Google Ads services, Facebook, Amazon, and other mainstream social platforms are likely to remain stalwarts for digital marketing spend, but where else should dollars go? These decisions are risky:
As new platforms arise, jumping in early can create goodwill with the firm, as well as get some cheap ad space with early adopters. However, that comes with risks. Quibi was desperate to become stylish, spending millions in ad dollars to promote their platform. Unfortunately, the firm has just been declared dead. Is this a big deal? Yes! Lots of companies were advertising on Quibi... you could even argue too many. Maybe they set themselves up for failure with too many ads from the get-go, or maybe they just never resonated with an audience enough to capture real market share and develop a sustainable business model.
Unfortunately, this hurts A LOT of advertisers! P&G, Pepsi, AB-InBev to name a few, did they get an appropriate ROI on their investments? My gut says... probably not.
These large, established brands probably are not seeking awareness, they want purchase, or at the bare minimum, clicks. What was the downfall of Quibi? Low viewership. If people are not watching the content, they sure are not watching the ads!
Granted, let us assume that advertisers were not creating expensive unique content for Quibi, but levering their existing ads that are used in other digital platforms, as well. Unfortunately, Quibi was apparently seeking high fees from advertisers. So without sufficient viewership, those ad dollars were likely to flee to more efficient frontiers. All in all, Quibi makes for an interesting case study on attempting to break into crowded fields with business models reliant on people to pay a subscription fee to watch ads. Hulu, please take note.
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