Here are signs of advertising optimism
The digital advertising sector continues to show tremendous resilience despite the ongoing ramifications of the COVID-19 pandemic, advertising organization IAB said in its Internet Advertising Revenue Report.
Key findings IAB said:
Q4 2020 provides optimism for the future, reports record high growth
Video and social media experienced the largest increases year-over-year, taking share from linear TV
Programmatic revenue grew by nearly 25% in 2020
Internet advertising grew 29% in Q4, according to the report. “Q4 was the best quarter we have ever seen in 20 years,” said David Cohen, president of the IAB.
Overall online advertising in 2020 grew 12% YoY to USD 140 billion.
“The second half of 2020 made up for the rather abrupt drop in advertising revenue experienced toward the end of the second quarter,” said Susan Hogan, IAB Senior Vice President. “We not only had a rebound, we also had double-digit growth. The Q4 holiday season sales, typical use-it-or-lose-it year-end spending of media budgets, and revenue from political advertising all helped to offset the early Covid-19-induced decline.”
“The surge in consumer adoption of Connected TV, ecommerce shopping, and at-home deliveries created the pendulum swing needed for digital media to continue growing. These are just some of the factors that contributed to ad dollars moving from traditional media to digital media.”
IAB report says that although Q2, year-over-year growth declined by 5.2%, revenues in Q3 and Q4 more than balanced the scales, returning positive year-over-year growth of 11.7% and 28.7%, respectively.
Q4 2020 had the highest revenue on record for digital advertising in more than 20 years. The increase in Q4 is attributed to a number of factors including both advertising dollars flooding into the market for the election and the need to spend 2020 budgets that were paused during the first half of the year because of the pandemic.
- Social media advertising revenues reached USD 5 billion in 2020.
- Digital video experienced the greatest increase (20.6% year-over-year) in advertising revenue growth, generating USD 2 billion in 2020.
- Programmatic advertising revenues increased by USD 2 billion in 2020 (+24.9%). ”However, the deprecation of 3rd party cookies and identifiers leave many to wonder if this level of growth is sustainable”, IAB said.
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