Black-owned media companies are seeing the positive impact of continued investment by brand and advertising agencies from 2020. Some fear that a possible recession will stop the flow, while others believe they have already proved their value to advertisers and therefore can withstand any budget cuts for the brand. There is also.
Indeed, in the midst of a recession storm, if brand / advertising agencies stubbornly adhere to their commitment to “diversity,” that attitude can reaffirm the seriousness of the declaration of support for black-owned publishers. no doubt.
Brandes that have made “written” commitments have devoted 2-10% of their media budget to “divers media” (media run by non-white or targeting non-white audiences), Publicis said. Lisa Torres, head of Cultural Quotient, a multicultural practice in Publicis Media, said.
In the past, such budgets have always been cut first in the event of a recession, but this time, clients will “maintain” in the unlikely event of a recession, Torres asserts. do.
However, even if this investment is maintained, it’s still only a small part of the advertiser’s budget, executives at black media companies tell DIGIDAY.
“Brands can take advantage of the gradual rise provided by divers media, which can have a positive impact on the brand’s bottom line during a recession,” said BleuLife Media Group’s CEO / founder. Devon Christopher Johnson, co-founder of The Black Owned Media Equity and Sustainability Institute (BOMESI), said the nonprofit organization The Black Owned Media Equity and Sustainability Institute. He said the budget should be cut from the top funnel, “The reason is that we’ve already invested in it. If you want new customers, if you want to expand your customer base … give us that budget. I want to tell you not to rob us. “
After the Black Live Matter movement culminated in the summer of 2020, marketers are spending part of their advertising money on black media companies.I vowed to support..Agencies also got on it-for exampleJuly 2021, Publicis Media has decided to support / invest in minority-owned media, including a two-year initiative, Once & For All Coalition (O & FA). Currently, more than 30 of the company’s clients are targeted.
Group Black-CEO Travis Montauk, Chief Strategy Officer Bonin Bau, and Chairman Richelou Dennis to increase advertising spending on black media companies for marketers and agencies Co-founded in 2021 to urge you-promises a total of about $ 500 million in advertising spending from companies like Procter & Gamble and agencies such as WPP, Dentsu and IPG. When I installedThe Wall Street Journal reports..
These efforts have led to increased advertising revenue for some black media companies, four executives interviewed by DIGIDAY. For example, according to Blavity CEO Morgan DeBaun, the company’s advertising revenues increased 56% in the first half of 2022 compared to the same period in 2021. No specific numbers were revealed.
In addition, thanks to the contract with a new advertiser, digital media company Her Agenda’s annual advertising revenue in 2021 recorded a 140% increase compared to 2019, said the company’s CEO / founder BOMESI co-founder Ronensha Bing also said. That said, while it’s true that 2022 advertisers will work with black media companies “much more than ever,” advertising budget growth is “gradual,” Johnson said.
The list of divers media investments and vendors is steadily growing, Torres said. O & FA clients spend 27% more on divers media than non-member clients, he said. In addition, O & FA members have 16% more ads with divers management and target suppliers than non-members (no specific investment amount was disclosed).
On the other hand, the loss of investment due to economic instability has worried some executives.
“We are the first to be cut off during a recession,” said Joe Anthony, founder of creative / digital agency Hero Collective and media / tech company Hero Media. .. By the way, the latter is said to have just started operations in July. “It’s easy to get rid of it just because the skin color is brown. We’re just starting to see it as something that’s good to have, and it’s not something that’s a problem without it.”
In the event of a recession, brands will focus more and more on lower funnel marketing (such as performance-based metrics such as conversions) rather than upper funnel marketing (such as brand building metrics), Anthony said. Business models and ad tech infrastructure are not perfectly suited to lower funnel metrics in the first place, and therefore this transition can lead to a “elimination” of investment in divers media. “As a result, it’s the divers media that gets paid,” he said.
Group Black’s Bau asserts that brands and agencies are “don’t worry” about cutting advertising spending on divers media, even in the event of a recession. “The partnership between us and them has already generated tremendous returns, so I’m confident that we’re not worried unless companies lose track of the return on investment review that underpins this investment.” ..
Publicis Torres agrees. “Our industry has changed a lot. We should be able to demonstrate its value in the proposal of Divers Media.”
In any case, a recession will reduce advertising costs across the industry. That would, of course, reduce overall advertising spending, but it won’t shorten the list of publishers currently holding brand / agency advertising spending, Torres said.
“That’s the change. In the past, those budgets were quickly cut, and brands were cutting it first,” Torres said. “But this isn’t the case. Over the last two years, we’ve changed a lot. They’re willing to keep doing this because they’ve fostered partnerships with those media and are clearly aware of their value … That’s right. What we want is equity in the act. We definitely don’t want to truncate some vendors. “
Sara Guaglione (Translation: SI Japan, Editing: Shohei Ohtani)