That photo? An explanation is coming, I promise.
But first an observation.
I always follow the deliberations at the annual Cannes Lions Festival. It’s an opulent, sun-drenched gathering of advertisers, marketers, and creatives but it also usually unearths some important themes and trends.
This year, one quote stuck out for me. A television advertising exec from RTL AdConnect said that it was time for his industry to turn the tide against digital advertising. He said it was time for “the empire to strike back.”
It was a great tagline that thundered throughout the festival, but in reality it was a symbol of the total desperation gripping the advertising industry.
Claiming the TV ad world would strike back is like spitting into a hurricane.
Internet advertising is set to cross the 50 percent milestone as a proportion of global ad spend for the first time and the future is digital — internet advertising will account for 52% of total ad spend in 2021 – up from just 44 percent in 2018.
Advertising at a crossroads
There are other signs of cataclysmic changes in the advertising industry as traditional ad channels like TV, radio, and print dry up and digital becomes more crowded and expensive.
Another story out of Cannes was that big brands were pressuring Netflix to accept advertising. But whole reason people pay for a streaming service is to avoid the ads! One more sign of desperation in the business.
A study showed that Netflix will lose about 23 percent of its subscribers if it accepted ads. And yet at least one analyst claims there is no way for Netflix to make money unless it goes this route.
Something has to give. Advertisers have to find a place to put their money. What are the emerging bright spots?
- TikTok — The youth-oriented video channel is promising yet a potential spy tool of the Chinese government.
- Podcasts — Creating audio content has become an “eight figure” ad business for The New York Times. Research shows that advertising on podcasts is booming and one of the few places where ads are “accepted” by consumers.
- Games — Multi-player juggernaut Fortnite is starting to work advertisers like Nike into its platform.
There is a lot to think about here and a lot to discuss, which is what Brooke Sellas and I did on the latest episode of The Marketing Companion.
‘Advertising at a crossroads” is one of the most fascinating discussions we’ve had on the show and you won’t want to miss it!
And that photo?
Well, Brooke and I created some bonus video content as we try to reach the “trashy demographic” through “The Housewives of The Marketing Companion.”
If you can’t see this video, watch on YouTube: Housewives of Marketing Companion
And oh yes … there is the podcast episode: Advertising at a Crossroads! You won’t want to miss this thought-provoking discussion. Just click here!
Click on this link to listen to Episode 166
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Many thanks to our friend Scott Monty for the awesome show intro. Be sure to check out his amazing newsletter The Full Monty and his new podcast available here: fullmontyshow.com.
Tim Washer is contributing creative direction to the show and he’s has worked for Conan O’Brien, John Oliver, among others. He helps corporations build more creative cultures.
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