In a captivating interview with Jack Myers at MediaVillage Legends & Leadership, Brian Wieser, the renowned media and advertising financial analyst, shared his valuable insights and predictions for the media and advertising industry. Wieser, now leading the Madison and Wall Consultancy and Advisory and author of the Madison and Wall Substack column, provided a macro view of the industry, historical context, and strategies for future success.
Wieser started with optimism for the advertising economy, emphasizing that despite challenges, advertising is on a normal growth trajectory, not hyper-fast, nor negative. He touched on the evolution of advertising in the 2010s, emphasizing the rise of self-service advertising, the influence of social media, and the reset brought by e-commerce.
One of the highlights of the interview was Wieser's revelation about agencies' growth in the 2010s. Contrary to common belief, he demonstrated that agencies grew consistently in the mid-single digits, emphasizing the contribution of share buy-backs and the importance of reinvestment for sustained growth. Wieser pointed to the emergence of large independent agencies that captured significant market share from the major agency holding companies and may now themselves be facing a slowdown in their growth.
Regarding the slowdown in advertising spend by technology companies, Wieser highlighted its subjective nature. He pointed out that advertising and effectiveness are not necessarily connected, that marketing budgets are not universally defined, and are part of a broader business strategy. He emphasized the need to make data-driven decisions in advertising spend.
The interview also delved into the future of television and streaming. Wieser expressed concerns about television's position in the digital era, citing creative destruction as a significant challenge. He offered several scenarios for industry consolidation, including the potential for mid-tier social networks to acquire television businesses. He questioned the potential for Netflix's ad-supported service to drive incremental reach and emphasized the importance of unique content quality.
Wieser briefly discussed other media categories, including radio and outdoor advertising, highlighting their strengths and potential for growth. He also touched on industry consolidation, anticipating further consolidation in the television sector.
For those seeking valuable insights into the media and advertising industry, Jack Myers' interview with Wieser is a must-watch. Wieser's expertise, research, and historical perspective provide a comprehensive understanding of the industry's past, present, and future. Visit www.LegendsLeaders.org to view the full interview and gain essential knowledge to guide strategic decisions.