The Guardian US Nabs 42% Ad Revenue Uptick Despite Downturn

The U.S. outpost of the general news publisher The Guardian finished the first quarter of its fiscal year, which ended June 30, with advertising revenues up 42% year over year, according to senior vice president of advertising Luis Romero—a hike that runs counter to broader economic trends. The publisher declined to share financial specifics, but The Guardian U.S. generates between $40 million and $50 million in revenue annually, a figure split roughly evenly—$20 million to $25 million each—between advertising and reader support, according to Romero. At the moment, The Guardian U.S. brings in no revenue from affiliate marketing or events. The substantial uptick, which comes as the broader digital advertising ecosystem continues to flounder, is the latest in a series of counterintuitive successes for the publisher. In its most recent fiscal year, which ended in March, advertising revenue at The Guardian U.S. was up 40% year over year. “I think we are witnessing a trend, in a down economy, of brands flocking to quality,” Romero said. “What I’m hoping is that there is a flock not only to quality, but to news and information sites like The Guardian.” Faster, Shorter and Electric: Media CROs Reset Ad Expectations for the Second Half of 2023 The Guardian U.S. attributes its ongoing momentum to a variety of factors, including its paywall strategy and mission-driven advertising ethos. More specifically, it has focused on growing its direct-sold—rather than programmatic—advertising business and emphasized its suite of custom content offerings. According to Romero, the publisher now generates roughly 60% of its advertising revenue from direct deals, with the remainder coming from open-market programmatic—an improvement from its 50-50 balance last year. The publisher has expanded its direct sales staff in the last year, bringing total headcount to 25. The Guardian U.S. has also increased the volume of its custom content business. Branded material produced by its studio division now generates between 40% to 45% of its total advertising revenue, according to Romero, whereas last year it brought in roughly 30% to 40% of the business. Custom content and a porous paywall As marketers face heightened pressure to justify their ad dollars, advertisers have increasingly sought custom content produced on shorter timelines. To accommodate, The Guardian U.S. has emphasized offerings like its in-development sponsorship product, according to Romero. To create timely sponsorships, an editorial liaison sits in newsroom meetings to hear pitches, then brings select story ideas to relevant prospective clients. This process enables the publisher to create customized commercial products in two weeks, rather than four to six. The Guardian U.S. also benefits from its unique paywall strategy, which asks readers for donations but does not gate its content. The model gives the publisher recurring revenue from a subscription product without limiting audience scale, according to media analyst Patrick Steel. The Guardian U.S., which attracts around 45 million unique visitors per month per Comscore, can then parlay this scale into both direct deals and programmatic revenue while using reader donations to invest in its news product, a "powerful combination,” said Steel. A challenger brand mentality and agency perks Another appeal of the publisher stems from the challenger brand mentality it has embraced, according to Andrew Becks, the chief operating officer at media agency 301 Digital. For instance, although The Guardian U.S. launched more than a decade ago, it still offers new clients flexible spending minimums that encourage them to experiment with its offerings. According to Romero, the publisher increased its ad revenue this quarter largely by turning exploratory budgets into more substantial buys. The publisher also offers perks infrequently offered by other premium publishers, such as the ability for advertisers to own the creative assets—as well as unused B-roll and video—that they pay for, according to Becks. It also sometimes over-delivers on campaign KPIs, letting clients continue a flight even if it has prematurely achieved its campaign objectives. Publishers Turn to Livestreaming to Once Again Tap Video Budgets “They say it is a function of the content, but it is also a function of them understanding their audience,” Becks said. “They staff their brand studio with people who have strong writing backgrounds, and that goes a long way in getting people to interact with that content.” To expand its lifestyle offerings, this summer The Guardian U.S. plans to invest further in soccer and expand its roster of soccer columnists, although it declined to share a specific number. The publisher is also launching a dedicated newsletter for its U.S. audiences covering the subject, in anticipation of a swell of interest coming from the Women’s World Cup this summer, the Men’s World Cup coming to North America in 2026 and the fervor surrounding Lionel Messi’s decision to join the MLS club Inter Miami. “Internally we are calling it the U.S. home for the global game,” Romero said. “We want to use our authority in the space to really lead the coverage.”

Data & Insights

How The Guardian US Fetched Ad Revenue Hike of 42% Despite Broader Downturn

The news publisher continues to buck larger economic trends

Mark Stenberg

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Mark Stenberg