From Headlines to Ad Spaces: Murdoch’s Impact on the Advertising Landscape

On Sep 21, 2023, Rupert Murdoch announced that he will be stepping down as the CEO in November of this year and his son Lachlan Murdoch will take over the family business. This news took over every news and media outlet. Enough was written about the Murdoch empire, the rivalry between his offspring, and many more. The hit series Succession Saga happening in real life. While the writers never admitted nor denied Succession whether is based on the Murdoch family, the resemblance has been uncanny. Rupert Murdoch’s decision to step down may have been influenced by the need to avoid what happened in the series where the family business was sold off in pieces by his children after the sudden demise of Roy Logan. In the letter to the employees, Rupert Murdoch does promise to be around closely monitoring broadcasts and overseeing operations. This blog is however not a repeat of the multiple articles you might have already read on this topic. However, if you are interested in real-life family drama, this 9-episode Audible podcast “Bitter Blood” narrated by Alan Ruck ( he played the character of the eldest son in Succession) is wonderfully produced bingeworthy series highlighting the journey of the media mogul.

Rupert murdoch known as the greatest deal maker grew his Rupert Murdoch known as the greatest deal maker grew his company through constant acquisitions of big and local media channels. It started with his first acquisition of Adelaide’s News in 1950. Moved on to acquire highly influential newspapers such as The Times, and The Wall Street Journal - propelled the print media and journalism from just reporting facts to competitive, sensational, and tabloid-worthy storytelling. This narrative attracted lots of readers and advertisers seeking a broad audience. He then moved into the television industry by launching Fox Broadcasting Company and acquiring various cable networks. His networks produced shows and programs targeting specific local demographics. This made them the prime real estate for advertizers to engage with niche audiences leading into the era of ad personalization. The digital era is where Lachlan Murdoch has an opportunity to define his new mark as the elder Murdoch has struggled in this platform. In 2019 however, after selling 20th Century Fox to Disney and Sky News to Comcast, the Murdoch empire was primarily left with a bunch of newspaper business and TV channels.

Advertising business gravitates towards attention. During traditional media time, it was newspapers, radio, and TV. Then came the age of the internet with multiple platforms - Twitter, Facebook, Snapchat, TikTok, Amazon, Uber, News publishing sites, etc - all unlimited prime real-estate for advertising. According to BusinessWire, the global market for digital ads was estimated to be nearly $563.4 billion in 2021 and is expected to grow to $1.3 trillion in 2027 at a remarkable CAGR of 14.7%.?

Despite these great numbers audience also has digital fatigue. This?HBR article?published in 2022 highlights research by MarketingSherpa where marketers are looking to go back to traditional media. There are many reasons for that.

1. Marketers want to break away from the digital clutter
2. Traditional media costs have fallen?
3. The top five most trusted advertising formats are all traditional, with print advertising at 82%, television advertising at 80%, direct mail advertising at 76%, and radio advertising at 71%
4. Lack of third-party cookies
5. New methods available to measure audience engagement from traditional media

Now if we draw a correlation between Murdoch's current assets and where advertising is headed, they are still very relevant, especially for local business advertising. The mix of digital and traditional media forms is also proving to be effective. Advertising has always been about influence and reach so has been the motto of Murdoch's business.

Murdoch's impact on local advertising has been shaped by the evolving preferences and behaviors of consumers. With the rise of digital media consumption and the increasing demand for targeted and interactive advertising content, Murdoch's local media outlets have had to adapt their advertising strategies to align with changing consumer preferences. This adaptation has paved the way for innovative advertising formats and improved engagement between local businesses and their customer base.

Murdoch's local media outlets have often been instrumental in fostering community engagement and facilitating targeted advertising for local businesses. By providing a platform for hyper-local content and news, these outlets have enabled advertisers to tailor their messaging to specific local audiences, thereby strengthening community connections and enhancing the effectiveness of local advertising campaigns.

However, there has been challenges. While Murdoch's media properties have offered valuable advertising opportunities for local businesses, smaller enterprises have sometimes faced challenges in competing with larger corporations that can afford premium advertising placements. However, Murdoch's focus on community-centric content has also created opportunities for small businesses to connect with their target markets on a more personal and localized level, fostering brand loyalty and enhancing their visibility within their communities.