Lately there has been constant whining from industry insiders about the fact that digital media, as a revenue mode, is suffering. According to several research companies, digital ad spending growth has decelerated precipitously. And analysts have even written that ad spending growth for social media will be modest with Apple’s new privacy feature, which will make it more difficult to track behavior.
Similarly, financial papers are reporting daily that social media platforms’ growth has stalled with the digital-ad market in upheaval. The digital entertainment sector, which is experiencing falling CPMs for its AVoD and FAST channels, is now eyeing the upcoming Newfronts (the digital ad market showcase), set for May 1-4, 2023 in New York City, for possible future improvements.
Peacock, which was a leader in the shift towards ad-funded streaming tiers, has been experiencing losses that are expected to peak at $3 billion in 2023. And a recent report claims that Netflix’s new advertising-supported tier is not living up to expectations. Netflix has made it possible for advertisers to get their money back for ads that haven’t yet run. According to reports, the company only met about 80 percent of the promised target audience.
Meanwhile, Snapchat reported flat sales in its fourth quarter, with $1.3 billion. Its current quarter’s sales have declined by seven percent compared to last year.
Twitter is trying to get advertisers back to the platform after an exodus. Spotify reported a loss of 270 million euro compared to the previous year.
It has been reported that Google has been hit by a broad slowdown in the digital ad market. Google posted $59 billion in advertising revenue for the fourth quarter of 2022, a decrease of 3.6 percent from the same period in 2021. Google’s YouTube recorded a second straight quarter of declining revenues with sales reduced by 7.8 percent since 2021, to $8 billion.
To conclude, Facebook’s Mark Zuckerberg announced that 2023 would be “a year of efficiency.”
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