The media industry is facing a content apocalypse as publishers are witnessing declining ad revenue and downsizing their workforce. Adweek, a trade publication covering the ad industry, has cut 10% of its workforce, impacting 14 people. Similarly, Vox Media, which owns The Verge, Thrillist, and New York magazine, has laid off 7% of its staff, resulting in 133 job losses. Fandom, an entertainment news company, has also laid off a portion of its employees across its acquired brands. Axios employees report that advertisers have canceled millions of media buys, instead focusing their efforts on social media while ignoring many of these “content farms.” Meanwhile, NBC News and MSNBC have laid off 75 staffers, while The Washington Post is expected to cut a single-digit percentage of its workforce.
According to a Digiday+ research survey, 43% of publisher professionals agree that their companies’ ad revenue will grow this year, which is a huge drop from the 75% who expected growth last year. Meanwhile, the percentage of publishers who disagree that ad revenue will grow has increased to 22%, up from 12% last year.
A significant 35% of publishers are not prepared to make a judgment either way. The data shows that the big drop-off for publishers has happened among those who expressed strong confidence in ad revenue. In 2022, 37% of respondents strongly agreed that ad revenue would grow, compared to just 11% in 2023.
Publishers’ attitudes toward subscription revenue have not seen much change from last year, although confidence in this aspect has still decreased. In 2022, 47% of publishers agreed that subscription revenue would grow, compared to 35% in 2023. The percentage of publishers who strongly agreed that subscription revenue would grow has fallen from 21% to 7%. Meanwhile, the percentage of those who disagree somewhat has increased from 6% to 17%.
Similarly, the story for e-commerce revenue is similar to that of subscriptions, with a drop in confidence but a general lack of certainty. In 2022, 46% of publishers agreed that e-commerce revenue would grow, compared to 35% in 2023. The percentage of publishers who neither agreed nor disagreed that e-commerce revenue would grow accounted for the largest group at 45%.
The media industry is facing a tough time as publishers are grappling with declining ad revenue and downsizing their workforce. The industry has been hit hard by the economic challenges, resulting in a decrease in confidence in ad, subscription, and e-commerce revenue. The future of the media industry is uncertain, and publishers need to come up with innovative strategies to tackle the current challenges and secure their revenue streams.
The Content Apocalypse is not a matter of if, but when. We’ve been creating and publishing content in such quantities that we’ve failed to consider its true value. We’ve been so focused on the how, the tactics and advanced technologies, that we’ve forgotten to ask why. Our approach to content has resulted in a saturation of poor quality and irrelevant content, with many brands still failing to understand their responsibility to protect their customers.
In a world where attention is a precious commodity, customers are becoming increasingly discerning about the content they engage with. The same Havas Media report found that consumers place high importance on a brand’s ability to make their lives easier, improve their well-being, and provide relevant information. The Content Apocalypse is coming and those brands that fail to adapt will be left behind.
To survive the coming Content Apocalypse, brands need to focus on creating meaningful content that truly adds value to their customers’ lives. This means shifting the focus from quantity to quality, and from tactics to purpose. Brands need to align their content strategies with their customers’ needs and prioritize their customers’ well-being above all else. By doing so, they will be well-equipped to navigate the Content Apocalypse and emerge as leaders in an era of relevance and meaningful communication.
The content apocalypse is a wake-up call for the media industry, and publishers need to take action now to secure their future. They need to focus on creating high-quality content that stands out in a crowded market and appeals to their target audience. Publishers should also consider alternative revenue streams such as subscriptions, e-commerce, and sponsored content to supplement their ad revenue.