outlets, as well as non-media organizations. Partnerships can offer benefits such as shared resources and expertise, as well as access to new audiences and revenue streams.

Future focus

As the digital marketplace continues to evolve, independent digital native news organizations will play an important role in shaping the future of journalism, filling news gaps, covering underserved communities, and combating mistrust and disengagement.

The Project Oasis report and its searchable media directory offer important resources to support the future of independent digital native news organizations. The research provides a comprehensive look at the challenges and identifies opportunities for sustainable growth. The directory also provides a valuable resource to help protect democracy by sharing resources, collaborating on projects, and amplifying each other’s voices.

Diversity, Equity & Inclusion | Industry-Research

Steps to help rebuild trust in news in underserved communities 

Consumer trust in news is a complex and dynamic relationship that varies across countries, platforms, and audiences. Different audiences have different reasons to trust or distrust news organizations. However, misrepresentation and underrepresentation are two common drivers of distrust in news reporting.

Reuters Institute’s new report, News for the Powerful and Privileged: How Misrepresentation and Underrepresentation of Disadvantaged Communities Undermine Their Trust in News, examines this problem. The report is part of the Trust in News Project, which explores the factors that drives trust for audiences in different contexts. The research identifies evidence-based recommendations for publishers and platforms. Reuters conducted 41 focus groups among 322 participants from Brazil, India, the UK, and the U.S. from several marginalized groups.

The respondents include:

  1. Black and mixed-race audiences (people who identified as either preto or pardo) in Brazil
  2. Marginalized castes or tribes and Muslim audiences in India
  3. Working-class audiences in the U.K.
  4. Black and rural audiences in the U.S.

The findings show that many respondents have doubts about the motives of news organizations. Many attribute their distrust to what they see as chronic bias in reporting: coverage that reinforces stereotypes and sensationalized news items.

Detailed findings

Respondents feel that the news media does not reflect their realities or interests but serves the agendas of those in power. The research finds that most participants see the news media as biased and depressing. They feel the news media often treats them unfairly, perpetuates stereotypes, fails to cover them, or promotes divisiveness among groups.

Respondents have different expectations and requirements from news media depending on their backgrounds and experiences. They cite examples of the news media’s misrepresentation in story selection and story framing.

– Emphasizing negative news

– Unfairly treating groups

– Perpetuating stereotypes

– Failing to cover them altogether

– Promoting divisiveness between groups

As one respondent states, “Black and brown people are not just the focus of tragedies; there are successful people among us.”

Many Black participants in the U.S. and Brazil note that most news coverage about Black people only emphasizes negative dimensions such as poverty, crimes, and violence. Further, respondents state that news coverage about high-profile cases of police brutality adds to the complexities and experiences of racism and discrimination in their day-to-day lives. One respondent comments:

“We always knew this was happening throughout history to the lynchings and the Civil Rights era. These things were always known, but seeing it broadcast every day, week after week, month after month, year after year, it’s mentally and emotionally exhausting, and I just couldn’t keep up with it.”

Action items

Research participants want news coverage inclusive of more positive and constructive news stories. They request that news stories be diverse and offer representation, transparency, and accountability. They would also like coverage to offer personal and social relevance.

The report suggests that the news media must address these concerns to rebuild trust and engagement with disadvantaged communities. Recommendations for news media professionals:

  • Invest in more diverse and inclusive newsrooms and sources
  • Provide more contextual and explanatory journalism
  • Avoid sensationalism and negativity bias
  • Seek feedback and dialogue with audiences
  • Collaborate with community media and civil society organizations

Reuters Institute acknowledges the challenges and trade-offs the news media faces in serving different public segments. It argues that there is no single trust problem or solution but rather a need for more nuanced and tailored approaches that recognize the diversity and complexity of audiences.

Diversity, Equity & Inclusion | Industry-Research

Who’s on the beat? You might be surprised

Who’s covering that story? Depending on the topic, it might be easy to guess. Some beats are still disproportionately covered by journalists of a particular gender, ethnicity, or race, according to new 2023 analysis of Pew Research Center data gathered from a 2022 survey. The analysis also broke down beats by age of reporters, and coverage by freelance journalists versus those employed part or full time by news organizations.

Quick facts:

  • Sports beats are mainly covered by white journalists (82%) and men (83%).
  • Health topics are more often covered by white journalists (78%) and women (64%).
  • Travel and Entertainment beats are more often covered by freelancers (57%).
  • Education and family beats were disproportionately covered by young reporters aged 18-29 (22%, though the generation was 14% of the survey) and women (63%).
  • Science and technology beats are disproportionately covered by men (58%) and white journalists (77%). Freelancers contribute 46% of science and tech stories even though they make up 34% of the journalists surveyed.
  • Environment and energy beats are overwhelmingly covered by white reporters (84%).
  • Asian reporters were over represented on topics of science and technology, covering 7% of these stories even though they made up only 3% of the survey, and underrepresented in sports (1%) and local issues (2%).
  • Black and Hispanic journalists cover local and state issues disproportionately (20%) compared to their overall representation among survey respondents (6% and 8% respectively).

Gender imbalances linger

Consumers of U.S. news are still getting most of their sports coverage from men (83%) and most of their health coverage from women (64%). Other topics more likely to be covered by men: government and politics; science and technology; economy and business. In addition to health themes, women were more likely to cover education and family, as well as social issues and policy.

The gender balance is more even when it comes to covering crime and the law, local and state issues, environment and energy topics, as well as travel and entertainment. The original online survey data was drawn from 11, 889 U.S.-based journalists, 51% of whom were men and 46% women.

Beats vary by race and ethnicity

The percentage of newsroom employees who are white is higher than the overall portion of U.S. workers who are white. 76% of the journalists responding to the online survey were white, 6% Black, 8% Hispanic, and 3% Asian.

Black reporters were more likely to cover social issues and policy (15%, although they comprised only 8% of the journalists surveyed). Black and Hispanic reporters were over represented when it came to covering local and state issues (20%) in proportion to their overall representation in the survey. Asian reporters were more likely to cover science, health, as well as social issues and policy. The original survey was available in English and Spanish only, which may have excluded some journalists working in the U.S. who spoke other languages.

While nonwhite reporters are significantly underrepresented in general, Black reporters are particularly so when it comes to issues related to the environment and energy, and science and technology (2% and 3% respectively). Hispanic reporters were particularly underrepresented in coverage of sports and environment and energy (6% of each of these areas).

Generational divides

Interestingly, age seemed less likely to influence the beats of reporters. If there were any surprises, it might be that the youngest journalists, those ages 18 to 29, who were 14% of the survey participants, were somewhat underrepresented in the areas of science and technology (10%) and entertainment and travel (10%). 

However they were over represented in education and family (22%) as well as crime and law (19%). The oldest generation of journalists, 65 and older, made up 14% of the survey and were underrepresented in topics of crime and law (8%). More than two thirds (68%) of the journalists who responded to the survey were between the ages of 30 and 64.

Freelancers versus staff 

Pew also evaluated the percentage of journalists who are freelancers compared to those employed part or full time by a news organization. While 34% of reporting journalists identified as freelance or self-employed overall, the percentages were much higher for the entertainment and travel beat (57%), as well as science and technology (46%). The percentage was also slightly higher in the category of social issues and policy (38%).

In contrast, journalists reporting on crime and the law were much more likely to be full or part time employees of a news organization (87%), as were those who report on government and politics (77%), and those covering local and state issues (75%), as well as education and family issues (71%). Overall, 65% of all the reporting journalists surveyed were full or part-time employees of a news organization.

This is significant given that freelance news journalists are less likely to receive formal training on equity issues. Data showed freelance reporters were 37% less likely to have had formal training or meetings on issues related to diversity and inclusion in the workplace and 27% less likely to have had training on how to cover diversity and inclusion when reporting the news within the 12 months.

Freelance journalists were also more likely to respond that they were unsure whether or not there was sufficient diversity in the news organization for which they work.

  • 22% of freelance or self-employed journalists were unsure whether their news organization had sufficient gender equity (compared to only 6% of full or part time employees of the news organization).
  • 26% of freelance or self-employed journalists were unsure about the adequacy of racial and ethnic diversity within their news organization (compared to only 8% of fuller part-time employees.)

The big picture

Overall, 52% of the journalists surveyed said their news organization does not have enough racial and ethnic diversity. This percentage rose to 68% among young journalists, aged 18 to 29. Women were also more likely to perceive racial and ethnic diversity lacking in their organization (59%) compared to men (46%). Diverse perspectives add value to any topic. By avoiding potential stereotypes when assigning work, media companies can better ensure that their coverage is relevant and engaging.

Diversity, Equity & Inclusion | Industry-Research

Gen Y & Z want media to lead on gender equity

A new study on the gender equity views of Gen Y and Z offers important insights that will help media professionals understand and relate to these audiences. The February 2023 survey of 2,067 individuals by Vice Media Group was comprised of 77% women and 19% men and 71% of the participants were Gen Y, while 29% were Gen Z. The online survey captured responses from around the world: 27% from the United States (US), 24% from the United Kingdom (UK), 24% from India, and 24% from the Middle East and North Africa (MENA).

The “f-word”

Responses reveal young audiences are strongly in favor of gender equality, even if they don’t necessarily identify with the term feminism. Over half (54%) consider themselves feminists – and a full 92% support gender equality. Of those who identify as feminists, 33% are open about it, while 21% consider themselves feminists but are not vocal about it. More than a third (38%) reject the term feminist but still say they support gender equality. Only 8% of those surveyed say they do not support gender equality.

Why do some who support gender equality not identify as feminists? Some survey participants explained they felt the term feminism has been negatively co-opted and politicized by anti-feminists, polluting the term.

So, what does “feminism” mean exactly? Or what should it mean?  More than half of respondents (53%) agree with the statement that the main goal of feminism is “ensuring equal rights and liberties for women as men have.” And 51% agree that the main goal of feminism should be “ensuring equal rights and liberties for all gender identities” (including men, women, trans-gender, and non-binary people). The majority who agree with the latter statement is greater among nonbinary people (87%) and US women (62%).

Most survey participants said that they consider themselves active in the movement against gender inequality. Eighty-seven percent of those surveyed say they act socially against gender inequality, and 77% say they take political action against gender inequality.

Young people want the media to lead on gender equity

Young audiences want the media to take the lead on gender equity issues. When asked “from who would you like to see more participation when it comes to gender equality and or the feminist movement,” 40% of Gen Y and Z people surveyed answered “the media.” This preference was highest among UK women (47%). Nearly a third of those surveyed (32% ) chose “companies/brands” in answer to this question. This view was highest among Indian women (39%) and US women (38%).

So how can media and brands better lead when it comes to gender equity issues?

  • Keep People Informed: Of the 77% of young people who report taking political action against gender inequality, keeping up with news and information about the topic was the most cited method of doing so (43% overall- 52% of US women). Thirty seven percent say they engage on social media with accounts /posts that support gender equality. Nearly a quarter (23%) of all respondents said they would not shop from brands that do not support gender equality.
    • Respect Gender Choice: Young audiences are more likely to define women as people who identify that way by choice. More than half (58%) of Gen Z women, 69% of US women, and 88% of nonbinary people surveyed agreed with statements indicating that womanhood is a choice. MENA women were less likely to agree with this statement, however (36%).
    • Support Body-Positivity: Body image issues continue to plague women to an alarming degree. Body size was second only to mental health in 18 disadvantages cited by women in response to this question: “When thinking about the chances or opportunities you’ve been given so far in your life, which aspects of your identity have been disadvantageous?” (In contrast, men cited socioeconomic class, followed by mental health and level of education.) A full 90% of women agreed with the statement “I think about how I dress and the reactions I might get from others” as a situation they experience as a result of their gender identity. And more than half (56%) of UK women cited issues related to appearance as the most pressing of gender equality issues.
    • Embrace Intersectionality: Over half of young people surveyed expressed concerned that the feminist movement is not inclusive enough. This opinion was especially strong in India (55% of Indian women) and MENA (54% of MENA women). Young people want to see equity when it comes to gender as well as the historically marginalized. This includes people of lower socioeconomic status, BIPOC people, and those who identify as nonbinary.
    • Examine Internal Company Culture: The report authors suggest that valuing the rights and liberties of employees is a critical part of the movement for brands aiming to partner with Gen Y and Z in the gender equality movement.

    A hopeful note

    Encouragingly, 81% of the young people surveyed agree with the statement “I am hopeful when it comes to the future of gender equality.” This hoped-for future includes an emphasis on individual values independent from gender stereotypes: 53% of those surveyed (90% of nonbinary participants) agree with the statement “the future is genderless.”

    Overall, Gen Z and Y eschew gender-based restrictions in favor of celebrating personality and choice. They are open to seeing media companies as partners in this vision. Partnership can range from the media covering gender-equity news to influential brands achieving more diverse representation- internally and externally. Professionals will do well to position themselves as active partners in the gender-equity movement –whether or not that includes “the f-word.”

    Industry-Research

    Do negative headlines drive news traffic?

    Digital news media is continuously battling for reader attention. With fierce competition for engagement and loyalty, it is crucial to identify what drives online news consumption. A newly released study, Negativity drives online news consumption, analyzes news headlines’ impact on news consumption. The findings confirm that negative emotional words in news headlines increase consumption rates. However, the dataset is from 2013 to 2015. So, while the results are certainly worth consideration, it is important to consider whether the same would hold true today.

    Methodology and analysis

    This study comprises 22,743 randomized control trials (RCTs) with over 105,000 different variations of news headlines from Upworthy. Each random control test compares different variations of news headlines, an average of 4.31 variations, that all belong to the same news story. The headline variations are then compared to the generated click-through rate (CTR), defined as the ratio of clicks per impression. 

    The headlines generated approximately 5.7 million clicks and more than 370 million impressions. The research notes that the results are comparable to traditional news sites. However, Upworthy differs from traditional news sources due to their early ‘click-bait’ headline practices. Therefore, there might not be a direct parallel to the headline practices of other types of news sites.

    Detailed findings

    The research shows that a higher share of negative language in news headlines increases click-throughs, and a higher percentage of positive language decreases them. Headlines with an average length of approximately 15 words with a single negative word increase the click-through rates by 2.3%. In contrast, including a positive word in a news headline significantly decreases the likelihood of CTR by about 1.0%. 

    Overall, positive words are more common than negative words in the headlines analyzed ‒ 2.83% were positive words versus 2.62% negative words. Click-throughs overall are low, with the average CTR across all trial experiments at 1.39%, and the median click rate at 1.07%. Only a small proportion of the news headlines tested were associated with a high CTR.

    The research also tests headlines across various news topics – economics, entertainment, lifestyle, etc. Interestingly, they found no difference in click-throughs across content categories. Further, the report notes an analysis in which the researchers study the effects of four emotions (anger, fear, joy, and sadness) and their role in news consumption. Words like sadness increase click-through rates, while words about fear decrease them. 

    • A statistically significant and positive coefficient for sadness increases the probability of a user clicking the headline by 0.7%
    • A statistically significant negative effect for joy and fear decreases the probability of a user clicking on a headline by 0.9% and 0.7%, respectively.
    • No statistical coefficient estimates for anger.

    Again, it’s important to understand the emotional response to these words today compared to the original testing.

    The study’s research integrity is not in question here. This research offers insight into how the presence of certain words links to behavior from 2013 to 2015. However, digital media, news delivery and consumption platforms, and the internet itself constantly evolve. Therefore, while the study provides interesting insights on language choices in headlines, it might not hold true today. Updated research is essential to understand if the emotional effects on readership remain the same. 

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