Industry News

‘We’re careful about what we propose’: Even strapped for ad revenue, publishers are wary about taking retailer ad campaigns

As parts of the U.S. economy begin to open up, there’s new hope that the key retail sector will start to get going — and start spending on advertising.

But some publishers remain wary of doing big deals with retailers, based on the possibility that many will falter. This year alone, eight different retailers have already filed for bankruptcy in 2020, including J. Crew, Neiman Marcus, Pier 1 and Modell’s Sporting Goods, and many others, including Macy’s and Gap, look rickety.

An ad sales leader at one major publisher said its team is examining the bond ratings of retailers to determine whether to take on the risk that ad campaigns will end up not getting paid. If a retailer doesn’t meet internal requirements, the sales team can’t do a deal, that source said. This publisher is avoiding upfront production costs since a company slipping into bankruptcy protection would be unlikely to make good on the money owed, and focusing on shorter-term deals that can be executed – and paid for – as soon as possible.

Read the full article from DigiDay: ‘We’re careful about what we propose’: Even strapped for ad revenue, publishers are wary about taking retailer ad campaigns