Publishers face a constant battle of staying profitable while maintaining journalistic integrity, so the need to develop several revenue streams is critical. We break down some of the key challenges and potential solutions.
As more independent publishers emerge each year, the fight for attention is becoming an increasingly important battle for established ones. Losing readers, after all, usually means losing revenue as well.
According to The Guardian, over the last decade, approximately 300 local newspapers in the UK have closed, with UK print publication ad revenue halving over a six year period.
The picture is much the same in the US; one-third of local news outlets have closed since 2005, mainly thanks to a lack of demand from consumers due to the emergence of other media sources.
Amid the ever-present volatility brought by the explosion of misinformation proliferation and the use of AI technology, the need for adaptability and innovation becomes critical for publishers.
However, the end of third-party cookie support in Google Chrome presents a new opportunity for both news publishers and media companies to take stock of their revenue streams and better understand the advertisements they’re putting in front of their audiences, optimizing accordingly.
What are the biggest challenges facing news publishers today?
In today’s world, trust is everything. Publishers are working hard to make sure their reports are accurate and to fight false information.
In fact, a World Economic Forum report labeled misinformation and disinformation generated by artificial intelligence as the single biggest threat to the world over the next two years, one that poses a greater risk than even extreme weather events and armed conflict.
A significant story from this year saw a series of deepfake images of Taylor Swift go viral with over 27 million views in 19 hours before it was taken down.
Not only does this type of manipulation harm the person in question, but if the fake images were incorrectly reported to be genuine by a prominent news outlet, reputational and financial harm could easily follow.
Fortunately, this particular issue was resolved swiftly. Nevertheless, it highlights the importance of having clear and robust fact-checking procedures in place to foster a more transparent ecosystem, one that prioritizes truth, integrity, and audience trust.
While cost-cutting measures and organizational changes are becoming more frequent for many online publishers, they should not compromise the quality of content.
Exploring ways to train and upskill existing employees, or to leverage new technologies, can be an easy way to minimize risk without ramping up costs.
The decline of print media
As we have seen, print advertising – once the cornerstone of revenue for many publications – has experienced a strong decline in recent years.
Online media, and the shift of younger audiences away from physical to digital media sources, have taken away much of its demand.
A telling sign can be seen in the total number of actively purchased print publications in the UK, which have fallen by 70% between 2010 and 2022.
The same can be seen in the US where. According to Pew Research, the daily newspaper circulation (both print and digital) was 20.9 million, falling around 8-10% compared to 2021.
This lack of demand for print news has forced more publications to emphasize online media and the advertising revenue that comes from that, as print faces a dire need to innovate.
Online advertising: A necessity for survival
With online publishing, display advertising has become increasingly predominant in their online reading experience – often leading to complaints.
On top of that, the digital space is undeniably saturated with competition, which makes it challenging for publishers to secure a significant share of online ad revenue as their space is valued against what the advertisers are willing to pay.
A Digiday and Permutive research report found that 60% of publishers said advertising would account for “one-fifth or less” of their annual revenue in 2023.
Programmatic advertising, although efficient in terms of speed and ad placement, often yields relatively low returns when compared to alternative agreements and carries the risk of displaying irrelevant or even harmful content.
Despite the possible reach of digital advertising, publishers often struggle to maximize returns, especially with the dominance of programmatic advertising.
The report found that open marketplace deals produced less than 21% of their annual ad revenue, showing the demand for more direct relationships and agreements with brands to generate the best deals for everyone involved – something we’ll go into more detail later.
What can publishers do to improve engagement and increase revenue?
There are several different ways in which publishers can increase engagement with their readers and simultaneously boost revenue – which is most effective is up for debate.
The continued evolution of privacy measures, such as the dropping of support for third-party cookies on Chrome, highlights the value of strategic partnerships.
Publishers can increase their revenue and attract more readers by partnering with relevant tech companies, brands, or agencies that can help them promote products and services that their audience already enjoys.
There are numerous success stories, in particular in Norway, whose news outlets are judged to be leaders in digital media subscriptions. But these partnerships can go beyond just brand deals and include other news sources.
The New York Times, for example, has developed a unique subscription bundle that combines other areas of its business to offer potential customers a more rounded package.
It includes news, games, recipes, audio & podcasts, reviews via Wirecutter, and sports coverage via The Athletic.
This bundle has helped the organization achieve an annual digital subscription revenue of more than $1bn for the first time in its history, with 9.7 million of them digital-only.
These models aren’t new but by creating more holistic packages it offers additional value to customers and gives ample opportunity to promote affiliated businesses.
Understanding audience preferences
Already, most publishers have embraced a multi-platform content strategy to engage their audience segments effectively.
Yet, this type of audience segmentation can also dictate decisions about what brands and advertisements should feature onsite.
Research from the Digiday and Permutive paper found that 65% of those interviewed said data and analytics have the greatest impact on driving positive ad revenue outcomes.
As well as all this, direct ad sales, curated marketplaces, and sponsored content partnerships all provide more tailored opportunities for publishers to have greater control over ad placement suited for their audience.
Adopting other forms of advertising, such as in-image advertising and augmented reality ads, also presents new options to promote any advertisements effectively.
News outlets can’t control what brands make, but stronger relationships with brands and agencies promote more free sharing of ideas to achieve the best results for both parties.
How does SmartFrame help news publishers generate more revenue?
At SmartFrame, we are committed to creating the most sustainable ecosystem for all those involved with photography and publishing.
We’ve designed an ecosystem where all parties receive due recognition for their contributions.
Our publisher partners enjoy unrestricted access to a vast library of exclusive and historical imagery through an ad-funded model.
Here’s an example of such historic images that are only accessible in this format through our New Zealand Rugby library.
This grants them license-free access to streamed image embeds for online usage, together with JPEG access for use in print and where an embed cannot be used.
Moreover, publishers maintain full control over the ad campaigns, with each campaign undergoing approval before it’s put into place. This ensures that publishers retain control over the content featured on their platforms.
By embedding our images into their content, publishers benefit from the advertising that’s layered over the image in a non-intrusive manner.
Think of it as a new advertising billboard seamlessly integrated into an article that enriches the content with exclusive imagery and provides contextually relevant ads without disrupting the reader’s attention or load times.
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