In the second quarter of 2024, several major media companies, including Dotdash Meredith, Dow Jones, Gannett, and The New York Times, reported increases in digital advertising revenue compared to the same period in 2022. Gannett experienced a 4% rise in digital ad revenue, which CFO Doug Horne attributed to growth in programmatic advertising and page views.
Gannett’s CEO, Mike Reed, expressed optimism that the company’s digital ad revenue would continue to grow in the latter half of 2024. Meanwhile, Dotdash Meredith’s digital ad revenue increased by 16% year-over-year, though it remained slightly below its 2022 levels. IAC’s CEO, Joey Levin, cited higher programmatic ad rates and increased site sessions as key factors behind this growth.
Digital subscription revenue also saw significant gains across several media companies. Gannett, The Wall Street Journal (owned by News Corp), and The New York Times all experienced steady quarter-over-quarter growth in their digital subscriber bases.
Gannett’s digital-only subscription revenue grew by 22% year-over-year, with the company’s ARPU increasing by 20%. However, Gannett’s ARPU of $7.62 still lags behind The New York Times’ $9.34. Gannett’s CEO plans to double digital subscription revenue over the next three years by raising ARPU through paywall strategies and content personalization.
BuzzFeed reported a slight increase in programmatic ad revenue for the first time since 2021, despite overall ad revenue not improving due to challenges in direct sales. Nevertheless, programmatic now accounts for two-thirds of BuzzFeed’s ad revenue, helping mitigate the losses in direct sales.
BuzzFeed also saw growth in logged-in visitors and page views, continuing a three-quarter trend of audience expansion. Additionally, Dotdash Meredith, BuzzFeed, and News Corp all reported audience growth, thanks to their effective strategies in search and direct traffic, overcoming challenges posed by Google’s algorithm changes and social platform shifts.
In terms of AI negotiations, Gannett has yet to sign any content licensing deals with AI tech companies, preferring to hold out for deals that better reflect the long-term value of their content.
Dotdash Meredith, on the other hand, revealed that it signed a deal with OpenAI in May, contributing to an 18.7% increase in licensing revenue. Meanwhile, News Corp managed to secure a lucrative $250 million deal with OpenAI, which CEO Robert Thomson attributed to the quality and impact of their journalism, further distinguishing them from competitors.
Commerce businesses also contributed positively to quarterly earnings for The New York Times, Gannett, and BuzzFeed. Gannett’s affiliate revenue doubled year-over-year, with plans to further grow through additional partnerships.
The New York Times saw a 4.9% increase in revenue from its “other revenues” category, largely driven by affiliate commerce from its product review site, Wirecutter. BuzzFeed, similarly, enjoyed a 9% rise in affiliate commerce revenue, with its performance during Amazon Prime Day marking a major success in the third quarter.
On the topic of legal disputes, News Corp’s Robert Thompson criticized the Global Alliance for Responsible Media (GARM) during an earnings call, stating that the group’s boycott had caused real harm to media platforms deemed unfavorable by certain political groups.
News Corp appears interested in joining ongoing lawsuits against GARM, spearheaded by figures like Elon Musk and platforms like Rumble, suggesting a potential shift in the brand safety debate within the advertising industry.
Lastly, the television and streaming industries reached a significant turning point in their financial trajectories. Disney, Paramount Global, and Warner Bros. Discovery all reported a divide between their traditional TV and streaming businesses, with the latter finally turning profitable while traditional TV continues to decline.
This development underscores a broader industry transition as media companies grapple with the challenges and opportunities presented by digital platforms and streaming services.
