Almost 70 per cent of members of the Internet Advertising Bureau (IAB) have seen a significant decrease in revenue since the Covid-19 restrictions began, with 29 per cent reporting a moderate drop and just two per cent moderate growth. The survey’s topline results show 82 per cent of IAB members have cut back on salaries and working hours.
IAB Ireland surveyed its members from across the digital ad industry in respect of the impact of the crisis on the market. Participants included ad tech companies, agencies, digital service providers, networks, platforms and publishers/media owners. Almost three in four members said they expect the market to rebound by either Q3 or Q4 this year.
It is expected that the pandemic will result in a fall of up to 20 per cent in spend this year, with one in three reactivating campaigns once lockdown restrictions are lifted with a similar number devising new campaigns. Suzanne McElligott, CEO, IAB Ireland, said as people work from home and observe social distancing, usage across digital platforms is up.
“Experts are reminding brands of the value of continuing advertising during challenging times such as this. Brands that maintained advertising during previous recessions experienced a positive impact on their sales and market share as a consequence (Binet and Field). We’re working closely with our members to reactivate spend,” McElligott added.
The Covid-19 figures follow a strong year for digital advertising, with spend up by 17 per cent to €673m, the IAB/PwC Online Adspend study shows. Of this figure, social and video display advertising increase by almost a third to €326m, with search up by seven points to €306m.
Pictured is Suzanne McEligott, chief executive, IAB Ireland
- For more Covid-19 marketing and media related stories, just click on https://marketing.ie/2020/
