Publishers feeling greater impact than Programmatic companies: IAB Report
Greater impact to be felt in immediate terms, majority ad buyers and sellers haven’t changed revenue forecasts for Q3 and Q4
The pandemic has stunted media spends and revenues and the recent Interactive Advertising Bureau (IAB) report “Coronavirus: Ad Revenue Impact On Publishers & Other Sellers,” confirms the same. The survey highlights that direct Publishers are feeling a greater impact than Programmatic companies(e.g., SSPs, Ad Exchanges, Ad Networks) and legacy channels are affected more than digital channels by short-term spend shifts. Digital ad revenues are down 19% -25%, depending upon channel and Linear TV. Print ad revenues are down 27% and 32%, respectively.
According to the report, both buy-and sell-sides expect the greatest impact on media spend and revenue in the immediate term (Mar-Jun) with Digital faring better than Traditional media. However, the majority of ad buyers and sellers haven’t changed revenue forecasts for Q3 and Q4. And among those that have re-forecast, expect slight rebounds in the second half.
News publishers are hit the hardest with pauses and cancellations from buyers and they’re twice as likely to have ads blacklisted because of coronavirus content (17 % blacklisted for news publishers versus 8% for non-news publishers). All publishers are becoming more consultative and are creating flexible advertiser options by either publishing campaigns to a later date, creating different content and sponsorship opportunities or making entirely new content.
Buyers (Agency media buyers/sellers, Brands: Incumbent and Direct-to-Consumer) are among that 70 % who have adjusted their spends estimate percent changeoff annual plan (Mar-Jun) in Digital media by -33% and Traditional media -39%. Sellers (Media publishers/platforms, Programmatic companies) among 69% who are re-forecasting revenue estimate percent change off annual plan (Mar-Jun) in Digital media by -21% and in Traditional Media by -30%.
Advertisers say largest legacy channel impact will be felt by print & linear TV (Broadcast & Cable)
Respondents said the brand categories hardest hit from March-December will be travel and tourism (68%), brick-and-mortar retail (56%), restaurants (49%), automotive ad-related (48%) and apparel and fashion (26%). Seller categories expected to be least impacted include cosmetics and toiletries, household products and online retail.
A majority of ad buyers and sellers haven’t changed revenue forecasts for Q3 and Q4—25% of buyers said they’re adjusting spend forecasts for Q3 while 30% of sellers said they’re adjusting revenue forecasts in Q3.
IAB, which represents many media outlets mostly in the United States and in Europe, is an advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry.
It surveyed 205 publishers, media platforms and programmatic companies from April 1-8 on the sell-side.
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