Covid’s Impact on Ad Pricing: IAB
According to IAB’s Latest Report, 62% of sellers have seen ad prices fall since the outbreak began.
Insights:
- Most price-resilient devices: Connected TV Devices and Least resilient: Desktop
- Display ad CPMs have been hit hardest by price reductions
- Publishers that sell ads directly have been significantly more impacted by ad rate reductions than programmatic specialists
Publishers are experiencing greater pressures than Programmatic Specialists. When asked for buy-side rationale for lowered CPMs, Publishers are more likely than Programmatic Specialists to offer multiple reasons, including:
Primary reasons provided by Publishers behind lowering CPMs include to remain competitive, ensure revenue, offer discounts for select advertisers and discourage campaign pauses/cancellations.
Mobile Gaming Ad Requests
According to new research from mobile gaming ad platform POKKT, the time traditionally spent commuting between work and home is now being invested for games. Millennials spent an average 55 minutes per mobile gaming session per day, up from 25 minutes before the coronavirus pandemic.
The report also noted a 31% rise in ad requests worldwide because of the increased number of mobile gamers. Other age groups such as children are using their mobile devices more frequently (up 16% compared to before lockdowns).
Children played an average 20 to 30 minutes pre-lockdown and sessions rose to 40 minutes per day with the beginning of the pandemic.
Meanwhile, game downloads increased 11% per month while active monthly users rose 13% and up to 5 daily sessions.
Media and Advertising Around the Globe
How the media and advertising markets around the world are beginning to restart. Digiday detailed the current scenario:
China: Ad spending in China is still expected to grow by 8.4% in 2020 to reach a total of $113.67 billion.
Japan: A media giant Hakuhodo saw the billing from traditional media like print and TV to plummeting by 33% in April, but the online media billing increased by 9%.
German: Ad budgets are expected to flow, although complex creative ad campaigns requiring high production requiring larger teams are still on hold. any advertisers are still cautious especially in industries that were pummeled, like travel, hospitality and automotive
Italy: The industry has been given signs of confidence as household spending has begun to slightly increase in May, with consumers expected to spend more online in home entertainment and electronics.
Spain: The Spanish Association of Advertisers believe their spending levels could return to pre-pandemic levels by the first quarter of next year.
France: the stagnant economic situation is expected to force advertisers to rein in spending over the second quarter after it saw revenues slide 9.7% year-on-year in the first quarter.
Moments that matter:
Democratic bill looks to prevent microtargeting in political ads.
A bill banning microtargeting in political advertisements has been submitted in the US.
The Banning Microtargeted Political Ads Act will still allow advertisers to use location data to target their audiences, as well as any targeting that individuals voluntarily opt-in too. The new law will be enforced by the Federal Election Commission, and will be enforceable across “social media, ad networks and streaming services”.
