It sucks,” said a media executive at a midsize digital publication who spoke to Digiday on the condition of anonymity. “Cash is king and advertisers are taking a really long time to pay us. But with fewer dollars coming in when they’re expected, operational costs become harder to cover and cost cutting measures like layoffs are considered. Publishers, at that end of that supply chain, are bearing the brunt of the burden, having been given little say in the matter though are ultimately still relying on any and all ad dollars that they can get in the door. It was possible in the past because money was easy to access and the cost of borrowing was lower,” said Le Borgne. So you cannot collect money at 90 days or 120 days and then pay the supplier at 45. “Brands and agencies are paying slower than that the companies further down the supply chain have to pay the publisher. The media industry has been built on “easy access to cash,” said Sylvain Le Borgne, chief partnerships officer and head of data and analytics at MediaMath, in which the supply chain of advertiser to consumer involves middlemen floating payments on an endless cycle as new deals are closed.īut now that the macroeconomic climate has advertisers tightening their purse strings and the collapse of financial institutions like Silicon Valley Bank has removed the amount of liquid funds that’s available, that flow of cash has turned into a trickle of nickels and dimes.
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