Advertising: ‘What’s Driving the Slowdown?’, MoffettNathanson Asks

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There have been a series of conflicting data points around the health of the U.S. advertising market coming out of the second quarter 2022 earnings season, notes MoffettNathanson Senior Analyst Michael Nathanson.


On one hand, he says, digital ad growth across the major online platforms is decelerating and is set to further fall in the third quarter. On the other hand, traditional TV advertising “has been relatively resilient to date.”

With respect to digital ad growth slowdowns, “a weakening macroeconomic environment” is a top talking point. But, are other factors at play, “especially given such a strong and seemingly unsustainable surge of spending in 2021, which has created an incredibly tough comp in 2022?”

MoffettNathanson has three potential reasons beyond macro for digital advertising’s weakness this year.

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