The Guardian US Nets 40% Gain in Advertising Revenues

Stateside outpost The Guardian U.S. is on pace to grow its year-over-year advertising revenues by 40%, according to senior vice president of advertising Luis Romero, an uptick the 11-year-old outlet has notched during an otherwise uneven advertising market. That hike is partly thanks to an increase in its branded content deals and its courting of green ad budgets. The 127-person publisher, whose fiscal year ends on March 31, wouldn't share specific figures or say whether it was profitable on a standalone basis. The Guardian U.S. reports revenue in dollars, rather than British pound sterling, whose value relative to the dollar dropped roughly 15% in 2022. “We have been in the U.S. for 11 years, but a lot of new readers found us during the pandemic,” Romero said. “So, we are using the opportunity to rebrand ourselves and go to market with an eye toward growth.” According to Romero, The Guardian U.S. generates the vast majority of its advertising revenue from its site, whose inventory it splits almost evenly between open web programmatic and direct deals, including private marketplaces, programmatic guarantees and branded content. Its website reaches an average of 55 million readers per month, according to measurement firm Comscore. Thanks to its donation model, The Guardian now has more than 1 million digital subscriptions—people who subscribe to its apps for a fee or chose to make a recurring financial contribution—260,000 of which come from North America Despite Lower Traffic, The Guardian US Exceeds End of Year Donation Revenue Goals The publisher attributes the revenue uptick to a number of factors, including its courting of green budgets, a year of landmark news events, an increase in its production of custom content and growing consumer awareness of its product driven by its lack of a paywall. “The Guardian has a central mission to deliver quality journalism free of charge to a broad audience,” said Jamie MacEwan, a senior research analyst at the media research firm Enders Analysis. “It is one of the few publishers to offer such large reach in a premium context.” Green advertisers, the World Cup and a unique paywall strategy boost revenue The Guardian and its U.S. outpost stand nearly alone among major publishers in their refusal to work with oil and gas advertisers, a pledge that has garnered praise amongst climate activists, and made it an attractive vehicle for green budgets, according to Romero. It won Lexus as a client late last year as the brand sought to promote its electrification efforts, for instance, and it aims to expand further into the category as automotive supply chains normalize this year. “I would not be surprised that The Guardian’s decision has made it an attractive place for ethical advertisers,” said Harriet Kingaby, the co-chair of the Conscious Advertising Network. “They don’t want their ads to appear next to a fossil fuel ad and risk devaluing their brand in the eyes of a potential customer.” The publisher has also benefited from a year of landmark news events, such as the men’s World Cup, the resignation of former Prime Minister Boris Johnson and the death of Queen Elizabeth II. Their challenger brand ethos comes through and their team isn't afraid to tackle tough marketing solutions with new ways of working.Ashley Buxton, the managing director at Initiative The Guardian's donation strategy has, so far, afforded it the best of both worlds—audiences unwilling to pay for the news can still read The Guardian U.S., providing it advertising revenue. At the same time, those compelled to support the publisher can subscribe or donate. Expanding into branded content and events In 2023, The Guardian U.S. aims to shift its digital advertising balance away from open web programmatic and toward direct deals, especially branded content produced by its in-house studio, Guardian Labs, according to Romero. It hopes to win competitive brand marketing budgets by emphasizing the reach and accessibility of its content, as well as the average length of time readers spend with its content. The average dwell time of a Guardian U.S. reader increased 15% in 2022, according to Comscore. The publisher also plans to enter into the world of live events this year, beginning with a three-city podcast tour timed to the women’s World Cup in June. The podcast tour will follow the hosts of The Guardian podcast Women’s Football Weekly, Faye Carruthers and Suzanne Wrack, as they visit Seattle, Portland and San Diego, hosting a series of sponsored pop-ups that include a digital media commitment. “The appeal of The Guardian is its openness to creating new ad solutions and their highly engaged audience,” said Ashley Buxton, the managing director at Initiative. “Their challenger brand ethos comes through in all aspects of the partnership and their team isn't afraid to tackle tough marketing solutions with new ways of working.”