A Look at 2023 Media Outlets
1. A slower advertising growth
Global advertising is expected to increase by 5.9% in 2023, according to the latest forecast from Group M.
Connected TV is likely to be a big global player in terms of increase in revenue.
2. Digital Subscriptions slowdown in growth
Growth for most subscription platforms are achieving period-on-period gains of 5% or more, which is a dip from lower double-digit figures at the same time last year. As a result streaming platforms will have to increase their output to retain existing subscribers and encouraging new ones and will need to revise and offer new packages and products. The cost of living crisis will leave many subscribers re-evaluating the platforms they need/want to keep.
3. Trust
Increasingly, brands recognise how vital customer trust in them is, they want make sure they align their brands with highly reliable and reputable content.
News publishers need to look at the breadth and tone of their output using accessible and easier to understand content. Moving away from “fake-news” and embracing new content styles such as constructive or solution looking journalism, aiding trust from their readers and in turn advertisers.
4. Reaching Gen Z where they are
Media is consumed differently by Gen Z’ers, thus proving a challenge to advertisers who are keen to target this audience. Their use of YouTube, Tik Tok and music streaming services such as Spotify make them a more complex demographic to connect with. It has been suggested that in order to gain traction with this market, collaboration with them will gain greater insight…such as the use of focus groups or hiring from the demographic to help create content that will speak to and engage with their peers.
Jon Birchall, Director of Editorial Strategy at the LADbible Group says “ For us to build a media that is essential, inclusive, and as such commercially viable, for 2023 and beyond, we must listen to youth audiences and empower young talent to fundamentally redefine what news is and the role it plays for the next generation.”
Publishers need to meet Gen Zers where they are, and communicate in a style and format that speaks to them. Creating tailored products, hiring and empowering Gen Z talent, and engaging with audiences off-platform on YouTube, TikTok and Instagram, are likely to be essential to any successful approach.
5. Audiences spend over 2 hours a day with publishers’ content
As highlighted, a drop in the growth of subscriptions, audiences lack of trust in news outlets and media does not take away from the fact that audiences are still consuming their content.
On average, internet users around the world spend 2 hours 9 mins a day on this type of content, slightly less than social media (2 hours 28 mins)
This makes for a firm foundation for publishers to build on in the year ahead, engaging with audiences and using this engagement to build products, advertising and reader revenue strategies that tap into these consumption habits.
Despite these challenges, the media industry remains full of potential for those who are able to adapt and find new ways to connect with their audiences. Whether through subscriptions, advertising, or other forms of revenue, there are opportunities for publishers to thrive in the face of these challenges.