Digiday Research: The pandemic sped the wrong things up for publishers
Over the course of 2020, media industry analysts and observers started likening the effects of the COVID-19 pandemic to a time machine, one that had transported people five or 10 years into the future.
If that’s true, publishers might not like where they’ve been taken, according to new Digiday+ research. At the start of the third quarter of 2021, publishers are more reliant on direct-sold advertising than they were a year ago, and many incremental or complementary revenue streams now play smaller roles than they did 6-12 months ago.
While some of those changes are unsurprising — events were a tough business to grow in 2020 — others serve as a reminder that publishers have a long way to go if they want to truly diversify their revenue streams.
In early July, Digiday polled 126 publisher professionals about how their companies make money. The survey presented a list of revenue sources and asked respondents to indicate how much of their revenue came from each, using five options that ranged from “none of our revenue” to “an extremely large portion of our revenue.”
The survey marked the third time Digiday has asked its research panel these questions; it previously asked them in the first quarter of 2020, and the third quarter of 2020 prior to that.
While the respondents — and the exact number of them — in each sample was not identical over time, their composition was similar; in all three samples, Digiday received at least 30 responses from publishers that generated less than $10 million in revenue per year, 30 responses from publishers that generated between $10 million and $50 million, and 30 responses from publishers that generate more than $50 million per year.
The results showed, more than anything, that direct-sold advertising has become significantly more important to publishers than it was 12 months ago.
It also showed that many areas of strategic importance, such as subscriptions, are basically flat compared to where they were 12 months ago as at least “large” sources of revenue. Others, such as branded content, actually slid backward from that perspective.
Signs of more modest progress could be found if the results were examined from another angle. For example, affiliate commerce now represents at least a “moderate” portion of revenue for 30% of publishers, up from 18% in the first quarter of this year and more than double the 12% it represented in the third quarter of last year. Similarly, video advertising now represents at least a “moderate” portion of revenue for a majority of publishers for the first time.
Why The New York Times’ Wirecutter is ramping up focus on style
In early 2021, Wirecutter soft-launched a new dedicated style section and is is currently hiring for style-dedicated roles.
‘Culture change takes years’: Facing ongoing calls for DE&I gains, publishers set new standards for hiring practices
The media industry is trying to solve a long-standing challenge: it is mostly white and male. Here's how some publishers are doing it.
Meet the ‘absolutist’ with the Section 230 tattoo on Google’s new misinformation policy team
Part of a nascent government affairs and public policy team at Google, Jess Miers is a die-hard fan of the 26-word law that gives legal cover to big tech platforms.
SponsoredHow retailers can be ready for holiday shoppers this year
Suchi Sastri, managing director and partner, Boston Consulting Group As the holiday season approaches and the pandemic continues to evolve, retailers want to know what to expect. Will e-commerce continue to grow at the rate it did last year? How big of a role will in-store shopping play in holiday shopping? While it’s still early, […]
‘A perfect time for someone like me to be in this role’: Maria Reeve is breaking barriers at the Houston Chronicle
Maria Reeve didn’t set out to become the first person of color to oversee the Houston Chronicle’s newsroom. But now that she is, she’s making it count.
Maven rebrands to The Arena Group and reorganizes around sports and finance
The Arena Group owns and hosts the domains of over 200 sites and generated $143 million in revenue for the year ending June 30, 2021.