Ever since the consumer hopped online, publishers have been fighting a steady loss of revenue from print ads and subscriptions, causing many of them to close their doors for good.
But over the past 5 years, publishers, agencies and digital ad-tech providers have worked together to perfect the art and science of digital advertising. Now, according to research reported by eMarketer, those efforts are starting to pay off. According to their recent report:
- 88% publishers predict revenue will grow in the coming year
- 62% credit a rise in digital ad sales for revenue growth
- Less than 25% are counting on revenue from subscriptions
For their part, publishers are focusing on exploring data that allows them to truly understand their users. When asked the best way to increase revenue of any kind 35% said, “Showing advertisers we understand our readers and can target effectively.” Another 25% said that personalizing content to keep readers on their sites longer is the ticket to bringing in more cash.
Only 22% of respondents feel that converting readers to paid subscribers will yield higher revenues, and just 10.6% of publishers said that personalization of ads — a key goal for advertisers – will do the trick. A scant 5.6% of publishers said that introducing ecommerce to their sites would earn them more revenue.
We all have reason to be optimistic about the future, thanks to rapid growth of programmatic. Marketers now see programmatic as more than just a strategy for media acquisition. They’re using it to gain insights into their customers, optimize their creatives, and discover new pockets of demand. We’re also seeing the rise of a new C-level position: Chief Programmatic Officer. The future is particularly bright for those who embrace programmatic in all its forms.