How B2B Publishers Are Building Nontraditional Revenue Streams
B2B publishers, facing economic challenges and shifting advertiser priorities, are diversifying their revenue streams by adopting nontraditional models such as branded content studios and subscriber data ecosystems, exemplified by Adam Sandow's strategy to build resilient, multifaceted business models beyond traditional advertising.
What do an interior design magazine and an online sampling platform have in common?
They have the same audience, for starters.
Last month, Folio Magazine published a compelling piece on how one magazine mogul, in particular, has successfully disrupted its business model — and why other B2B publications might consider doing the same.
“We wanted to build an ecosystem of revenue streams that would help carry us through the ups and downs of economies and through what was this on-coming digital revolution,” Adam Sandow explains to Folio.
The article profiles Sandow’s foray into these disparate revenue streams, including everything from branded content studios to newsstand distribution networks.
Why B2B Publishers Are Switching Things Up
All publishers are facing the wrath of the economy’s ebbs and flow, not just those in B2B.
Here’s proof: The New York Times Company saw digital ad revenues drop by 2.4% in Q2 2022. Yes, that New York Times.
Other publishers are feeling it, too.
Mel Magazine laid off its entire staff, while Vox Media let go of 39 employees across sales, editorial, and recruiting.
Vox Media CEO, Jim Bankoff, said: “Supply chain issues reducing marketing and advertising budgets across industries and economic pressures [are] changing the ways that consumers spend. Our aim is to get ahead of greater uncertainty by making difficult but important decisions.”
Even Meta is stepping away from news and opting not to renew deals with publishers.
It’s not just the economy putting publishers between a rock and a hard place. Advertisers are simply moving their ad dollars elsewhere in search of more performance and efficiency. For these reasons, publishers, including those in B2B will continue to look for new revenue streams, including branded content studios and subscriber data.
B2B Publishers Embrace Branded Content Studios
Branded content studios are in-house services offered by publications, big and small, allowing brands to create native-like ads that engage the publication’s audience—and a fresh revenue stream.
According to Digiday’s Olivia Morley, content packages at Business Journals, which has a branded content studio, go anywhere between $5k and $70k.
Not only do branded content studios give B2B publishers a way to generate revenue, but they also give advertisers a way to connect with niche audiences natively and authentically, which is key considering 68% of consumers trust native ads seen in an editorial context (compared to 55% for ads on social media).
Examples of branded content studios
Here’s a good example of a branded content studio: Fast Company published a video and article showing how Pzifer uses data, AI and ML technology. At the same time, The Wall Street Journal partnered with Slack to launch a campaign that included case studies and ‘how-to’ articles designed to “spark conversation around collaboration and enterprise operations.”
Here are a few more examples:
- The Trust (The Wall Street Journal and Barron’s platforms)
- FastCo. Works
- The Business Journals Content Studio
- Bloomberg Media Group
- Forbes Content & Design Studio
Branded content studios aren’t the only way B2B publishers are driving revenue. Arguably the more impactful one comes in the form of subscriber (first-party) data.
Subscriber data for the win
Retailers have made one thing abundantly clear: First-party data reigns supreme. The explosive growth of retail media networks proves that.
According to MediaRadar data, more than 23.5 thousand companies (approximately 38 thousand brands) bought ads on retail media networks between May 1, 2021 and January 31, 2022.
Amazon ushered in the retail media craze, but other big names have quickly followed, including Walmart and Target; eMarketer predicted that Walmart would net $2.22 billion in ad revenue in 2022.
The Home Depot and Wayfair have also opened their doors to give advertisers access to their first-party data. Even TripAdvisor is getting in on the action, making it clear that retail media networks aren’t confined to retailers.
In reality, anyone with first-party data can get in on the party, including B2B publishers.
The New York Times, for example, is approaching 10 million paid subscribers. Meanwhile, Bloomberg has more than around 370 thousand. Finally, Forbes reaches around 150 million people across platforms.
All of these publications—and more—have massive addressable audiences. Even better, they have data on most of them, which offers advertisers a direct line between themselves and incredibly niche audiences.
For the B2B publications, it offers a valuable revenue stream when they need it most.
Related
The State of Retail Media: What to Know and Why Advertisers Are So Excited
Retail media networks are rapidly growing as advertisers invest over $3 billion since 2021 to leverage retailers' vast first-party shopper-level data—such as Amazon's 200 million Prime members—to deliver targeted ads amid the decline of third-party cookies and increasing privacy regulations, capitalizing on the U.S. retail market projected to reach $5.35 trillion by 2025.
Q4 2023 12 for ‘24 - Retail Media Networks
In 2023, despite economic challenges, retail media advertising experienced significant growth—rising 22% year-over-year to $5.09 billion through November—driven by retailers developing robust ad platforms that offer highly targeted shopper audiences and clear ROI, with spending increasing quarterly across over 20 major retail media networks and expected to surge further during the holiday season.
Follow the Money - The Rise of Native Video
In response to shifting consumer behaviors favoring online shopping and digital media consumption—especially among millennials—advertisers are increasingly investing in shorter, native video ads under 30 seconds, which have grown significantly in prevalence and are less likely to include skip options, reflecting a strategic adaptation to capture younger audiences on mobile and digital platforms.
9 Fast Facts about Native Advertising
Native advertising, a leading digital engagement method with significant spending but a plateauing market where only 11% of online advertisers use it and brands run native ads on just 10% of sites, requires media firms to differentiate through audience, brand safety, and creative execution rather than price, innovate with features like shoppable content as Meredith Corporation has, and face challenges in measuring campaign performance and sustainability, with an average two-month renewal rate of 40%.
2023 Advertising Prediction: Retail Advertisers Continue Ramping Up Spend
In 2022, despite economic challenges like inflation and recession fears, U.S. retail advertisers significantly increased their spending—totaling $11.1 billion through Q3 with a 13% year-over-year rise—particularly in categories such as general retail, food and drug, apparel, home furnishings, and online department stores, signaling strong confidence in consumer demand heading into 2023.
DTC Advertisers are Changing Up Their Programmatic Spend
In 2021, direct-to-consumer (DTC) brands are shifting their programmatic advertising strategies by increasingly managing marketing in-house to leverage first-party data and advanced technology for personalized multi-channel experiences, resulting in a 44% decrease in programmatic ad spend despite a rise in the number of advertisers, as iconic brands gain market share and eCommerce accelerates.