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It’s possible that you’re enjoying less ads however, the businesses that produce the content you’re enjoying may be suffering because the tightened budgets for advertising are hurting profits of a variety of media firms.
In the recent and most current report on earnings announcement, AMC Networks announced a decrease of 17% in advertising revenue. This adds to the list of announcements by the entertainment firm that included a decline of 20% in the preceding quarter, and a 12% drop prior to that. In reality, you need to go back to Q1 2022 in order to discover the last time that ad revenues were increasing for AMC. In the past quarter, advertising revenue has dropped from $201 million to just $167 million.
In Warner Bros. Discovery’s TV networks advertising revenues fell 6.5 percent YoY Ad revenue was harder to find in the news sector also. Newspaper publisher Gannett the advertising and marketing services revenues were down by about 8% YoY even though the company saw almost 17% more digital subscriptions. At Fox advertising, revenue for advertising was down by 4% compared to the previous year, but other revenue was steady.
The New York Times, however, said its advertising revenue as “approximately flat” overall, however, there was a slit in the form of an 8.6 percentage decrease in print advertising was mostly compensated by an 6.5 percent rise for digital advertisements.
Advertising budgets are often cut in times of uncertainty in the economy, and even although it’s true that the US economy hasn’t been in recession in the past year, as some predicted, it’s apparent that a number of businesses have discovered a way to cut budgets by reducing ad expenditure.
The increase in advertising budgets could indicate that businesses believe in a rebound. There could be indications that this is occurring.
“Brands who tend to be more conservative have started to think more aggressively with less talk of a recession,” Seth Hargrave, CEO of the media buying agency Media Two Interactive, said to Digiday. “While Q4 is always a strong quarter for spending, we’re seeing spillover to Q3 that’s actually putting our forecasts closer to equal for those two quarters.”
Despite the overall decline, one industry saw at least a slight increase in the amount of advertising revenue during the last quarter: Big Tech. Meta has managed to bring in an YoY increase of almost 11%. Google posted a smaller rise of 3% after two quarterly declines in the same period.
