The most commonly cited rationale for publisher staffing cuts has been marketers’ hesitance to spend on advertising amid persistent economic uncertainty. But publishers’ latest pivot to video and increased competition among digital channels is also likely to blame.
Video games can support intrinsic or native in-game ads, as well as ads that are delivered alongside gameplay but exist outside the game itself, like pause-menu display ads and rewarded video. Marketers can also sponsor and advertise on channels related to gaming, such as at esports events and across online streaming platforms, particularly Twitch and YouTube. And we can’t forget about the metaverse.
The Vox Media/Group Nine deal is only the most recent example of the consolidation trend in digital media. Publishers have been turning to M&A as a method to grow their audiences and increase their ad revenue, in addition to boosting their valuation for further deals down the road.
