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  • IAB Internet Advertising Revenue Report for 2020 Shows 12.2% Increase In Digital Advertising, Despite COVID-19 Economic Impacts

IAB Internet Advertising Revenue Report for 2020 Shows 12.2% Increase In Digital Advertising, Despite COVID-19 Economic Impacts

Native & Programmatic AdvertisingAnalytics
By PRNewswire On Apr 7, 2021
IAB Internet Advertising Revenue Report for 2020 Shows 12.2% Increase In Digital Advertising, Despite COVID-19 Economic Impacts
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As the world grapples with the ongoing ramifications of the COVID-19 pandemic, the digital advertising sector continues to show tremendous resilience.  In fact, according to the newly released “IAB Internet Advertising Revenue Report,” conducted by PwC, digital advertising revenues increased by 12.2% in 2020 compared to 2019.

Marketing Technology News: Samba TV and 605 Partner To Create An Unparalleled Omniscreen Addressable TV Footprint

“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, Senior Vice President, Research and Analytics, IAB. “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.”

Hogan continued, “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.”

Q4 2020 Provides Optimism for the Future, Reports Record High Growth

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. In fact, Q4 2020 had the highest revenue on record for digital advertising in more than 20 years. The increase in Q4 can be 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.

Video and Social Media Experienced the Largest Increases Year-Over-Year, Taking Share from Linear TV

Seemingly pandemic proof, social media advertising revenues reached $41.5 billion in 2020. That 16.3% year-over-year growth attributes social media with nearly 30% of all internet advertising revenue (29.6%).

Digital video experienced the greatest increase (20.6% year-over-year) in advertising revenue growth, generating $26.2 billion in 2020. Digital video increased its share of total internet ad revenue by 1.3% year-over-year, reaching 18.7%.

Marketing Technology News: Pacvue Empowers Campaign Management And Optimization For Amazon DSP

Programmatic Revenue Grew by Nearly 25% in 2020…But Will it Continue as the Addressable Landscape Transforms?

Programmatic advertising revenues increased by $14.2 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.

“We expected programmatic growth in double digits. Advertisers are using automated buying for more formats now, including CTV. The fact that Q2 2020 saw a shift from performance to mission-based messaging due to COVID-19 accelerated the speed of programmatic adoption for agencies and brands,” said Hogan. “However, there is some concern that programmatic delivery could be negatively impacted once 3rd party tracking is blocked.”

Marketing Technology News: Yotta Extends Infrastructure And Cloud-Hosted Workload Protection Via Partnership With Virsec

Despite COVID-19 Economic ImpactsDigital advertisingIABIAB Internet Advertising Revenue ReportInternet Advertising Revenue ReportmartechNewsPWC
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PRNewswire

PR Newswire, a Cision company, is the premier global provider of multimedia platforms and distribution that marketers, corporate communicators, sustainability officers, public affairs and investor relations officers leverage to engage key audiences. Having pioneered the commercial news distribution industry over 60 years ago, PR Newswire today provides end-to- end solutions to produce, optimize and target content -- and then distribute and measure results. Combining the world's largest multi-channel, multi-cultural content distribution and optimization network with comprehensive workflow tools and platforms, PR Newswire powers the stories of organizations around the world. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and Asia-Pacific regions.

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  • Home
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    • Guest Authors
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  • MarTech RADAR
    • A
      • Account Based Marketing
      • Advertising Trends
      • Affiliate Marketing
      • AI/ML
      • Analytics
      • Apps for Business
      • Audience Data
      • Audio advertising
      • Augmented Reality
    • B
      • B2B Data
      • Behavioral Marketing
      • Brand Safety
    • C
      • Content Management
      • Content Marketing
      • Content Syndication
      • Customer Acquisition
      • Customer Data Platforms
      • Customer Experience Management
      • Customer Identity Management
    • D
      • DaaS
      • Data Hygiene
      • Data Management Platforms
      • Data Visualization
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    • E
      • E-Commerce and Mobile Commerce
      • Email Marketing
      • Entertainment
      • Events Promotion
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      • Predictive Marketing
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      • Programmatic Email
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      • Recommended
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