Campaign US: Will the Ad Industry Benefit from Big Tech’s Layoffs?
Extracted from Campaign US, Authors Alison Weissbrot and Jessica Heygate
Question of the week: As tech companies lay off staff and freeze hiring, Campaign US asked industry leaders whether the ad industry stands to benefit.
In the past few weeks, it seems like the party for Big Tech has ended. Will the ad industry benefit from Big Tech’s layoffs?
Amid fears of a looming recession, a slew of Silicon Valley giants have announced plans to freeze hiring or lay off staff in the coming months as revenues slow and stock prices tumble. Prospects continued to look even worse last week when Twitter, Meta, Google, Snap and Netflix, among others, reported disappointing Q2 results as advertisers cut back on spend. For the advertising industry, which has long been losing talent to Big Tech, layoffs and hiring freezes could present an opportunity to lure back talent amid an ongoing talent crunch plaguing the marketplace. But the industry will have to compete with the sizeable salaries and endless perks that Big Tech offers to become an attractive alternative.
In a changing talent marketplace, Campaign US asked industry leaders: Given the war for talent, do the recent hiring freezes and layoffs at Big Tech companies present an opportunity for the ad industry? Here are their responses.
Brendan Condon, Global Chief Revenue Officer, Captify
The independent ad industry has been challenged with recruiting and retaining talent in part because of over compensation from Big Tech companies. This contributed to a severe brain drain at these companies, pulling all the expertise out of employees and then making them expendable. Now we’re seeing that such high operating expenses weren’t sustainable.
After years of rapid expansion and accelerated hiring, freezes, layoffs and even offers being rescinded are changing the way talent perceives the hyper-competitive U.S. tech sector. It presents an opportunity for the ad industry to hire and keep top talent because the playing field is levelled. There is a growing awareness of the value people get — across culture, innovation and career growth.
Proactive companies in the ad industry will pinpoint the best talent. People will experience the difference between feeling like a cog in the machine vs. valued individuals.
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