Publishers Risk Losing Readers as Monetization Outpaces Personalization
What you will learn when you read this article:
Why most publishers are failing to connect with their audiences despite increasing ad loads and email efforts
How the disconnect between identity strategy and monetization is creating long-term risk for media companies
What marketers and communicators must do to avoid similar pitfalls by investing in personalization, first-party data, and AI that drives performance
Publishers are charging ahead with monetization strategies that risk alienating their audiences, according to a new report from Wunderkind that offers a sharp warning for marketers and communicators. The Publisher State of the Union 2025 paints a picture of an industry pushing more ads, experimenting with artificial intelligence, and embracing eCommerce, yet still struggling with basic audience identity and data integration.
At the heart of the challenge is the widening gap between publisher ambition and operational readiness. “Publishers are sprinting toward ad growth while running blind when it comes to knowing their users,” the report states. Just 14 percent of publishers say they have strong first-party data and identity strategies in place, while 84 percent admit they can identify fewer than a quarter of their visitors. That lack of recognition severely limits their ability to personalize content, target ads, or build lasting subscriber relationships.
This breakdown in identity also hampers the effectiveness of one of publishers’ most powerful tools: email. While 84 percent of publishers say email is important to their business, only 18 percent are actively personalizing their newsletters. Even fewer use behavioral data to tailor content or offers. Most continue to rely on generic messaging, missing a prime opportunity for engagement, retention, and monetization.
Monetization Outpaces User Experience
The report shows that monetization is not just accelerating—it is becoming more aggressive. Eighty percent of publishers plan to increase ad density, with especially strong support from revenue and operations teams. Yet 72 percent acknowledge that this approach is harmful to user experience. Among ad operations professionals, 100 percent say they are concerned about the effect of heavier ad loads.
“There is an inherent tension between short-term revenue and long-term trust,” said Fay Shapiro, publisher of CommPRO. “And that tension is something every communicator understands. If you lose the audience’s attention or respect, it becomes much harder to bring them back.”
Even as they double down on traditional ad strategies, many publishers are still underprepared for the phaseout of third-party cookies. Only 14 percent report having robust first-party data frameworks, and nearly half say they are still evaluating solutions. That leaves most media companies vulnerable to sharp declines in addressability and advertiser confidence as the cookie era ends.
Artificial Intelligence: Interest Without Impact
Artificial intelligence is another area where publishers show high interest but limited follow-through. Seventy-eight percent say they are using AI for some aspect of content creation or distribution, yet only 18 percent have moved past experimentation to integrate AI meaningfully into their workflows. This creates a missed opportunity to scale personalization, optimize content delivery, and boost operational efficiency.
“AI is shifting from hype to utility,” the report says. “But without a clear strategy, publishers risk wasting resources or damaging trust.” Many respondents also expressed concern that AI-generated content summaries, particularly on search platforms, could siphon off web traffic. Fifty percent said they were moderately concerned about this risk and are exploring mitigation strategies such as exclusive content, newsletter engagement, and identity-based audience relationships.
What Communicators Can Learn
For marketers and communicators, the challenges facing publishers reflect broader industry shifts. The need for identity infrastructure, consent-based data, and high-performing owned channels is not exclusive to media companies. As third-party data becomes less reliable, organizations across sectors will need to pivot toward first-party strategies that respect privacy while enabling relevance.
The Wunderkind report offers clear direction on where publishers—and by extension, all content-driven businesses—should focus:
Treat identity as foundational. Without the ability to recognize users, personalization, targeting, and revenue optimization will fall short.
Use email as a full-funnel tool. Move beyond newsletters as distribution channels and instead build loyalty, segmentation, and revenue into the lifecycle.
Align AI efforts with outcomes. Instead of siloed experimentation, AI should be deployed strategically to enhance user experience and streamline workflows.
Reconsider ad strategy. High ad density may provide short-term gains, but thoughtful placements that balance user experience with monetization will drive sustainable impact.
There is also a lesson in how strategy and execution often diverge. For example, while all revenue leaders in the report say a subscription management platform is a must-have for 2025 and 2026, few organizations have integrated the personalization or identity systems that make subscription models work.
Moving Forward
As publishers chase diversified revenue through eCommerce, branded content, and subscriptions, they must also confront the fragmentation of their tech stacks and teams. According to the report, 84 percent of publishers struggle to unify customer data across systems, and only 10 percent report having integrated decision-making tools in place.
In a post-cookie world, the real advantage belongs to organizations that know their audiences, respect their attention, and deliver value across every interaction. For marketers and communicators, this means building systems that connect content, data, and trust at scale.
