With trust in traditional media on the decline and rapidly changing consumer habits, The Economist knows that not even its 181 years of history make it too big to fall. So, over the past couple of years, the publisher invested heavily in marketing and audience growth strategies that it hopes will solidify its position as a leading go-to news source for younger audiences.
Converting young readers to paying subscribers
Only around 40 per cent of young people trust news media. Meanwhile, nearly half of them are actively seeking solutions-focused journalism as they are fed up with the negativity in the news agenda, said Tom McCave, VP of performance marketing at The Economist, speaking at Twipe’s Digital Growth Summit in Brussels yesterday (8 October 2024).
Traditional news outlets are being shunned by this generation, who do not see the value of news and generally do not pay for it. Plus, a whopping 80 per cent of young consumers access news primarily through smartphones, deepening the shift away from traditional media.
So how do you incentivise young readers to pay for news? Even when presented with opportunities to subscribe, half the audience say that nothing could persuade them to pay for the news. There are no simple answers, but the power of habit and brand strength are your best bet.
Free Espresso to wake up the students
To address this challenge, The Economist focused on creating new formats to meet the needs of Gen Z. One example of this is Economist Espresso, launched in 2014 as a quick, digestible daily briefing that presents global news in a concise format. This product appeals to those with limited time, offering five short articles per day alongside quizzes and a handful of longer reads.
To bring in younger readers, the publisher started to offer free access to Espresso to all students 16 and over in July this year. While this may initially appear as a loss-making move, The Economist believes that early brand adoption leads to students becoming paying subscribers later in their careers.
In the first month, this strategy has doubled Espresso’s readership, increasing the number of 18-24-year-old readers twelvefold. The student subscription offer was taken up from thousands of institutions across more than 100 countries.
This prompted the brand to experiment with AI translation which now makes Espresso content available in six languages, including French, Spanish, and Mandarin.
Monetising podcasts
In an increasingly audio-focused market, The Economist is also turning podcasts into a revenue stream. Since October 2023, a podcast only subscription has been available for those exclusively interested in its full suite of shows. It currently costs £4.90 a month or £49 a year after a one month free trial.
By extending its brand into audio, the publisher is tapping into the growing demand for on-the-go content while maintaining its core focus on premium, intellectual journalism.
The Economist also realised that audio-lovers skew younger and more female than its current customer base, bringing in new audiences willing to pay for its journalism. Interestingly, most new subscribers never paid for a podcast before and around half only use The Economist for podcasts, giving it a net competitive advantage in a saturated market.
The power of brand marketing
A major takeaway from The Economist’s strategy is the critical role of brand marketing in order to achieve growth in a highly competitive media environment.
“Building brand awareness is important,” said McCave, “but building brand preference and equity is paramount.”
Although the impact is hard to measure in the short term, “the pool of prospects who are likely to convert will dry up, reader acquisition costs will increase, and growth will stall without a continuous investment in brand marketing,” he added.
The Economist‘s marketing extends across various channels, including sponsoring tennis championship t-shirts, podcasts, and even radio spots in the US. These efforts build long-term brand recognition, setting them apart in a crowded market and justifying premium pricing.
It also helps create emotional connections, encouraging repeat purchases which builds a flywheel of brand advocates that can fuel growth. Finally, strong brand equity makes for happier and more dedicated employees and attracts top talent that will ultimately drive the publisher’s success.
As a lesson to other media brands: never underestimate the power of brand equity. It is a long-term game, but essential for staying relevant.
