The U.S. outpost of the general news publisher The Guardian finished the first quarter of its fiscal year, which ended June 30, with advertising revenues up 42% year over year, according to senior vice president of advertising Luis Romero—a hike that runs counter to broader economic trends.

The publisher declined to share financial specifics, but The Guardian U.S. generates between $40 million and $50 million in revenue annually, a figure split roughly evenly—$20 million to $25 million each—between advertising and reader support, according to Romero. At the moment, The Guardian U.S. brings in no revenue from affiliate marketing or events.

The substantial uptick, which comes as the broader digital advertising ecosystem continues to flounder, is the latest in a series of counterintuitive successes for the publisher. In its most recent fiscal year, which ended in March, advertising revenue at The Guardian U.S. was up 40% year over year.

“I think we are witnessing a trend, in a down economy, of brands flocking to quality,” Romero said. “What I’m hoping is that there is a flock not only to quality, but to news and information sites like The Guardian.”

The Guardian U.S. attributes its ongoing momentum to a variety of factors, including its paywall strategy and mission-driven advertising ethos. More specifically, it has focused on growing its direct-sold—rather than programmatic—advertising business and emphasized its suite of custom content offerings.

According to Romero, the publisher now generates roughly 60% of its advertising revenue from direct deals, with the remainder coming from open-market programmatic—an improvement from its 50-50 balance last year. The publisher has expanded its direct sales staff in the last year, bringing total headcount to 25.

The Guardian U.S. has also increased the volume of its custom content business. Branded material produced by its studio division now generates between 40% to 45% of its total advertising revenue, according to Romero, whereas last year it brought in roughly 30% to 40% of the business.

Custom content and a porous paywall

As marketers face heightened pressure to justify their ad dollars, advertisers have increasingly sought custom content produced on shorter timelines.

To accommodate, The Guardian U.S. has emphasized offerings like its in-development sponsorship product, according to Romero. 

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