Pivots, podcasts and print: How news outlets (and The Onion) are facing AI
Illustration by Reagan Hicks / Shutterstock / The Current
“Pivot to video” typically conjures bad memories of a failed media strategy from five years ago. The New York Times, however, didn’t get the memo.
At last week’s inaugural NewsFronts event in New York, hosted by Stagwell, Ben Winkler, Head of Agency Development at The Times, shared that video consumption on New York Times platforms doubled year over year — and he pitched advertisers on the growth.
He noted that all New York Times podcasts are now produced in video format. It’s the “perfect place” for a video ad between games, he said. And Cooking recipes, which he said will allow product placement, are “supercharged with video, creating a delightful kitchen companion.”
“The Times is transforming itself into a platform that can be watched just as well as it can be read or listened to, and we’re doing that across our entire portfolio,” Winkler said onstage.
The New York Times isn’t alone. News publishers are rethinking strategies, diversifying revenue streams, and expanding advertising opportunities. Online news publishers are facing potential threats left and right, particularly as AI search hurts web traffic for some. Meanwhile, networks are navigating a fragmented TV landscape, perhaps opening the door for more platforms to usher in successful video strategies.
Responses to these challenges vary. Penske Media Corporation, owners of Rolling Stone, The Hollywood Reporter and more, recently sued Google over its AI Overviews. Other outlets see opportunity and have struck content licensing deals with AI companies like OpenAI.
Whatever the approach, one thing is clear: News organizations today are under mounting pressure to adapt and innovate.
Pitching to advertisers
At NewsFronts, major news companies pitched engagement stats and new products to advertisers.
Some, like the Financial Times, made the case that they’re not seeing traffic declines thanks to loyal subscribers.
But AI isn’t the only challenge that news publications are up against.
Despite overwhelming data that suggests news is brand-safe, there still appears to be a gap between news consumption and news advertising.
Lara Koenig, global head of product at MiQ, presented research onstage that showed conversion rates on connected TV (CTV) news content are 33% higher than other categories — yet just 6% of CTV spend goes to news content.
Guy Griggs, senior vice president of ad sales and client partnerships at CNN, spoke to advertiser concerns directly onstage at NewsFronts.
“Any smart marketer knows that incrementality, net new audiences and unduplicated reach are key attributes to campaign performance,” Griggs said. “If you’re not reaching [the 36 million news junkies in the U.S.], then you’re doing a disservice to your company and to your bottom line.”
“These news audiences are more leaned in, more curious, more likely to recommend products and services to their friends. … So you’re missing out on a huge part of the population that are high-value customers if you’re not advertising in news.”
Deepening connections with audiences
Several publishers are prioritizing direct connections between readers and reporters.
Wired is reportedly seeing a surge in subscriptions by turning its journalists into “influencers.” Business Insider now encourages readers to subscribe directly to a writer, getting an email whenever they publish a new story.
“We’re going to be standing up our world-class journalists, hosts and anchors in ways that we’ve never done before,” Griggs said during his pitch.
“We’ll be creating more direct one-to-one interactions between them and their audience through interactivity. Imagine being able to like or comment or have a two-way dialogue with Abby [Phillip] while she’s hosting NewsNight.”
Some outlets are deepening the relationship with their audience in other ways: print. From the satirical news site The Onion to the music magazine Creem to the conservative newspaper The New York Sun, organizations are resurrecting their print editions, leaning on a mix of subscribers and advertising.
“We are all collectively experiencing digital burnout,” Jordan LaFlure, executive editor at The Onion, told The Current. “[Print] is a preferable experience to doomscrolling. The experience of The Onion is a joyful one.”
Embracing AI
But many news publications are facing the shifting nature of the web head on. For some that means embracing AI, despite the risks it poses to the news business.
OpenAI content licensing deals have reportedly led to higher click-through rates on ChatGPT.
Some publications are even using AI to help audiences engage with content or improve efficiency. The Financial Times launched a chatbot on its website for reader questions. Business Insider allows reporters to write first drafts using AI — without disclosing that to readers.
Others, however, remain skeptical. The Economist is building tools to prevent AI from copying its content, according to Digiday.
“Our strategy of content by humans for humans is going to win, The Onion’s LaFlure told The Current. “If AI helps you derive an insight that has an impact on your readers, then by all means, publicize it. But then I want your human interpretation of what it all means.”
Still, optimism about AI was widespread at NewsFronts.
“AI is opportunity,” Mike Allen, co-founder of Axios, said onstage. “Every single person [in a newsroom] should become an expert in how AI can become a force multiplier in their role. … It will rock our world, but we have time to understand how it works.”