USA TODAY Co. Reduces Costs After Programmatic and Sponsored-Link Revenue Declines
· 24h ago · Originally reported by PPC Land
USA TODAY Co. has cut $100 million in annual costs following a 32% drop in programmatic and sponsored-link ad revenue, now totaling about $100 million per year. The company also lowered its financial guidance and faces a $901 million claim against Google, set for trial in April.
Why it matters
This highlights the financial pressure on publishers as digital ad revenues decline, especially from automated and search-driven channels. The upcoming legal case with Google could have broader implications for publisher-platform relationships.
Explain it like I’m new here
USA TODAY is making big budget cuts because it’s earning a lot less money from online ads, and it’s also going to court with Google over a big claim.
Terms in this story
Programmatic advertising
Programmatic advertising is buying and selling ad space through automated software, usually one impression at a time, instead of through manual negotiations, phone calls and paper contracts.
Publisher
A publisher is any owner of content or a digital property, such as a website, app, streaming service, podcast or screen network, that earns money by selling ad space to advertisers.
Guidance (forecast)
Guidance is a public company's own forecast of its future results, such as next quarter's revenue or full-year adjusted EBITDA, usually given as a range alongside an earnings report.
Go deeper
Related stories
Google Bans Videostrong for Backdoor Enabling Fraudulent TV Box Activity
Google has banned Videostrong after discovering a backdoor in 1.3 million TV boxes that allowed ad fraud and proxy groups to exploit the devices. The company also blocked related domains, affecting an additional 10 million devices used for…
Ziff Davis Sees 37% Drop in Google Referral Traffic Amid Industry Shifts
Ziff Davis experienced a 37% decline in traffic from Google, while other publishers like USA TODAY Co. made significant cost reductions. The industry is also seeing legal actions involving Meta and Google in California, and Teads has…
Google and Amazon's In-House AI Agents Drive Ad Growth Despite External Competition
Google and Amazon continue to see strong growth in their advertising businesses, propelled by their own AI-powered ad tools. Despite the rise of third-party AI agents, the tech giants' proprietary solutions are maintaining their dominance…
People Inc. Sees 26% Drop in Core Web Sessions Amid Google AI Overviews Expansion
People Inc., owner of PEOPLE and Allrecipes, reported a 26% decline in core web sessions as Google's AI Overviews feature becomes more widespread. While digital ad revenue fell by 8%, the company saw a 49% increase in licensing revenue…
Ziff Davis Sees 37% Drop in Google Search Traffic Over One Year
Ziff Davis experienced a 37% decline in Google search traffic within a year, with Google's AI answers referencing its sites far more often than sending users to them. This contributed to a 7.7% fall in ad revenue and a planned 10%…
Court Denies Google's Request to Pause Ad Tech Antitrust Lawsuits
A court has rejected Google's motion to stay ongoing antitrust lawsuits brought by the US Department of Justice and several states over its ad tech business. This means the cases will proceed while Google pursues its appeal.