Why synthetic market research is an untapped AI goldmine for news publishers

The UK’s market research industry hit £9bn in turnover in 2024, up 11% from 2023, according to the Market Research Society. That’s a booming sector by any standard. But here’s the question: how can traditional publishers, with their extensive reach and deep audience insights, carve out a piece of this lucrative pie?

Publishers have spent decades (centuries in some cases) building trust and delivering content that connects with audiences. They also have a deep understanding of how their readers feel about a wide range of topics. These are powerful assets (or training data) that could position them perfectly to disrupt the market research space.

Until now, the research industry has relied on traditional methods like surveys, focus groups and exhaustive data collection to generate insights. But these approaches are slow, expensive and often inefficient. Enter synthetic research – an AI-driven game-changer that uses intelligent personas and virtual datasets to generate insights faster, cheaper, and with stunning precision.

For publishers, this emerging technology offers a golden opportunity: the chance to diversify revenue streams while solving inefficiencies baked into traditional research practices. The question isn’t if publishers should embrace it—it’s how quickly they can get in the game.

Synthetic research is not just a futuristic concept; it’s a present-day game-changer. By leveraging it, smaller legacy publishers can transform their existing data assets into valuable tools for businesses. This article explores how synthetic research can open new revenue channels for publishers, replacing outdated practices with cutting-edge solutions.

The problem with traditional market research

Traditional market research methods might be accurate, but they come with some downsides:

1. High costs and time intensity: Conducting surveys or organising focus groups demands significant resources, often costing thousands and taking weeks to produce actionable results.
2. Poor respondent authenticity and data quality: Increasingly, the reliability of traditional methods is being compromised by survey fatigue and fraudulent responses.
3. Limited scalability: Traditional research often fails to deliver real-time insights, a critical requirement in today’s fast-paced business landscape.

For example, a conventional consumer survey might require weeks to finalise at a cost that many small businesses find prohibitive. In contrast, synthetic personas, powered by AI, can provide comparable insights within hours at a fraction of the cost.

Synthetic research and intelligent personas: Efficiency at scale

Synthetic research involves creating AI-trained personas that simulate real-world customer behaviours. These personas draw from high-quality datasets, enabling businesses to perform virtual concept testing, gather product feedback, and explore market scenarios without direct consumer involvement.

Unlike traditional methods, synthetic research delivers reliable, actionable insights quickly and cost-effectively.

“Intelligent personas” can use client CRM datasets to create virtual customer segments. These personas have proven effective in reducing costs while delivering precise and rapid insights.

This innovative approach has already demonstrated its potential in diverse applications. Publishers can utilise synthetic personas to:

• Optimise product development through virtual A/B testing.
• Refine marketing strategies by analysing simulated audience interactions.
• Anticipate market trends using scenario planning and predictive analytics.
• Offer market research as a service to their advertisers to generate a new revenue

Let’s focus more closely on the last of these, and explore ways that synthetic research could unlock revenue streams for publishers:

Firstly, deployed carefully, publishers can offer synthetic research services to SMEs and local businesses that lack the budget for conventional market studies. For instance, a regional newspaper could develop AI-driven consumer personas tailored to local advertisers, enabling more effective campaign targeting. In addition:

• Virtual concept testing: Brands often seek affordable ways to test product ideas or marketing campaigns. Publishers can monetise synthetic personas by offering these as tools for A/B testing product designs, marketing strategies, or user interface concepts. The Economist Group’s research division, for example, uses such tools to refine B2B content strategies.
• Licensing data and AI models: Publishers possess rich, curated audience datasets that can be licensed to AI platforms for training purposes. As discussed in my column last week, there are platforms getting established where publishers can safely monetise their data without compromising user privacy.
• Real-time insights for advertisers: By combining synthetic research with real-time analytics, publishers can offer advanced sentiment tracking and consumer preference insights. Such services are especially valuable for regional advertisers targeting specific demographics or geographies.

Steps for publishers to embrace synthetic research

To fully capitalise on synthetic research, publishers need to take the following steps:

1. Invest in data infrastructure: High-quality, well-tagged audience data is the cornerstone of effective synthetic research. Publishers must ensure their datasets are clean, comprehensive, and regularly updated.
2. Partner with AI providers: Collaborating with established platforms like ElectricTwin or other specialised synthetic research developers can help publishers access cutting-edge tools and expertise.
3. Create a research vertical: Publishers should consider establishing a dedicated team to develop and offer AI-driven research services. These services can be positioned as affordable, efficient alternatives to traditional market research.
4. Upskill teams: Training your analytics and data teams to understand and deploy synthetic research tools will ensure smooth integration with existing workflows.

Addressing ethical and practical concerns

As with all AI tools, the adoption of synthetic research is not without challenges. Publishers may face ethical questions and scepticism from advertisers accustomed to traditional methods. Common concerns might include:

• Transparency: Ensuring that clients understand how synthetic personas are developed and their limitations.
• Data Ethics: Maintaining ethical standards in data sourcing and usage is critical to building trust.
• Validation: To overcome doubts, publishers can blend synthetic insights with occasional real-world surveys, ensuring consistency and reliability.

Regular audits and clear communication with all stakeholders can further alleviate concerns, fostering confidence in synthetic research outputs.

‘The time to act is now’ on synthetic research opportunity

Synthetic research represents more than just a cost-saving mechanism for publishers; it could be a gateway to entirely new revenue streams. By leveraging their unique audience insights, publishers can transform their roles in the media ecosystem, offering high-value, AI-driven research services to businesses of all sizes.

The time to act is now. As traditional market research grapples with inefficiencies, synthetic research provides a scalable, innovative alternative. For legacy publishers, embracing this technology is not just a strategic move, in my view it is a golden opportunity to help secure their future in an increasingly data-driven world.

Read Paul Hood’s other columns providing practical tips on how publishers can harness AI

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog