We live in a data-driven world, but of all the charts and reports I look at each day, there is one I turn to more than any other.
It’s a simple comparison showing how much of our revenue is coming directly from our content compared to our traditional advertising streams.
Depending on my mood, I find the data motivating, empowering or alarming – and sometimes all three at once.
Our ‘content revenue’ encompasses many things. The deals we have struck with the tech platforms, syndication royalties, subscriptions, partnership revenue from recommendation platforms like Outbrain and old-fashioned newspaper circulation revenue.
In short, it’s everything that doesn’t involve an ad rep actively selling something to a client.
It’s empowering and motivating as it gives journalists absolute clarity over how their stories can directly improve the bottom line and how we can build a sustainable business without relying purely on a turbulent advertising market.
It’s alarming because, as our content revenue moves ever closer to the money we generate from advertising, it’s clear quite how hard we need to fight to retain and grow it.
Deals with Google and Meta are undeniably helping publishers transition to fully digital business models and, I would hope, are establishing genuinely symbiotic relationships with the tech platforms.
But without legislation – or at least the threat of it – underpinning these deals, it can be hard to plan for the future with confidence. Would Meta willingly renew its existing deals for its Facebook News platform unless it had to? Experience from overseas would indicate not.
The Digital Markets Unit, which will oversee a new regulatory regime, has been an awfully long time in the making.
Supportive words from both Secretary of State Michelle Donelan and Leader of the Opposition Sir Keir Starmer in recent months about the importance of levelling the playing field between publishers and platforms give hope for the future, but 2023 has to be the year words become action.
My other big hope for 2023 is the industry continues to compete where it needs to compete, but recognises the opportunities where collaboration can be to all our benefit.
We have seen this happening over the past twelve months with the creation of the Public Notice Portal – an industry-owned website built in collaboration with Google offering a best-in-class experience for anyone searching for planning applications, road closures or any other such announcements.
How different would things be now if we had taken a similar approach decades ago when we stood by as Right Move et al ate our collective lunch?
We can guarantee the next twelve months won’t be plain sailing but further collaboration and delivery on promises from Government would at least give us cause for optimism.
This article was first published in the Publishing Partners Guide (PPG) 2023, which is published and distributed by InPublishing. You can register to receive InPublishing magazine here.
