As Australia emerges as a significant digital advertising market, with revenues exceeding $7 billion, there are key lessons for media publishers to learn from the past five years.
1. Prioritize App Development and Video
Despite the widespread adoption of apps by 2014, many broadcasters lacked a strong app strategy for their main news and entertainment businesses. Fairfax, for example, succeeded with its Domain app but was late in implementing a similar strategy for news. Apps provide better user lifetime value (LTV) and reduce dependency on search for news discovery, crucial in a post-cookie world.
2. Build an Independent Tech Backbone
Relying on Google's tech stack leaves publishers vulnerable. Past partnerships, like Fairfax's advertising alliance with Google, illustrate the risks of not controlling one's technology. Investing in a robust tech infrastructure is essential to counteract Google's dominance.
3. Leverage Unique Data Opportunities
Australian publishers missed a unique opportunity to rival Google and Facebook by not effectively utilizing alternative data sources or building their first party data. Creating a comprehensive consumer graph could have significantly strengthened their competitive position.
4. Scale Rapidly in Digital
To compete effectively, publishers need to make bold, scalable investments in digital. The limited presence of Australian news publishers in the top digital destinations indicates a need for more aggressive growth strategies. For example, Nine's digital advertising revenue, excluding 9Now, remains modest, highlighting the need for faster scalability.
5. Focus on Direct Advertiser Relationships
While programmatic advertising simplifies ad buying, it can disconnect publishers from advertisers. Instead of opening up to all programmatic players, publishers should focus on building direct relationships with advertisers, offering tailored solutions and leveraging consumer insights.
By addressing these challenges and capitalizing on current trends, Australian media publishers can better position themselves against the duopoly of Google and Facebook, ensuring a fairer and more competitive digital media landscape.
