Brand Publishing Snapshot: Q2 2023
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Brand Publishing Snapshot:
Q2 2023
Five key trends that will shape the quarter
questions about what wide ranging use of AI could
Introduction do to humanity.
Uncertainty characterized the first quarter of 2023, Meanwhile, privacy continues to have wide-
driven by a shaky economy, new technologies, and ranging effects on the media and publishing
widespread cost-cutting across the technology industries, affecting consumer attitudes and
sector. potential legislative changes. The middling
performance by TikTok CEO Shou Zi Chew in front
Economic instability looks set to continue into the of U.S. lawmakers has served to ensure privacy
second quarter, which will fuel further uncertainty remains top of mind for most American consumers,
for brand publishers. The next few months will be even if it’s not quite clear which side of the aisle
marked by a sense of “waiting and watching,” as they end up on. A federal privacy law appears to
brand publishing teams gauge how the discipline be a growing possibility. That, along with the ever-
will evolve and how to ensure their survival. present crumbling of the third-party cookie means
more emphasis on first-party data, and how to
At the beginning of the year, companies awaited gather it from consumers.
a recession with bated breath. For marketers –
who often operate on sentiment as much as they Against this backdrop, we expect the second
do on actual financial results – that meant slashed quarter to be marked by a handful of key trends:
spending and a pause on new hires and initiatives.
Fast-forward to the second quarter, and economic
concerns have led to a rallying cry of efficiency 1. Artificial intelligence will become an
across industries. What Meta CEO Mark Zuckerberg existential concern.
termed as the “year of efficiency” has resulted
2. AI will offer new opportunities for efficiency
in layoffs, belt tightening, and closer scrutiny of
and content generation.
expenditures.
3. Economic concerns will keep brand
Critically, that means that all companies are now publishing endeavors on edge.
looking for cheaper, faster and easier ways to drive
growth, which will be a resounding theme during 4. Companies will attempt to connect
the second quarter. publishing initiatives with revenue
Another macro trend is the specter of AI, which 5. Distribution will become priority No. 1
will continue to take shape over the next few
months. As Bill Gates wrote in his GatesNotes
newsletter, “the age of AI has begun” – and brought We’ll explore these trends in this snapshot report,
with it excitement about how AI can help free and run down the biggest news events that shaped
humans from humdrum tasks, but also existential the quarter that was.
1. Artificial intelligence will 2. AI will offer new
become an existential concern opportunities for efficiency
Companies began the year worrying about the and content
economy. Now, a new threat looms over them:
The advent of AI. Despite the hand wringing over AI and what it
means for the future of brand publishing, there’s
Generative AI’s effects are going to be wide also enthusiasm and excitement about how brand
ranging, and although it could help boost efficiency publishers can integrate AI into their processes.
(more on that below) it also threatens to upend
publishing strategies entirely. For brand publishers, In most cases, humans are better than Bard or
the rising popularity of AI and its possibilities could ChatGPT at creating engaging content, at least
increasingly feel like the rug is being pulled out for now. But AI does present opportunities to add
from under them. In recent months it’s become efficiency to the content generation process. For
clear that AI chatbots like ChatGPT and Google’s example, AI can quickly put together frameworks,
Bard will use publicly available web information in gather research and data from around the web,
order to inform their responses. freeing up writers’ time to add original interviews
and reporting to arrive at well-rounded content
Many brand publishers based their entire content that probably took less time than if the writer had
strategies on providing unique insight, knowledge begun with a blank page. AI acts as an augmented
and expertise. But generative AI changes the expert, able to supercharge internal expertise, and
game. It’s unclear how chatbots will use or source do it quickly.
third-party websites, but during these early days,
many are already able to replicate brand publisher In other cases, AI has some implications for SEO-
content, particularly SEO-friendly content that driven publishing strategies, where it can, with the
answers queries, which may render brand offerings right prompts in place, put together suggested
useless. keyword clusters or descriptions to help content
rank higher.
For many editors and publishers inside
An arms race is already underway to help brand
brands, the focus in the next few months will
publishers with a host of creation tasks. They range
be to lessen dependence on “expert” content from production efficiencies (putting together
and focus more on original report and analy- outlines, doing research, or suggesting headlines
sis. and text for social media) to distribution help (SEO
suggestions) to idea generation. Brand publishers
Executives we spoke with say that the mandate say they are getting inundated with pitches for new
for differentiation has never been as critical as it tools everyday, and the next few months promise to
is now. Many brand publishers are trying to figure bring more.
out how they can build more reporting into their
processes, so they can create original content that Over the next quarter, the market will contin-
audiences crave – and chatbots can’t replicate.
ue to be flooded with new tools, each claim-
ing to solve different pain points, and each
There are other tactical concerns brand publishing
teams have as well. For one, many brand publishers doing so to varying degrees of success.
are beginning to experiment with putting content
behind paywalls or registration walls, in an effort Brand publishers will also need to decide how
to either eke out revenue or to gain valuable much they will rely on AI, and where they’ll keep it
information and insight about who their audiences at arms length. As traditional publishers have been
are. Like traditional media publishers, there is discovering, AI makes mistakes, albeit it stands to
some concern from brands around if generative reason that it appears that the technology will only
AI chatbots can “scrape” content from behind continue to improve. Brands are also beginning to
use AI for marketing copy, or campaigns. Brands
regwalls, or if it will sometime in the future.
will have to figure out what their risk tolerance is for
AI in publishing, and to what degree they will use it.
The legal question will also remain top of mind. The
copyright problems are a potential minefield – who cognizant that brand publishing is at high risk of
owns what AI produces? And is it possible that two being cut during uncertain times, particularly if
publishers could independently publish the same it’s measured against other performance-related
material, because they used similar prompts for AI? marketing.
It’s unlikely any of this will be sorted out any time
soon, but anyone producing content on the web is By no means are brand publishers out of the woods.
beginning to think deeply about these issues.
CFOs will continue to scrutinize any and all
expenses, and publishing teams that don’t
demonstrate their impact on the bottom line
3. Economic concerns will will find themselves at risk.
keep brand publishing The ongoing bloodshed in traditional media
shows how competitive and cutthroat the race for
endeavors on edge audience attention has become.
As they entered 2023, many brand publishing
operations underwent significant belt tightening,
leading to teams that were a lot smaller than before,
fewer resources to go around, and more pressure 4. Companies will attempt to
to perform. And those were the lucky few. Tech
companies, which happened to be some of the connect publishing initiatives
most enthusiastic proponents of brand publishing
out there, slashed their headcounts during the first
with revenue
quarter, and content people were laid off in droves.
One of the fundamental challenges for brand
publishing operations is demonstrating how their
But even as advertising and marketing spend declines,
contributions benefit the companies they work
brand publishing teams remain hopeful for the second
for and – ultimately – how to justify their own
half of the year. Because brand publishing is a
existence. Progress is often gauged using metrics
relatively cost-efficient initiative, many teams have
oriented around traffic, net promoter scores and
found themselves spared from wider cost-cutting
leads.
measures.
For many brand publishing executives, lean times The reality of a tighter economic situation
are actually a chance to prove their worth to – and the threat it poses to any business
the C-suite and the CFO, and punch above their activity that doesn’t show a return – means
weight. There are signs that for companies that do brand publishing teams have begun thinking
have clear audience propositions, maintaining or more deeply about what their role means for
increasing investment in brand-building activities a business.
may pay off handsomely.
Per Wordpress VIP’s annual content report, despite
In the coming months, publishing teams will focus brand awareness remaining the top purpose for
on tightening up their processes even further to creating content, generating revenue and sales
demonstrate their worth – focusing even more jumped from #5 to #2 in this year’s survey.
tightly on their core audience propositions, and
cutting out extraneous, nice-to-have projects. This can take a few different forms. For one,
more sophisticated metrics and measurements
In some cases, that’s meant a renewed interest are being put in place at some brand publishers.
in original articles and stories, and more focus on Editorial directors who want to ensure their work
quality than quantity. In other cases, video and “gets credit” are working to ensure that basic
audio projects have been shelved in favor of less mechanisms are in place to track audience behavior
resource-intensive mediums. so that it’s clear how their work influenced a final
sale, or even lead.
“Leanness” is the biggest priority for not just the
coming quarter but the year for Meghna Rao, who In other cases, tactics are changing. More brand
heads editorial at Mercury Bank. Rao said she’s publishing teams are looking to email-gates and
other such mechanisms, putting content behind so many brands moved towards owned media
walls, so that they can more clearly show how their channels that they could control. Wordpress VIP’s
work is driving real business leads. annual content report found that owned channels
continue to top the distribution list for brand
And in some rare cases, brand publishers are turning publishers for the second year running.
their own initiatives into true revenue streams for
companies. For some, that’s meant going all the way “What really excites me…is this large owned and
and selling ads and sponsorships on their pages. In operated channel, we don’t have to go through a
other cases, brand publishers are testing whether filter of PR, of media, of the interpretation of third
they can create content that people have to pay to parties, we can work directly with our executives
access. to get out the messages that are going to be
important for our customers to hear, and that are
And there are also other opportunities at play, going to help them grow their businesses and
such as affiliate links, or event revenue. But media help them think differently about how they’re
businesses are notoriously difficult to run. As Brad approaching marketing,” said Natalie Zmuda, head
Wolverton of Hubspot said, “sometimes it doesn’t of global content at Google.
feel worth chasing the [media] dollars,” particularly
if the brand itself is selling a much more expensive For brand publishers, the challenge now is in
product, like Hubspot is. weaning themselves away from a reliance on
platforms as the only way to draw eyeballs.
More companies are trying to tie their brand
publishing operations to tangible business Some of this is an internal challenge; with more
outcomes. brand publishing executives reporting that
they’re spending more time on educating internal
More of these efforts will come to light in the next stakeholders on how to rely less on social platforms
few months. But underlying them is a sense of and funnel resources to owned properties.
existential crisis for brand publishers, who know
that now is the moment they must prove their More brand publishers are carefully considering
worth. While the idea of making money directly what levers they can pull in order to draw audiences
from content will probably remain mostly a rarity for and keep them. An increasing number are
now, publishing teams across sectors are trying to beginning to experiment with email newsletters and
be more sophisticated about how they think about emailed content as a key way to reach audiences
their roles in the wider business. directly in their inboxes.
“Relying on one distribution channel is like putting
all of your eggs in one basket,” said Hone Health
editorial director Tracy Middleton. “Google will
5. Distribution will become change its algorithm and social media platforms
can come and go. Publishers of all types need
priority No. 1 a diversified distribution strategy to make sure
they’re hitting their audience in multiple places—
For many brand publishers, the last couple of and tailoring the messaging in each.”
years have been focused on doing the hard work
of putting in place solid editorial strategies, Paid social media and paid search ads are also
understanding their audiences’ desires, and expected to be two areas in which brand publishers
figuring out the formats necessary to present will look at more closely, and an increasing number
information in the most powerful and effective way of brands are now trying to figure out earned
possible. media strategies to spotlight their own publishing
endeavors.
But an increasing number of brand publishers are
now turning their attention to the thorny issue of
distribution: How to get their content in front of the
right people.
Tenuous arrangements with social platforms like
Twitter and Facebook have been part of the reason
Events that shaped brand publishing in Q1
JPMC’s Frank mistake Robinhood launches Trust in news media hits
Brand publishing isn’t immune to
Sherwood all-time low
scams. In January, news broke
Robinhood Markets Inc. Audiences are trusting traditional
that Frank – a financial planning
announced in January that sources of information less and
and financial content website
it was going to launch a new less. This January, Edelman’s
that JPMorgan Chase acquired
subsidiary to house its content annual Trust Barometer research
in 2021 for $175 million – had
and publishing initiatives. found businesses are now the
artificially inflated its audience
Sherwood Media will be headed only trusted institution in the
numbers. The acquisition was an
up by former Bloomberg world, more trusted than NGOs,
effort by the bank to shore up
executive Joshua Topolsky, the government, and the media.
its consumer base among young
and will build on Robinhood’s
adults – use Frank to lower
popular Snacks newsletter, As Richard Edelman, global CEO
customer acquisition costs by
which it bought in 2019. (At that put it, “company newsletters
building and owning an audience
time, the newsletter was called are now more trusted than any
among that valuable cohort.
MarketSnacks.) Robinhood other [media],” ahead of search,
Snacks will be the foundation social or other. Some of this,
It turned out many of Frank’s
of Sherwood, which also plans wrote Edelman, is the effect
“customers” weren’t real – after
to launch new newsletters and of the COVID-19 pandemic
sending marketing emails to
social-first content, all featuring and a factitious presidential
400,000 Frank email addresses,
analysis and original reporting. election cycle, which found that
70% of them bounced back.
people began to see media as
Frank had allegedly invented
Sherwood will also look for increasingly politicized. (That
millions of fake accounts, faking an
advertising partners for Snacks data is backed by other reports:
audience that simply didn’t exist.
in an effort to turn the publishing A Gallup and Knight Foundation
operation into a full-fledged survey in February 2023 found
Inflating audience numbers isn’t
media company – and perhaps that only 35% of Americans think
new in media circles but the
make some money off it as national news organizations are
net result was that Frank, which
well. Sherwood will also – in a reliably reporting the news fairly
was supposed to hand JPMC
departure for Snacks – cover or accurately.)
an audience of 4.25 million
Robinhood where appropriate
students, instead gave them one
as well. It’s an example of how Edelman is now recommending
that looked a lot smaller, leading
quickly the content landscape is to clients that they “go direct”
the bank chief, Jamie Dimon,
shifting, and how much gaining to end users – audiences – with
to call the entire proceedings a
audience trust now matters to important information, as a
“huge mistake.” In March, Frank
brand publishers. way to supplement what other
founder Charlie Javice fired
sources are offering. Chief
back, saying that the bank’s
communications officers must
fraud allegations are false,
work in this new reality and work
and said the company is trying
to support mainstream media,
to shift the blame for a failed
but also make their own case
acquisition onto her.
as “adjacent sources” of quality
information, said Edelman.
Mutual of Omaha The limits of artificial Penn completes Barstool
relaunches Wild Kingdom intelligence acquisition
For all that’s new in brand CNet was one of the few major Faced with extremely high
publishing, there is evidence publishers that went headfirst customer acquisition costs in
that much of it has existed for into AI-generated content. In a highly competitive market,
years, if not decades. A case in January, the site began quietly sports bettors have been
point is Mutual of Omaha’s Wild publishing stories that were enthusiastic about trying to build
Kingdom, the documentary TV generated entirely by AI. Most content operations that will help
program about wildlife that was of these were commoditized them attract audiences.
originally produced from 1963 fodder, such as explainers about
until 1988. In January, it was compound interest and how Penn Entertainment’s acquisition
revived as Mutual of Omaha’s much money people should keep of Barstool, which completed
Wild Kingdom: Protecting the in CDs. in February, is a textbook case
Wild. The new iteration features of this trend. The acquisition,
host Peter Gros, and will air on Out of the 77 stories CNet which was first announced in
RFD-TV and online. published using AI, corrections August, cost Penn $388 million
were issued on more than half – for the 65% of Barstool it didn’t
For the financial services 44 of them. Following the errors, already own. Penn and Barstool
provider, the show has been an a disclaimer was posted at the first partnered in 2020, when
enormous investment, making top of all AI-written stories: Penn bought 36% of the media
up a third of its total spend and “We are currently reviewing this company for approximately $164
half of its overall reach. The story for accuracy. If we find million.
company says it’s been a huge errors, we will update and issue
differentiator for the brand, corrections.” The AI written Barstool says it now reaches
and is produced in a very lean, articles are SEO plays, designed 200 million followers across
efficient way. to work with Google’s algorithm platforms and its audience has
so affiliate ads can go on those grown 195% in the three years
stories. since Penn first bought a stake
in the company. That being
After a lengthy review and said, the acquisition is already
debate, CNet paused AI- proving to also come with a
generated content entirely, heavy helping of controversy.
but said it plans to continue to Already, Barstool personalities
explore and test how AI will be (a key reason for the media
used to help its content teams. brand’s extreme popularity) are
beginning to run afoul of state
and government regulations,
such as promoting violence or
excessive gambling.
NYC’s mayor “goes A brand publication wins Layoffs hit brand
direct” a journalism award publishing
In an effort to cover what he The Edge, an online publication Over the course of the first
deems useful – and a retort to owned by health startup Hone quarter, layoffs rollicked the
local press – NYC mayor Eric Health, won a public health tech industry – at least 150,000
Adams launched a newsletter, journalism award from the layoffs happened across the
“Hear from Eric,” that will speak Association of Health Care sector since the beginning of
directly to New Yorkers. Journalists. The year-old the year. Among those at risk
publication won for “The Enemy were brand publishing teams,
Local news has covered Adams Within,” an editorial package who found their roles eliminated
extensively during his first term that told stories of army veterans and their departments gone as
in office. Not all that coverage and the risk of low testosterone companies tried to slash costs.
has been rosy; it’s included – and the challenges they face
Adams’ issues with his Brooklyn getting treatment. Brand publishing often falls
residency, his handling of asylum under marketing at companies,
seekers and his policy priorities. The publication was competing and during costcutting times,
in against established media marketing teams are often cut
According to Adams, this has brands, including the New York heavily in an effort to reduce
resulted in a “distorted” version Times, and winning in that overall operating costs. In other
of what he does and says. category is a notable step for a cases, the problem was that
The result is Hear from Eric, brand – and perhaps proof that brand publishing wasn’t carefully
which launched with $75,000 quality content can pay off for defined inside some companies,
in funding, and covers news brands. and didn’t have clear metrics
about policies, events and and goals that made it seem
progress on city initiatives. The The package was born out critical. In some cases, brand
City of New York also plans to of editorial director Tracy publishing was largely left to
build out a full fledged content Middleton’s work on how be an awareness play, which
operation that is targeted to many of Hone’s customers meant that when CFOs began
specific neighborhoods, and will were veterans, and featured crunching the numbers, it was
distribute this via text and email. original reporting and analysis. difficult to draw a line between
Middleton said it was a success what the publishing team was
from an editorial and a business doing and how it affected the
perspective: “Our email with the company.
package had an open rate of
60%, higher than others. And
we used it to re-engage people
in the funnel, such as in the
cart abandoned stage, or those
who bought a kit but hadn’t
registered it,” she told Toolkits.
Toolkits is a business media company that provides insight and intelligence for
professionals working in media and publishing. Contact: hello@toolkits.com
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