What Does the Current Tumultuous State of the Tech Space Mean for CPG Advertising?
If you’ve been plugged into the digital world at all over the past month, chances are you’ve seen the rollercoaster that is the current state of social media. As of early November, Facebook’s parent company, Meta, laid off roughly 13% of its workforce, citing that it was a result of overhiring during the pandemic. Twitter, however, laid off 3,700 employees, with roughly 1000 more resigning in the following weeks: within one month, Twitter’s workforce was reduced by a staggering 64%.
If you’ve been plugged into the digital world at all over the past month, chances are you’ve seen the rollercoaster that is the current state of social media. As of early November, Facebook’s parent company, Meta, laid off roughly 13% of its workforce, citing that it was a result of overhiring during the pandemic. Twitter, however, laid off 3,700 employees, with roughly 1000 more resigning in the following weeks: within one month, Twitter’s workforce was reduced by a staggering 64%.
These mass layoffs are garnering attention from investors and users alike, made evident by some of the world’s largest agencies advising clients to suspend media spend on these platforms. Content moderation and safety are growing concerns, especially with the recent resignation of Twitter’s security, privacy, and compliance leaders. IPG, the advertising giant representing clients like CVS and Unilever, recommended brands pause ad spend on Twitter until clarity is given regarding its trust and safety policies. GroupM, the world’s largest media buying agency, advised clients that Twitter is now a “high risk” media buy.
So what does this mean for CPGs?
If you work in the space, you may have been impacted personally by these changes. Perhaps you’re even boycotting certain platforms given the recent instability. If so, here’s what we recommend to thrive in a tumultuous tech space:
1. The market is diverse! Even though some major platforms are now risky investments, know that there are plenty of other options to promote your product. Don’t stop your advertising: adjust it.
2. Re-evaluate social network spend. Maybe pulling out of social media completely isn’t realistic, or even a possibility, for your brand. Take some time to gauge the positives and negatives of each social platform in order to pinpoint the most effective and safest outlets for your advertisements.
3. Avoid uncertainty altogether! We may be biased, but aligning with a partner like AdAdapted removes any concerns for brand safety by avoiding divisive environments and reaching relevant (and appropriate) audiences. Removing uncertain moments entirely while achieving worthy and actionable results is what we do.
In conclusion, advertisers and marketers need to constantly be in tune with the landscape they reside in, especially when risk and safety become a concern. The past month has shown us that drastic and unpredictable changes are a reality, requiring brands to adapt on the fly in order to stay ahead of the curve. Regularly re-evaluate your existing outlets and stay updated on alternative solutions: knowing and preparing your options before a crisis will help keep your strategy secure. Finally, by partnering with a brand-safe platform to achieve actionable results (*ahem*), a tumultuous tech space will never need to slow you down.
Interested in learning more about how AdAdapted is helping secure marketing strategies? Contact us today!
