While you feel scrolly-tappy... Digital ad giants like Facebook feel cash-happy. As the economy reopens, marketers are itching to reunite you with their jeans and lipsticks — so they're bombing your feed with ads. Much of Big Tech's blowout earnings last quarter were driven by hot demand for digital ad real estate.
- Facebook's ad sales grew an impressive 46%, while Google's grew 69% — YouTube ad sales grew even faster, as you memorized car commercials.
- Snap's quarterly sales more than doubled from last year, and Twitter's soared 74%
- Amazon, which is newer to the ad game, saw its ad revenue more than double.
The digital ad pie is growing... and legacy media wants a bigger slice. Legacy orgs like Comcast's NBC and AT&T's WarnerMedia used to pull in big bucks from TV spots. But as social apps and streaming services replace OG TV, cable cord-cutting has accelerated. So during the pandemic, legacy networks launched their own streamers to boost ad bucks. So far, their efforts are promising:
- NBCUniversal's ad sales rebounded 32%, thanks in part to its new streamer Peacock, which now has 20M+ users.
- WarnerMedia's ad sales jumped 50% last quarter, as it launched an ad-supported version of its HBO Max streaming service (feat. Friends: The Reunion).
- Discovery, which owns Food Network and HGTV, posted strong ad revenue growth, bolstered by its new streamer Discovery Plus.
Ads follow eyeballs... and eyeballs are glued to digital. Five of the world's largest tech companies owned nearly half of all global ad sales last year. Big Tech's ad-vantage: massive audiences, precise targeting, and direct-buying features. Legacy media's advantage: thousands of shows, movies, and live programming to offer on streaming — with a side of ads. Going forward, we'll see if legacy TV media focuses on ad revenue vs. subscriptions. Streaming leader Netflix still hasn't touched ads.