FY 2019 Internet Ad Revenue Report & Coronavirus Impact on Ad Pricing Report Q1 2020

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IAB Releases FY 2019 Internet Advertising Revenue Report and Coronavirus Impact on Ad Pricing Report Q1 2020

Key Findings:

  • Covid-19 Creates Significant Pricing Pressure on CPMs; Digital CPMs down 16% vs. Plan
  • Q1 2020 showed YoY growth despite Covid-19 Impact in March
  • US Digital Ad Revenue Nears $125B in 2019, Up 16% YoY

Coronavirus Impact on Ad Pricing Report:
In this second study of advertising sellers, IAB reveals that the impact of Covid-19 has put significant pricing pressure on the majority of sellers.

  • IAB found two-thirds of publishers are experiencing a decrease in CPMs.
  • Publishers are hardest hit with 6 in 10 experiencing a decrease in CPMs, a 14% greater impact on CPMs vs programmatic specialists.
  • Display advertising is most impacted, with both mobile and desktop experiencing over 30% decrease in ad rates.
  • When it comes to advertising by device, connected devices (such as streaming sticks, gaming consoles and smart TVs) are showing the most resilience, with an expected decrease in CPMs of just 6%, while desktop, smartphones and tablets are down 27%, 28%, and 29% respectively

Download Coronavirus Impact on Ad Pricing Report

IAB Internet Advertising Revenue Report:

Q1 2020 Snapshot   

  • First quarter 2020 US revenues totaled $31.4 billion, a 12% increase from Q1 2019, with many publishers reporting a decline in revenues starting in March.

2019 Closed Out the Year Strong

  • US digital advertising revenues continued their upward trajectory, totaling $124.6 billion for full year 2019–representing 16% growth year over year.
  • Digital advertising revenue growth is decelerating as the market reaches maturity, compared to previous years.
  • Q4 2019 revenues increased 12.9% year over year.
  • Q4 increased 13.3% respectively, from Q3 2019.
  • Key drivers of the revenue growth are spotlighted in the report and include:
    • Digital video advertising across mobile and desktop is cited as a major contributor, increasing 33.5% ($5.45 billion) to a total of $21.72 billion from 2018.
    • Audio revenues grew 21.2% ($477 million) to a total of $2.72 billion from 2018.

Download IAB Internet Ad Revenue Impact Report

Additional Insights: Consumer Media Usage 2019

IAB Research examined the latest consumer usage habits across the leading digital channels including mobile, video, audio, voice and AR/VR to add context to what is driving the trends in digital advertising revenue. For this report, we focused on both the past year’s data (2019) as well as the latest data available for 2020 in order to account for the disruption cause by COVID-19.

Download Consumer Media Usage Report

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View all IAB spend and revenue research.