MediaPost compared and contrasted two recent perspectives on the ad economy, both centered around and dependent on how one defines “new business.”
For most magazine and newspaper publishers like the ones who use our management software and tools, the “new business” definition that’s most applicable may be, what MediaPost’s editor-in-chief Joe Mandese calls, “one of the most encouraging signs for the ad economy.”
“New Business” According to Big Agencies
First, the other interpretation.
Data released last week by consultant R3 showed that, from January through August 2022, the top 20 U.S. media agencies saw new business decline 35% vs. that same period 2021. The numbers were similarly down worldwide over the same period.
“If it’s big agency rainmakers,” says Mandese, “this year isn’t turning out so great.”
Fortunately, “new business” as it pertains to you and your advertising is a whole other, more promising frontier.
“New Business” Going Digital
Mandese points to a discussion in the October 14 episode of the This Week Next Week podcast in which Nidhi Shah, Group M’s business intelligence analyst, shows that new business creation, when compared to pre-pandemic levels, is up considerably.
“If I look at U.S.,” Shah says, “it’s up 45% for the nine months total this year relative to the nine months total in 2019. That is remarkable.”
That growth, combined with the inclination of many new businesses to invest what ad budgets they have into The Big 3 platforms (Google, Facebook, and Amazon), explains why big agencies might not be seeing the same positive numbers or promising outlooks.
Additionally, it’s all the more reason to solidify your publication’s digital foundation.
Bringing “New Business” To You
Programmatic advertising gives publishers the opportunity to sell advertising inventory across the wide digital world. And it’s an opportunity that publishers are uniquely qualified to find success in.
There’s a market for media buys in, for instance, the $1,000-to-$5,000 range, and with a sales staff knowledgeable in serving that market, publishers have the experience and a built-in skill set to become their own ad agencies that can cater to new small-to-midsize businesses.
You don’t have to have Big 3 ambitions to make game-changing advertising deals. Maybe it’s just creating space for “new business” to revolutionize your business.