News Corp Wants to Convince Advertisers to Pay More
News Corp. (NASDAQ:NWS) is looking to build the value of advertising on its newspapers’ websites by making the process of selling ads private, breaking ties with third-party ad selling networks.
News Corp. has been under pressure to prove that newspapers are still a profitable enterprise in an era of online news. This new advertising exchange will allow advertisers to bid on ad space on more than 50 websites owned by News Corp., including The Wall Street Journal’s WSJ.com and The New York Post’s NYPost.com. The new exchange will allow “marketers to collectively leverage the company’s leading online and mobile products and rich first-party data for programmatic buying and real-time bidding,” according to a company statement.
“News Corp enjoys a strong direct relationship with its premier audience of affluent, engaged subscribers and users, while the exchange will allow advertisers to target a number of audience segments on a global scale via premium quality inventory and unique data,” the company said in its release.
Basically, News Corp. is trying to convince advertisers that space on its sites is more valuable than other places because users are more loyal and have more expendable cash. According to industry experts cited by the U.K. paper The Guardian, News Corp. has had a tough time using that logic to convince advertisers to pay more to advertise on its sites, especially ones with less traffic.