Decline Of News Supply Could Hurt Marketers: GroupM's Montgomery

Decline Of News Supply Could Hurt Marketers: GroupM's Montgomery



a lot of your viewers have heard on beat our news organizations aren't getting the revenue that they deserve because of the the bump the news bump threw bricks at the newsman three Trump because marketers have been worried about adjacency too risky content and I and I think that the what happened at the at the start of the brand safety issues that the pendulum of brand safety swung across to the conservative side and I think it's coming back but it's probably coming back a little too slowly and one of the reasons for that is that marketers are finding that they can get impressions outside of new so rather than risk buying in news they can get impressions outside of news and that's damaging the news organizations I believe unfairly I think that there are some very good quality impressions to be bought in news in fact perhaps better quality impressions in news because it's around the issues of it's around the issues of the day and so by not buying in news we're missing out on a number of opportunities there's a second reason why that's happening and that is because news the consumption of news is moving from traditional news sources and newspapers to social media officially in the US there are now more people consuming news from social media than they are from from newspapers and I think this is a crisis for for for Free Press and and potentially even for for democracy what we're seeing globally is that local news organizations in some of the developing markets like Malaysia and Indonesia and even huge markets like India as as press is being digitalized rather than the the young of viewers who are looking at this on their smartphones reading the news on their devices from from the newspapers platforms they're just moving directly onto the social onto the social platforms and this is decimating the the revenues for for the for the large local local local media and remember these are the newspapers worth journalists with feet on the ground with local knowledge you can speak the language who can deliver news that's trusted in the environment and when news moves into social as you know it can be rife with fake news government intervention we saw the disastrous consequences of this in the Ukraine in Myanmar and even in brexit and the 2016 US US elections it's it really is a worry for of the for for Free Press and democracy and there is something that we can do about that there's an organization called United for news it's a non-profit and what they do is in developing countries work with news organizations to help them in the digital sort of digitalizing journey and understand not just the the production processes and and and how to digitize news but also help them with revenue models and we're working with a strat working on a strategy that helps them pull the inventory in their markets so that they can create a competitive advertising environment to the large platforms to give marketers an advertising opportunity in in those areas so we can go to marketers and say hey don't just move your advertising revenue to the the platforms because it it's a media plan that looks good in a spreadsheet here you'll be able to get quality impressions which by the way are brand safe they are viewable there lower lower fraud but also you'll be helping support the local local news and and perhaps even support democracy in those countries as well so how do you expect buyers to respond to that call to action you know I think that buyers might say it's not our job to save democracy our job is to sell a product on behalf of our clients or our clients might even say it's our job to sell to sell the product I think we've got you foster a healthy environment for us to operate in in every single country otherwise and by the way this happens fast this is if we don't do something I think that that local newspapers can be affected in in a short window of 3 or 3 to 5 years and that then really means that it will will negatively influence the market in which those those marketers operate I really do think we have to think in the long term but we've had a couple of conversations with very big international marketers and they've been responsive we haven't just gone with our handout saying help save democracy help save local newspapers we're going to them with a with a solution that a that gives them a large body of of of impressions brand safe impressions effective impressions created by journalists who understand local issues local trends and and the local and the local market so they're good quality impressions at a scale so I think that they'll get there'll be a good marketing solution for them as well as a social solution you

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