We have gotten used to seeing new and exciting things when it comes to the digital space. It seems like every day there is a new product, a new way to use an old product or one that died due to irrelevance. The digital space is a place that has made some people incredibly rich and also a place where other people have lost a lot of money testing out that “one idea” that never broke through the clutter of other products.
In 2019, we hit another record for holiday ad spending inside of the digital space. Everywhere you went on your smartphone and desktop, you saw a holiday ad, whether it was from a known company or an unknown company. When are we going to hit that ceiling for ad spending for the holiday season? I’m curious about that, because there’s only a certain amount of A+ websites — like news, sports and weather websites — to advertise on. When do we start talking about “no avails”? We don’t want the C websites, the spammy websites, to get rich quick. That’s something we’re going to be watching this year, because in 2020, it’s political season. Political season is going to drive a lot of money inside the digital inventory. That digital space is going to get really cramped and you have to have a partner that understands that and knows how to navigate it.
2020 is here and it’s political season. Political season means an influx of dollars, whether it’s for traditional or digital media. Facebook announced in 2019 it will limit its acceptance of political funds/revenue due to what happened in 2016. I believe they are going to back away from that statement. I believe the inventory will be accepted on Facebook because the stockholders demand it and the inventory has to go somewhere. It can’t fit inside of the normal digital space. It has to be inside of social media networks. So, I do believe they are going to reverse that decision but there are going to be a lot of terms and conditions for it.
But, let’s say that Mark Zuckerburg does not allow political revenue. That money will be filtered into display, pre-rolls, other social media, connected TV, etc. This will create a lot of clutter where advertisers must be smart with their CPM bids. It is something that we had to watch for the first time over the holidays due to the clutter and availability of ad space. It will return during the primary and general elections.
Tim Whitley, CEO & Founder