Lobbyists representing media organizations, including major media outlets such as The New York Times, The Washington Post and CNN, Urging lawmakers To water down federal privacy bills like the recently stalled American Privacy Rights Act.
Lobbyists argue that the proposed federal privacy law would squeeze publishers that rely on targeted advertising, effectively dismantling press freedom and Americans’ First Amendment rights.
this This is not the first time News media argue that data privacy is incompatible with journalism, and it’s easy to see why: Today, most publishers are in the business of primarily selling reader attention to advertisers, and news sites monetize their users’ data. Significantly more New York Times readers are more likely to read news articles than non-news sites Approximately 50 advertisers and data brokers Every time I read an article.
This “corporate surveillance,” a term the FTC uses to describe targeted advertising, is central to some publishers’ current business models. This sentiment from regulators and a growing number of consumers is sparking a growing recognition among publishers that change is needed.
It is important for publishers to reposition themselves as defenders of data dignity.
The rise of data-funded news
News organizations began collecting online data after the rise of the internet caused print revenues to plummet. Plummeting to two-thirds Since the mid-1990s, demand for media has declined, and advertising revenues have plummeted accordingly. Nearly all news organizations that survived the crisis did so by tracking their readers and partnering with data brokers to build extensive programmatic advertising capabilities.
There are two problems with this. First, news organizations are struggling to catch up. There is no realistic way for publishers to beat the giants like Google and Meta in the data collection game. Tracking users may generate short-term revenue, but in the long run the tech giants will win. Meanwhile, the longer publishers fall behind, the more desperate they will feel to squeeze the most value — and the most data — out of their readers.
Which leads to the second issue: lobbying against data collection and consumer protections runs counter to the news organization’s core brand as a principled organization that puts the interests of its readers first. Less than one third With 30% of Americans trusting the news media, taking advantage of reader data is a quick way to further erode the core relationships that news organizations rely on.
The rise of social media has already had a major impact. Despite chasing readers on the social web, news sites are now Less than 1% Traffic from social media AI-powered search tool Allowing consumers to access news without visiting publisher sites has created new confusion.
Data dignity comes first
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Of course, there is also the option of simply submitting to AI’s control, which several major publishers are already doing. News Corp and Politico’s parent company, Axel Springerhas entered into a lucrative agreement to transfer content to OpenAI.
But another option is for publishers to remember that their primary customers are not the AI giants, data brokers or advertisers. By recasting themselves as guardians of the sanctity of consumers’ data, news publishers could strengthen those important relationships.
Taking an openly pro-consumer stance on issues like transparency and data management would make it easier for publishers to attract and retain paying subscribers – people who don’t want to get their news from chatbots and are willing to pay publishers for trusted, high-quality content.
Some major publishers are already refocusing on subscription-based business models. News Corp. was already working with OpenAI on a subscription-based business model. Only 16% of revenue 44% of revenue comes from advertising and 44% from subscriptions. Similarly, The New York Times saw its digital subscription revenue hit $1 billion last year, boosting its overall revenue despite a decline in advertising revenue.
Other publishers are also re-emphasizing their relationships with their readers. Vox recently Subscription OfferingsThe Guardian now 57% of US revenue Revenue from reader donations accounts for a third of global digital revenue, but such a model relies on maintaining reader trust and confidence.
Trust and Transparency
Prioritizing trust and transparency doesn’t mean sacrificing advertising revenue. The point of data sanctity is not for organizations to stop advertising. Instead of using their data, consumers should be able to control how their data is used and make more meaningful choices. Research shows that consumers are willing to trade their data in exchange for something of value.
By acquiring and retaining loyal subscribers who willingly agree to share more data than they would normally, publishers ultimately end up with a richer source of high-quality, properly permissioned data derived from readers with whom they have enduring connections.
News media must focus on combating the proliferation of low-quality ad-driven and AI-generated content, and that starts with taking readers’ data rights seriously and insisting on the transparency and meaningful data control that both consumers and publishers deserve.
“Cell Sider” ” is a column written by the sell-side of the digital media community.
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