The advertising business is becoming less cyclical—and more concentrated

music? Check. Footage of deserted streets? Check. Maudlin voice-over lamenting “uncertain times”? Check. Seeking a television commercial fit to air amid a pandemic, brands fromto Budweiser sent for their finest admen. All seemed to come up with the same cliché, proclaiming: “We’re in this together.”

Despite a slump like no other, ad spending may fall by less this year than the 11.2% drop that followed the financial crisis in 2009. And whereas most of the advertising dollars pulled during the recessions of 2001 and 2009 never came back, this time they may return to pre-pandemic levels as early as next year, believes MoffettNathanson, a research firm . How come? In a word: internet.

Meanwhile, everyone is at the mercy of a near-duopoly. Two landlords, Google and Facebook, control 60% of worldwide digital-ad real estate. Investors long for Google to introduce ads to its Maps app. Their calls may grow louder as Google’s net advertising revenue in America is expected to fall by 4% this year, according to eMarketer, a research firm. Facebook could put more on Instagram. WhatsApp, also part of Facebook, is “the most under-monetised app in existence”, says Bernstein.

One is gaming, which has come a long way since 1993, when Electronic Arts showed pitch-side ads in its first “” football game. Last year King, which makes the “Candy Crush” games, took $150m in net ad bookings. Today gaming firms make ads more engaging by, say, letting players earn power-ups in exchange for watching a commercial. King claims that consumers are 18% more likely to remember an ad they see in “Candy Crush” than one viewed while streaming or using social media.

This is truly a hard year for advertising companies

I think it will shake out. A relationship with an individual third party will eventually benefit.

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Ask suckerberg

ergestx what I mentioned the other day... personalization will be the next big thing... and not only in marketing

Facebook lost $7B this weekend bc robotboy decided greed was most important than truth in advertising, advertisers are leaving FB AND INSTA

E,

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