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The growing season of change: Digidays editors recap summer 2022s top trends in media

The summertime could be a slow period for most companies, nevertheless the economic depression, supply chain issues, rising inflation rates and world events just like the Russian invasion of Ukraine didnt devote some time off once the rest folks did. Now heading in to the fall, plenty of media execs want to strategize for a small business environment that doesnt reflect how it used to check even half a year ago.

At Digiday, we spent the summertime following these subtle rather than so subtle changes to the industries we cover and narrowed down key trends that either emerged or expanded in the past couple of months. On the most recent bout of the Digiday Podcast, my co-host Tim Peterson and I unpacked the largest takeaways from that point period in addition to chatted through what this may mean for media companies fourth quarter and the beginning of 2023.

Advertising requires a hit

Tim: Roku, on its second quarter earnings call, discussed how it saw a slowdown in advertising also it related to the scatter market. The scatter market is this jargon term thats simply advertisers not investing in these year-long deals to invest huge amount of money with a TV network [but] placing those buys on a quarterly basis. Its more digital, where you place your buys almost immediately. And thats where Roku saw the softness.

Therefore i believe fits with most of the digital media companies or even more digital-heavy media companies seeing softness in advertising too, because if youre an advertiser and youre concerned about how much cash youre spending, or you will need to shift budget around, you search for wheres it likely to be easiest to shift budget around. We saw that in spring 2020 [and] weve been since over summer 2022.

Kayleigh: [Publishers say that] advertisers have slightly different goals. A large KPI that Ive heard wants conversion metrics, but its not necessarily [about] addressing the idea of checkout. Theres also an eagerness to improve certain engagement metrics too, like shares or click-through. THEREFORE I believe that is changing for several categories [as well] and what products theyre ready to spend on at this time and those theyre not. And I dont believe its exactly the same [for all] categories.

Tim:These big commitments with the big media companies, the big TV network owners, the big advertisers, those have held steady, at the very least for now. I believe we still need to see what the fourth quarter will probably appear to be.

E-commerce is slowing

Kayleigh: Among the areas which will be very interesting to check out in Q4 is how commerce is performing, but beyond that, how advertising and commerce converge or drift apart. Heading back to KPIs, there exists a push around conversions in campaigns that advertisers have with digital media publishers, but there’s that expectation that whatever campaigns theyre buying at this time have some type of measurable performance.

Previously year or two, Ive discussed how commerce and advertising are [converging] and theres a small amount of a hybrid style of having a display ad thats really centered on driving a purchase to 1 item as well as as with branded content, theres plenty of affiliate tie-ins now. Itll be interesting to observe how those two areas really merge together if commerce itself isnt performing at the particular level that it turned out when it had been [on its own]. But simultaneously, several publishers Ive spoken with have said that commerce-based campaigns havent been performing just how they thought.

Tim: In the beginning of the year, back January, there is the big news about Best Buy fully entering the retail media space. And you also have others, like Walmart and Amazon and Kroger, that are for the reason that space, and I wonder if some of that’s having some type of effect on media companies commerce businesses particularly when they pair making use of their publishers advertising businesses. If youre a publisher pitching [that] we are able to assist you to sell something, that sounds nice and all, but against Amazon, Target or Walmart who own that time of sale, it feels as though that could be a very hard pitch.

Kayleigh: I’m curious where these retailers ‘re going next. Theyve, during the past, paid publishers to generate content for his or her websites in paid partnerships. Maybe 1 day, they could just buy up a few publications to see if that increases results for them, aswell. But youre right. I really do think that that is clearly a big section of contention when considering how publishers are approaching their commerce businesses.

Inflation could impact subscription businesses

Tim: Folks are hearing about rising inflation [rates] therefore you then start paying more focus on your grocery bill, the cost of what youre buying. On the streaming side, subscription [prices] continue up: Netflix raised its price again earlier this season, Hulu is at this time going right through another round of raising its subscription price. so theres all of this competition for peoples wallets that folks are just likely to end up receiving smarter or even more discerning with how they desire to be spending their dollars.

Cost-cutting may have inadvertent effects

Tim: Ive talked for some media executives whove had trouble hiring people since they dont have an office. In spring 2020 everyone started working at home, those companies eliminated their office spaces to save lots of on costs and today theyve had some candidates that theyve offered positions to [not accept the job]. Those individuals [asked] are you experiencing an office, because in some instances, they just want an work place in order to work from the mayhem of these personal lives, or individuals who maybe come in sales want an area to have the ability to have meetings with clients.

Digiday stories referenced in the episode

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How Buzzfeed Inc.s Edgar Hernandez is finding your way through a recession while seeing signs of recovery

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