This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
Democracy relies on a free exchange of information. We have to know, and be in the know, to guide informed action. Great information exchange and solid decision-making needs great journalism. We rely on our front-line journalists to convey information and analysis. We rely on publishers to curate and circulate the most informative stories and research. But great journalism doesn’t happen without funding. In a time of increased digital competition, quality news publishers face significant revenue challenges. Blockchain technology may offer new solutions.
Advertising and Subscription Models are Broken
In traditional news publishing, revenue relies on audiences. As publishers witnessed audience departure from print, TV, and radio news, many outlets were left to fight for their own in the digital frontiers. Online, many news publishers recreated their traditional print revenue models and continued to rely on advertising revenue, with digital impressions and views substituting for hard copy circulation data. Yet in the face of competing media, ad revenue for news-driven sites is on the decline. Digital advertising revenue overall has increased, but the increase is specific to search engines and social networking services, which produce little original content. Statista reports that in 2021, Facebook and Google alone accounted for more than 50% of total digital advertising revenue.
Subscriptions and paywalls are also not providing the fix for news publishers, nor providing the public with easy access to newsworthy information. Rather, digital subscriptions serve as a bandaid to the wound of falling ad rates. The Association of Online Publishers (AOP) and the News Media Alliance report small revenue bumps from subscriptions, but an overall decline of ad revenue that continues to outweigh these gains.
The ad revenue decline is logical: bombarded with ads on every platform, users are desensitized and accustomed to ignoring constant calls to action. The first banner display ad in 1994 received a click-thru-rate of 44%. As of 2019, the average engagement was just 0.35%. The growth of the use of ad blockers …
Full story available on Benzinga.com