Patch Wants To Be The Bright Spot In Local News

For many communities, the math doesn’t work anymore for ad-supported local news. Roughly 1,800 local papers closed between 2004 and 2018, replaced by only 400 online-only sites, according to a UNC study. “The news desert issue is real,” said Patch CEO Warren St. John. For Patch, the dearth of local content presents an opportunity toContinue reading »

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Google Is In A Giving Mood With Its App Campaign Rethink

“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.  Today’s column is written by Kazu Takiguchi, CEO and founder at Creadits. Google giveth and Google taketh. The world’s biggest search engine can make or break an advertising campaign, and, luckily for digital marketers, GoogleContinue reading »

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DoJ Piles Onto Facebook; FTC Sues Match Group Over Fake Ads

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here. Yet Another Facebook Probe Bloomberg reports that the Justice Department, at the behest of Attorney General William Barr, will launch an antitrust investigation into Facebook. It’s not clear what exactly the Justice Department will look into, though it will scrutinize conduct that’s not withinContinue reading »

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The next wave: Chinese companies are leading the way in defining consumer apps

Bart Baker desperately wanted to quit YouTube. Since 2009, Baker had regularly produced parody music videos like Jason Derulo’s “Wiggle” (62 million views), Taylor Swift’s “Blank Space” (68 million views), Nicki Minaj’s “Anaconda” (108 million views). But the Chicago native who had moved to Los Angeles to pursue entertainment full-time was fed up with Google-owned video platform by 2018.

“Brands don’t care as much as they used to. Everyone’s an influencer. I’m trying to figure out how people make money on Instagram when every single person is doing Instagram,” Baker says.

In October, Baker found an escape. A Chinese talent agency emailed him about growing on social apps in China. Thinking he had nothing to lose, Baker signed on. As of August, Twitter bio reads, “F#ck social media. I’m more famous than Bieber in China now.” Of course, he hasn’t given up on social media. He’s just looked beyond the U.S. Baker has 12 million followers on Douyin, 6 million on Kuaishou and 2 million on Weibo. He also moved to Shanghai.

Chinese social media apps can be likened to individual U.S. apps, but they encapsulate an entirely different ecosystem. Bytedance-owned Douyin and Tencent-backed Kuaishou both offer short-form video, like Instagram and Snapchat, whereas Sina-owned Weibo is similar to Twitter. But they provide entertainment alongside the utility found within Tencent-owned WeChat, which hit 1 billion monthly active users in 2018.

The U.S. tech industry has long been fascinated by China due to the sheer scale within and the innovation from the market. The interest has only gotten more visible as Facebook’s pivot to privacy emulates WeChat and with Chinese-owned TikTok’s popularity in the U.S. Facebook and Google have tried to work within China, but the platforms are both banned. In the meantime, they are watching and learning from the market.

Tech giants Alibaba, Tencent and Baidu once dominated China when it came to apps. But in 2012, Zhang Yiming found a gap. “Bytedance was able to rise so fast because they caught on this trend of second-tier, rural areas needing this [entertainment]. Alibaba has struggled with social networking. There was always a semi-vacuum in that area where Bytedance now plays,” says Rui Ma, co-founder of San Francisco-based MindHero who previously worked on early-stage investments in China. She runs a podcast on China tech news.

While some say other Chinese tech companies dropped the ball letting Bytedance rise, Natalia Lin, senior product manager at Baidu, says they weren’t looking to compete in that way. Lin is behind Facemoji, Baidu’s popular keyboard app, and says Bytedance’s TikTok and Baidu’s Facemoji also benefit from being quite different than Google’s YouTube or Google’s Gboard.

“Bytedance choose a very vertical area in short video. When we’re on the way to the office, we can kill time with short video. At Facemoji, we choose another vertical area: users who love emoji and DIY,” Lin says.

U.S. consumers love their phones, too. But social app demographics differ in countries. Ma, who grew up in China, says that it’s not younger users — like Gen Z — who are early adopters to and spend endless hours on social media like some do in the U.S. It’s more older workers, outside of city centers, rather than busy students.

David Weeks, co-founder of Sunrise International, an education company based in Beijing, says there are several factors for the high level of China’s screen time per day. “The average urban resident has much longer commutes than in the U.S., particularly in China’s huge tier-one cities. Many entry-level jobs in China involve extended periods of inactivity or dreary tasks. Conventional media is heavily censored and thus tends to be more bland,” Weeks says.

The videos on Douyin and Kuaishou are mesmerizing, but also censored. Baker has transferred his expertise in parody music videos on YouTube to singing English versions of popular Chinese songs. He’s also creating food videos, one of which is him eating an egg. Baker sees the censorship firsthand.

“Douyin blocks so much stuff. I was in a mall once and there was underwear in the background so they blocked the video. You can’t skateboard. You can’t show tattoos,” Baker says.

Baker, like U.S. marketers, are amazed by social commerce. Baker says he’s gone to events, thrown by Kuaishou, where influencers can sell “thousands of products every five minutes” on livestreams and take a commission. TikTok has been experimenting with social commerce in the U.S. But it’s nowhere near the scale of China.

“Social and commerce are closely intertwined in China. All popular social apps — Weibo, WeChat, TikTok — are doing social commerce in one way or another,” says Xiaofeng Wang, senior analyst at Forrester.

When Bytedance bought Musical.ly and later merged it with TikTok, creators hoped it would bridge the U.S. and China. But the truth is the app has and will mostly remain separate due to regulations. “Although they may see the same we are in fact talking about different apps, design and face is the same but the form of censorship is different. Userbase is different, all because of the Great Firewall,” says Manya Koetse, editor-in-chief of What’s On Weibo.

Though, memes do transcend the wall. Take Peppa, for example. The cartoon pig dominated TikTok feeds in July and August, with U.S. teens users making the character appear in random, sometimes sexual scenarios. In the summer of 2018, Peppa Pig had become an icon on Douyin, again in inappropriate ways.

“Gen Z take is converging on both sides of the ocean. Meme culture is strong in China. Peppa Pig is really, really big in China, so big that the government at one point censored it because it didn’t conform to Communist values,” Ma says.

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Vodafone revives plan to bring programmatic in-house

Vodafone is having another crack at buying its own programmatic ads a year after it backtracked on its first attempt to do so due to it being far more complicated than it originally thought.

The telecommunications business has 12 people who currently plan and buy programmatic ads, and is on the hunt for a further nine roles, according to job posts on LinkedIn and Google.

Hires started as far back as January, with the arrival of head of biddable media Meyrick Irving from Omnicom’s Hearts and Science. Other roles were created shortly after Irving’s arrival including programmatic and display team leads alongside programmatic campaign manager, which were filled primarily by agency execs, according to LinkedIn. Looking ahead, Vodafone wants to bring in a mix of senior and junior execs to cover a range of roles from programmatic optimization specialists to manage campaigns bought from its licensed ad server and demand-side platform, as well as programmatic audience specialists to help broker its publisher and private marketplace buys, per the job posts.

Vodafone hasn’t responded to a request for comment; we’ll update the piece when they do.

Building a team to the scale of Vodafone’s unit isn’t cheap. Nor is it for the fainthearted given the biddable media team would handle around a quarter of the $530 million (£405 million) Vodafone spends on media each year, according to media data consultancy Comvergence.

The average salary for a programmatic trader in the U.K. is £33,005 ($40,718), according to job site Indeed.com, while licensing a DSP like the deal Vodafone has with Adform can start at around £20,000 ($24,674) a month to license. That’s the bare minimum for an advertiser like Vodafone, which also has deals with ad tech vendors including Doubleverify, Adobe and Tealium to fund. Expensive talent alongside pricey ad tech can easily push the cost of an internal programmatic team to tens of thousands of pounds each month.

That level of investment is a stark turnaround for an advertiser that wasn’t sure whether it could manage its programmatic investments in-house last October. Back then, Vodafone said it would buy most of its digital ads itself, but only ended up doing so for search and social. Complexity was the enemy of execution for Vodafone and the business ultimately paused attempts to buy its own programmatic ads as a result. At the time, it looked like Vodafone had backtracked on its original plan for programmatic. Global head of media Paul Evans left midway through the project, while Vodafone’s comms had been non-committal on the future of programmatic at the business when they ran into some problems. Now, it’s clear those moves were nothing more than a cautious delay. Taking media in-house is a cultural, as much as it is an operational change, after all.

The company told Campaign in March that early results from buying its own search and social ads had been “overwhelmingly good.” Between June 2018 and March 2019, Vodafone had a team that had between 120 and 150 people in 11 markets including the U.K., Germany, Egypt and South Africa.

It hasn’t all been plain sailing, however. Global director of brand and media Sarah Martins de Oliveira, who spearheaded the in-house drive, left in the summer. While Vodafone is too far gone to do a complete U-turn on its attempt to manage as much of its media investments as it can, it does pave the way for other senior marketers there to tweak the strategy, especially in the wake of it swapping in Dentsu Aegis Network’s Carat for WPP’s GroupM earlier this month for its £405 million ($530 million) global media account.

“The risks we have seen in other businesses are that an in-house media operation sits in a silo away from brand marketers, this is where in-housing fails,” said Tom Denford, chief strategy officer at media management consultancy ID Comms. Vodafone is among the early pioneers, he said. It has a direct-to-consumer model that suits an in-housing approach, but the business will still need its agencies to complete the switch, said Denford. “It’s additive rather than replacing the need for an agency during this transition, and the smart agencies are realizing the role they have to play to support these changes,” he said.

When L’Oréal hired WPP’s Essence in June, for example, it did so in part because it was able to divvy up responsibilities between its own biddable media execs and the media agency’s team. This hybrid model makes a great deal of sense for advertisers like Vodafone and L’Oréal, since the majority can adopt it without much fuss. As long as programmatic advertising remains complex, agencies will continue to benefit and simpler ad platforms will continue to capture more and more media dollars.

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‘Not easy to get a job past 40’: How ageism at agencies affects older employees

Chris Thilk is 44 years old. It’s been three years since he was let go from full-time agency work, and he has yet to find another full-time gig. That’s not for lack of trying, as he has applied to hundreds of jobs over the years. With 15 years of experience in the business, Thilk believes his age and experience level are hurting, rather than helping him in his quest for a new job. 

“It wasn’t too long after I started applying for other open positions — including many at agencies — that I realized there was a big, fat thumb on the scales of the application process,” wrote Thilk in an email. “Listings said they were looking for candidates with two-plus years of experience who had managed at least three major brands. I had all that and more. What I soon realized was that they meant someone with just two years of experience.” 

Advertising is known for its youth obsession — look no further than Advertising Week programming, millennials are out and Gen Z is in — but that’s to the detriment of aging agency employees. Those employees are not only affected by age discrimination in agency culture but find it harder and harder to land the next job. 

The fee-based agency business model — currently under more pressure than ever with fewer agency-of-record assignments, longer payment windows, clients going in-house, among other market realities — has long been dependent on cheaper talent. Teams at agencies rely on armies of younger (cheaper) employees, along with a smattering of more senior-level staffers. It makes experience a commodity. And as agencies need to staff up and down with the number of clients currently on their roster, and fluctuate due to wins and losses, agency economics are in favor of younger (cheaper) employees.

“It’s definitely not easy to get a job past 40,” said Sandy Rubinstein, CEO of full-service digital ad agency, DXagency, adding that there is an assumption when she walks in a room that due to her gray hairs she’s unable to understand digital.  

Agency sources believe there’s more conversation than ever about ageism — especially in recent weeks following creative exec Duncan Milner’s wrongful termination suit against TBWA, which was first reported by Adweek earlier this month. Known for his work for Apple, Milner was terminated by TBWA last June as the agency reportedly said it couldn’t afford his salary anymore and that it no longer had a position for him. That came after Milner was replaced as CCO of the shop, instead named the global chief creative president of MAL/For Good.

But even with the buzz about Milner and renewed conversation about ageism, agency sources don’t believe that discussion has enacted real change yet to combat ageism within agencies. According to Digiday Research, 54% of employees with more than 15 years of experience believe they’ve experienced ageism at agencies and 43% of employees surveyed believe they’ve experienced ageism. 

Part of the problem is that ageism isn’t obvious. Often, it’s a slow realization for agency employees who’ve experienced ageism that the problem is, in fact, their age rather than something else they may have done. The mental gymnastics required to get to that realization can be exhausting and stressful, according to agency sources, who find that ageism can be why they aren’t invited to certain meetings or that it can crop up with coded language, like “cultural fit” in job listings.  

“No one slams a door in your face while calling you ‘gramps,’” wrote Rob Rooney, creative director and co-creator of Over30Under30, a project that works to highlight older agency employees. Ageism didn’t suddenly appear but came up in subtle and overt ways. As for subtly, Rooney believes ageism is why freelance work was easier for him to find in his late thirties rather than his late forties. Much more overt was when a CCO reorganized a creative department seating chart which suddenly had “everyone who had gray hair was sitting at the same table — we ‘joked’ that it was the Elephant’s Graveyard,” wrote Rooney. 

Mental health
Ageism doesn’t exist in a vacuum. Agency sources who’ve dealt with ageism believe it impacts the mental health of those who experience it. For freelancers, the worry that their age will make it difficult for them to get another job, whether that’s a freelance gig or another full-time position, can be consuming.

“It took a huge toll on me mentally,” wrote Rooney. “The stress of having to worry about bills and health insurance in addition to paying for a child’s college tuition was hard to bear. I was struggling so much to perform at my current gig and at the same time trying to find the next one that I let my efforts at self-care take a back seat. I was silently suffering the whole time. There were many, many nights of worry and tears.” 

Older employees who are still full-time, meanwhile, may be left wondering if the way they are treated is tied to their age. At the same time, the looming threat of potentially being laid off due to their age and position — often older employees are higher ranking with bigger salaries — is causing stress and anxiety levels to spike, explained Simon Fenwick, 4A’s evp of talent, equity and inclusion. For example, a more junior employee like an account coordinator may make anywhere from $35,000 to $60,ooo annually versus a more senior account director making between $85,000 to $155,000, according to data from The Creative Group. 

“The experience of being discriminated against, particularly in the category of age has a way of literally eroding your confidence,” said Patti Temple Rocks, head of client impact at ICF Digital and author of I’m Not Done: It’s Time to Talk About Ageism in the Workplace. “You start to doubt yourself.”

“It can make you question your own worth,” said industry advocate Cindy Gallop, adding that there’s “a ton of talk and zero action” when it comes to reining in ageism in the ad world.  

Salaries and new skills
Questioning your worth as an older employee can also be the result of seeing older employees let go from agencies due to their salaries. That can be especially stressful for employees who realize the changing nature of the agency business — as more work is project-based rather than agency of record and clients push out payment windows, among other myriad issues — will certainly impact the number of full-time employees agencies have on staff. “These days, when a 50-year-old is laid off, obviously employers aren’t telling them it’s because they’re too old, but because they can no longer afford them,” wrote Susan La Scala Wood, copywriter and co-founder of Under30Over30 in an email.

Those who recognize the nature of the agency business coupled with their age also likely feel even more pressure to stay relevant within the industry, needing to master new digital skills each week. While people of all ages certainly feel the pressure to master new platforms or ad units, there’s a shift when at age 50 to suddenly become an expert “at things you wouldn’t think a 50-year-old would be an expert at,” said Libby Delana, co-founder and creative director of Mechanica. 

While that feeling that learning new skills to stay relevant can be stressful, agency sources believe that older employees are just as capable as young employees when it comes to figuring out new platforms. “Gen Xers have used and adopted every digital do-hickey from Friendster to Napster to Myspace to Facebook to Twitter to Tumblr to Snapchat,” wrote Rooney. “Don’t tell us were not digital natives. Just give us some time to master TikTok. We’ll get there eventually.”

A way forward
Given the size of the Baby Boomer generation, agency sources believe that the on-going conversation about ageism within advertising will enact change eventually. What that change will be is still yet to be determined. Agency sources believe that older agency employees shouldn’t simply be left wondering when or if they may experience ageism and be without a job but that there needs to be an on-going conversation about what the career path of older employees should be. 

“Many people find themselves in a dark place and it’s difficult to know how to get out,” wrote La Scala Wood. “Young people are given all sorts of guidance and opportunities, as they should be.  But I think the same needs to be done for older folks. This is new territory for most. They need help navigating. They need opportunities.” 

What that opportunity looks like may simply be different than a full-time agency job with a high paying salary. While employees may initially balk at the idea of reevaluating what their role within an agency is, Temple Rocks believes that older agency employees may start to be open to rethinking their roles rather than being out of a job or stuck searching for one that may not pay nearly what they were making previously. Others may find work elsewhere, rather than working at an agency finding brands who are moving services in-house may be a benefit older generations of agency employees, according to Delana, adding that some brands will pay higher salaries for seasoned creatives instead of contracting agencies ultimately saving money. 

Whatever the next step is in employment for older agency employees, helping each other through it is not only necessary but can make the search for work less painful, according to Rooney. “It is tough out there,” wrote Rooney. “There is a massive sea-change sweeping through our industry and there are many, many talented people out there who are under-appreciated and underemployed. During my stint, there were many people who sent me a text just to see how I was doing, shared their list of recruiters, recommended me to a colleague, returned an email promptly, or, and this is a big one, met me for a coffee or a drink to talk shop.”

Disclaimer: Chris Thilk is a freelance writer for Adweek, where this reporter previously worked from March 2014 to April 2019. 

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‘It’s blackmail’: French and German publishers unite to fight Google’s refusal to pay to them copyright fees

France’s and Germany’s major publishers are closing ranks in an attempt to fight back against Google’s refusal to pay them when their content appears in its search index.

For months, European publishers have labored to re-establish a more even economical balance between the negotiating power of large tech companies like Google and publishers via a European Union Online Copyright Directive. The goal of the law, due to take effect in France Oct. 24, is to give publishers the right to request platforms like Google and Facebook pay them for when they display their content online.

But on Sept. 25, Google stirred up a hornet’s nest when it revealed that it had no such intention.

“We don’t accept payment from anyone to be included in search results,” wrote Richard Gingras, vp of news for Google in a blog post. “We sell ads, not search results, and every ad on Google is clearly marked. That’s also why we don’t pay publishers when people click on their links in a search result.”

French and German publishers don’t plan to stand down quietly without a fight. They’re betting on strength in numbers and as such are putting on a united front. The editors of France’s Alliance of the Press of General Information, which represents dozens of publishers, and the European Newspapers Publishers Association both issued statements condemning Google’s move as an abuse of power. Germany’s equivalent  body– the Federal Association of German Newspaper Publishers known — swiftly followed suit with its own statement of intent to stand with French publishers to challenge the ruling, and challenge Google’s position on antitrust grounds, with the European Commission.

“Google is not above the law,” said the ENPA statement. “European publishers intend to remain united in the face of intimidation and demand that EU legislation be respected. Otherwise, a free, independent and quality press will not be able to find its viability in the European Union.”

In France, Google and Facebook account for between 85% and 90% of the display market, making digital ad monetization particularly tough, according to Bertrand Gié, digital media director of Figaro Groupe.

“It’s like blackmail,” said Gié. “You either have to agree to give them the digital rights for your content for free; otherwise, you will disappear from the search.”

Publishers won’t, however, be dropped entirely from search results. Google has said that it will feature headlines and links to articles in the index, but not the text snippet usually seen below it that gives a contextual summary of the story nor the accompanying image. In doing so, Google has said it is within the copyright law without the need to pay a license fee to publishers. Should publishers decide they want the additional image and context snippet, they can inform Google and it will continue to appear for those sites.

But given Google has long informed publishers that their ranking will improve with accompanying image, and contextual news snippet below the headline, that has not reassured French publishers. Some publishing execs have also said they fear it will only mean the ranking of dodgy sites purposefully spreading misinformation and hate speech, will improve. However, Google has maintained it won’t affect rankings.

Gié said that publishers across different European nations would continue to meet and discuss how to push forward. One of the plans may involve revisiting the law to see if there are loopholes that allow Google to take its current stance, which can be closed in a future iteration, he added.

Whether or not the publishers will succeed is another matter. Publishers have the backing of the French government on this, but the German Federal Cartel office has previously ruled that Google had not abused its position in anti-competition cases put against it by publishers. The office stated that if the concept of “universal connectivity” is hampered by search engines like Google having to enter business negotiations with website owners, then users would suffer. Meanwhile, smaller publishers don’t have an issue with Google’s stance either, and acknowledge Google’s role in driving their page visits.

“This is a test for French publishers since France is the first country to implement the directive,” said Fabrice Fries, director general of international news agency Agence France Presse, in an emailed statement to Digiday. “It will pave the way for further negotiations at European level. It is clear that if divisions prevail, the directive is dead.”

Meanwhile the European Publishers Council will also appeal to the European Commission about the ruling, citing that it is an anti-competitive play by Google, according to Angela Mills-Wade, executive director of the EPC.

“Given the strong support for publishers from the French government, who said this was unacceptable and implied they would be talking to other governments, I think we can be reassured that this behavior won’t go unchallenged,” said Mills-Wade. She added that the stance of Google only proves why the directive — designed to level the playing field between monopolies and rights holders with incentives to license — was a necessary move.

“This should be a no-brainer,” said Fries. “I remain of the view that sharing a bit of the value the publishers create with their content would be in Google’s long-term interest: The platforms need quality journalism, and quality journalism has a cost.”

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Digiday Publishing Summit Event Briefing: The strain of revenue diversification

Media companies big and small have embraced diversification. But now they have to figure out how these competing priorities fit together while continuing to evolve them at the pace that the media industry demands. At the Digiday Publishing Summit down in Key Biscayne, Florida, executives discussed their struggles with talent, with competition, and diversification both on stage and in person. Aside from the on-stage presentations, the events were conducted under Chatham House Rules.

What we learned
Revenue diversification requires focus
Many publishers have been testing out new lines of revenue over the past couple years as they seek to make up for declining print and competitive digital advertising dollars. But building them often means balancing competing priorities, some of which can be quite foreign to smaller publishers.

  • Revenue diversification often strains sales teams, who often have trouble understanding the costs associated with the newer products they are selling.  Some publishers have begun hosting regular informational sessions to keep sellers informed.
  • Setting metrics and defining success in the early stages is essential for publishers that are trying something unfamiliar, such as creating commerce content or trying to drive subscription growth. Teams will keep focusing on what’s familiar if they aren’t given clear guidelines for what they should build on.

BOTTOM LINE: Developing multiple lines of revenue is difficult, and whatever balance is struck must come from the top of a publisher’s organization.

Media’s pivot to privacy is picking up steam, and few publishers are prepared for it
After months of sticking their heads in the sand or simply focusing on other things, publishers have woken up to the fact that the California Consumer Privacy Act goes into effect in about three months. Separately, they are scrambling to figure out how to deal with the collapse of third-party cookies, which could dramatically limit the amount of money publishers can earn in open programmatic exchanges.

  • CCPA requires that any California resident is entitled to get a copy of what kinds of information Multiple publishers down in Key Biscayne said their legal teams do not have the infrastructure or resources necessary to comply with those requests.
  • Several publishers, including CNN, The Washington Post and The New York Times, have been using machine learning to assign qualities like sentiment and user intent to their content in hopes that advertisers will revert back to contextual, rather than audience-based targeting. Yet few

BOTTOM LINE: Starting to act like an agency may mean having to function as one, putting up with increased competition, lower margins and more challenges.

Media companies have a talent problem, and it is getting worse
As media has migrated into digital, publishers have been fighting a losing battle with tech giants, marketers and top agencies for data, development and engineering talent. Publishers’ moves into video, programmatic advertising, consumer revenue, commerce and events have only compounded the problem.

  • Much has been made of the concentration of journalists and writers in cities including New York and Los Angeles. But that coastal concentration applies to the business side too: Multiple publishers in attendance complained that it was difficult, if not impossible, to find programmatic specialists outside of major markets.
  • Pursuing consumer revenue requires publishers to add new specialized talent to their organizations. But most publishers don’t have the resources necessary to hire specialists in customer acquisition, retention, consumer marketing and data science, forcing them to hunt for people that can do a little bit of everything at once. Those that do have the resources have to compete for people with these emerging skill-sets with brands, agencies and direct-to-consumer startups too.

BOTTOM LINE: Publishers have to sell these sought-after workers on the mission each publisher is pursuing.

Speaker Highlights
Sebastian Tomich, global head of advertising and marketing solutions, The New York Times, spoke with Digiday president and editor in chief Brian Morrissey about the changes the Times has made to its advertising business.

– The Times has embraced marketers’ preference for fewer, bigger partners to the point that the Times’ and its partners tech roadmaps are intertwined
–  The Times has also slimmed down and simplified its offering, rolling its influencer agency Hello Society into Fake Love, its experiential marketing arm
– It is focusing less on positioning itself as a purveyor of creative services. “If you have David Droga saying he cannot compete against the Accentures of the world, as an investment it’s probably not the right one,” Tomich said.

Mark Howard, chief revenue officer of Forbes Media, gave a solo presentation about the ways that the business publisher is tackling revenue diversification, both at the site design level, where it is looking to capture more first-party data, and through newer product and business development. Three takeaways:

– An addressable market does not need to be large if you can monetize that audience effectively. A planned membership product for 30 Under 30 inductees is unlikely to attract more than a few thousand members, but a high price and premium ad opportunities give it the potential to become a seven-figure revenue business
– Diversification starts with a clear understanding of what readers are consuming and how. Forbes overhauled the way it tracks readers to get a clearer picture of who reads what.
– There is an opportunity to build enterprise-level, recurring revenue products out of programs that started as things that were sold at a campaign level. BrandVoice, a paid content offering that Forbes launched 10 years ago, now offers brands a SaaS-type service that gives them unlimited publishing through Forbes’s platform

Overheard
What’s in a name?
“When you’re building out inside sales, you don’t call them call centers.” — Kevin Gentzel, CRO, USA Today Network

Not everybody understands how desktop notifications work
”We get a lot of emails from people who say, ‘Why are you in my computer?!’”

Everybody is under pressure. Except some people.
”Editorial teams are a little insulated from accountability, especially compared to the duress that the product or marketing group is under.” 

Scale is out. Except it’s not
“The threat is not getting consolidated. The threat is competing with the companies that have been consolidated.”

Invest your video money somewhere else
“We basically took all our money out of podcasting and put it in audio.” – Charlie Kammerer, president, Slate

Challenge board confessions

“IVT shakedowns!”
“Google taking too much”
“Cost of brand safety on broad category domain”
“Which programmatic managed service provider to trust?! Anybody got a list?”
“Measuring ROI of digital platforms”
“Unified pricing rules”
“Profitability”
“Branded content margins”

The post Digiday Publishing Summit Event Briefing: The strain of revenue diversification appeared first on Digiday.

How BBC News creates new content verticals

BBC Global News is launching more verticals and sub-brands — outside of its regular news cycle — in order to grow its international audience and drive more ad revenue.

Currently, BBC has five content verticals — Culture, Travel, Future, Worklife and Reel — which houses its non-news video content. Within the verticals, it has sub-brands based on audience and advertiser demand. This week, the BBC launched two sub-brands under the future vertical, Future You, focused on wellness, and Future Planet, focused on sustainability, announced at the BBC’s U.K. Upfronts event.

Broadening the scope of its Future vertical was a natural progression, said Mary Wilkinson, head of editorial content at BBC Global News. As well as being hot-button topics like sustainability and wellness, advertisers are becoming more active in the space.

“Climate used to be a bit of a turn-off for audiences, but now we can frame it in a way where we can mitigate against the worst effects,” she said. “People are genuinely hungry about it and expecting more from corporations and governments.”

On the BBC Future vertical, stories on plastic pollution, wooden houses and the poisons released by the melting Arctic ice are getting between 150,000 and 280,000 unique visitors each, according to the publisher. Another wellness piece published on Future recently examined whether eating eggs is bad for health. According to Wilkinson, this has had 1 million page views and a dwell time of five minutes.

Aligning with sustainability has been inching up the list of priorities for a lot of brands across industries like technology, travel and finance. BBC has two conversations with brands about content campaigns running on Future Planet, and Wilkinson is confident the sub-brand will prove popular. According to the company, 62% of its audience across platforms are millennials, between 25 and 35 years old. BBC research indicates this age group has more positive feelings toward brands that champion environmental issues.

Wellness is also a booming category, and the BBC is looking for a slice of the $4 trillion global industry, according to stats from the non-profit company, Global Wellness Institute. According to research from the BBC, 38% of its audience are health, fitness and beauty enthusiasts and 21% have engaged online with brands in the health care, pharmaceutical and beauty products space.

Branded content and sponsored editorial are driving the growth of BBC Global News revenue, said Wilkinson. 2018-2019 was BBC Global News’ most profitable year, thanks to 4% sales growth in both ad sales and distribution revenues. Ad sales in the U.S. grew 16% year over year, the region’s best performing year, although it wouldn’t be more specific with figures.

“It’s not an easy ad market,” said Wilkinson. “You need to constantly make sure you understand what clients want and that you’re giving them what they need. It’s slightly unpredictable with global changes, in one part of the world it will be feeling the squeeze so you need to look elsewhere to make up the shortfall.”

A lot of the appeal for organizing around verticals and sub-brands, for the BBC as well as advertisers, is the flexibility to create new hubs to respond to audience trends. In July this year, it launched Worklife, which covers how work and the culture of work is changing. The team of five at launch, led by site editor Kieran Nash, opted for a quality-over-quantity model, publishing one or two deep-dive pieces a day. This ranges from 996, the startup culture in China of working from 9 a.m. to 9 p.m., six days a week, to the growing demand for happiness coaches in India.

Like other BBC verticals, the popularity of articles like “How to tell if you’re close to burning out,” with four times the average traffic, and “Garages — the new affordable houses?” with three times the average traffic, spurred Worklife into being.

“There are other sites that cover topics of interest to millennials and other sites covering business lifestyle content, but no one is doing it with a good global perspective,” said Nash. “The BBC is the leader in global news. We thought we can cover these topics of work and life successfully.”

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