Digital advertising market ‘relatively stable’ given wider economic context
We look at IAB UK’s Digital Adspend data to see which markets have been hit the hardest during the COVID-19 pandemic.
The IAB UK’s Digital Adspend data for H1 2020 shows that despite total digital advertising spend dipping by 5% in the first six months of the year, the digital advertising market is relatively stable given the wider economic context in relation to COVID-19, with UK GDP down almost 21% in Q2 2020.
Growth in the display and video market
Despite the dip, some areas did see growth. Display advertising grew 0.3% to £2.84 billion; a total year-on-year increase of £10m. Similarly, video ad spend increased by 5.7% to £1.35bn, no doubt directly correlated with the growth of digital streaming during lockdown.
Classified ads saw the biggest drop, decreasing by -32.6% to £485m.
Mobile fares better than non-mobile spend
Looking at the difference in spend between mobile and non-mobile, mobile remained pretty stable with a slight decrease of -1% year on year compared to non-mobile which saw a decrease of -9%.
Digital still holds the lion share of ad spend
Looking at ad spend as a whole, digital still holds a massive 68% of the share, with TV in second place with just 17%, followed by press at 5% and direct mail at 4%.
Digital advertising continues to drive results, build brands and offer unique creative solutions
Reflecting on this year’s H1 Digital Adspend results, IAB UK’s CEO Jon Mew said: “It’s not surprising that this year has seen the total digital advertising market contract as our industry deals with the upheaval and uncertainty of the pandemic. The data released today is hugely useful in understanding the health of the digital ad market as a whole and how different areas are faring – yet we know that this continues to be a hugely challenging time for many of our members and that the relatively small decline in digital ad spend at an industry-wide level won’t reflect the individual situations of all.
“Yet there is cause for hope. Following 22 years of consecutive growth, the digital ad market went into this crisis in a position of strength and it’s great to see some areas of growth, despite the circumstances. Most importantly, digital advertising continues to drive results, build brands and offer unique creative solutions for advertisers looking to reach huge and engaged audiences.”
