This research is based on unique data collected from our proprietary audience of publisher, agency, brand and tech insiders. It’s available to Digiday+ members. More from the series →
There are three concurrent crises at play: The coronavirus pandemic, the economic crisis and the wave of protests across the country protesting racial injustice, that amounts to a social crisis.
For the publishing industry, this confluence of disruption has had a massive impact of on advertising revenue.
About 74% of 127 publishing executives surveyed by Digiday this month said the crises have driven ad CPMs down, while 75% said they’ve had difficulty in ad sell through. Programmatic ad CPMs have been driven down between 10% and 20%, with some publishers choosing to reduce inventory instead of selling it at an extremely low rate.
Despite traffic growing, (see our earlier research) publishers, particularly news publishers, have found it hard to make ad revenue from that increased traffic. Some of this is is due to keyword blocking: Coronavirus-related keyword blocking is a problem for 43% of publishers as advertisers try to avoid buying ads adjacent to certain types of content.
It’s been a similar problem more recently as protests and unrest have continued: As we reported earlier this week, the current news cycle makes more advertisers nervous, with keywords like “death” or “violence.”
Among business lines, ad revenue was hardest hit in the first quarter, decreasing for a whopping 65% of all publishers. This included direct sold and programmatic ad revenue.
More in Media
BuzzFeed’s sale of First We Feast seen as a ‘good sign’ for the M&A media market
Investor analysts are describing BuzzFeed’s sale of First We Feast for $82.5 million as a good sign for the media M&A market — which itself is an indication of how ugly that market had become.
Media Briefing: Efforts to diversify workforces stall for some publishers
A third of the nine publishers that have released workforce demographic reports in the past year haven’t moved the needle on the overall diversity of their companies, according to the annual reports that are tracked by Digiday.
Creators are left wanting more from Spotify’s push to video
The streaming service will have to step up certain features in order to shift people toward video podcasts on its app.