Cookie Monsters: The effects of advertising and revenue generation
As a society, no one is shocked to hear we’ve become inundated with ads. I feel as if sometimes I think about things and the most perfectly curated ad will scroll on my Instagram. Recently, I’ve taken to shouting my dream Valentine’s Day gifts at my boyfriend’s phone when he leaves the room for the all too perfect subliminal advertising. But what kind of implications does this leave for the newsroom, and how is it affecting journalism?
One Hand in the Cookie Jar
We’re used to being followed around the internet by the deceivingly adorably named “cookies” that track our information, but how are online publishers interpreting this data? Ultimately, similarly to any other retailer. Elizabeth Ann Watkins reports for Columbia Journalism Review that, “Websites aggregate all the data from their users to build a snapshot of their visitors’ demographics, including average age range, ethnicity, where users live and work, income, and educational level.
This user data, called “inventory,” is then used to sell ad space to brands and advertisers via ad agencies.” On one hand, the proper amount of targeted advertising can be interpreted as helpful and unobtrusive to a consumer, after all, if I’m going to be marketed to, I appreciate the cookies at least knowing me. Oversaturation of advertising however is where the distrust in media outlets brews, as how can we trust our news sources when they work as simple tracking chips?
I reached out to graduate student Daisy Hovermill, a 22 year old graduate student currently living in London, to ask how she feels about being “inundated with advertising” on her daily commute.
“At this point I kind of just tune them out. I only bother to read them if something catches my eye that actually looks interesting. For example, last November, I saw a tube ad for a presentation of Love Actually with an orchestra. It included the movie poster, which caught my eye because it’s my favorite movie. If than that, I would’ve ignored it like most other ads. In terms of authenticity, I feel like most ads don’t really seem authentic to me to begin with.”
Daisy points out something that online publishers have begun to recognize, the importance of branded content. Anna Sirrah writes for Columbia Journalism Review that, “What distinguishes branded content from traditional TV spots or print ads is that the “content” attempts to deliver something its target audience will recognize as valuable.” Just like Daisy’s subconscious sought out the Love Actually movie poster, an online reader of Chicago Tribune might see an ad for their most recent perfume purchase, or a shirt they’ve been eyeing for weeks.These ads are often more obtrusive than helpful, and Anna concludes that, “In their professional work, however, journalists should look beyond these two companies to examine the actions and implications of the many other companies in these spaces.”
Subscribe to Survive
So, what are the ways to make revenue if publishers opt out of aggressive advertising? The unfortunate truth is subscriptions. Now, don’t get me wrong, subscriptions are vital to publishing, and so is giving monetary support to writers and those working at these publications. I myself subscribe to a few magazines, and I was surprised to find how affordable some of them are. On the other hand, certain publications have a reputation for their pricey paywalls that effectively block information for an entire group of people.
Francesca Beighton recounts to Reuters Institute on the reasoning behind dropping the paywall for South African magazine Daily Mavericks, saying, “It’s about influencing big decision-makers and holding them accountable. In a country with a huge volume of voters, hiding the truth behind a paywall would affect the democracy of the country.” Other sources such as Público in Portugal have options allowing for things like payment deferral, Laura Oliver researches that, “Readers can now select “I can’t pay”, with students, unemployed people, those on government furlough schemes or those with low income encouraged to choose a free or reduced fee option.” By allowing this payment free option, Público is giving a whole new audience access to their articles, effectively removing the barrier for knowledge while still keeping the payment option for those who can. By welcoming in these previously neglected readers, Público is able to create a personal connection with them. Beighton and Daily Maverick agree with this, saying “They might tell their friends, they might contribute to surveys. It becomes so much more than a transaction, it’s personal, it’s a relationship.”
Users and their data are the currency of choice to online publications. Whether it’s targeted ads or paywalls, publications need revenue to survive. We can try to keep as much of our information as private as possible, or one day lean into the concept of sliding scale prices. Whatever the case, users and data will remain the target of advertisements and hidden number fees.
