Digital media revenues remain high despite slowing growth rate, says OAREX
OAREX Q2 2022 Digital Media Revenue Report Reveals Slowdown, But Median Revenue of Publicly Listed Digital Media Companies Grows 19% Year Over Year
— Nick Carrabbia, Executive Vice President at OAREX
CLEVELAND, OHIO, USA, Sept. 21, 2022 /EINPresswire.com/ — OAREX, the fast and flexible financing provider for digital media companies, today announced the release of its Digital Media Revenue Report of the second quarter of 2022, which reveals second quarter revenues of publicly traded U.S. digital media companies and overall performance compared to previous quarters. The report shows that although there is an overall slowdown in digital media revenues, companies are still reaching pre-pandemic revenue levels.
The report assessed data from publicly traded companies that primarily derive revenue from digital media operations and that were underwritten by the OAREX Credit Team. To ensure the data reflects true industry performance and isn’t overtaken by industry giants, the report does not include some of the biggest AdTech companies such as Google, Meta and Twitter.
The analyzed data revealed the following information:
– With median company growth of 19% YoY, revenue growth slowed but remained strong compared to pre-covid performance
– 81% of companies surveyed saw an increase in revenue, higher than most quarters prior to 2021
– The broader digital media industry outperforms “Big AdTech” companies (such as Google, Meta, Snap and Twitter)
Additionally, the analysis indicates that the unprecedented revenue comparisons seen during the pandemic are impacting growth expectations. In the second quarter of 2020, revenues fell due to Covid. In the second quarter of 2021, revenues crushed year-on-year growth expectations as the economy was flooded with liquidity and conditions began to improve. Today, as liquidity dries up and conditions return to normal, companies are unable to maintain these parabolic expectations. Therefore, this three-year data set may not be indicative of true business growth. Instead, these swings could be attributed to the cyclical effect of the economy and companies playing “catch up” and then normalizing.
“Recent press has reported that many large advertising companies are struggling,” said Nick Carrabbia, executive vice president of OAREX, when discussing the second quarter 2022 data and report insights. “We produced the report to provide a more balanced view of the digital media industry. Yes, Meta and Twitter saw revenue decline 1% year-over-year, while Snap and Google saw marginal gains and missed revenue. However, 81% of our sample saw revenue growth, and many of them were in the double digits. »
While 2022 isn’t over yet, stepping back to look at the industry with a broader lens and not focusing on the giants can offer a more authentic insight into how companies in this sector are performing and the potential for future growth. .
This report comes on the heels of the OAREX Semi-Annual 2022 Digital Media and Ad Payments Report, which provides data and trends in the digital ad payment space. OAREX will release the next Digital Media Revenue report in early 2023.
About OAREX Capital Markets, Inc.
OAREX, the Online Advertising Revenue Exchange, operates a digital revenue exchange where digital media companies can exchange future revenue payments for capital now. Founded in 2013, OAREX has become a global leader in financing digital media companies. East West Bank’s investment in OAREX is a testament to its model and the digital media industry as a whole. Visit oarex.com for more information or visit go.oarex.com to open an account.
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