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# Traditional Ad Gains, Smaller Agency Travails, Roe Brand Nightmare
- URL: https://www.nearmedia.co/traditional-media-gains/
- Published: 2022-05-09T18:37:49.000Z
- Updated: 2022-05-09T18:51:14.000Z
- Author: Greg Sterling
- Tags: News

### Second Look at Traditional Media 

Traditional ads have been in decline for 20 years. However that may be changing somewhat, as a collection of digital challenges prompt a second look at "offline media." Those include the end of third party cookies (and online privacy in general), rising prices, ad clutter, consumer distrust and increasing fraud. An [article](https://hbr.org/2022/04/why-marketers-are-returning-to-traditional-advertising?ref=nearmedia.co) in the Harvard Business Review sums up the present moment: "[Research](https://www.ebiquity.com/news-insights/research/re-evaluating-media-for-recovery-understanding-the-true-value-of-media-for-growing-brands-during-challenging-times/?ref=nearmedia.co) by Ebiquity suggests that traditional media channels — led by TV, radio, and print — outperform digital channels in terms of reach, attention, and engagement relative to costs." In other words, traditional ads may now be a relative bargain. A separate piece of [research from Onscreen.ai](https://www.onescreen.ai/blog/new-research-says-92-of-marketers-to-boost-out-of-home-budget-in-2022-as-digital-ad-returns-decline?ref=nearmedia.co) carries a similar message. The survey of 600 US marketers found a majority (67%) said "digital returns" were diminishing; 61% blamed intensifying competition, while 60% pointed to "growing consumer digital fatigue and distrust of digital ads." 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/05/designclass--c_LxZzVUnY-unsplash.jpg)

Source: [DesignClass](https://unsplash.com/@designclass?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/billboard?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)

**Our take:** 

- Traditional media channels have remained [more trusted](https://www.statista.com/statistics/325458/trustworthiness-common-advertising-tactics/?ref=nearmedia.co) than digital for years. Other than reviews, search is the most trusted digital channel.
- Many DTC brands [opened stores](https://www.nytimes.com/2022/03/23/business/direct-consumer-retail-stores.html?ref=nearmedia.co) in response to the high cost of online customer acquisition. This is somewhat counter-intuitive.
- The answer here isn't either/or; it's a judicious mix of both digital and traditional channels. Both can work together and reinforce one another.

### Agencies: Hiring, Proving Value Tougher

Hiring talent is more challenging for agencies than acquiring clients, according to the recent State of PPC Global Report ([pdf](https://trueclicks.com/wp-content/uploads/2022/04/The-State-of-PPC-2022-Global-Report.pdf?ref=nearmedia.co)), an international survey of roughly 500 brands, advertisers and agencies. A majority of the 280+ agency respondents were boutiques (<25); 43% had more than 25 people and/or were part of global holding companies. The report explores multiple topics, including adoption of Google Ads automation: 97% are using [RSAs](https://support.google.com/google-ads/answer/10434300?ref=nearmedia.co), 95% Smart bidding by CPA, 51% are using Local Campaigns. The biggest agency challenge was "hiring new talent" (61%), followed by "develop new products and services in response to automation & AI" (43%) and "becoming less dependent on top 3 clients" (36%). In terms of demonstrating value, 39% said it was now more difficult, 36% disagreed, 25% were neutral. For the 39%: 1) "client expectations keep rising," 2) proving value "on top of platform automation" is hard. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/05/Screen-Shot-2022-05-09-at-10.43.19-AM.png)

**Our take:** 

- A higher percentage of North American agencies found proving value tough because of increased client expectations (54% vs. 26% globally).
- Other proof-of-value challenges: attribution, clients "thinking it’s easy" and difficulty of "showing double-digit improvements over time."
- In Near Memo [ep. 62](https://www.nearmedia.co/ep-62/) we discussed Google's [Performance Max](https://support.google.com/google-ads/answer/10724817?hl=en&ref=nearmedia.co) and the automation threat to (some) agencies. This study seems to validate that.

### Abortion = Insoluble Brand Nightmare 

Just when you thought brand management couldn't get more complex, along comes the SCOTUS [anti-abortion decision leak](https://www.politico.com/news/2022/05/02/supreme-court-abortion-draft-opinion-00029473?ref=nearmedia.co). Most brands have historically tried to be apolitical to preserve maximum appeal. But [since 2016](https://martech.org/will-brands-forced-take-sides-polarized-marketplace/?ref=nearmedia.co) there has been pressure to take explicit stands on social issues. Most recently this showed up [in response to the Russian invasion of Ukraine](https://www.nearmedia.co/uber-explore-macys-omni-score-ukraine-brand-imperative/). Some companies pulled out only after public shaming/external pressure. Crisis communication firm Zeno Group (Edelman) recently [counseled](https://www.prweek.com/article/1755192/zeno-criticized-advising-clients-keep-quiet-abortion-rights-stance?ref=nearmedia.co) clients to remain silent on abortion rights. Zeno called abortion a "no-win situation" because of polarization (though [majorities support Roe](https://www.washingtonpost.com/politics/2022/05/03/most-americans-say-supreme-court-should-uphold-roe-post-abc-poll-finds/?ref=nearmedia.co)). A [small number of companies](https://www.cnn.com/2022/05/03/business/amazon-abortion-costs/index.html?ref=nearmedia.co) have quietly said they will pay abortion related travel costs, as it becomes illegal in red states. They may [position it simply as an extension of health coverage](https://www.cnbc.com/2022/05/08/on-roe-v-wade-big-companies-already-have-a-precedent-for-action.html??ref=nearmedia.co), not as a political statement – though it unavoidably will be one. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/05/maxime-gilbert-X-4NYxVZ4R0-unsplash--1-.jpg)

Source: [Maxime Gilbert](https://unsplash.com/@mxm%5Fgilbert?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/fight?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)

**Our take:** 

- Senator Rubio introduced legislation [to prevent corporate tax deductions](https://www.businessinsider.com/rubio-bill-would-prevent-corporate-travel-deductions-for-abortions-2022-5?ref=nearmedia.co) for abortion travel. And Republicans are [eyeing a nationwide abortion ban](https://www.vanityfair.com/news/2022/05/mitch-mcconnell-acknowledges-a-national-abortion-ban-is-possible-if-roe-is-overturned?ref=nearmedia.co), promising to further inflame the issue.
- More state governments may try to punish companies taking positions they don't agree with. Disney was initially silent on "don't say gay" [until employees complained](https://www.npr.org/2022/03/08/1085130633/disney-response-florida-bill-dont-say-gay?ref=nearmedia.co); when Disney spoke out, [it got punished](https://www.nytimes.com/2022/04/22/us/politics/desantis-disney-florida.html?ref=nearmedia.co).
- Younger consumers/workers [are 65% pro-choice](https://www.nbcnews.com/politics/meet-the-press/nbc-news-poll-shows-nation-s-demographic-divides-abortion-n1278210?ref=nearmedia.co). Closely connected are: women's rights, gay rights, privacy. Companies that remain silent take a big reputational risk; those that speak out become targets too.

## Recent Analysis

- **Near Memo episode 63**: [Earth Day promos can damage reputation, CX is more than a number, SMBs need an integrated digital approach](https://www.nearmedia.co/ep-63/).
- ****The Hidden Side of CX: Mining Unstructured Data**, [by Adam Dorfman](https://www.nearmedia.co/the-hidden-side-of-cx-mining-unstructured-data/)

## Short Takes

- Protect **GBP business hours** [from unwanted Google edits](https://moz.com/blog/protect-gbp-hours-of-operation?ref=nearmedia.co).
- **GBP:** ghost kitchens can now become SABs under [new guidelines](https://localu.org/google-delivery-only-food-business/?ref=nearmedia.co).
- "Business doesn't exist" now on **Google** [business redressal form](https://searchengineland.com/business-redressal-complaint-form-adds-option-for-this-business-does-not-exist-384984??ref=nearmedia.co).
- **Amazon** takes legal action against four [fake review vendors](https://www.bbc.com/news/technology-61348521?ref=nearmedia.co).
- Are short videos [taking over](https://www.seroundtable.com/short-videos-vs-web-stories-google-33363.html?ref=nearmedia.co) from web stories on **Google?**
- Responding to user dissatisfaction, **LinkedIn** [making content changes](https://blog.linkedin.com/2022/may/5/keeping-your-feed-relevant-and-productive?ref=nearmedia.co).
- The Trade Desk EVP [Matt Goldberg takes over](https://tripadvisor.mediaroom.com/2022-05-04-Tripadvisor-Appoints-Matt-Goldberg-to-Chief-Executive-Officer?ref=nearmedia.co) at **Tripadvisor**.
- Musk says **Twitter blue** subscriptions [will double revenue by 2025](https://www.theverge.com/2022/5/7/23061198/elon-musk-double-twitter-revenue-through-subscriptions-blue?ref=nearmedia.co).
- **UK tech regulator** [taking steps](https://techcrunch.com/2022/05/06/uk-dmu-big-tech-regulation/?ref=nearmedia.co) to open platforms up.
- CA seeks to regulate **blockchain** tech – [in a good way](https://www.theverge.com/2022/5/7/23061351/california-governor-signs-executive-order-aiming-regulate-foster-cryptocurrency-usage?ref=nearmedia.co).
- **Facebook** to [kill several location features](https://www.socialmediatoday.com/news/facebooks-removing-a-range-of-location-tracking-tools-as-data-regulations/623365/?ref=nearmedia.co) in the app as of May 31\.
- A look inside **Meta/Facebook's** [first AR/VR store](https://www.cnet.com/tech/computing/facebook-parent-meta-is-opening-its-first-store-heres-what-its-like-inside/?ref=nearmedia.co).
- **Apple** [loses important AI executive](https://www.macrumors.com/2022/05/07/apple-director-of-machine-learning-resigns/?ref=nearmedia.co) because of return to office policy.
- Where **Americans moved** in 2021 [according to moving company data](https://www.cnbc.com/2022/05/08/the-cities-americans-moved-to-the-most-in-2021-according-to-penske.html??ref=nearmedia.co).
- Most workers [say they *don't* suffer](https://www.pewresearch.org/fact-tank/2022/05/04/as-telework-continues-for-many-u-s-workers-no-sign-of-widespread-zoom-fatigue/?ref=nearmedia.co) "**Zoom fatigue**."
- Top [reason](https://www.marketingcharts.com/industries/retail-and-e-commerce-225572?ref=nearmedia.co) for **shopping cart** bails: "unexpected shipping costs."

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