David Strauss, the new VP of Revenue Operations at The Guardian US, champions free access to news while focusing on strategies like a pure auction system, PMP growth, and high-quality ads to drive revenue without compromising the site’s mission of journalistic integrity.
Paywalls and subscription models increasingly dominate news sites, but David Strauss, newly hired Vice President of Revenue Operations and Strategy, North America at The Guardian US, champions free access to information, especially news.
Strauss’s journey to The Guardian US is rooted in his connection to the brand. As an avid news consumer with a voracious appetite for information spanning sports, politics, and global events, he long admired The Guardian US’ journalism. “When you have the opportunity to go work for someone whose product you actually consume, that’s an opportunity you can’t pass up,” Strauss explained.
However, it wasn’t just The Guardian US’ reputation that drew Strauss to his new role. The organization’s commitment to keeping its content free from paywalls struck a deep chord with him. In a time when many publishers erect digital barriers to their content, Strauss found The Guardian US’ stance refreshing and morally imperative. This philosophy aligns perfectly with Strauss’s professional background of prioritizing journalistic integrity and user experience over short-term financial gains.
“We’re in a time where a lot of publishers, not just news publishers but every type of publisher, are moving towards paywalls and gating strategies that require payment to access content. I think this is the wrong business strategy; for news publishers, it’s almost immoral. I believe the news should be free and accessible to everyone, not hidden behind a paywall,” said Strauss.
But as Strauss takes on his new role, what is his new revenue strategy, especially as programmatic advertising becomes more oversaturated and news publishers feel the growing pains as media changes?
The Game Plan: A Pure Auction, PMP Growth, and Ad Quality Over Quantity
First and foremost, Strauss emphasizes the importance of maintaining a pure auction system where the highest bidder wins, ensuring maximum yield. As a data-driven strategist, his priority is optimizing performance by enabling the most competitive bids, which directly contributes to higher revenue outcomes. This focus on purity in the auction process is essential for avoiding yield losses and achieving optimal results.
Additionally, he strongly believes in PMPs’ growth potential. “Over the years, the shift toward PMPs is becoming increasingly clear, whether in the open auction space or through direct revenue channels. This will be a key focus moving forward,” said Strauss.
Lastly, he aims to prioritize quality over quantity, ensuring that fewer but better ads are placed on a page. Rather than cluttering sites with numerous programmatic partners and slowing down load times, the goal is to create a streamlined, user-friendly experience that balances ad revenue with performance on The Guardian US’ site.
The Fight for Quality News
Journalism isn’t the industry it once was a decade ago. At Cannes Lions, some even wondered if journalism is a dying art? For instance, brand safety has been a silent but deadly killer for news, which has led to about 30% of publisher’s ad inventory being underfunded and unsold. But that’s only the tip of the iceberg.
Strauss emphasized that while advertisers increasingly focus on brand safety, which is understandable and important, it requires publishers to demonstrate their value without compromising their journalistic integrity. “We have to be respectful of their marketing desires, but we also have to figure out a way to navigate with them and help show these marketers that we add value,” Strauss said.
Market saturation has also made it harder for publishers to stand out as audience spans are spread thin. With a growing number of content creators on platforms like Twitter, TikTok, and Instagram, competition has never been fiercer.
As Strauss put it, “Every day, there’s more providers of information…you have to figure out how to separate yourself from the pack.” This saturation challenges all news outlets to maintain visibility and trust in a crowded market. For The Guardian US, however, trust remains a differentiator. With a 200-year legacy, Strauss believes The Guardian US is in a solid position to leverage this trust to stand out in an industry where credibility is often questioned, especially with disinformation running rampant online.
Harnessing Loyal Readership and First-party Data for Advertising Success
In terms of opportunities, Strauss sees The Guardian US’ loyal readership and first-party data as valuable assets. Unlike many other publishers, they have cultivated a dedicated audience, with readers visiting the site multiple times per day.
This engagement, Strauss said, offers a unique advantage: “Our users who trust our content are equally going to trust the ads around the content.” The Guardian US’ first-party data, bolstered by its strong newsletter program and direct site traffic, gives advertisers access to a deeply engaged and loyal audience, enhancing their campaigns’ effectiveness.
Finally, Strauss noted the importance of balancing The Guardian US’ core mission of quality journalism with the need to generate revenue. He reiterated that the commitment to journalism would never be compromised but stressed that the high engagement level from their audience makes the platform so appealing to advertisers. “The quality of journalism makes us so valuable and attractive to advertisers,” he remarked.
Direct Advertiser Relationships Are Reshaping Programmatic Advertising
While news is changing, Strauss stresses that the programmatic marketplace is changing as well.
The industry is shifting towards more direct advertising campaigns, with programmatic buying increasingly leaning towards PMPs. Buyers will still participate in open auctions with more selective, shorter white lists, ensuring they know exactly where their ads will appear. Publishers and advertisers must build strong, direct relationships to succeed in a more controlled and targeted advertising environment.
Unfortunately, smaller publishers without these direct relationships may struggle as open auction spending decreases. Larger publishers with established advertiser connections and trusted reputations will likely thrive, as trust becomes critical in rising to the top of the ecosystem. Publishers that can foster trust and reliability with advertisers will have a significant advantage.