🌯 Newsweek’s Comeback: A Case Study in Long-Term Strategy

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This Week
January 27, 2025
Newsweek's $90 Million Comeback
Will Google's AI Overview Usher a New Era of SEO?
Netflix Wins Big With In-House Ad Tech
Newsweek’s Comeback: A Case Study in Long-Term Strategy
The publishing industry loves a good comeback story. But if you’ve been in media long enough, you know that a Newsweek turnaround wasn’t exactly high on anyone’s bingo card. Or, maybe we just weren’t paying attention.

Maybe Newsweek was playing the long game. Adweek’s latest report provides the receipts about a publisher that went from financial and legal chaos to quadrupling revenue since 2018 to $90 million, a 20% profit margin, and a strategic pivot that’s got them outperforming many of their legacy media peers. That’s a major glow-up, but if you’ve been following the moves CEO Dev Pragad has been making since 2016, this moment was practically scripted.

When he took the stage at AdMonsters Publisher Forum San Diego in 2021, he outlined the digital overhaul Newsweek was already executing—restructuring its business model, modernizing its tech stack, and preparing for a world without third-party cookies. Fast forward to today, and Adweek’s report validates exactly how those early moves paid off. Newsweek’s shift to a data-driven editorial model, combined with smart SEO and an aggressive direct sales push, has positioned it ahead of many competitors still scrambling to catch up.

And then there’s the authenticated traffic play, which was already delivering serious CPM lifts when I interviewed Pragad in August 2021 about their work with LiveRamp’s ATS. 55% lift on Chrome, 93% on Safari, and up to 224% in eCPMs overall. While other publishers were debating cookieless solutions, Newsweek had already built the framework to monetize authenticated users at scale. Now, as the industry scurries to reduce dependence on open-market programmatic, they’re sitting on a high-value, privacy-safe inventory that advertisers actually want.

Those early moves set them up for success. Newsweek wasn’t just chasing clicks—they were strategically positioning themselves to ride out the storm. The lesson here? Waiting for disruption to force your hand is how you lose. Newsweek bet early on identity, direct audience engagement, and monetization models that wouldn’t crumble under privacy shifts. The result? Higher-value inventory, better ad yields, and a revenue strategy that doesn’t need to chase trends—it’s built to outlast them. — LdJ
Will Google's AI Overview Spark an SEO Renaissance? The Early Signs Point to Yes

Just as soon as Google rolled out its AI Overview, people began to fret about its impact on publishers that rely on search referral traffic. Adweek reported that publishers stood to lose $2 billion in revenue, and the New Yorker warned it would contribute to an extinction-level event that would decimate the publishing industry. This naturally prompted publishers to search for survival strategies. But now that we’ve been living with AI Overview, the actual impacts are a bit more complex and varied. For instance, Parse.ly published a study showing that its client traffic increased by 8%, and a HubSpot survey found that 41% of marketers said it boosted traffic to its site.

Conversely, a Forbes article shows that other industries, such as travel, are far more vulnerable to the “whims” of search algorithms. Some queries, such as checking flight status, are well suited to AI Overview. As a result, travel sites have had to toss out their old playbooks to reach people. Kayak CEO Steve Hafner told Forbes that AI Overview has forced them to change their CEO tactics so that they bid more aggressively on the first few sponsored links that appear beneath AI Overviews.

The travel industry may be the canary here. Given that as of late 2024, AI Overviews appeared in less than 0.5% of Google search results—only 0.1% in news-related searches—we’ll likely see more industries affected as Google expands the types of searches its AI can handle. This shift can lead to a new era of SEO innovation in which SEO specialists optimize for both traditional search results and AI summaries. – SS
Why Netflix’s In-House Ad Tech Is a Long-Term Bet

Netflix is doubling down on its in-house ad tech as it positions 2025 as the year its advertising ambitions hit their stride. After years of relying on external partners like Microsoft, Netflix has launched its own ad tech stack in Canada, with plans to roll it out in the U.S. this spring.

Co-CEO Greg Peters highlighted the advantages of this move, including greater flexibility for advertisers, fewer activation hurdles, and enhanced targeting, measurement, and programmatic capabilities—all designed to improve both advertiser and viewer experiences.

The Q4 earnings report highlighted the importance of Netflix’s ad-supported tier, which accounted for over 55% of new sign-ups in markets where it’s available. While live events like NFL Christmas Day games and the Jake Paul-Mike Tyson boxing match drew significant attention, Peters noted that the real game-changer lies in the company’s ability to scale its ad tech and capitalize on the $25 billion connected TV ad market.

By taking control of its ad stack, Netflix aims to unlock new revenue streams and build a more robust ad ecosystem. Early results in Canada show promising revenue growth, and the upcoming U.S. expansion aligns with the spring upfronts, where advertisers make major spending commitments. Peters emphasized that Netflix’s proprietary platform is a long-term investment, with iterative innovation driving improvements in targeting, reporting, and overall ad effectiveness. – AB
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