Digiday+ Research: Publishers know the economy will hurt ad sales, but they won’t increase discounts
Publishers also overwhelmingly agree that the current state of the economy will dampen ad sales through the end of this year and even into next year — but that doesn’t mean they’ll offer steeper discounts on ad prices. This is according to a survey of 64 publisher professionals conducted this fall by Digiday+ Research.
Digiday’s survey found that, of the publishers who sell ads (which is almost all of them — or 96%), slightly more than two-thirds of them (67%) agree either somewhat or strongly that the current economic climate will hurt their ad sales during the fourth quarter of this year. This percentage is not a small amount, but an even bigger number of publishers are concerned about next year. Eighty-five percent of publisher pros said they agree somewhat or strongly that ad sales will be hurt into next year, with only 17% saying they’re not concerned about how the economy will affect ad sales in 2023.
Interestingly, however, publishers’ pessimism toward how ad sales will shake out through the end of this year and into next year isn’t translating into discounts on ad prices, Digiday’s survey found. Nearly half (44%) of respondents said they disagreed somewhat or strongly that they will discount ad prices more aggressively in the face of the economic downturn. And more than a third (38%) said they neither agree nor disagree that they will, indicating that a good number of publishers are still unsure about how the economy will affect ad prices and discounts.
These results are particularly interesting considering Digiday’s recent coverage on publishers’ holiday plans for ad sale discounts, in which respondents indicated they are ready to try a little bit of everything when it comes to ad sales activations. It’s possible that publishers are looking for quality ad sales over quantity in choosing to potentially not offer steeper discounts in the face of a possible recession — but it’s also possible that publishers just don’t quite know yet how they’ll handle a prolonged downturn.
Interested in sharing your perspectives on the media and marketing industries? Join the Digiday research panel.
The Washington Post invests in climate coverage as its team expands to over 30 journalists
The Post's climate team continues to expand as the publisher makes big bets on the beat drawing younger audiences.
Inside one media company’s strategy to monetize the Fifa World Cup
Soccer media business Footballco has spent most of 2022 trying to make hay while the sun is shining.
Publishers continue to evaluate cost-cutting in Q4, with economic and budgetary pressures mounting
The wave of cost-cutting measures in Q3 is still flowing into Q4, with publishers under pressure to keep expenses down at a time of continuing economic uncertainty and budget planning.
SponsoredHow brands are measuring incremental performance on CTV
Connected TV is unique among other advertising channels because it combines linear television’s storytelling capabilities with digital marketing’s targeting and measurement. As more marketers leverage CTV advertisements to reach relevant and engaged audiences, they also want to understand the real value they are generating with their investment. Incrementality reporting and measurement allow advertisers to measure […]
A new entrant in the data-driven linear TV measurement space aims to fill a gap left by Microsoft’s Xandr
As Xandr shuts down its Clypd platform, datafuelX's M3 SaaS product aims to solve some of the multi-currency, multi-platform problems with investing in convergent TV today.
Member ExclusiveDigiday’s 2022 Media Agency Report Analysis: The state and future of the media agency, client spending, staffing and beyond
Digiday staffers revealed the full results of the report and answered viewer questions for Digiday+ members on November 2.