Advertising experts, of course, advise that brands keep marketing in the face of economic uncertainty—like the months-long anticipation of a potential recession that has loomed over the summer months.
- Not everyone takes that advice, with brands like Microsoft axing entire channels from their marketing plans. Plus, companies like Meta and Snap reported a slowdown in ad spend during Q2.
Podcasting, at least, appears to be safe from the ad budget cuts for now: “Our clients are certainly not reducing their investments into the space,” Steven Abraham, president of audio ad agency Oxford Road, told Marketing Brew. “If anything, they’re doubling down because they can afford to,” given that podcasting doesn’t have a “high ticket entry.”
Big picture: Some of the biggest audio companies reported growth in podcast ad revenue for Q2 despite a softening ad market, and buyers responsible for major audio budgets told us they’ve yet to see a significant retreat from podcasting, indicating that the sector could continue growing regardless of the state of the economy.
Even so, audio ad buyers are certainly preparing for the possibility of economic-related budget cuts.
- Jennifer Laine, head of marketing, innovation, and special projects at Oxford Road, which works with clients including Constellation Brands, Zocdoc, and Quip, said the topic has been “reoccurring” in executive meetings.
- Jacob Schwartz, associate director for national audio investments at Mediahub, told us he’s fielded questions about potential budget shifts dependent on the economy, but that “no one’s actually really done anything.”
However, some advertisers are shifting from growth-oriented campaigns to performance-focused ones. Keep reading here.—AM