New Ideas in Marketing
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Challenges arising from declining programmatic ad rates and cancelled campaigns remain.

Subscription rates in the US and Europe rose by as much as 97% and 199% respectively in the weeks since the global pandemic was declared, driven by growing news consumption and a rise in Facebook ad spend. But, publishers are still getting hammered by declining ad rates, vendors extending payment terms and uncertain events businesses.

With low advertiser demand on platforms like Facebook, string reader engagement and conversion on own sites, the cost of acquiring a digital subscriber has slid. Cost per acquisition for a newsletter subscriber on Facebook also fell to 25 cents from 75 cents earlier.

While the low cost of acquisition might be tempting, budgetary constraints will likely rein in any aggressive moves. This piece says that when the virus abates, publishers might find they have a lower take rate.

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[3 minute read]

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