The Truth is Powerful
The downturn ad economy: A tale of two narratives
There are two competing narratives on advertising at the moment. They sit uneasily with each other. But both are correct.
Ad dollars are being spent, but they’re also being cut. Yes, these two things can be true at the same time. No, the latter perspective doesn’t make the former any less valid or vice versa. Really, it’s a matter of perspective.
The agency perspective is upbeat, considering the downturn that isn’t yet a recession but looks increasingly like one.
All three agency holding groups that have reported so far during this earnings window — Omnicom, Publicis Groupe and IPG — have upgraded their revenue growth forecasts and cited a positive ad market, with few signs of contractions in ad spend.
The platform perspective, on the other hand, is a lot more downbeat.
There were advertising cuts across the largest online media owners over the last quarter — some more severe than others, of course. Meta and Twitter bore the brunt of those cuts, to the point where ad revenue slowed so much that it declined over the period. Even so, all the big online media owners were wary of how pervasive this ad pullback could get. The consensus: Ad cuts are going to get […]