The news: The New York Times Company saw digital ad revenues decline 2.4% in Q2. That might be a marginal decline for the legacy news giant, but it’s a sign of troubled times to come for the ad-reliant digital media business model.
By the numbers: Overall, the Times enjoyed a relatively comfortable Q2.
But hidden in the news of the Times’ solid quarter is the implication that other media outlets with less reach and a bigger reliance on digital ads will be hit harder than the iconic newspaper as advertising spending starts to slow down.
Already hurting: Media layoffs spiked during the last three recessions, and although there’s debate about whether the US economy is currently in or headed for one, jobs have already gone to the chopping block.
Is digital media ready for an ad downturn? Industry leaders say they feel prepared due to lower operating costs, but the industry is still plagued with longstanding issues.
The big takeaway: The ad spending slowdown is starting to have a trickle-down effect on reliant industries.
Go further: Listen to our interview with New York Times CMO David Rubin.