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What Does News Media Own?
Have you read Ben Thompson’s article, titled Manifestos and Monopolies? It’s worth digging into the editorial. Thompson paints an interesting picture of the future of the world’s largest platform. Of all platforms, really. You could easily search and replace "Facebook" with any of the other platforms, and the points would be just as on point.
Today the fundamental impact of the Internet is to make distribution itself a cheap commodity — or in the case of digital content, completely free. And that, by extension, is why I have long argued that the Internet Revolution is as momentous as the Industrial Revolution: it is transforming how and where economic value is generated, and thus where power resides...
In this brave new world, power comes not from production, not from distribution, but from controlling consumption: all markets will be demand-driven; the extent to which they already are is a function of how digitized they have become.
There are about half a dozen other points in Thompson's article that require attention and consideration, but the one above stood out for me while reading. The ability to control consumption, and drive demand for digital content is what's missing from the revenue equation that everyone is trying to balance in the media industry lately. How can a media company, built on the open, world-wide-web compete with platforms, unless they become platforms themselves?
Facebook and Google are the internet now (it’s been that way for a while), and there may be no going back. One company controls the web’s entire social graph and the other controls access to inquiry-based searches. But, what do media and news sites control?
Enter Thomas Baekdal’s fantastic tweetstorm (Twitter should officially embrace tweetstorms, btw). Baekdal argues that advertisers prefer to place their money with platforms because platforms offer audiences more than “overwhelming negativity.” Another point that’s hinted at, but not stated overtly is that Google and Facebook have done a fantastic job in creating ecosystems where brands have a moment to stand alongside the other content. That’s something newspapers, and other news-centric media companies have struggled with over the last decade, especially on the internet. They’ve taken print journalism’s paradigms and tried to apply it directly to the internet.
But, the term “alongside” makes all the difference here.
Looking for something specific? Google created an opportunity for marketers to advertise against those queries alongside other search results. Want to connect with friend and family? Facebook made it acceptable to also check out brands and influencers alongside updates from friends and family.
Want to get the news? News sites have also made it possible for brands to… to… popover, under, between, above, around, and in place of what you’re looking for on a page.
That’s a big difference in approach. That’s what news companies are up against today. That’s why people keep going to platforms first, and why destination websites are quickly becoming a thing of the past.
Consumers want more “alongside” and a lot less “instead of” based advertising paradigms. That's the field the industry needs to start playing on if it wants to turn this game around.
PS. We're working on a podcast series that focuses on the future of ad tech. Can't say too much yet, but we're looking for people across the advertising and marketing industry to chat with, so if you're interested, please reach out. I'd love to hear from you. (adtechweekly@gmail.com).
AdTech News And Editorial
Red Wedding At Rubicon Project As President Greg Raifman And 6 Other Brass Exit
Raifman and six other executives have been shown the door, according to two 8-Ks filed late Tuesday. Most of the departing executives had joined to build Rubicon’s buy-side business, which it’s now steering away from. However Rubicon told AdExchanger it will continue to support for its bidding technology.
The death of the click
As the industry moves away from click-through rates (CTR's) as the most meaningful marketing metric, those publishers will have a difficult time justifying the effectiveness of their platforms for marketers.
Neuroscience Study Says Ads Are More Effective on Publishers’ Websites Than Social News Feeds
Neuro-Insight, a neuro-marketing company, examined content from four major publishers—Condé Nast, Forbes, Time Inc., and The Atlantic—and found that test subjects were 16 percent more likely to find web posts relevant or engaging than similar content in social feeds.
Google rolls out fact check feature in new markets as it steps up fake news fight
The tool will now be available to users in Argentina, Brazil and Mexico. A 'fact check' label will now appear for readers in these regions alongside established tags like 'opinion' and 'in-depth' in Google News search results and in the Google News and Weather App.
Publishing
The Outline’s Josh Topolsky: There’s too much sameness in digital media
Insightful podcast. Worth a listen.
The fatal flaw in subscription models
Various studies have been done on how people consume news, particularly in the US, but there is very little information on how many different outlets a user will read from. Increasingly, it is the article rather than the source itself which garners attention, with the most widely-known publishers being those who have mastered social distribution.
Acquisitions
Ghostery Sheds Its Ad Tracker, Sells Off Its Plug-In To Focus On Compliance
On Wednesday, the company announced that it’s been acquired in an all-cash deal by Cliqz, a German privacy-focused browser that plans to use the ad-tracker tool to help expand its user base. The companies did not disclose a deal price.
Selling Direct
‘We go straight to the publisher’: Buyers beware of SSPs arbitraging inventory
“If someone is dumb enough on the agency side to think they are getting our inventory on an open market without talking to us, then let them waste their fucking money,” the exec said. “It is buyer beware on the open market.”
Platforms
How The Washington Post plans to break news on Snapchat
Unlike other Discover partners, The Washington Post plans to be a source of breaking news content on the platform, which means posting new editions multiple times a day, every day. The number of times The Post publishes to Snapchat Discover will depend on the news cycle, but it’s expected to roll out new content at least twice a day within its daily edition.
Klipfolio: We Spent $100k On Facebook Ads. Here’s What We Learned.
A fantastic article outlining what Klipfolio learned by spending 100k on Facebook.