IAB Ireland press release
Wednesday, April 22nd 2020
IAB IRELAND SURVEY ON IMPACT OF COVID-19 ON THE DIGITAL ADVERTISING INDUSTRY
IAB Ireland surveyed its members from across the digital advertising industry in respect of the impact of COVID-19 on the Irish digital advertising market. Participants included adtech companies, agencies, digital service providers, networks, platforms and publishers / media owners.
Here are the topline results of the survey, which was conducted online between 16-20 April, 2020.
- 68% have experienced a significant decrease in revenue since the Covid-19 restrictions began, 29% have experienced a moderate decrease in revenue, with 2% reporting moderate growth.
- 82% have implemented some form of cut backs on staff salaries/working hours: with 39% introducing salary reductions and 23% shortened working hours or introduced enforced annual leave.
- 73% of survey participants predict the digital advertising market will rebound between Q3/Q4 2020: (49% predict the rebound in Q4, 24% in Q3).
- Advertiser/agency participants predict a 10-20% decrease in planned digital advertising spend in 2020 as a consequence of the pandemic.
- 30% of Advertiser/agencies plan to reactivate digital adspend before Lockdown restrictions are lifted, 30% will reactivate once Lockdown restrictions are lifted with a further 35% currently working on new campaigns.
Commenting on the survey results Suzanne McElligott, CEO, IAB Ireland said: “The digital advertising industry like all sectors of our economy has been adversely impacted by COVID-19. A third of advertisers/agency members report pandemic related business challenges as their most significant barrier to advertising. However the lockdown has also dramatically increased digital consumption with local publishers reporting an average growth of 49% in unique users over recent weeks. As we work from home and observe social distancing, usage of all digital platforms has increased as we increasingly rely on digital technology for business and social communication”,
“Advertising experts from leading practitioners, researchers, and academics 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 are working very closely with our members, representing all the key stakeholders in the industry to understand their business challenges and to share the best strategies to reactivate spend and protect the Irish digital advertising industry”.