Peloton was already in trouble when we wrote about its ad strategy earlier this year. Fast forward a few months, and things are considerably worse. Here are a few headlines that have hit the presses since May: Peloton Lays Off 500 Employees in Fourth Round of Cuts This Year - Peloton, Seeking to Cut Costs, Will No Longer Make Its Own Bikes - Peloton, the Troubled Fitness Company, Loses Another Top Executive For the pandemic darling, these headlines seem unbelievable. Unfortunately for Peloton and its advertisers, they’re not.
“Obviously, Peacock sucks.” That’s what one executive said about NBCUniversal’s (NBCU) take on streaming. On the surface, the statement seems harsh—after all, Peacock is growing. In August 2022, Peacock reached 28mm monthly active accounts (MAAs), putting it on track to reach its goal of 30mm to 35mm MAAs by 2024. By 2026, Peacock could reach 84mm MAAs, representing a 250% increase in users from 2022. So, what gives, and what does the contradiction mean for the future of Peacock advertising? Ad strategies from July 1, 2021, through June 30, 2022, tell that story.
After two-plus years of a pandemic, a quick transition into a recession seems only fitting. Whether or not that’s true—the definition of a recession is widely disagreed upon—we can all agree that the economy is going through a rough patch. That means layoffs, revenue declines, go-to-market shifts, and less spending. When times get tough, and money is tight, ad budgets are typically one of the first line items to get the boot. But not all advertisers are watching their budgets disappear—some are spending more, despite the uncertain economy.
After more than two years of remote work, many companies are unlocking their office doors and asking employees to come back. In fact, about 50% of companies want workers back in the office 5 days a week. Much to their dismay, many of their employees don’t want to return—at least not every day. According to a Gallup study, more than 90% of the 70mm remote-capable employees say they don’t want to go back to the office full-time. Either way, with the return-to-office policies going into effect, people are putting on their fancy clothes, restarting their daily commutes and dropping their kids off at daycare.
Advertisers build their strategies based on current events. When online gaming grew in popularity during the pandemic, some advertisers allocated more of their budget to YouTube’s gaming channels. The rising cost of buying cars led advertisers for new and used dealerships to do the opposite. Advertisers for firearms and accessories companies are no different. Given the divisive nature of their products, however, these advertisers walk on a thinner sheet of ice. What does firearms advertising look like in 2022? Have the headlines and a push for gun reform impacted spending? We looked at our data to find out.
The global automotive market is projected to reach nearly $95t (yes, that’s a “t”) this year, making it one of the biggest industries in the world. A big industry calls for advertisers with even bigger budgets, right? Not so fast. (Get it?) The pandemic, coupled with an uncertain economy, has pushed car buying and related purchases to the back of many peoples’ minds. Sales of new vehicles in the US fell by about 15% in 2020, one of the biggest declines in decades.
On March 11, 2020, the World Health Organization (WHO) put everyone on notice when they announced that the COVID-19 outbreak was officially a pandemic. In the two-plus years since the pandemic, a lot has changed, including the spending habits of advertisers who found themselves trying to make sense of shifting consumer behaviors and shrinking ad budgets. As the pandemic waned, advertisers understandably increased spending as they looked to capitalize on the spending surge and recoup lost revenue.
Don’t let the recent job growth fool you—the US job market is a dumpster fire. In 2020, the unemployment rate reached 14.7%, the highest since The Great Depression. To add fuel to the fire, many people who received pink slips remained unemployed for more than a year. While the pandemic forced many cash-strapped companies to cut ties with people out of necessity, a lot of people left on their own accord. Enter the Great Resignation, the name used to describe the mass exodus of people quitting their jobs due to dissatisfaction related to pay, growth opportunities, benefits and more.
What do the COVID-19 pandemic, a looming recession, rising interest rates and global conflicts have in common? They all impact nearly every aspect of life, including how brands spend their ad dollars. While the lasting impact of these events remains to be seen, we are starting to see how advertisers are responding to the shifting sands. Hint: Most of them are spending less. Still, there are opportunities to convince them to open their wallets. Recently, MediaRadar looked at a sampling of advertising on over 215 digital content companies like BBC News, ABC, and USA Today.
It’s been more than a decade since “Satoshi Nakamoto,” a suspected pseudonymous person or persons, introduced Bitcoin—and cryptocurrency—to the world. In that time, its value has skyrocketed from zero to $60k, turning thousands of ordinary people into millionaires, a lucky few into billionaires and a long list of others into oh-so-comfortable. In 2021, the cryptocurrency market was valued at more than $3t, which came at a time when many coins reached all-time highs and crypto started to gain widespread appeal, especially among corporations and governments.
With the midterm elections fast approaching and the balance of power in Washington teetering on the edge, Democrats and Republicans are doing everything in their power to get in voters’ good graces. One of the ways they’re doing that is by investing in ads. We looked at our data through April of this year to understand how both parties are spending their ad dollars leading up to one of the most pivotal elections in the history of the United States.
A couple of years—and variants—later, the world appears to be going back to normal and people are understandably excited about the ability to travel. On June 1, 2022, 1.9mm people went through TSA, which is in line with pre-pandemic numbers. Travelers aren’t the only ones excited, though. Advertisers in the travel industry, including U.S Tourism, Rental Car, Lodging and Airlines, are looking forward to clawing back some of the $2 trillion in lost revenue last year.
It’s not everyday that advertisers aren’t chomping at the bit to hand YouTube their ad dollars—but that’s precisely what’s happening as Home Goods advertisers opt for retail media in lieu of the video giant. In Q1 2022, Home Goods advertisers spent $187mm on ads on retail sites like Amazon, Walmart, Target, Kroger and The Home Depot. Meanwhile, they spent just $77mm on YouTube ads.What does their penchant for retail media tell us about their overall digital advertising strategies? Do these advertisers see a future with YouTube—and can we predict anything about their strategies moving forward?
Advertisers are back buying video ads—where are these ad dollars going and what does it tell us about the future of video advertising? MediaRadar is here with the answers. No surprise here, but people like watching videos. So much so that the average person spends more than 2 hours a day watching them. Some estimates predict that time spent watching videos will start to plateau or decline—not because video’s becoming less popular, but because there’s only so much time in the day. However, the popularity of OTT, mobile and YouTube will keep videos around forever.
In 1946, studio executive Darryl F. Zanuck said, “Television won’t be able to hold on to any market it captures after the first six months…People will soon get tired of staring at a plywood box every night.” Boy, was he wrong. If anything, the reason people get tired these days is because they’ve been starting at the “plywood box” too much. To say TV and related technology, like OTT (or “over-the-top”/streaming services) is popular would be an understatement. This year, 1.88b people will use OTT services like Netflix, Peacock, Discovery+ and Paramount+.
What are America’s favorite pastimes? Baseball. Apple pie. Rearranging furniture. That’s right—home furnishing and furniture rearranging is on the rise. Pinterest’s popularity continues to climb; in Q1 2022, Pinterest reported 433mm monthly active users (MAUs). The TV channel HGTV (which focuses solely on home design, redecorating, and remodeling) also was the 9th most-watched TV network in 2021.
Peloton has been on a wild ride the past three years. When in-person gyms closed due to COVID-19, Peloton capitalized on providing an in-home fitness solution. Peloton’s shares were up 220% in 2020 due to the pandemic causing profits to rise. But nearly all of those gains were wiped out last year as the brand had a bumpy ride in 2021 with bad press, class action lawsuits, supply problems among their issues.
According to Furniture Today, the pandemic unsurprisingly fueled consumers’ “home goods” purchases. As pandemic restrictions ease, and even with consumer spending focusing more on experiences and travel, the “homebody economy” continues to flourish. Furthermore, this upward trend in consumer home goods spending is propelled by diminishing supply chain issues; among other factors. Overall, ad spend in the home goods industry should increase in step with consumer confidence in the category.
The American Revolution. Isaac Newton discovering gravity. The Continental Congress adopting the Declaration of Independence. What do all of these events have in common? They happened after Friedrich Jacob Merck took control of the Engel-Apotheke, which would eventually become one of the world’s biggest pharmaceutical companies. If that name doesn’t ring a bell, maybe its current one does: Merck. Yes, that Merck—the same one that reported $48.7b in sales last year.
According to a study by market research firm Mordor Intelligence, the global apparel market is forecasted to record a CAGR of 5.5% between 2020-2025. For apparel and accessories brands, this growth means ad spend increases as well as shifts in spend across formats as brands look to target their ideal buyers. It’s important to note that supply chain, sustainability and authenticity, and diversity representation will be sure to alter the apparel landscape, and subsequently, the advertising outlook in 2022.