Valnet’s Ji Heon Kim on how the publisher encouraged users to authenticate themselves

With websites covering topics like entertainment (ScreenRant), gaming (Polygon) and automotive (CarBuzz), Valnet caters to users across a wide array of interests.But according to Ji Heon Kim, Valnet’s head of monetization, Valnet realized it could create more value for its users by encouraging them to subscribe or authenticate themselves.Maybe a “mass scale” of users wouldn’t sign up for their websites, but perhaps 10% would. And, as Kim puts it, that “10% would still be valuable, and we can do a lot with that 10%.”“We created more value to [those] users, more exclusive content and high-quality content,” Kim says. “All of that became an initiative on the content side for us to deliver a premium model and give users an incentive to sign up.”Kim further talked with The Current Podcast about balancing advertiser value, user experience and performance, which he says are “always affecting each other.” Episode TranscriptPlease note, this transcript may contain minor inconsistencies compared to the episode audio.Damian Fowler (00:00):I'm Damian Fowler, and welcome to The Current Podcast. Today we're talking to one of the biggest digital publishers. You might not know by name, but you've definitely read their stuff. I'm talking about Net. The company behind Screen Rant, the Gamer, Kaleida make use of, and a bunch of other sites that rack up hundreds of millions of sessions every month. Joining me today is Ji Kim Valnet's, head of monetization. Ji'S been leading the charge on everything from supply path optimization to first party data to figuring out how to drive real revenue without compromising the reader experience. We'll get into some of the big shifts they've made in their tech stack and how they're bringing newly acquired brands like Polygon into their ecosystem and what other publishers can learn from their approach.Ji Kim (00:52):At Valnet, I'd like to think of us as a publishing powerhouse. We started very small. Our motto is humble and hungry. We like to remind ourselves that it's always good to keep a humble mindset. I've been at NET for 10 years and we've grown tremendously. We've went through a lot ups and downs, but even as we grow, we like to think that we're small and agile and the publications we range from automotive, gaming, technology, entertainment, but entertainment has always been our flagship, but we've been kind of branching outside of that and trying to expand more and more. And then we have some lifestyle brands as well as sports.Damian Fowler (01:35):Let's talk about a moment that changed the game for Net. Can you walk us through your, I guess we're going to talk about supply path optimization at first anyway, which is a hot topic around these parts and what work you did around supply path optimization, like cutting resellers and boosting direct inventory. Could you talk us through that a little?Ji Kim (01:57):It's an ongoing process. It's certainly, I think most people agree that SPO is not an easy thing to achieve. You can commit to it one shot, but that's much harder to do considering that there will be a revenue impact. So for us, we tried both ways. We took a few sites and we took the direct approach and we saw a pretty decent stability, and then some other sites did not, and then we have to kind of revert back to it. SPO, it was always a topic that was talked about but not well enforced. And tradedesk took a big initiative to push publishers towards it. And then we started working closely with Jounce Media as well, with Chris Kane started kind of talking through some of the ideas, how should we go about it? How do we retain the value and still achieve removing the resale alliance and keep our inventory as clean as possible?(02:51):But initially our outlook of SPO was about making our inventory as clean and transparent as possible. Net considers ourselves as a premium publisher and we want to make sure that the advertisers see that as well. So we were heading in that direction. But ultimately, I think the biggest challenge with SPO was it's impossible to do an AB test because you have one A TXT file and you can't test one setup with the resell alliance, one setup without. So that's been pretty challenging to understand where's the value going, where is it coming from? And even with the Resell Alliance, when you talk to the SSPs with Resell Alliance, they'll go, oh, these are PP deals. These are not just rebroadcasting and all this stuff. So trying to understand the granularity and all that details of what each resale align means was very difficult. But ultimately we know we have to go in that direction, but we know it's not going to happen overnight, so we're kind of just taking a step at a time.Damian Fowler (03:51):That's great. What would you say was the kind of catalyst or moment that sparked that shift?Ji Kim (03:57):We always talked about advertiser value. It is important to yield as much value as possible and get the performance that we need. ...