How the Shift Away from Traditional Media Is Undermining Long-Term Business Success
The advertising industry is undergoing a seismic shift, one that some experts including me argue could have dire consequences for both the industry and the broader economy. As brands increasingly reallocate their marketing budgets away from traditional media—such as broadcast and cable TV networks, local live news, and branded high-quality content across all media—toward programmatically bought digital media, social media platforms, and retail media networks, they may be “killing the goose that laid the golden eggs.” This metaphor captures the short-sighted nature of chasing immediate gains at the expense of long-term sustainability and value creation.
The Current Landscape: A Shift Toward Digital and Programmatic
Advertising dollars are increasingly flowing toward data-driven digital platforms, walled gardens like Meta (Facebook, Instagram), Google, and TikTok, and emerging retail media networks such as those operated by Amazon, Walmart, and other major retailers. According to eMarketer, U.S. retail media ad spending is projected to reach almost $60 billion in 2024. Meanwhile, linear television, which once dominated media spending, is experiencing a continuing decline in ad revenue.
This shift is driven by several factors, including the allure of “so-called” precision targeting and the promise of measurable outcomes that digital and programmatic media offer. Marketers are drawn to the promise of reaching the right audience at the right time with the right message, all while optimizing for cost efficiency. However, this focus on data and “cheap reach” overlooks the value of brand building and the role of high-quality content in creating lasting consumer relationships.
The Cost of Chasing Cheap Reach
The growing dependence on programmatic buying and data-driven media is a double-edged sword. While it offers the promise of efficiency, it also carries significant risks. Programmatic media is notorious for issues related to ad fraud, brand safety, and lack of transparency. According to a report by the Association of National Advertisers (ANA), ad fraud cost advertisers as much as $100 billion in 2023 .
The relentless pursuit of cheap reach through programmatic and open-net spending often results in ads being placed in low-quality environments, which can dilute brand equity. As Bob Hoffman, author of BadMen: How Advertising Went From A Minor Annoyance To A Major Menace, argues, “The obsession with efficiency has led us to place ads in some of the least trustworthy, least engaging, and most fraudulent environments imaginable.”
Retail Media: The New Kid on the Block
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The rapid escalation of retail media spending is a case in point. Retail media networks, while traditionally offering proximity to the point of sale and access to valuable shopper data, remain largely unproven as a performance-based vehicle for media investments beyond traditional below-the-line sales promotion. These networks have expanded their business models by selling data to third parties and integrating shopper data into programmatic packages that have little if any measurable value. According to a study by McKinsey, while 70% of marketers plan to increase their retail media spending, only 23% believe that these investments currently drive significant business outcomes.
This over-reliance on untested and unproven media channels at the expense of established ones could be a costly mistake. As marketers continue to chase the latest trends, they risk neglecting the foundational elements of brand building and long-term growth.
The Decline of Broadcast and Cable Television: A Loss of Value
The shift away from traditional media is having a profound impact on the broadcast and cable television industry. Networks that once commanded premium ad rates due to their ability to deliver large, engaged audiences are now struggling to compete with digital platforms for ad dollars. According to the Video Advertising Bureau (VAB), ad spending on linear TV in the U.S. fell by 15% in 2023, with continuing declines in 2024 and expected in the coming years.
While networks have launched streaming platforms, they along with Netflix, Amazon, Apple and others have expanded the production of long-form video programming, the decline in overall linear video ad revenue will lead to an inevitable reduction in the production of high-quality entertainment branded content that have value for building marketing equity, which has historically been funded by broadcast and cable networks. As these networks lose financial resources, with sports the notable exception, the quality and diversity of content available to viewers are likely to diminish. This, in turn, will lead to a decline in viewership and further erosion of the value of traditional media. The recent decision by the NBA to shift rights from Warner Bros. Discovery’s TNT to Amazon reflects this reality.
Expert Opinions: The Case for Investing in Quality Content
Many experts argue that the current trend of shifting budgets away from traditional media is short-sighted and ultimately detrimental to long-term business success.
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