The New York Times’ $100M Side Business

Summary

ニューヨーク・タイムズは、デジタル転換を通じて報道業の衰退を乗り越え、特にアフィリエイトマーケティングを活用した「Wirecutter」の成功が注目されています。この戦略は、低コストで開始・運営が可能であり、またニューヨーク・タイムズの権威あるブランドと高い検索エンジンランキングが魅力です。彼らはWirecutterを買収し、コンテンツを拡大し、SEOを活用して訪問者を獲得し、パッションで収益を生成しました。

Takeaways

• 📰 印刷メディアは衰退しており、2020年以来、新聞の発行部数は50％以上減少している。
• 🌐 インターネットが新聞の減少に大きな影響を与えているとされています。
• 📈 ニューヨーク・タイムズは、減少傾向にある新聞販売の中で、2016年以降収入が増加しています。
• 🔄 デジタルトランスフォーメーションはニューヨーク・タイムズの成功に寄与していますが、他にも隠された戦略的取り組みがあります。
• 🛍️ ニューヨーク・タイムズの「他」収入源は、2016年以来3倍に増加し、現在は総収入の約10％を占めています。
• 🔗 ウェブカットター（Wirecutter）のアフィリエイトREFERRALSは、ニューヨーク・タイムズの重要な収入源の一つです。
• 🚀 ウェブカットターは2016年にニューヨーク・タイムズが買収し、その影響で収入が大幅に増加しました。
• 📊 ウェブカットターの成功は、高品質なレビューの大量公開、SEOの活用、アフィリエイトマーケティングのモデルによるものです。
• 💡 ニューヨーク・タイムズは、ウェブカットターを通じて、パッシブな収入を生成し、8～9桁の副業を築きました。
• 🔗 アフィリエイトリンクを通じて、ニューヨーク・タイムズは読者が購入するたびにアマゾンから手数料を得ています。
• 📈 ウェブカットターの成功は、ニューヨーク・タイムズのブランド力、コンテンツの品質、SEOの能力が大きく寄与しています。

Q & A

ニューヨーク・タイムズのデジタル購読はいつ始まった？

ニューヨーク・タイムズのデジタル購読は2011年3月に始まりました。

デジタル購読の導入はどのよう成功したのですか？

デジタル購読の導入は比較的成功的でした。それによって、年間10億ドル以上の収益をもたらしています。

ニューヨーク・タイムズCEOのMeredeth Kopit Levienはデジタル購読をどのように表現していますか？

Meredeth Kopit Levienはデジタル購読を「デジタル製品体験」と表現しています。

ニューヨーク・タイムズの収入において「その他」収入とは何ですか？

「その他」収入は、ライセンシングやWirecutterのアフィリエイト紹介などから得られる収入を指します。

Wirecutterをニューヨーク・タイムズがいつ買収したのですか？

ニューヨーク・タイムズは2016年10月にWirecutterを買収しました。

アフィリエイト紹介の主要な収益モデルは何ですか？

アフィリエイト紹介の主要な収益モデルは、アフィリエートマーケティングです。これは、リファラルによってリードや販売をアフィリエートマーチャントに紹介し、コミッションを支払うことです。

アフィリエイトマーケティングがニューヨーク・タイムズに適している理由は何ですか？

アフィリエイトマーケティングは、ニューヨーク・タイムズに適している理由は2つあります。第1に、始めるために多くの資金を必要としません。第2に、ニューヨーク・タイムズは世界で最も権威のあるブランドの一つであり、信頼性が高いため、高いコンバージョン率に寄与します。

Wirecutterの収益はどの程度増加していますか？

Wirecutterの収益は、買収後の有機的な訪問者数が15倍に増加し、アフィリエートマーチャントとの間で高いコミッション率を得られる可能性があるため、大幅に増加しています。

デジタル購読者は何人になりましたか？

デジタル購読者は約30万人が増加し、全体の購読者数は約1000万人になりました。

デジタル広告収入の動向はどのようになっていますか？

デジタル広告収入は前年比で6.5％増え、7380万ドルになりました。

ニューヨーク・タイムズの2023年6月期第1四半期の売上高はどのくらいでしたか？

2023年6月期第1四半期の売上高は前年同期比6.3％増の5億9,085万ドルでした。

アスレチックというスポーツニュースサイトを買収した背景は何ですか？

アスレチックを買収した背景は、スポーツニュースサイトの収益を増やし、デジタル購読者数を増やす戦略的な取り組みでした。

Outlines

00:00

📉印刷メディアの衰退とニューヨーク・タイムズの隠れた戦略

印刷メディアはインターネットの影響で衰退し、多くの新聞が事業を停止しています。しかし、ニューヨーク・タイムズはこの傾向に逆らい、2016年以降、収益を伸ばし続けています。この成功の背後には、ジャーナリズムよりも消費者の購買行動に焦点を当てた戦略があります。2011年にデジタルサブスクリプションを開始したニューヨーク・タイムズは、デジタル製品体験として進化し、ニュース、ゲーム、クッキングアプリへのアクセスを提供しています。しかし、その真の成長要因は、'その他の収益源'として記載されており、主にライセンシングとWirecutterのアフィリエイト紹介からの収益で、2016年以降に急増しました。Wirecutterはアフィリエイトマーケティングを通じて、製品レビューからの紹介による売上の一部を収益としています。この戦略は、低コストで高いブランド権威を活用することで、大規模なトラフィックと収益を生み出すことに成功しています。

05:02

📈Wirecutterの成功とその影響

ニューヨーク・タイムズは、2016年にWirecutterを買収し、そのコンテンツとトラフィックを大幅に拡大しました。買収前には月間100万の訪問者を記録していたWirecutterは、買収後にコンテンツを倍増させ、オーガニックトラフィックを3倍に増加させました。2020年には、5百万の月間訪問者と数千万ドルの収益を生み出していたWirecutterのコンテンツをニューヨーク・タイムズのドメインに移行し、この大胆な動きはトラフィックを一時的にゼロにしましたが、その後、トラフィックは完全に回復し、月間8百万以上のオーガニック訪問者を達成しました。現在、Wirecutterは多くの「最高の製品名」クエリでGoogle検索で上位にランクされており、アフィリエイトマーケティングを通じて、ニューヨーク・タイムズの有力な副業として機能しています。また、Wirecutterの訪問者はニューヨーク・タイムズのデジタルサブスクリプションの購入に繋がり、さらなる収益を生み出しています。この結果、ニューヨーク・タイムズはSEOとアフィリエイトマーケティングを活用し、高品質なコンテンツの大規模な公開とともに、顕著な副業を確立しました。

Keywords

💡Print media

Print media refers to the traditional method of disseminating news and information through physical means such as newspapers and magazines. In the video, it is highlighted that print media is declining, with daily newspaper circulation dropping significantly since 2020, indicating a shift in how people consume news and information.

💡Digital transformation

Digital transformation is the process of using digital technologies to fundamentally change how organizations operate and deliver value to its customers. In the context of the video, the New York Times underwent digital transformation by introducing digital subscriptions, which allowed readers to access a limited number of articles online and through apps.

💡Digital product experience

Digital product experience refers to the overall experience a user has while interacting with a digital product or service. It encompasses the usability, design, functionality, and emotional impact of the product. In the video, the New York Times CEO, Meredeth Kopit Levien, refers to their digital subscription as a 'digital product experience,' which includes access to news, games, and other features.

💡Other revenues

Other revenues are sources of income that do not fall under the primary business activities of a company. In the case of the New York Times, 'other revenues' primarily consist of revenues from licensing and affiliate marketing, which have become a significant part of their total revenue since 2016.

💡Wirecutter

Wirecutter is a product review and recommendation site that was acquired by the New York Times in October 2016. It is known for its in-depth product testing and unbiased reviews. The site generates revenue through affiliate marketing, where it earns commissions for referring sales to affiliate merchants.

💡Affiliate marketing

Affiliate marketing is a performance-based marketing strategy where a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. In the video, the New York Times uses affiliate marketing to generate revenue through referrals to products on sites like Amazon.

💡SEO (Search Engine Optimization)

SEO is the practice of increasing the quantity and quality of traffic to a website through organic search engine results. It involves optimizing elements of a website and its content to improve its ranking in search engine results. In the video, the New York Times leverages SEO to attract organic traffic to the Wirecutter, enhancing its affiliate marketing efforts.

💡Content scaling

Content scaling refers to the process of expanding the amount and reach of content published on a website. It involves creating more content and optimizing it to reach a wider audience and improve visibility on the internet. In the video, the New York Times scaled content on the Wirecutter significantly, leading to increased organic traffic and revenue.

💡Brand authority

Brand authority refers to the perceived expertise, trustworthiness, and credibility of a brand in its industry or field. A brand with high authority is seen as a reliable and go-to source of information. In the video, the New York Times' brand authority plays a crucial role in attracting traffic and generating higher conversion rates in their affiliate marketing efforts.

💡Digital subscription

A digital subscription is a service where users pay a fee to access digital content, such as articles, videos, or other online resources. The New York Times' digital subscription model has been a significant factor in their revenue growth, as it provides unrestricted access to their content, including the Wirecutter's reviews.

💡Organic traffic

Organic traffic refers to the visitors that come to a website through search engine results that are not paid for, also known as 'natural' or 'earned' traffic. In the video, the Wirecutter's ability to generate organic traffic is highlighted as a key to their success in affiliate marketing.

Highlights

Print media is facing a decline, with daily newspaper circulation dropping by over 50% since 2020.

The New York Times has not only sustained but grown its revenue since 2016 amidst the decline in print media.

The growth of the New York Times is attributed not just to journalism, but also to strategic moves related to e-commerce.

The New York Times introduced digital subscriptions in 2011, allowing limited free articles and app access.

Digital subscription revenue has been growing year over year, contributing significantly to the Times' annual revenue.

The 'digital product experience' offered by the New York Times now includes access to news, games, and cooking apps for a weekly fee.

A significant yet under-discussed part of the Times' revenue growth is the 'Other' revenue source, which has tripled since 2016.

According to the 2022 annual report, 'Other revenues' mainly consist of licensing and Wirecutter affiliate referrals.

The New York Times acquired Wirecutter in October 2016, which coincided with a new wave of growth for the company.

Wirecutter's affiliate marketing model generates commissions through referrals to affiliate merchants.

Affiliate marketing requires minimal cash for startup and operation, making it a cost-effective business model.

The New York Times' authoritative brand, large following, and powerful domain make it ideal for attracting organic traffic and generating high conversion rates.

Post-acquisition, the New York Times scaled Wirecutter's content and organic traffic, significantly increasing its revenue.

The Wirecutter's migration to the New York Times domain led to a tripling of search traffic and higher commission rates.

The Wirecutter now ranks for numerous 'best product' queries in Google, driving both affiliate revenue and digital subscription sales.

The New York Times' strategic use of affiliate marketing and SEO has created a valuable side business within the company.

The Times' Wirecutter has become a significant source of revenue, demonstrating the potential of affiliate marketing when combined with a strong brand.

Transcripts

Print media is dying, and the internet killed it.

Daily newspaper circulation has dropped by over 50% since 2020, and roughly two

newspapers go out of business every week.

Now, amidst all this chaos, the New York Times hasn't just weathered the storm of declining

newspaper sales, but their revenue has actually been growing since 2016.

And while many attribute this to "digital transformation," beneath the surface lies

a secret, a strategic move that most haven't noticed.

And the answer probably isn't what you're thinking.

Because it has nothing to do with journalism - but it has everything to do with how we shop.

But before we get there, we need to talk about this so-called "digital transformation."

In March 2011, the New York Times announced that it would be launching digital subscriptions.

This meant that you could read up to 20 articles on their site each month

and have access to some of their apps.

And adoption was actually quite good.

Their digital subscription revenue has been growing year over year for over a decade.

And today, it brings in around a billion dollars per year in revenue.

Now, that digital subscription has evolved into what the New York Times CEO, Meredeth Kopit

Levien refers to as a "digital product experience".

And this "experience" can be bought for around $6 per week to gain access to news,

games like Wordle, the Cooking App, and more.

But this 'digital product experience' narrative was far from the whole story.

Under the hood, something else was brewing — a pivotal change that kick-started near the end of 2016.

You see, while the rest of the print world  continued sinking, The New York Times'

revenue grew a notable amount for the first time in over a decade.

And while much of this growth is because of more digital subscriptions, the part that

no one's really talking about is this "Other" revenue source which has nearly tripled since 2016, making

up roughly 10% of their total revenue today.

So what's this mysterious 9-figure side business all about?

Well, according to the New York Times' 2022 annual report, they state that "Other revenues

primarily consist of revenues from licensing," and right after that, "Wirecutter affiliate referrals,"

which was not so coincidentally acquired in October 2016, right before they began a new

wave of growth.

And in their Q2 earnings call from that same year, they noted that "other revenues" came in higher

than guidance, specifically calling out "higher Wirecutter affiliate referrals."

Now, affiliate referrals are commissions that are generated through affiliate marketing.

And this is when a company is compensated a commission in exchange for referring leads

or sales to an affiliate merchant.

This is the primary monetization method used by the Wirecutter.

To better illustrate what this looks like in action, say you want to buy an air fryer.

You'll probably go to Google and  search for "best air fryer."

In fact, your search is just one of 123,000 that happen in any given month in the US alone.

Now, you click on the link to the New York Times Wirecutter because it ranks high

and you know the brand.

Then you scroll through the article, click some links to Amazon, and then make a purchase

based on some Amazon reviews and your budget.

Nothing out of the ordinary here.

But what you might have missed while  shopping is that the links you clicked  

have a tracking tag attached to them.

This is called an affiliate link.

And when someone clicks this affiliate link, it tells Amazon that the Wirecutter

referred those shoppers to them.

And when those clickers make a purchase, Amazon is going to give the New York Times a cut of that sale.

How much of a cut?

Well, according to Amazon Associate's  commissions table, an air fryer falls into

the "kitchen" category so it pays out 4.5%.

So for a $100 air fryer, a standard affiliate would get around $4.50.

And while this may not sound like a hundred million dollar business, the scale at which

the New York Times is doing affiliate marketing is absolutely bonkers.

And I'll show you exactly how big they've taken this site soon, but first,

it's vital that you understand why affiliate marketing was and still is the perfect add-on

business for the New York Times.

And there's two main reasons.

First: It doesn't require a lot of cash to start or operate.

In fact, there are plenty of solo bloggers who are running multi-six-, seven- and even eight-figure affiliate

marketing sites – perfect for a company that was probably being a bit more cash-conscious.

And second and perhaps the most important part: the New York Times is one of the most

authoritative brands on the planet.

They have around 100 million followers across their social accounts.

And from a search engine standpoint, their website is just outside of the top 100 most powerful domains,

making nytimes.com an optimal home to attract substantial organic traffic.

So basically, The New York Times has all three ingredients to make an untouchable affiliate site:

a content and editorial team that can produce top-notch content, the domain and audience

to quickly generate tons of traffic, and a brand name that's well-known and trusted, which I'm

sure contributes to higher conversion rates.

And they knew all this and capitalized on it.

Let's look at the journey of the Wirecutter.

So, pre-acquisition, thewirecutter.com was getting around 1 million monthly visits from

Google search.

Then in October 2016, the site was acquired for a reported $30 million.

Now, their first act of order was to do what they do best: scale content like crazy.

And within just one year from the acquisition date, they more than doubled content and

tripled organic traffic.

And they continued to scale content and rank it in Google on thewirecutter.com domain.

Then in May 2020, the New York Times would take a risk that not many marketing

professionals would do with a site that's getting five million monthly visits from Google

and generating tens of millions of dollars.

They migrated all of the content from thewirecutter.com to the New York Times domain,

dropping their traffic to zero.

And if you've ever dealt with migrations, you know that they almost always come with problems.

But something absolutely crazy happened once the migration was done.

They restored all of their traffic on the New York Times domain and by November that same year,

they had hit over eight million monthly organic visits from Google.

And using their brand and authority, they've tripled search traffic to nearly 15 million

monthly visits from Google search alone.

So with 15X the organic traffic since the acquisition and likely higher commission

rates with affiliate merchants, I'd say that their 30 million dollar bet paid off big time.

And today, the New York Times' Wirecutter  ranks for just about every "best product name" 

query in Google like "best air purifier," "best gifts for dad," "best wireless outdoor home security cameras,"

and thousands more.

Now, unfortunately, we can't put an exact dollar amount on the Wirecutter's revenue

because, even if we knew the affiliate numbers, that's not the whole picture.

And the reason for that is because some Wirecutter visitors almost certainly end up

buying the New York times main cash cow: the digital subscription.

And other digital subscribers are probably buying the subscription

because it includes full, unrestricted access to the Wirecutter's content.

What we do know is that when the New York Times took over the Wirecutter,

an already successful business, they continued to publish high-quality reviews at scale, leveraged SEO

as their primary marketing tactic to get free and consistent visitors to their site,

and used the affiliate marketing model to passively generate revenue, creating

this amazing, yet valuable eight to nine-figure side business.

Now, if you want to get started with affiliate  marketing, then you can take our completely

free course right here on YouTube to start building your revenue-generating affiliate site today.