July 25th 2024.
A recent article published in Business Insider delves into the struggles of Group Black, a company that once promised $500 million in advertising to Black-owned media. The company, formed in 2021 by Travis Montaque, Bonin Bough, and Richelieu Dennis, had a grand vision of providing Black-owned media with a much-needed boost within its first 18 months. However, three years later, the promises have fallen short, top executives have left, and the future looks less than promising.
According to one executive who has since left the company, there was a sense of optimism and passion surrounding the business. They truly believed that they could make a significant impact and change the face of media. Unfortunately, things did not go as planned.
One of the key moments that raised concerns was the Cannes Lions event in June. Group Black had planned to throw an exclusive nightclub event to connect with marketers and secure advertising deals. However, just before the event, Montaque announced that he would be going on leave. This was seen as a red flag by many insiders and a sign that things were not going well within the company.
As one publisher stated, Group Black had promised to secure numerous big deals, but none of them materialized. The company was launched amidst promises from big advertisers like Walmart and Coca-Cola to invest more in Black-owned media. However, Group Black's efforts were not enough to make a significant impact, and the promises were not fulfilled.
During its early days, Group Black received a $75 million target media investment from the largest buying agency, GroupM. Other top donors included Proctor & Gamble, though the specific amounts invested remain confidential. Despite this, GroupM and Proctor & Gamble confirmed that they were still partners with Group Black.
On the other hand, CEO of Urban Edge Network, Todd Brown, who signed with Group Black, stated that they never received the promised advertising dollars. He described the experience as receiving a bunch of invitations to events, but no actual business deals. Brown emphasized that going to Cannes is not a sustainable business model, and he is not aware of any Black-owned media companies making money with Group Black.
In an effort to expand and scale, Group Black ventured beyond Black-owned media companies and partnered with other media companies like She Media, NBCUniversal, and Zeta Global. In April, they acquired Galore Media, a lifestyle network that focuses on social media publishing. Despite this, the company faced challenges, and its CEO Bonin Bough shared a post on LinkedIn, stating that they have more momentum now than ever before and have recently announced initiatives with major networks, brands, and talent.
However, the struggles of Group Black are not unique. There has been a shift in the promised investment in Black-owned media since the aftermath of George Floyd's murder. Advertisers have reduced their media spending, and corporate America has pulled back on diversity and inclusion efforts. This has been a difficult time for Black-owned media, as the industry has taken a backseat in the wake of other priorities.
Christopher Kenna, the CEO of BA Diversity Media, a minority-owned media and tech company, shared that it has been a challenging time for Black-owned media. He stated that they were "milked dry" and then told that clients were no longer interested. This sentiment is shared by other minority-owned businesses, and it highlights the struggles that Black-owned media companies face in the current climate.
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