Home AdExchanger Talks Why Medium Said No To Easy Ad Money

Why Medium Said No To Easy Ad Money

SHARE:
Tony Stubblebine, CEO, Medium

When Tony Stubblebine became CEO of Medium in 2022, the online publishing platform was losing more than $2.5 million each month, shedding subscribers and struggling to find a clear product-market fit.

The situation was dire, Stubblebine says on this week’s episode of AdExchanger Talks.

“It was doing terribly,” he says matter of factly.

Stubblebine led a turnaround by fixing Medium’s content quality issue – it had become a platform dominated by low-quality clickbait – and implementing deep cost-cutting measures, including layoffs, trimming server expenses and restructuring investor loans.

After years of losses, Medium reached profitability in the summer of 2024.

Stubblebine steadied the company while keeping the platform ad-free, focusing instead on growing subscriptions and refining the product. He never considered turning to advertising, even though it’s a low-hanging fruit for generating revenue.

Why? Because ads are a slippery slope. The design decisions a company makes are directly related to how it monetizes, he says. Just look at social media, which is almost completely funded by advertising.

“That’s what we call the attention economy,” Stubblebine says. “The incentive structure is like, the more you can drive attention, the more ads you can show, the more money you can make, the healthier your business.”

But the end result of that cycle is often negative, Stubblebine argues. The evidence is all around us.

“Just personally, I don’t want to see more really angry, emotional content that drives division,” he says. “Often, it’s just so much clickbait, ragebait – all that. … We thought the opportunity is for us to offer an alternative.”

Also in this episode: The importance of “white hat” marketing, the challenge of maintaining quality content amid the rise of AI-generated slop and why high-quality, human-created writing isn’t just important for audiences today; it’s essential fuel for training the AI models of tomorrow.

Must Read

Inside The Trade Desk’s Pitch For Ventura TV OS

The Trade Desk is muscling its way into the TV operating system business with its Ventura OS – but the real story isn’t the product itself. It’s what TTD’s ambitions reveal about conflicts of interest within the industry and the inherent mismatch between consumer and advertiser needs.

The Big Story Podcast

Mergers And Operating Systems Are Reshaping TV Ads

The broadcast and streaming worlds are being pulled together by a wave of major M&A, from Fox’s $22 billion acquisition of Roku to Paramount’s merger with Warner Bros. Discovery. TV Land, naturally, is watching closely.

artificial intelligence

GAM Launches A Chatbot For Troubleshooting Ad Campaigns

Ask Ad Manger offers instant troubleshooting help when a campaign isn’t delivering as expected, ideally by diagnosing the problem and suggesting how to fix it.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: S.P. O’Middleman’s

How SPO Helped This Indie Agency Cut Its SSP Partners To Single Digits

Goodway Group has reduced the number of SSPs it works with from about 20 at the end of 2024 to just single digits today.

Comic: The Mobile Freight Train

CloudX Takes A Swing At Black‑Box Mobile UA With Agentic Buying Tools

CloudX, which makes AI infrastructure for app publishers, is expanding from monetization to agentic buying for user acquisition.

The Trade Desk Forms A Travel And Hospitality Media Network

The Trade Desk expanded its relationships with a host of travel, hospitality and mobility-focused commerce media partners, including Uber Advertising, Booking.com, United Airline’s Kinective Media and MARRIOTT MEDIA.