Dive Brief:
- The Associated Press is the latest news organization to give sponsored content a go and will be rolling out the ads on their mobile apps and hosted websites.
- To protect their highly regarded reputation, the AP is erring on the conservative side with the sponsored content, making sure they are clearly marked as advertisements -- although the exact layout is still being determined.
- The move to sponsored content is a response from the AP to declining revenue from other sources. Licensing content, which makes up 85% of AP's revenue, is only expected to grow 1% a year in the future.
Dive Insight:
The fact that such reputable and traditional news organizations as the AP, New York Times and Washington Post are making moves into sponsored content proves the medium is becoming acceptable. What these publishers are finding is that as long as it is executed correctly, sponsored content could be part of the answer to declining subscriptions and revenue streams.