The Impact of COVID-19 on Digital AdSpend

The IAB UK Connected webinar provided valuable insights into the digital advertising landscape, particularly highlighting the impact of COVID-19 on ad spend and the evolving role of social media. Here’s a breakdown based on the information you provided:

Digital Adspend Overview

Digital Adspend measures the overall investment in digital advertising across various environments, formats, and devices. In 2019, the UK digital market saw significant growth, reaching a total of £15.6 billion, marking a 15.4% increase from 2018. This growth trajectory helps businesses allocate their marketing budgets effectively.

Impact of COVID-19

The COVID-19 pandemic has had a notable impact on digital advertising revenues, with smaller businesses experiencing more significant declines. The IAB study reported an -11% drop in revenue from 2019 to 2020 among its members. This decline underscores the economic challenges faced during the pandemic.

Key Insights from the Study

1. Smartphone Dominance: Nearly all growth in digital ad spend in 2019 came from smartphone advertising, particularly in display and search formats. Mobile search, in particular, accounted for 55% of all search activity.
2. Paid Search: Continues to rise as a significant component of digital advertising, reflecting its effectiveness in capturing consumer intent.
3. Display Advertising: 70% of display ad revenue is derived from smartphones, indicating the platform’s pivotal role in digital marketing strategies. The advent of 5G technology is expected to further bolster this trend.
4. Video Advertising: Video content remains a driver of growth in digital ad spend, highlighting its effectiveness in engaging audiences.
5. Social Media: Represents a substantial portion of digital ad spend, comprising 58% of the total. A significant 90% of social ad spend is directed towards smartphones, underscoring the platform’s importance in reaching consumers.

2020 Forecast and Recovery Outlook

Despite the initial decline in digital ad spend, particularly evident with a 6.1% drop in Q1, there is optimism for a recovery towards the latter part of 2020. Analysts anticipate a more positive outlook as businesses adapt to the new normal and consumer behavior evolves in response to ongoing global developments.

Conclusion and Call to Action

For businesses navigating the complexities of digital advertising during uncertain times, understanding these trends and insights is crucial. As the market adjusts to the impacts of COVID-19, leveraging strategic digital marketing efforts can help businesses stay resilient and capitalize on emerging opportunities.

If you need assistance with optimizing your digital advertising strategies in light of these insights, feel free to reach out to ONQOR for expert guidance. For further details on the IAB UK and comprehensive industry resources, visit IAB UK’s website.

This summary captures the essence of the key findings from the IAB UK Connected webinar, offering actionable insights for businesses looking to navigate and thrive in the evolving digital advertising landscape.