COVID Ad Spend Impact 2020 & 2021: Light at the End of the Tunnel

COVID Ad Spend Impact 2020/21: Light at the End of the Tunnel

IAB’s sixth 2020 buy/sell-side survey sees the “light at the end of the tunnel” for digital advertising, according to media buyers and sellers. In short: Digital ad spend for 2020 is expected to end with a 6% increase versus 2019.  The news, however, is dour for traditional media.

Key highlights:

  • Buyers expect Digital ad spend to increase by 6% for FY2020 vs FY2019
    • Paid Search (+26%), Social (+25%) and CTV (+19%) are among those with most impressive gains
    • Digital Audio and Podcasts show slight decreases vs 2019—despite enjoying spend shifts in 1H
    • DOOH hardest hit: -43% y/y for FY2020
  • Buyers expect an average estimated -8% for all Traditional media channel ad spend FY2020 vs 2019
    • Linear TV estimated at -24% y/y
    • Traditional OOH projected at – 46%
  • Budgeting for 2021 is still in flux and expected to increase y/y
    • Buyers with at least ballpark budgets project +5.3% ad spend for FY2021 vs FY2020
  • Plus, data and insights on brand anxiety caused by user-generated content on social

Learn how these and other trends can impact your media strategies at the IAB 2020 Reach Conference, Sept. 29—30. This planning summit is designed for brand marketers and agency leaders looking to identify and engage new consumers during this time of behavioral change. Request an invite.

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View all IAB spend and revenue research.