According to the newly released IAB Internet Advertising Revenue Report for 2020, digital advertising experienced a strong rebound during the second half of 2020. In fact, Q4 2020 had the highest revenue on record for digital advertising in more than 20 years.
The report commissioned by IAB and conducted by PwC renews the optimism for the future for the digital advertising sector. Intrigued? Check out our summary of the report’s key findings:
- A healthy industry that is growing: Despite the fall of digital ad revenue by 5.2% in Q2 2020, it has overall increased by 12%, to $139.8 billion, in 2020.
- Digital video – a clear breakout star of 2020 taking share from linear TV. Digital video saw the highest growth in advertising revenue at 21%, expanding its share of total ad revenue to almost 19%. The surge in consumer adoption of connected TV, ecommerce shopping, and at-home deliveries created the pendulum swing needed for digital video to continue growing.
- Mobile is cannibalizing the percentage of ad spend: While digital advertising on desktop surpassed $40 billion for the first time last year, mobile platforms showed stronger performance as people spent more time consuming media through their mobile phones.
- Result-based marketing: Advertisers are looking for brand safety, performance choices, result-based marketing and solutions that allow increasingly personalized ads targeted to very specific demographics enabling tangible business outcomes. Consumers continue to spend more time with their mobile devices across a number of apps and with a number of different brands.
- The looming threat of privacy changes: Programmatic ad revenue also increased by 24.9% to reach $14.2 billion in 2020, but the report questioned whether privacy changes, such as Google’s deprecating of third-party cookies and Apple’s announced iOS 14 update, will mean that growth is unsustainable going forward.
As evident from the report, the digital advertising industry witnessed not just a rebound but a double-digit growth of advertising revenue in the second half of 2020 and managed to offset the early Covid-19-induced decline. Keep following our Marketing Bites for further valuable industry insights.