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<\/a>robust consumer interest in their products. The response appears to be to club together to build scale, to emphasise the importance of context and brand safety, and to diversify revenue streams, particularly into native and branded content.\u00bb<\/p>\n
That of getting allied is one of the trends pointed by the latest Global Ad Trends report published recently by Warc in a context where newsbrands’ combined revenue has dipped globally by $27.8Bn between 2012 and 2017, with rising income from print circulation and digital advertising not enough to offset a $40.1bn decline in print ad receipts over the period.<\/p>\n
The problem: Over 90% of total revenue sourced from print and digital turnover not compensating the paper decline<\/strong><\/span><\/p>\n Print (print advertising and print circulation) still accounts for over 90% of newsbrands’ revenue worldwide, though the majority now comes from circulation. Print circulation revenue has grown by around 1.6% each year, rising from $80.4Bn in 2012 to an estimated $86.8bn in 2017 (57.5% of the total). Print advertising, once the main source of income, now contributes 33.2% towards the bottom line. Some other data must be added to complete the whole picture: 26.7% readers share news stories on social media; average growth rate in digital subscription revenue is at 34.3%; and a 7.4% of consumers are willing to see advertising in exchange for free news.<\/p>\n Facebook and other big platforms, a chance for scale but also a risk<\/strong><\/span><\/p>\n The majority of publishers state that their main business objective when engaging with Facebook is to use the platform as a distributor of content. Targeting new audiences and building brand awareness are also key goals, highlighting the social network’s scale.<\/p>\n On average, 26.7% of consumers are sharing news stories online, varying from 43.0% in Brazil to 8.0% in Japan last year. But 53% could not remember the name of the newsbrand when referred from social media. Aside from anonymity, publishers have little control over the user’s overall viewing experience, and monetisation of the audience is a significant issue.<\/p>\n Facebook recently made changes to its news feed algorithm, which de-prioritise video content from third-party media outlets. The move threatens publishers’ \u00abpivot to video\u00bb, a strategy which aims to generate more ad income from non-text formats.<\/p>\n Diversification and partnerships with recommendation companies to fill in the $28Bn hole<\/strong> <\/span><\/p>\n A quarter of respondents to a recent WAN-IFRA survey believe that non-traditional revenue sources (i.e. those beyond circulation, subscriptions and advertising) currently account for less than 10% of total income. At the same time, most of them (21%) believe non-traditional income will contribute between 31% and 40% by 2022.<\/p>\n In this context, branded content teams (such as Guardian Labs, WSJ Custom Studios and T Brand Studio) are becoming in-house fixtures, and partnerships with content recommendation companies (such as Outbrain and Taboola) are becoming more than frequent.<\/p>\n Image over the headline.-<\/strong> \u00a9 Warc. <\/p>\n","protected":false},"excerpt":{"rendered":" The Times, The Daily Telegraph, The Sun and The Guardian started last week to commercialise their digital inventory from a single sales point to agencies and advertisers. Each publisher receive an equal stake in the revenue generated from a joint 35.1 millon users audience that roughly equals taht offered by Facebook in this country. James …<\/p>\n
\nDigital (digital advertising and digital circulation)’s share of newsbrands’ ad income is growing, but is not yet enough to offset print’s decline. Income from digital ads ($10.1Bn in 2017, of which $4.7Bn is transacted in the US) now provides a further 6.7% and digital subscriptions just 2.6%.<\/p>\n<\/a>
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