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Digital ad market grew by 15% in first half of 2022

November 30, 2022 No Comments

Sourced from iab.uk

Get the key takeouts from our H1 Digital Adspend update with PwC, showing that the digital ad market grew by 15% as the rate of growth returns to pre-pandemic levels

The UK’s digital ad market grew by 15% year-on-year in the first six months of 2022, with spend across the period totalling £12.52 billion, according to IAB UK’s half yearly Digital Adspend update, produced with PwC. This follows a year of exceptional growth in 2021, as the market bounced back from a challenging 2020.

The turbulence of the past two years has impacted the UK’s digital ad market in extraordinary ways. While spend dipped by 5% in the first six months of 2020, it then rebounded by 55% in H1 2021. Today’s update is the first indication that the market is returning to a rate of growth in line with pre-pandemic levels, when the market expanded 15% in both 2018 and 2019.

Key results include:

Search continues to drive the majority of digital advertising spend, with the sector worth £6.66 billion in H1 2022 – up 16% year-on-year and making up 53% of the total digital ad market
Display has grown by 8%, with spend on video display increasing by 6% and non-video increasing by 10% year-on-year.
Mobile continues to attract the majority of all spend (57%) from a device perspective, but spend on non-mobile ads has grown significantly – up by 38% year-on-year in H1 2022. Classified ads also saw strong growth, up 42% year-on-year.

Commenting on the data, IAB UK’s Jon Mew said: “It’s clear that market growth in 2022, so far, is more in-line with what we were seeing prior to 2020. The socio-economic turbulence of the pandemic supercharged growth in digital advertising – both video and search grew by 80% across the past two years – and while it continues to grow beyond that, we knew that this growth rate could not be sustained in the long-term.

“Today’s results indicate that we have returned to a point where growth is strong but more sustainable. Looking to the future, we have Christmas and the World Cup coming up, which will likely see spend peak in 2022, but digital advertising won’t be immune to tightening budgets as the cost-of-living crisis takes hold. Continuing to invest in marketing throughout challenging times is well documented, and digital has the benefit of offering advertisers a powerful combination of proven results and flexibility. “

Sourced from iab.uk

The Digital Ad Market Hit a 15-Year Record in 2021

May 30, 2022 No Comments

By The Daily Upside

Stay at home and spend. That might as well have been the unofficial mantra of 2021 as consumers found themselves with record savings to splurge online

New research revealed digital advertisers were a big winner from the phenomenon. US digital ad revenues rose 35% to $189 billion last year as marketers sought out the record number of consumer eyeballs glued to their screens, according to a report by the Interactive Advertising Bureau and PricewaterhouseCoopers. It was the highest growth since 2006.

Three Kings

US e-commerce sales last year totalled $870 billion, more than the GDP of Switzerland and a 14% increase from 2020, according to the Department of Commerce. Besides Amazon, firms with direct B2C digital relationships — such as CVS, DoorDash, and Walmart — are letting advertisers buy ads on their websites or in their apps.

As a result, e-commerce growth has injected massive capital into the digital ad business. The catch is that growth is more heavily concentrated than Minute Maid’s frozen orange juice:

In 2021, 10 digital platforms and publishers pulled in 78% of digital ad revenues, according to the IAB and PwC.
While the report doesn’t identify those top firms, analysts at Insider Intelligence predicted Google (26%), Meta (24%), and Amazon (14%) would account for 64% of US digital ad revenue in 2021.

So far, this year’s success may be a tad muted. “The macro winds of uncertainty — in particular around Europe and Russia — continue to swirl,” said Morgan Stanley analyst Brian Nowak, in a note advising that the bank trim estimates for online advertising revenues by 1% to 2% this year.

Can I Sell You a Mattress? Advertising on digital audio, including podcasts and music streaming, was the fastest-growing digital ad category last year, rising 58% to reach $4.9 billion. But it’s just a 2.6% slice of the digital ad market pie.

Tik That: TikTok’s advertisement revenue will triple this year to more than $11 billion, according to Insider Intelligence. That is more than the company’s combined forecasts for Twitter and Snap. If only Twitter had a new board member to shake things up.

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By The Daily Upside

Sourced from The Motley Fool

Culture secretary commissions study into ‘opaque’ world of online advertising

March 29, 2019 No Comments

By John Glenday

The UK government has moved towards launching a formal investigation into the ‘largely opaque and extremely complex’ online advertising industry and the power wielded by Facebook and Google on the digital ad market.

It comes following the publication of the Cairncross review, which highlighted how tech giants like Google and Facebook are the root cause of the crises facing publishers.

Culture secretary Jeremy Wright told the House of Commons yesterday (Tuesday 12 February) the Competition & Markets Authority has been commissioned to study the digital ad ecosystem to establish whether there are grounds to launch a full investigation into practices prevalent in the industry, a process which would legally oblige the tech firms to hand over sensitive financial information.

Wright also said had asked the Charity Commission to investigate whether publishers can be afforded charitable status to aid local and investigative journalism.

A third tier of efforts to reform the sector will see civil servants conduct a parallel investigation into regulation of the online advertising space as a whole, a process which could result in new regulatory powers to enforce fair play.

Shadow culture secretary, Tom Watson, said the government was united in its desire for major technology companies be more accountable to parliament.

“Even in these dark days of Brexit and increasing division in politics, there is one man who is uniting this house: Mark Zuckerberg,” he said.

“He insulted us all when he refused to attend the [Department for Digital, Culture, Media and Sport] select committee. He may think the UK market and our institutions are not a priority for him. But I hope he knows there is now a new resolve that transcends our party differences to deal with the abuses by his company and others.”

Feature Image Credit: Digital ad market under a microscope over Facebook/Google monopoly