The HUGE Issues With The Digital Ad Space, Corporations, Closures, & Understanding Diversification

The HUGE Issues With The Digital Ad Space, Corporations, Closures, & Understanding Diversification

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Sources/Important Links:
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https://www.businessinsider.com/2019-media-layoffs-job-cuts-at-buzzfeed-huffpost-vice-details-2019-2#vice-media-250-jobs-february-1-1

https://www.hollywoodreporter.com/news/disney-digital-networks-hit-layoffs-1157822

https://www.cnn.com/2019/01/24/media/media-layoffs-buzzfeed-huffpost-gannett/index.html

https://www.theguardian.com/media/2019/jan/26/huffpost-buzzfeed-layoffs-digital-journalism

https://www.miaminewtimes.com/news/mcclatchy-follows-buzzfeed-vice-and-others-in-cutting-staff-11070151

https://www.fastcompany.com/90295558/patreon-is-on-track-to-reach-1-billion-in-total-payments-to-creators
https://adage.com/article/digital/amazon-makes-quick-work-ad-industry-10-billion-year/316468/
https://www.ft.com/content/482dc54a-1594-11e8-9376-4a6390addb44
https://www.vanityfair.com/news/2018/12/a-generation-of-digital-media-darlings-prepares-for-a-frigid-winterhttps://www.ft.com/content/482dc54a-1594-11e8-9376-4a6390addb44
https://adage.com/article/media/tv-pricing-chart/315120/
https://www.adweek.com/digital/upworthy-lays-14-staffers-focus-digital-video-168929/
https://money.cnn.com/2018/08/03/media/upworthy-layoffs/index.html
https://www.businessinsider.com/google-q4-ad-juggernaut-2019-2
https://www.businessinsider.com/youtube-is-opening-its-pricey-masthead-ads-up-to-more-advertisers-2019-2
https://www.appnexus.com/sites/default/files/whitepapers/guide-2018stats_2.pdf
https://www.newsweek.com/glamour-magazine-folding-subscription-print-cancel-stop-1227213
https://www.emarketer.com/content/google-and-facebook-s-digital-dominance-fading-as-rivals-share-grows
https://www.adweek.com/agencies/why-the-traditional-agency-model-is-struggling-to-keep-up-with-demand/

https://blog.patreon.com/millions-and-billions-celebrating-patrons-creators-major-milestones
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54 Responses

  1. Welcome To The Madness says:

    Corporations are just trying to figure out how to ensure the little people,”guy in his basement” doesn’t have enough money and dependent on them.

    Oh they can be independent and influence people outside of our control. We must stop you!

    • loags22 says:

      +Kris Niznik and those streets are run by Democrats. And no. He meant for everyone

    • MsTaly99 says:

      moderatingmoderation yes I know the youth is lost; I actually paid attention in my Sunday bible school class.

    • Mark Gonzalez says:

      jxsilicon9 were edging closer to fascism if anything

    • Mark Gonzalez says:

      Rhett Reisman with constant profit gain losing relative usefulness on a sliding scale

    • MsTaly99 says:

      moderatingmoderation not if all of their shit is made in slave labor nation states where the products they sell are manufactured for pennies then sold to Americans for dollars.

      Their profit margin is over 1000% at that point; so all the corporations need you to do is make 20-30$ a day to only “survive” enough to continue to be a good little monetary slave never able to climb the ladder of success.

  2. DRH888 says:

    I do think that some media layoffs, such as Buzzfeed and Huffington Post are different from others, such as Machinima. Media in general and on average is suffering of lack of trust so I think the reasons they may be failing are similar, e.g. failure to realize where the market is or what it’s looking for, but have a different flavor and therefor solution. Situation is even more complicated when you look into people from which departments were let go.

    • Kate says:

      Machinima was a bad business model we all knew the MCN’s would fail because you shouldn’t ever build a company on another company (aka youtube) and expect to survive when that platform makes changes. You need to diversify. The issue publishers have and I’m talking as someone laid off from publishers before this is that they focus too much on ad rev and not enough on how to diversify the streams of income. We had Google and Facebook both create new mobile ways to view content and in many cases content just isn’t getting the clicks it used to thus most revenue is staying on those more socially adapt platforms so brands have to find a way to get eyeballs and if the CTR isn’t there on these publishers platforms they move dollars around so that’s how Huffpo and Buzzfeed lost money where as Machinima just lost it’s talent and had probably the shittiest contracts of all MCN’s that were not iron clad.

  3. EquilibriumTelevision says:

    Viewers need to directly support their creators, absolutely. In the same manner that Andrew Yang’s aforementioned (on the JRE Podcast) “Democracy Bucks” are a way that constituents can directly and fairly support political leaders without an oligarchy reigning supreme in the U.S., so must users be able to support their content creators.

    However I believe that funding will ultimately be a blend of multiple streams of income. You cannot force people to pay for their content (just look at cable vs regular tv) but the consumer’s control over what they view and the content creator’s ability to tailor viewing experience is groundbreaking in media history. Viewers need to recognize this and step up in monetary support if they really like what they are seeing.

    • Thomas Kappenman says:

      Look into basic attention token. It aims to do exactly that. It’s gonna be a while before it gets popular though.

    • Liam Walton says:

      +CasualNotice Thats what I feel. If I had the spare income I would support patreon for at least 20 creators. But at the moment its just not viable for me. And chosing who to support is just hard. For example I watch pewdiepie everyday, and he has millions of subs, and i also love small channels with maybe 50k subs. The way i feel is that the higher sub’d channels probably already have more support… so i’d support the smaller one… But if everybody thinks like that, the big channels, including Phillip DeFranco would actually get very little support..

      Advertising is the way to go. If i have to watch a 2 minute ad for my favourite youtubers to support them i will. But I cant directly support them

    • Anna L. says:

      This is why twitch is growing amd plenty of youtubers have jumped ship to main as streamers. Small supporters can send a few dollars when they can afford it and larger supporters can even buy the small ones subscriptions. Or they can just watch ads either during content or at will.

      Also streams have a lower production cost than editing a video and various parts. It doesn’t mean that well done edited masterpieces like Shane’s videos aren’t welcome but uder current conditions theyre just not a stable venture. I really hope that more options start cropping up to balance out this industry

    • skylx08 says:

      The content creators I’m subbed to have tbe talent, personalities, and creativity I’m very drawn to and appreciate. Unfortunately they’re the ones with high strikes, video takedowns and reposts and are primarily supported via paytreon. Some creators formulas are not working but they have the fans. So guess some of us are suporters of the endangered fringes and when those creators tire of the struggle they’ll go away and so will we. So I don’t legitimate here just waiting for the ax to fall on a fave channel.

    • Patricia Garcia says:

      Bull I’m not paying a YouTuber for any content. I unsubscribed to many YouTubers because almost every video is sponsored. Especially if the product they are using on there face is the one sponsoring them. No I don’t trust there opinion on a company that’s paying they. They may be honest but I won’t waste my time trying to decide if they are truthful. It has gotten so bad with the sponsorship videos and the ads that I can’t click out of them. That is pure bullshit. It has gotten so bad that right now I’m only subscribed to 4 YouTubers and if they have to be replaced with YouTubers who don’t have alot of subscriber then that what I have done. Do t waste my time blabbering about some product I don’t want. That is why I don’t watch television. And let’s give an example of a sponsor like audible. How many damn YouTubers did they pay that every YouTuber is talking about how great it is. No my life is too short to waste it on shit sponsored videos.

  4. Sabrina H says:

    The corporate “takeover” is exactly why the issue of Felix v T-Series is a thing. YouTube has slowly but surely become geared toward bringing in the mainstream in order to get more money from advertisers, in exchange though it’s killing the creators who make this website as loved as it is by viewers and the very people advertisers are trying to sell to. But rather than work together it feels more and more like our favorite creators are being silenced, pushed away, and in the worst case situations completely destroyed! Sadly it doesn’t feel like this is going to get “fixed”, but then again more and more creators are starting to push back, more people are trying to go independent or work together (Mythical buying Smosh for example). I don’t know what’s going to happen on this space in the coming year, given how bad it’s been at least since 2016, but I’d say it’s bound to get worse before it gets better though and then maybe after this shit hits rock bottom it can build itself back up. That or something else finally comes along and knocks YT’s crown off.

    As for how I support creators, merch, merch, merch. Which is hard to do when some of my favorite creators have garbage merch, like I love so many YTers but man it’s gotten bad with lack of creative design. Or lack of variety in the type of merch. Shirts and hoodies are cool and all, but there’s no pain in branching out to different types of stuff. I wish more creators realized the power in variety! But I also feel as though it’s still the easiest way to assure the creator gets as much of that money as possible in ways that other current methods don’t. Unless it is a direct pay thing like patreon, which I know takes a percentage but it’s not a massive amount. Otherwise, ads and sponsors help but aren’t reliable and it’s barely enough to support anyone.

    • dooder says:

      +Meomix Mimix That’s not really easy to do since, most independent media doesn’t have the video archive that YouTube does. Same with facebook. They have an archive of all your contacts, so it’s harder to just quit facebook unless you reach out to everyone you know to get their info.

    • tpamel says:

      Most Youtubers only sell teeshirts/tops and makeup. The latter makes more money. The former shows no real entrprenuer creativity.

    • Meomix Mimix says:

      +dooder You have a hard drive don’t you? Use that for decentralized media.

    • Look Out Under You says:

      You mean how videos by Jennamarbles, GMM, etc go to the top of trending? Huh…

    • Iso says:

      You tuber merch at this point, is stamping your logo on a shirt.

  5. Breef Podcast says:

    My opinion, Apex legends really needs duos.

  6. AdventureSportFlashlights says:

    That was a good deep dive Phil. I liked the part about acquisitions, and the bit following about ROI and growth pace.

  7. Jamie Hitt says:

    The question is, …is your goal to deliver content to your viewers, ….or deliver viewers to your advertisers? If you wish to do both, …maintaining the proper balance and proportions is they key. The actual sales conversion rate is extremely low for good reasons. Advertisers still have no clue how to match ads to the appropriate content.

    The ads that do the best for your company are those that also serve as “consumer news”. What dates are the county fair this year? What new movie is coming out? What new product is available? Even announcing a limited sales event does well. Commercials for “The Flash” seldom create new fans, ….but provide a great service in “reminding” fans that the series is still making new episodes, which local channel they are on, and exactly which days and times to view. Essentially a public service announcement.

    The question is “What are you advertising and why?” Simply stating, “Buy this product.” doesn’t do very well online. This isn’t the venue for “Drink Coke!” This is the venue for educating the public on “Who else drinks Coke.” and “A new study shows Coke goes great with popcorn.”

  8. Lacey Long says:

    This space is very much going to corporations. Eventually it’ll take over (as we’ve been seeing) with the exceptional case/viral thing in between.

    Miss youtube being a hobby and people did what made them feel good, not what the algorithms says.

  9. Robert Sharp says:

    I pay for youtube premium, i pay with the promise that it pays people i watch. I also use small subscription models to help pay extra.

  10. SPZ Aruba says:

    Congratulations!! At this time you still haven’t been demonitized for doing this topic! Well played, sir.

  11. Rut Roh Rorge says:

    The people laid off don’t have to worry, all they need to do is:
    LEARN TO CODE
    And stop running biased, lie based articles that push their agenda. Realize there is a growing consortium of critical thinking consumers who will take the time to read the supporting documents, and filings. Who will watch the whole source videos and hearings and for them it is incredibly easy to see who is blatantly lying, telling half-truths and pushing the classic lying by omission. Once you are pegged as a propagandist your future work has an inherent skepticism attached to it and coming back from that classification could be impossible.

  12. Yemi Abayomi says:

    I know this wasn’t the point of the video but thank you. I’ve been trying to get hired at media companies for a while and this just makes me feel better knowing that it’s not ALL my fault for not having a job yet.

    So sincerely thank you!

    • BeteFalaPortugues says:

      Yemi Abayomi I work in advertising —not sure how you’re defining “media companies” but many traditional ad agencies are going through an apocalypse of sorts while media buying companies are still doing OK. Might want to consider looking into digital shops if you have experience there.

  13. Dark Weeb says:

    You know you’re early when you still get an ad on Phil’s video.

  14. StL ChuckO says:

    SXEPhil, he’s not sexy.
    SXEPhil it’s S X E.

  15. SpeckOfDignity says:

    Talking about Google’s market control, there are entire companies (my dad worked at one) that just act as middlemen between advertisers and Google ads.

  16. Nerd City says:

    AWESOME EPISODE 👍🏼

  17. Elkjaer Delemos says:

    All media should focus ON THE TRUTH not an AGENDA/ BIAS, If they can’t do that they deserve to fail! #TimPool Is blowing up because of his fair and real Journalism

  18. Durkio B says:

    Corporations are scared of platforms like Phil de Franco and Shane Dawson.

  19. Chris Loeffler says:

    I come back here purposefully EVERY day.

    Community.
    Trust.

    • Michael Cruz says:

      That’s what it’s all about. and it takes time, care, and purpose to do that. You can’t just start putting out content and manufacture that over 6 months. No matter how good your content is!

  20. one penny says:

    Sounds like those laid off should learn how to code.

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