Traditional Media In The Doldrums
Ad spending in the United States will decline 8% this year, according to a survey of ad buyers released Wednesday by the Interactive Advertising Bureau. Digital ad spend will grow 6% despite the dip, while traditional media is set to plummet 30% YoY as digital grows its market share at traditional media’s expense, MediaPost reports. Linear TV ad spend, for example, will shrink 24%, while CTV grows 19%. Print investment will decline 33%, while social media and paid search will rise 25% and 26% respectively. And display will increase 15%, while direct mail decreases 17%. Out-of-home, meanwhile, will get hammered on both the traditional side (46% decline) and the digital side (43% decline). And terrestrial radio ad spend will drop 31%, while digital audio declines 5% and podcasts drop 8%. Yeesh.
Mediapalooza, Take 3
No, it’s not a bad dream. Mediapalooza really is happening again as clients put more than $10 billion up for review in the first half of the year. According to research firm COMvergence, 950 advertisers have finished media reviews this year, another 75 pitches representing $5 billion are ongoing and $13 billion dollars could be up for grabs before the end of the year. What’s all this movement about? Some clients are simply overdue for a media review, while others are resuming pitches put on pause in March, Digiday reports. As clients get used to virtual work and scrutinize their balance sheets, they’re reevaluating how much they want to spend on advertising – and on their agencies, of course. Brands are also reassessing the type of work they want from agencies and whether their current partner is up to the task. “The briefs for pitches we’re seeing come through now are more transformational,” said Martin Kelly, CEO of Infectious Media.
Are subscriptions and direct payments the future of podcasting? Patreon, the podcast platform that allows creators to earn money through subscriptions, raised $90 million this week, bringing its valuation to $1.2 billion. Six million people subscribe to Patreon, while the more than 200,000 podcasters using the platform have collectively earned $2 billion to date, Variety reports. Patreon plans to use the funding to expand internationally and launch features to help podcasters get discovered and sell merchandise. It’s an appealing model for indie creators with loyal fan bases as more podcasts get scooped up by large platforms or networks – and ad dollars follow. “The stigma of the starving artist is going to fade away,” said Patreon CEO Jack Conte.
But Wait, There’s More!