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1
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· Posted on
July 1, 2024

Nine is slicing 200 jobs across its business as advertisers take a commercial break

Nine’s CEO warned late last week that it will cut up to 200 jobs, which is about 4% of its entire workforce

What's the key learning?

  • Building brand awareness via TV and radio had become quite pre-historic with the age of social media and advancement of digital platforms.
  • About every human being on this planet owns a smartphone which can access almost every information they need, thus TV and radio are deemed almost obsolete.
  • Advertisers shift from traditional forms of media for quicker and broader reach, but media outlets who benefit from ads revenue hurt badly from these losses as soon as ads are pulled out.

👉 Background: Nine Entertainment is the owner of Channel Nine TV network and has a whole lot of other media assets in its portfolio including The Age, Sydney Morning Herald, the Australian Financial Review, Stan, and majority share in Domain.

👉 What happened: Nine’s CEO warned late last week that it will cut up to 200 jobs, which is about 4% of the workforce across its entire company.

👉 What else: He blamed a weak advertising market and the end of the commercial deal with Meta that's worth over $15 million over the past 3 years. So with the soft ad market impacting its businesses, Nine is looking for $30 million in savings.

What's the key learning?

💡In the ad world, the cream always rises to the top. And right now, TV and newspapers are not getting a lot of love.

💡On TV and radio, it is extremely tough to measure the impact of these ads. That's why advertisers are shifting towards digital platforms - where you can track direct results.

💡Nine aren’t the only ones to lose out because of this. Seven West Media announced it was cutting 150 staff members last week, while News Corp cut 80 jobs in June with more to come.

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