Newsweek is launching subscription products and diversifying non-advertising revenue to prepare for a future where AI answer engines may disrupt traditional search traffic. Currently, 63 percent of its revenue comes from digital advertising. CEO Dev Pragad aims to reduce this reliance while still achieving 10-15 percent growth, despite AI-related challenges. The company is exploring a more diverse revenue mix through vertical strategies, which include more events, subscription initiatives, and data-driven editorial partnerships to create co-branded lists that highlight rankings.
Newsweek generated $90 million in revenue in the last financial year, with a 20 percent profit margin, where 63 percent came from digital advertising.
The publisher aims to reduce its reliance on digital advertising from 63 percent to 55 percent over the next year while targeting 10-15 percent growth.
Newsweek's strategy includes building out its verticals with more events, subscription experiments, and data-driven co-branded lists produced in partnership with research firms.
As AI answer engines threaten traditional search traffic, Newsweek is diversifying revenue to insulate against erosive effects on digital advertising revenue.
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