OpenAI shares AI strategies for publishers

OpenAI’s strategic insights for publishers 

Catch up: Last week, Varun Shetty, Head of Media Partnerships at OpenAI, shared strategic insights with news publishers at Twipe’s Digital Growth Summit. Here’s a recap of what he had to say.  

Only select one or two AI projects that align with your goals: “If you’re spreading your efforts across 100 different AI ideas, you’re not going to make meaningful progress on any of them,” he cautioned. Instead, he advises concentrating on one or two initiatives that could deliver a substantial impact within the next 12-18 months.

Publishers will retain control over their content with OpenAI: “We care deeply about giving publishers control over how they appear within our products—or if they appear at all,” he stressed. Even when OpenAI’s search bot is allowed, the content displayed will not be used as training data, thereby protecting their intellectual property. 

Compensation will come through referral traffic (for now): “We’re starting by focusing on driving value back through traffic. As the product evolves, we’ll see if additional monetization levers are needed.” He encouraged organizations to assess whether the current traffic-driven model aligns with their objectives and remain open to negotiating additional revenue streams. 

Why should publishers invest in community building?

The big problem: Wanting to feel connected to a community is one of the key reasons why people read the news, according to the User Needs Model. However, it’s also one of the user needs that is currently underserved, as stated by the Digital News Report.  

A tangible solution: For the past two years, a local publication, Harvey County Now in Kansas, started hosting evening drinks for members of their Press Club. These monthly gatherings attract about 20-40 people and were “a way for us to connect with our readers and for our readers to connect with each other”, according to Lindsey Young, the majority owner of Kansas Publishing Ventures. 

Community building pays back in dividends: Even with subscription costs doubling from a year ago, Young notes that “only lost around 10 percent of our subscriptions, our digital subscribers are up, and rack sales are increasing, too.” One of the reasons why the impact has been minimal, alongside a great product, is that “we began to understand just how much they wanted to support us,” Young shares with Twipe.

The challenges and successes of media start-ups in 2024 

A familiar story: Rising print costs, saturated subscriber pools, and a declining ad market present substantial hurdles to making a profitable news business for both large and small publishers alike. So, how are media start-ups faring within this context?  

The News Movement (TNM): Launched in 2021, TNM aims to deliver news to Gen Z audiences through social platforms. While they’ve encountered significant setbacks this year, they are en route to achieving profitability in 2025. Their business model relies on their consultancy work which uses the data they collect on their Gen Z audience to advise brands on how to engage with them. 

Artifact: Earlier this year, news media company Artifact announced it was closing. Its technology, including an intelligent recommendation algorithm and AI-powered article summaries, was widely praised for its ingenuity. However, it faced difficulties in creating a sustainable business model.  

404 Media: 404 Media celebrated its first anniversary last month. The project was started by four journalists with an initial investment of $1,000 each, demonstrating the viability of staying lean and focusing on building quality niche content. 

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🗞️ What we’re reading

• A data scientist from the New York Times does a deep dive into how they use algorithms to populate their homepage.  

• The Guardian launches The Filter, a product recommendation site through which they receive commission on sales.  

• The American Press Insitute shares five ways to help newsrooms stay on top of misinformation ahead of the American election.  

💡 Twipee recommendations

Forget pumpkin spice lattes—this season is all about butternut squash! This week’s recommendation comes from Sarah Cool-Fergus, Business Analyst and Co-Writer of this very blog. 

“This coconut curry butternut squash soup recipe is everything you want in a soup: easy, warming, and flavourful! If you’re feeling down with the dwindling daylight hours, this will pick you right up. Plus: lentil croutons! Chef’s kiss.”