The Digiday Podcast: Editors on Trump Administration Picks and the Impact on the Ad Industry

Release Date: November 19, 2024

Introduction

In this episode of The Digiday Podcast, hosts Kameka McCoy and Tim Pedersen engage in a comprehensive discussion about the implications of the Trump administration's appointments on the advertising industry. Joined by Digiday's senior marketing editor Christina Monlos and senior media reporter Sara Guaglioni, the conversation delves into post-election dynamics, streaming service challenges, platform competition, and the evolving landscape for marketers and media companies.

Key Topics Discussed

1. Post-Election Impact on Media and Marketing

• Traffic Trends and Subscriber Growth:
  Sara Guaglioni highlights the differences between the 2020 and 2024 elections, noting a [16:29] "bit less of a bump and definitely less of a sustained traffic surge" compared to 2020. Despite an earlier election call, some publishers like NBC News experienced increased traffic, while others saw declines in traditional TV viewership, exemplified by Rachel Maddow's show experiencing "a million fewer viewers than she averaged in October" [21:27].

• Subscription and Membership Increases:
  Post-election, several news outlets reported significant increases in subscriptions and memberships. Sara mentions that The Guardian hit their $2 million fundraising goal within three weeks by leveraging the election outcome [19:20], and Vox saw their biggest membership day since launch [19:41].

• Challenges in Sustaining Audience Engagement:
  With declining traditional TV viewership, especially among younger audiences, Sara emphasizes the difficulty for traditional news outlets to retain reader interest beyond the election news cycle [22:55].

2. Streaming Services and Live Events

• Tyson vs. Jake Paul Fight Challenges:
  The hosts discuss Netflix's handling of the Mike Tyson vs. Jake Paul fight, citing technical issues like buffering and sound problems [02:24]. Tim draws parallels to streaming difficulties faced by other major events, emphasizing the critical need for robust infrastructure as live sports increasingly migrate to streaming platforms [03:56].

• Financial Implications for Streaming Platforms:
  Tim notes that streaming services like Disney and Netflix are becoming increasingly profitable and are expected to surpass traditional cable in audience reach. However, the shift from dual revenue streams (subscriptions and ads) in traditional TV to primarily subscription-based models in streaming poses challenges for monetization [05:32].

• Expansion into Video by Traditional Audio Platforms:
  Kameka points out Spotify's venture into video podcasts, aiming to diversify revenue streams by offering ad-free subscription rev shares [07:14]. This move places Spotify in direct competition with platforms like YouTube, which has become a dominant podcasting platform [08:41].

3. Platform Competition and Social Media Dynamics

• Emerging Social Platforms:
  The conversation shifts to the competitive landscape among social platforms, discussing the rise of Threads surpassing Bluesky in signups and the impending introduction of ads on Threads [10:00]. Kameka likens the fragmentation of social media platforms to a "Rolodex," highlighting the complexity brands face in navigating multiple channels [14:27].

• Advertiser Shifts and Platform Reliability:
  Concerns are raised about streaming platforms' ability to handle high traffic during major events, referencing past issues with HBO GO and emphasizing the necessity for seamless user experiences to attract significant ad dollars [03:56].

• Influence of Trump on Platform Policies:
  Tim discusses the potential influence of Trump's administration on platform policies, particularly regarding advertising regulations. The appointment of Robert F. Kennedy Jr. as Health and Human Services Secretary could lead to significant changes, such as banning pharmaceutical advertising on TV [38:17].

4. Brand Strategies in a Polarized Environment

• Apolitical Stance vs. Purpose-Driven Branding:
  Christina Monlos and Sara Guaglioni explore how brands are navigating political landscapes. While some brands adopt a humorous or neutral stance to avoid alienation, others with strong ethical foundations continue to take definitive stands on social issues [24:40].

• Impact of Political Appointments on Advertising Decisions:
  Brands are re-evaluating their advertising strategies in light of new administration policies. For instance, potential restrictions on pharmaceutical ads could lead to a reallocation of advertising budgets [38:53].

• Consumer Behavior and Brand Alignment:
  The hosts discuss the growing trend of consumers preferring brands that align with their values. However, Christina notes a counter-trend where consumers prefer to stay uninformed about brands' political stances to avoid alienation [34:02].

Notable Quotes

• Kameka McCoy:
  “But how exciting is it, right? We have a Rolodex, youth.” [14:53]

• Tim Pedersen:
  “It's going to be interesting because like, again, that's a lot of money that gets taken off the table.” [40:34]

• Christina Monlos:
  “I don't think we're going to see that again. That's not happening again.” [25:08]

• Sara Guaglioni:
  “I think what we've heard is like, okay, we're trying to figure out who in the new administration, you know, has these points of view and, like, what does that mean for my brand and how should I be thinking about this?” [34:57]

Conclusion

The episode provides a nuanced exploration of the intersection between political developments and the advertising industry. As the Trump administration's appointments take shape, brands and media companies are grappling with strategic decisions to navigate a fragmented and politically charged environment. The discussions underscore the importance of adaptability, understanding consumer sentiment, and the continual evolution of media consumption habits in shaping future advertising and marketing strategies.

For more insights and detailed analyses, tune into The Digiday Podcast and stay updated with the latest trends in digital media and marketing.