Reaching For More Reach

Reaching For More Reach

The advertising industry has long been obsessed with reach – getting messages in front of as many people as possible. But for diverse-owned media companies, delivering scale and reach to advertisers has always been a challenge. By definition, these publishers cater to specific subsets of the US population, making them less of a reach play and more of a niche targeting opportunity.

The Challenge for Diverse-Owned Media Companies

Diverse-owned media companies face a tough environment. A half-dozen years ago, they were inundated with requests for proposals (RFPs) from brands looking to make commitments to diverse-owned media. But now, they’re struggling with declining traffic, weakened commitments from brands, and an unwelcoming political climate. It’s tough to scale and deliver reach when faced with these headwinds.

• Decreased RFPs: The deluge of RFPs has slowed to a trickle, making it harder for diverse-owned media companies to secure dollars from brands.
• Traffic woes: Declining traffic hampers their ability to deliver scale and reach, making it harder to attract and retain advertisers.

Creative Solutions: Packaging Audiences with First-Party Data

In response to these challenges, diverse-owned media companies are exploring creative ways to package and sell their audiences using first-party data. By leveraging their own data, they can retarget audiences with a twist – selling them to other websites, formats like CTV, or even other publishers.

Retargeting with a Twist

This approach allows diverse-owned media companies to monetize their audiences in new and innovative ways. By using first-party data to create more comprehensive audience profiles, they can increase their reach and deliver more value to advertisers.

• Data-driven audience creation: Diverse-owned media companies can use their first-party data to create targeted audience profiles that are more valuable to advertisers.
• New revenue streams: By selling their audiences to other websites, formats, or publishers, diverse-owned media companies can create new revenue streams and increase their overall reach.

Retail Media’s Growth Stage: Parallels and Insights

The challenges faced by diverse-owned media companies are not unique. Retail media, for example, has had its own share of successes and challenges. At the IAB Connected Commerce Summit, Collin Colburn, IAB VP of commerce and retail media, used a potty-training analogy to describe the industry’s growth stage.

Potty Training

“Perhaps you’ve had reason for encouragement and think success is near at hand,” Colburn said. “Well, your next realization will be that you’ve barely begun a process that requires stick-to-itiveness.” In other words, retail media’s success requires perseverance and a willingness to adapt to changing market conditions.

• Standards and stick-to-itiveness: The connection between retail media and diverse-owned media companies lies in their shared need for standards and stick-to-itiveness. Both require a commitment to innovation and adaptability to succeed.

Original Insights

As diverse-owned media companies navigate their challenges, they may need to consider new strategies to increase their reach and deliver more value to advertisers. Two potential approaches are:

Diversification through Data Collaboration

Diverse-owned media companies may need to collaborate with other publishers or data providers to create more comprehensive audience profiles and increase their reach. By pooling their data and expertise, they can create more valuable audiences and attract more advertisers.

• Data collaboration: By working together, diverse-owned media companies can create more robust audience profiles and increase their overall reach.

The Evolving Definition of “Reach”

As advertisers prioritize diverse-owned media companies, the traditional notion of “reach” may need to be redefined. These publishers offer unique strengths, such as their ability to target specific subsets of the population.

• Rethinking reach: The definition of “reach” may need to evolve to account for the strengths of diverse-owned media companies, such as their ability to target niche audiences.

Conclusion

Reaching for more reach is a quest that diverse-owned media companies must undertake to survive and thrive in a challenging environment. By leveraging their first-party data, exploring creative solutions, and collaborating with other publishers or data providers, they can increase their reach and deliver more value to advertisers. As the advertising industry continues to evolve, one thing is clear: diverse-owned media companies must adapt and innovate to stay ahead of the curve.