IAB Europe’s AdEx Benchmark 2020 Study Reveals European Digital Advertising Market Achieved Positive Growth in 2020

DESPITE THE PANDEMIC, EUROPEAN DIGITAL ADVERTISING MARKET GREW BY 6.3% TO €69BN.

Brussels, Belgium, 25th May, 2021 – IAB Europe, the leading European-level industry association for the digital advertising and marketing ecosystem, announced at its virtual Interact conference today that digital advertising grew 6.3% in 2020 to €69bn. The positive growth figure comes after a challenging year with the impact of COVID-19. Typically, advertising markets react strongly to an economic downturn, but this time digital advertising bucked the historic trend. 

2020 Digital Advertising Investment

Now in its fifteenth year, The AdEx Benchmark study is the definitive guide to advertising expenditure in Europe, covering 28 markets. In 2020, a total of 7 markets experienced double-digit year-on-year growth. Turkey was the most dynamic market posting growth of 34.8% and now entering the top 10 European markets in terms of advertising spend. In 2020, only three markets experienced advertising spend decline. 

Measured against the severity of the COVID-19 outbreak and the subsequent economic deterioration,  even some of the largest markets like Italy, Spain, France, and The UK were posting solid performances. Germany, who was seen to navigate the COVID-19 case numbers better than most, experienced a double digit growth of 10.4% in 2020. 

Social and video post strongest Growth

Driven by the explosion of e-commerce, small businesses and the return of brand advertising in H2, 2020, social and video posted the strongest growth across all channels. Social grew by 15.9% with video growing by an impressive 16.3%. Meanwhile, display grew by 9.1% with search experiencing a 7.9% increase.

New Audio Data available for 2020

Whilst the audio market remains small, coming in at just under 1% of the digital advertising market, it still represents an overall value of €500m. For the first time in the AdEx Benchmarking report, audio figures were included. 

Townsend Feehan, CEO, IAB Europe said “Despite an inconceivably challenging year, it is really encouraging to see such positive growth in 2020. This is a testament to the people, products and services that help steer and grow the digital advertising industry, even in the most exceptional circumstances. As an industry association that aims to support digital business, we have worked extremely hard throughout 2020 to provide insights into the impact of COVID-19 on investment levels, and to support our members through these challenging times. IAB Europe remains committed to working with our members, both corporates and national IABs, to lead political representation and promote industry collaboration to deliver frameworks, standards and industry programmes that enable business to thrive in the European market. We look forward to seeing how the industry will continue to evolve and develop in 2021.”   

Daniel Knapp, Chief Economist, IAB Europe, who compiled and presented the study commented “Digital advertising did not have a bad year in 2020, only a bad quarter. We saw rapid recovery already setting in in Q3 before double-digit growth in Q4. A strong reliance on performance channels during the height of lockdown was complemented with a fast redeployment of branding activity, in particular through digital video. The events of 2020 have fast-forwarded long-term socio-economic transformations that are altering how people consume and how companies operate. This provides a fertile ground for digital advertising and we expect the sector to accelerate its growth in 2021. ” 

The IAB Europe AdEx Benchmark study divides the digital ad market into three categories: Display, Search and Classifieds and Directories. Growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.

The AdEx Benchmark Study highlights can be downloaded here.

The full AdEx Benchmark 2020 Report which will provide full commentary and data across all 28 markets will be published in June 2021.

 

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