In recent weeks, it has seemed that more online media have switched to subscription models. In reality, the trend to implement subscription models had started earlier and it was expected to be one of the great maneuvers of online media for 2020, one with which they wanted to maintain income and alleviate the drop in advertising prices in recent years. The coronavirus crisis has accelerated things, because it has dynamited the advertising market.As a study by Digiday Research has just shown , although online media have increased their traffic these weeks (a quarter of media outlets have seen their traffic grow by 50%), advertising data has been powerfully damaged by context.Overall, direct sold ad revenue has fallen for 65% of media outlets, the same percentage that have seen a pullback in programmatic advertising. 58% of media have also seen a drop in revenue from content marketing. In front of them are 57% of the media that have seen stable subscription income and 29% that have seen growth.In fact, in Digiday they conclude that this crisis has accelerated the jump to the model of income linked to the user (subscriptions and similar models) and the impulse to the creation of content that is worth paying for. That is, more ‘boring’ news but of higher quality.The impact of the situation on the media has been generalOnly 23% of the media have exceeded their expectations during the first quarter of the year and only 25% have matched them.
The majority, 52%, have fallen Mauritania Email List short in their financial results: they have not fulfilled what they expected their income to be.This occurs despite the fact that the first quarter of the year was not exactly ‘complete’ in terms of coronavirus (the crisis, at least in Europe, did not explode in a big way until March and especially until the second half of that month), a Unlike what seems to happen with the second quarter of the year.Of those who did not meet expectations, 21% fell short between 1 and 10% in revenue, 13% between 11 and 20% and 10% between 21 and 30%.In general, those responsible for the media do not believe that they will meet their forecasts for this yearThe truth is that the forecasts for the end of the year are not optimistic at all.
According to Digiday data , 88% of media managers believe that they will not meet the objectives they had planned for this year. Most believe that income will fall in all areas. 85% believe that they will lose advertising income, 79% that they will lose income from events and 68% in those related to commerce.In fact, the second quarter looks very negative. 80% have reduced their forecasts for that period and only a minimum 2% believe that more money will enter. 17% remain with their previous forecasts unchanged. Of those who believe that income will fall, 23% put it in a range between 11 and 20%, 16% between 1 and 10% and another 16% between 21 and 30%. 9% believe that the fall will be greater than 50%.
70% of those surveyed by Digiday say they expect the second quarter of the year to be worse than the first.Normality will not return until 2021In addition, not only do they expect these months to be worse than the previous ones, but they also assume that normality will take a long time to return. With the “new normal” will not come normality also for the media.The media do not believe that they will be able to recover data similar to those prior to the crisis until 2021. 32% bet on the first half of the year and 17% on the second. Be that as it may, 49% return to normality by 2021. 6% believe that normality will never really return: they are the ones who ensure that income will be impacted “permanently”.