As we continue to examine the economic fallout from the coronavirus crisis, the media has also experienced its share of troubles. As businesses close and cut back, advertising revenue has also declined. The decline in advertising has hit every media sector including print, TV, digital, radio, and outdoor advertising.
As advertisers slash budgets, they are often canceling or reducing ad campaigns. Some of the reasons are obvious. Planes are not flying. Hotels are empty. Movie theaters are shuttered. Casinos are closed. Also, many small and medium-size businesses are closed or struggling to stay solvent.
On the other hand, consumption of media has dramatically increased as people stay home and spend a considerable amount of time watching TV, listening to the radio, and using social media platforms like Facebook. The newspaper industry which has been especially hard hit over the past few years, faces the most serious crisis.
The Wall Street Journal recently reported that 80% of newspapers in circulation are disqualified from government aid because of the way their companies are structured, and it may negatively affect their ability to survive the decline in advertising.
Local media companies are continuing to do what they’ve always done in times like these: support their customers, provide meaningful content for their audiences, and look for innovative ways to stay in business.
Reporting for WGRT – Marty Doorn