CNBC and Yahoo have agreed to collaborate on news and analysis content in the latest deal pairing different kinds of media companies in a bid for more ad dollars.
CNBC, Yahoo Join Forces in Content-Sharing Deal
In a pact that will have the two companies sharing revenue derived from their joint efforts, CNBC will become the "premier" content provider for Yahoo Finance in the U.S. The two companies will create videos that will appear on Yahoo Finance and CNBC.com. Yahoo Finance journalists will contribute to CNBC's daytime programs, with some Yahoo employees set up in CNBC operations, while CNBC programming, clips and other content will be featured on Yahoo Finance and across Yahoo sites.
Ad Age reported in March that Yahoo was exploring TV partnerships to build on an existing deal with ABC News. CNBC's existing content partners include The New York Times.
CNBC.com is not the biggest player in online news, but the site has grown since CNBC took direct oversight from MSN in 2006. "What this idea is about is to try and accelerate that growth, and to put us in a position to get our content out to a wider audience and develop scale such that we are a more complete player on the sales side," CNBC CEO Mark Hoffman said.
The pact is a "multiyear deal," he said, though he declined to be more specific.
He said CNBC would lead a joint effort to present the new reach and features to advertisers. What the two will tout to marketers are an unduplicated audience of more than 40 million monthly online users in the U.S. Charles Schwab is one potential advertiser that has already been pitched, said Mr. Hoffman.
With audiences splintering due to the rise of dozens of new content offerings on TV, online and via mobile, building a consumer base that is appealing to big national advertisers may now be a job requiring multiple players. Yahoo formed its pact with ABC News last fall to create web news video series starring journalists from both organizations as well as GoodMorningAmerica.com.
One of the fastest-growing magazines these days, meanwhile, is Food Network Magazine -- a partnership between Hearst and the Food Network. (The title said Tuesday that it will increase its guaranteed paid circulation from 1.45 million to 1.5 million with its January/February 2013 issue and to 1.55 million with the July/August 2013 issue.)
"Consumer behavior is spanning all of these different media and advertisers want to reach consumers at these different touch points," said Mickie Rosen, senior VP of Yahoo's global media group. Though the CNBC pact, she added, "we will be able to go to market even stronger to premier advertisers in both an upfront fashion and beyond the upfront."
But the trend places media companies in an interesting position: To reach a greater amount of the specific audiences they attract, they may have to rely on someone else.
CNBC has long focused on attracting viewers particularly from corporate suites and trading floors; now it hopes Yahoo will help it reach a larger base. Yahoo, in turn, partly wants to benefit from the exposure on TV.
Yahoo has struggled in recent months, losing its CEO to a resume-padding scandal and facing a dwindling share of online advertising.
Yahoo expects to continue to tap more partners in the future, according to Ms. Rosen. "We are doubling down on strategic partnerships," she said.