From Clicks to Community: Embracing the Shift from the Traffic Era to Audience Era

Hi Everyone,

Before we delve into this month's newsletter (which is a long one!), I want to take a moment to address the recent news about Pedestrian Group's closures. It's incredibly disheartening to see titles I love, like Lifehacker Australia and Gizmodo.com, which were such significant inspirations for Frank Arthur and me when we started Man of Many, and the many other fantastic youth and lifestyle-focused publications, cease operations. The media industry is undoubtedly facing challenging times, and our hearts go out to everyone affected by these closures.

These changes underscore the immense pressures on digital publishers today. As discussed in last month's newsletter, the landscape is shifting, and independent voices are more critical than ever. The impact of the News Media Bargaining Code and the evolving algorithms of digital platforms have created a complex environment for digital publishers and media.

At Man of Many, we are committed to supporting our industry colleagues in whatever way possible. If there is anything we can do to assist those impacted by these closures or you simply need an ear to vent, please don't hesitate to reach out. We're all in this together, and supporting each other within the industry during these turbulent times is essential.

In this month's newsletter, we delve into the evolving dynamics of the media industry with a shift from away the Traffic Era toward the Audience Era. This transition marks a significant change in how publications approach their content and engage with their readers. Below, we explore this dynamic, discuss the recent closures at Pedestrian Group, the impact of the News Media Bargaining Code (NMBC), and share insights on how we at Man of Many are thinking about adapting to these changes.

The Shift Away from the Traffic Era

The traditional metrics of success for online publications have long been centred around traffic numbers—page views, clicks, and unique visitors. However, the media landscape is undergoing a profound transformation. Publishers are now prioritising the quality of engagement over sheer quantity. This shift from the "traffic era" to the "audience era" is not just a change in metrics but a fundamental realignment of how we connect with our readers.

So what is The Traffic Era for Publishers?

The "Traffic Era" for publishers refers to a period where the primary measure of success was the volume of traffic. This era was characterised by an intense focus on driving large numbers of anonymous users (often of low-quality and with low-intent) to websites through various means, such as social media referrals, black-hat or spammy search engine optimization (SEO), and clickbaity headlines.

(Editor's Note: I'm not at all having a dig at SEOs who do amazing work for the industry in coaching businesses to produce more valuable, rich and helpful content. Shoutouts to Lily Ray, Marie Haynes, Barry Adams, Barry Schwartz and Glenn Gabe, who I'm all a huge fan of.)

Key Characteristics of the Traffic Era:

1. Volume Over Engagement: The primary goal during the Traffic Era was to attract as many visitors as possible, often without considering the quality or engagement level of those visits. Publishers focused on high traffic numbers to boost advertising revenue, sometimes at the expense of user experience and content quality.
2. Social Media Dependence: Platforms like Facebook and Twitter were major sources of referral traffic. Publishers heavily relied on these platforms to drive visitors to their sites. Building an audience on social media, particularly during Facebook's golden age, was relatively easy and cost-effective. The cost-per-click (CPC) for Facebook ads was incredibly cheap, and the platform's robust targeting capabilities allowed businesses to reach large, relevant audiences for minimal costs.
3. SEO and Clickbait: There was a high emphasis on SEO tactics and creating sensational headlines to attract clicks. This often prioritised quick wins over long-term value. Publishers churned out content designed to rank well in search engines and generate immediate traffic spikes rather than focusing on creating lasting, valuable content.
4. Advertising Revenue Model: Revenue was largely driven by advertising, which depended on high traffic numbers. More clicks and page views meant more ad impressions and, consequently, more revenue. This model incentivised quantity over quality, leading to the proliferation of clickbait and low-quality content.
5. Cheap and Easy Clicks: In the early to mid-2010s, Facebook ads were incredibly effective and affordable. Small businesses could run ads for just a few dollars a day, reaching thousands of potential customers. The platform's advanced targeting capabilities and low costs made it a highly attractive option for driving traffic and building audiences. However, the landscape has changed significantly with increasing competition, higher costs, and reduced targeting capabilities due to privacy regulations.

Read more: Is It Time to Rethink Your Social Media Budget? Insights from a Shifting Digital Landscape - May 2024

How do we know the Traffic Era is over?

Just to put the decline of The Traffic Era or the fall of the internet's referral gold rush into perspective, according to Axios, referrals to top global news sites from Facebook and X (formerly Twitter) have dramatically decreased. Facebook’s referrals dropped from nearly 120 million in August 2020 to only 21.4 million in August 2023, an 82% decline. X saw a drop from under 60 million to 22.6 million over the same period.

The Wall Street Journal reported that Village Media in Canada experienced a significant traffic drop, with about a fifth of their visits lost after Meta blocked news links for Canadian users due to a new law requiring compensation for news links. It's not been a sudden change either with these trends happening over a long period. Slate saw its Facebook referrals plummet from 28.33 million in January 2017 to just 3.63 million in May 2018, and, as reported by The Guardian, X (formerly Twitter) also now shows links only as images with the domain text, further reducing the visibility and usability of news links.

It seems there really is no let-up for publishers either, and with Man of Many being one of those impacted (also having not received any funding under the NMBC), we certainly feel their pain.

These statistics now highlight the fragility of pure traffic-based strategies and underscore the need for publishers to adapt to changing dynamics. The decline in referral traffic from major social platforms is a clear indicator that the Traffic Era is indeed coming to an end, prompting a shift towards more sustainable and engaging models of audience interaction and alternatives, which we'll explore further below.

Continued Changes in Search, AI & Platform Traffic

So, we know that the digital landscape is shifting, with social media platforms altering their algorithms and policies, but what about Search?

Google, which accounts for a substantial portion of total web traffic referrals, is also experiencing changes that impact publishers. The launch of AI Overviews by Google has introduced new challenges. These AI-generated summaries provide quick answers to user queries directly on the search results page, potentially reducing click-through rates to publisher websites. While the initial rollout is limited (estimated at just ~12% of searches), the trend towards "zero-click searches" is concerning for publishers. Data shows that a significant portion of searches, approximately 50.33%, now end without a click to any external website, according to Rand Fishkin.

Google has even now advised publishers to diversify their traffic sources and focus on creating high-quality content that genuinely serves their readers. As Google's Search Liaison Danny Sullivan emphasised, "Make great content. Focus on your audience, and diversify your traffic sources."

The Traffic Era Might be Over, but Traffic Still Matters!

Despite this advice, in 2024, the reality is that 63.41% of all web traffic referrals in the U.S. come from Google, making it an unavoidable partner for most news businesses. Given this dominance, leveraging Google is still crucial for maintaining and growing an audience. According to the recent Reuters Institute Digital News Report, about 73% of internet users still access news via search engines like Google, underscoring the ongoing importance of this traffic source.

As the media landscape continues to evolve, publishers must stay agile, leveraging a mix of traditional and innovative strategies to reach and engage their audiences. By focusing on quality content, diversifying traffic sources, and building direct reader relationships, publishers can navigate the challenges posed by changing platform dynamics and technological advancements.

Adapting to AI Overviews: Actionable Tips for Publishers

To effectively navigate the challenges posed by AI Overviews, publishers need to adapt by ensuring their content is comprehensive, authoritative, and provides value that AI summaries cannot replicate. Here are some actionable tips:

1. Create Comprehensive Content: Develop in-depth articles that thoroughly cover topics, providing detailed information that AI overviews may miss. This includes incorporating original research, expert opinions, and unique insights that add value beyond basic summaries.
2. Focus on Authority and Expertise: Establish your publication as an authority in your niche. This can be achieved by consistently publishing high-quality content, obtaining expert contributions, and maintaining a strong editorial voice. Google's algorithms favour authoritative sources, so building your reputation is key.
3. Enhance User Engagement: Encourage deeper engagement by offering related content, interactive elements, and multimedia. Engaged readers are more likely to spend time on your site, reducing bounce rates and improving your site's overall performance in search rankings.
4. Optimise for User Intent: Understand and target the specific needs and queries of your audience. Creating content that directly addresses user intent can help ensure your articles are seen as valuable resources, even in the presence of AI overviews.
5. Leveraging AI as a Tool, Not a Replacement: AI can enhance our media operations in ways that extend beyond just generating content. It's often said that "AI isn't going to take your job, but someone who knows how to use AI will." This quote underscores the importance of constant experimentation and integrating AI thoughtfully into our workflows.

At Man of Many, we have implemented a Responsible Artificial Intelligence Usage & Disclosure Policy that outlines how we use AI ethically and effectively without compromising our editorial standards. We've actually banned the use of AI for written editorial content published on our site, and there is a key reason behind this: AI or Large Language Models are not capable of generating new information as they are only based on an existing body of knowledge. Therefore, we focus on producing high-quality, original, and unique content that adds to a knowledge base or what Google refers to as "information gain"—something that human journalists are perfectly suited for.

Publishers need to adapt by ensuring their content is comprehensive, authoritative, and provides value that AI summaries cannot replicate. In other words, they need to shift away from a focus on traffic towards a focus on audiences and depth.

The Broader Context and Impact of Pedestrian Group Closures

In this context, it is also with a heavy heart that we address the recent news of Pedestrian Group closing several of its titles, including VICE, Refinery29, Lifehacker Australia, Gizmodo and more. These outlets were more than just peers; they were inspirations (particularly in our early days when Frank and I still worked in industrial design and banking) that helped shape the vision for Man of Many. The closures underscore the ongoing challenges faced by digital publishers in today's rapidly changing media environment. The decline in advertising revenue, coupled with these shifts in traffic, has made it increasingly difficult for many to sustain their operations.

Understanding the News Media Bargaining Code (NMBC) and its Impact

The News Media Bargaining Code (NMBC) was introduced in Australia, intended to address the significant power imbalance between news media businesses and major digital platforms like Meta (Facebook) and Google. The Code aimed to ensure fair compensation for news content used by these tech giants (you can read our full thoughts on that here). However, its implementation has had unintended consequences.

Some may argue, as I do, that this financial and political pressure globally was also a key reason behind the decline in traffic referrals you've seen to news publications more broadly, with platforms reducing their potential exposure and potential liability. For the lobbyists who argued on behalf of the larger legacy media publishers, it could ultimately be a spectacular own-goal, with the initial benefits of The Code only flowing through to a select few, for a very short period, and leaving the rest of the market at a significant disadvantage to pick up the pieces.

Meta’s decision not to renew its funding deals for Australian news content, as mandated by the NMBC, has had a profound impact domestically. Without these agreements, many legacy publishers have experienced a significant decline in revenue and subsequently announced a raft of redundancies across news divisions. This has been exacerbated by Meta's strategic adjustments, such as shuttering the news tab for Australian users and deprioritising article content over the short-form video in order to compete with TikTok, which further diminished the visibility of news sources on its platforms.

In addition to the impacts of the NMBC and general economic headwinds (I'll state upfront, I have no visibility over the financials, management discussions, or inner workings of the organisation at Nine. The following are simply my personal views and opinion), I think there were several factors that contributed to these closures:

1. Syndicated Content Misalignment: US-centric content often does not resonate with Australian audiences. Adapting and tailoring this content to be relevant locally is incredibly time-consuming, resource-intensive and costly.
2. Market Size and Licensing Costs: The size of the Australian market relative to the US is a significant factor. The licensing costs, which I imagine are in the millions, may not be justified by the relatively smaller Australian advertising market. The million-dollar-plus campaigns common in the US are scarce in Australia, making the investment in licensing less viable.
3. Decline in Content Site Audiences: As already discussed, there has been a noticeable decline in traffic for content sites. This decline heavily impacts revenue, especially for sites dependent on display advertising. With major tech platforms like Meta and X (formerly Twitter) sending less traffic to publishers, there's a shift away from high-churn, short-form content towards more substantial, long-form content that fosters deeper engagement.

What's upsetting is that many of these factors were outside of the journalists' control. They were all producing fantastic and impassioned work, and it's incredibly sad to see the decision to shut down the titles. These broader factors and trends, coupled with the decline of the traffic era, highlight the shifting dynamics in the digital media industry, underscoring the need for publishers and media businesses to adapt to new realities.

The Role of Journalists and Publishers Still Remains Vital

Despite these closures, journalists' roles remain vital. Independent publications and a diverse media ecosystem are essential for a healthy democracy, providing varied perspectives and ensuring that a wide range of voices are heard.

The decision by Pedestrian Group to cancel the foreign licenses and focus inwards on its core brands and business reflects a broader trend where publishers must focus on new strategies to create sustainable business models and a more deeply engaged audience rather than relying on third parties for content or exposure.

Recent policy changes in Canada have removed reputable news sources from social media feeds, which has significant implications for the spread of misinformation and disinformation. This affects public knowledge, trust in information, and overall news consumption behaviour. Research indicates that reduced access to professional journalism on social media platforms increases the prevalence of misinformation and disinformation.

The ongoing need for new, high-quality, trustworthy information, particularly when AI companies are already running out of data to train their models on, means that media and journalism continue to hold immense value, not only for readers but also for AI companies. This is why companies like OpenAI have signed partnership agreements with publishers like News Corp and Time, underscoring the ongoing importance of media and original reporting.

...That is unless Microsoft's new AI Chief, Mustafa Suleyman, has anything to do with it after his comments at the recent Aspen Ideas Festival.

“With respect to content that’s on the open web, the social contract since the 90s has been that it’s fair use. Anyone can copy it, recreate with it, reproduce with it. It’s been freeware if you like. That’s been the understanding.”

Scary times indeed.

The Need to Stop Feeding the Algorithm

As the media landscape evolves, publishers are experiencing a "Come to Jesus" moment, realizing the necessity of shifting their focus from quantity to quality. This shift marks a transition away from the relentless pursuit of clicks and page views, driven by algorithmic demands, towards a more sustainable and engaged approach to audience development.

Focus on Quality, Not Quantity

In the golden age of Facebook, building an audience was relatively easy and cost-effective. Clicks were cheap, and social media platforms provided a steady stream of visitors. However, this model has proven unsustainable. The constant need to feed the algorithm has led to a proliferation of low-quality, clickbait content, which ultimately erodes reader trust and engagement. Couple that with a flood of cheap and easy-to-replicate AI content, and you end up with the "Tsunami of Crap" flooding the internet.

Publishers now recognise the importance of prioritising the depth of visit and time spent on-site over sheer volume. This means creating long-form, original content that resonates with readers and keeps them engaged. As Neha-Tamara Patel from GQ highlighted to Press Gazette, their strategy shift away from "feeding the algorithm" towards more considered, long-form content resulted in a 47% year-on-year increase in engagement among British users. By engagement, she's referring to total time on site, which equates to 71 million engaged minutes.

The nature of engagement on social media versus news platforms is fundamentally different. Social media is primarily designed for entertainment, social interaction, and brief content consumption. While it offers vast reach, the engagement with content, especially advertisements, tends to be more superficial. Users often scroll through feeds quickly, and the intent to engage deeply with content, including ads, is low.

In contrast, news articles and independent media platforms like ours attract audiences intending to seek information, education, and insight. This intentional engagement is more focused, with users likely to spend time reading through content thoroughly. It offers advertisers a unique opportunity to deliver their message in an environment conducive to absorbing information. This depth of engagement significantly enhances advertising effectiveness, delivering real value through brand awareness, education, and direct traffic to services or products.

Read more: The case for investing in independent publishers and news media

Our Digital Covers Project

To reaffirm our commitment to premium lifestyle content, 2024 marks the launch of our Digital Covers initiative, which was 100% spearheaded by our incredible Editor-in-Chief Nick Hall and which I can take absolutely zero credit for! This project features prominent Australian and international stars who embody the Man of Many ethos. The Digital Covers will serve as a visual guide to our quarterly themes, with additional long-form feature articles exploring each theme from different angles. This initiative aims to develop and refine our visual language while providing a unique and engaging experience for our readers.

In line with our strategic shift from a breadth-focused to a depth-driven approach, our Digital Covers Project emphasises creating meaningful connections with our audience. By aligning our editorial focus with established celebrities and presenting it in a unique visual format, we ensure that the content we deliver is not only captivating but also deeply resonant. This initiative moves beyond surface-level engagement, fostering a stronger sense of brand loyalty and community. Through this project, we effectively communicate our market positioning, providing a more immersive and valuable brand experience for our readers. This depth-over-breadth strategy is designed to build lasting relationships as part of our audience development efforts.

A Focus on Audience, Community, Membership & First-Party Data

At Man of Many, we are also exploring new ways to build upon our loyal, engaged community. This involves surveying our audience to understand their needs and preferences better, particularly around their willingness to pay for content.

While we have yet to implement paid subscriptions, we are considering various options, such as registration walls or contribution models. Our goal is ultimately to create a sense of community and belonging among our readers, ensuring they feel valued and connected to our brand through offerings such as exclusive giveaways, access to events, free training courses, discounts, and exclusive member merchandise.

We've always aimed to build our platform for ourselves as our own audience but are frequently surveying our audience on their preferences moving forward. This focus on authenticity and genuine engagement has been a cornerstone of our approach, and we believe it is essential for long-term success.

The shift from third-party cookies to first-party data also requires publishers to strategically overhaul how they collect and use audience data. With major browsers like Safari, Firefox, and Apple's iOS already limiting tracking and Google's Chrome planning to phase out third-party cookies, first-party data—such as names, email addresses, locations, and user behaviour—has become crucial.

By leveraging first-party data, publishers can offer targeted advertising options and allow advertisers to use their own data for retargeting, improving campaign performance and strengthening client relationships. This strategy helps publishers stand out based on data quality, crucial for retaining and attracting clients in a competitive market. Additionally, publishers can deepen relationships with large brands through direct sales and create self-service solutions for SMB advertisers. Embracing first-party data is essential for staying competitive, enhancing advertising performance, and building stronger client connections, akin to personalised content recommendations on platforms like YouTube.

Revenue Diversification

Publishers are constantly seeking ways to diversify their revenue streams to adapt to the changing landscape.

At Man of Many, we have launched a new corporate site, a significant step in showcasing our diverse offerings to potential advertisers. This platform goes beyond listing features, providing a comprehensive look at how partnering with us can benefit your brand. By visiting https://advertise.manofmany.com, you’ll see why Man of Many stands out as Australia's largest men's lifestyle publication (at least, that's the aim!).

The goal of our new site is to enhance brand visibility and credibility, featuring detailed case studies and success stories that demonstrate our impact on partners. It aims to drive advertiser inquiries and conversions with clear call-to-action buttons and showcases our range of services, including content, social media, display ads, events, video production, newsletters, and more. Providing comprehensive data and analytics about our audience—demographics, reach, and engagement— it ensures transparency and hopefully helps partners make informed decisions. Looking ahead, we are expanding into podcasting and launching a merch store, adding new dimensions to our brand and offering more ways to connect with our engaged audience, reflecting our commitment to innovation and providing diverse opportunities for brand partnerships.

As Outbrain CEO David Kostman noted on his podcast with Brian Morrissey, publishers need to show their ads work, even if they do not have the closed-loop attribution systems of social platforms and retail media. By focusing on high-quality content and direct audience relationships, we can create a more stable revenue base and reduce our reliance on third-party platforms.

Moving Forward

The digital publishing landscape is undergoing significant transformation, and traditional traffic-driven revenue models are becoming increasingly unsustainable. The recent closures of beloved titles like Refinery29 Australia, Lifehacker Australia and Gizmodo Australia highlight the immense pressures on digital publishers and the need for new strategies. At Man of Many, we recognise the importance of adapting to these changes by focusing on quality content that fosters deep engagement, marking a shift towards the audience era.

Publishers are now prioritising the creation of high-quality content that resonates deeply with readers, building loyal and engaged communities. This shift involves fostering direct relationships through newsletters, memberships, and exclusive offerings, and focusing on metrics like time on site and depth of visit over sheer volume. By leveraging first-party data, publishers can offer personalised content and targeted advertising, enhancing campaign performance and client relationships.

As we move forward, publishers must acknowledge the challenges facing the industry and embrace new opportunities. We can navigate the absolute craziness of the evolving media landscape by creating meaningful connections with our audience, diversifying revenue streams, and prioritising engagement over clicks. Let's hope that together, we can continue to provide insightful, reliable journalism that our readers value and build a more sustainable future for digital publishing.

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For further discussions on how Man of Many can align with your advertising goals and contribute to your success, feel free to contact us at [email protected].

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About the Author: Scott Purcell, CFA, the Co-Founder of Man of Many and a CFA Charterholder, is a renowned figure in the media industry. His entrepreneurial spirit was recognised in 2017 when he was a Finalist for Young Entrepreneur at the NSW Business Chamber Awards. With a special focus on technology, finance, whisky, and general lifestyle content, Scott has collaborated with leading international brands like Apple, Samsung, IWC, and TAG Heuer. In 2023, his leadership and innovation were further acknowledged as he, alongside Frank Arthur, ranked #47 on the MediaWeek Power 100 List by MediaWeek. Under his guidance, Man of Many triumphed as the Best Media Platform at the B&T Awards, 2023, and clinched the titles for Best Engagement Strategy, Website of the Year, and Publish Leader of the Year at the Mumbrella Publish Awards, 2023, showcasing his unparalleled expertise and influence in the media sector. In 2024, he was recognised in MediaWeek's Next of the Best Awards for Publishing.