Video Content The Key to News Media Monetization in a Digital Era

In today’s digital world, news media companies face a challenging landscape: traditional revenue sources like print and TV ads are steadily declining, while consumer behaviors are shifting rapidly. Amidst these changes, video content has emerged as a key opportunity for news outlets to not only retain audiences but also create new revenue streams. From video advertising to subscription-based models, video content offers a dynamic and versatile way for news media to adapt, grow, and thrive.

Decline of Traditional Revenue Streams

The decline in traditional advertising revenues is well-documented. For over a decade, print advertising has faced a downturn as more people move online, and linear television ads are similarly struggling as streaming services dominate. According to Borrell’s 2024 Digital Benchmarking Report, U.S. newspaper advertising revenue dropped by 5.4% in 2023, continuing a steady decline. Likewise, network news programs have seen a notable drop in advertiser spending since 2020. As revenue from these long-established channels continues to wane, news organizations have increasingly looked to digital content—and specifically video—as a solution.

The Rise of Video Advertising

One of the most promising opportunities for monetization comes from video advertising. As audiences consume more news online, advertisers have responded by redirecting budgets from traditional to digital formats, with video ad spending showing explosive growth. By 2025, U.S. digital video ad spending is expected to reach $78.5 billion, up from $55.34 billion in 2022. With online video projected to account for over 82% of all internet traffic, there’s an enormous market for video ads. Platforms like YouTube and Facebook, which allow news organizations to monetize video through pre-roll, mid-roll, and post-roll ads, have become essential.

The shift to video advertising enables news outlets to target audiences more effectively than ever. Video ads are highly customizable, allowing advertisers to choose formats that best suit their products and viewers. News organizations can benefit by offering advertisers various formats—from short, engaging clips to in-depth branded content—that tap into this booming market while providing tailored ad experiences that resonate with consumers.

Subscription Models and Premium Content

Beyond advertising, many news media companies are adopting subscription-based models for video content, charging for exclusive content that is not available to free users. This strategy is particularly effective for high-quality video journalism, including investigative reports, documentaries, and expert interviews that require significant resources to produce. Platforms such as Newsday have successfully implemented subscription options with premium video offerings, driving up their digital subscriber base and engaging viewers who value high-quality, in-depth news coverage.

A “freemium” model—offering basic video content for free while charging for premium access—has also proven popular. This approach encourages casual viewers to engage with the brand and eventually consider subscribing for premium content. As news media further refine their digital strategies, these subscription models are predicted to become essential revenue drivers, cultivating viewer loyalty and providing a reliable income stream amid advertising volatility.

Sponsored Content and Brand Partnerships

Another lucrative revenue source is sponsored content, which has seen increasing demand as brands seek more engaging ways to connect with audiences. Unlike traditional ads, sponsored videos align with editorial content, providing value to viewers while subtly promoting a brand’s message. Known as “native advertising,” this form of sponsorship is less intrusive and more organic than traditional ads, making it highly effective. Video is especially popular for native advertising, with 53% of publishers reporting it performs better than other formats.

News organizations, with their established reputations and trusted audiences, are well-positioned to attract brands willing to pay for high-quality sponsored video content. This type of advertising is anticipated to grow significantly, particularly as brands seek meaningful engagement with viewers rather than relying solely on ad impressions. By partnering with reputable news brands, advertisers can enhance their visibility while delivering valuable, story-driven content.

Live Streaming and Shoppable Video

Live streaming is another area where video offers substantial monetization potential. Platforms like YouTube Live and Facebook Live allow news outlets to broadcast events, breaking news, and interviews in real time, often supported by viewer donations, sponsorships, or paid access. For news organizations, live streaming not only drives engagement but also creates real-time revenue opportunities. The immediacy of live video fosters viewer involvement, especially when audiences can interact directly with the broadcast through comments, likes, or donations.

Shoppable video, where viewers can purchase products directly within the video, is an emerging trend that is likely to reshape how news organizations approach lifestyle content, product reviews, and other marketable segments. Already popular in the e-commerce industry, shoppable videos create a seamless path from content to purchase, and news outlets are beginning to explore this option for segments where it’s relevant, like fashion, travel, and technology. This trend is expected to grow, with shoppable video potentially becoming a significant revenue stream for media companies offering niche content.

Social Media and Viral Monetization

Social media platforms like TikTok, Instagram, and Twitter have become central to video distribution and monetization. News organizations now utilize these platforms to reach younger audiences who primarily consume content on social media. Platforms that offer revenue-sharing models, such as TikTok’s Creator Fund, allow media outlets to earn a portion of the ad revenue generated by their videos, while the viral nature of social media amplifies reach and drives more views.

With younger audiences shifting their news consumption to these platforms, social media is likely to play an even more pivotal role in news organizations’ revenue strategies in the coming years. Predictably, platforms may evolve to offer even more sophisticated tools for creators, enabling greater ad personalization and audience targeting to maximize revenue potential from social content.

Future Potential: AI and Personalized Video Ads

Artificial intelligence is poised to transform video monetization further. AI-driven analytics provide insights into viewer preferences, enabling news companies to deliver highly personalized video ads, which tend to increase engagement and conversion rates. Personalized ads also allow advertisers to maximize relevance, creating a more satisfying experience for viewers. Over time, AI is predicted to streamline production processes, with automated editing, captioning, and other tools reducing costs and making video production more scalable.

AI-powered analytics can also predict audience behavior, helping media companies to tailor content offerings and target high-engagement viewers with customized ads. As AI becomes more advanced, news organizations may be able to automate more of the video production process, allowing them to produce more content without a proportional increase in costs.

Conclusion: Video as the Future of News Monetization

Video content has become central to the digital strategies of news media companies. By leveraging diverse monetization methods—such as video advertising, subscription models, brand partnerships, live streaming, and social media—news organizations are increasingly able to offset the decline in traditional revenue streams. As technology continues to evolve, the potential for video monetization will only expand, with AI-driven personalization, shoppable video, and more immersive experiences on the horizon. For news media companies navigating the digital landscape, video represents a path to sustainability, growth, and enhanced engagement with a modern audience.