Data-related marketing budgets expected to drop in Q3 2020, due to economic pressures from COVID-19

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 24, 2020, 1:56 AM UTC

IAB surveyed 104 data executives, including users, suppliers, and agency partners between April and May 2020.

Brand marketers spend on audience data could decline in Q3 2020, compared to the 6% increase in 2019, owing to the economic pressures from COVID-19, as per IAB. A 10% to 20% drop in data-related marketing budgets is expected for the July through September period.

Marketing spends in 2019 improved 6.1% to $11.9 billion on third-party audience data over 2020. Also, spend on activation solutions/platforms for third-party audience data grew 8.1% to $7.8 billion in 2019.

However, with brands reducing their reliance on cookies, 57.1% of those polled increased using first-party data over the past 18 months. Digital media channels grew 13.8% to $5.1 billion in 2019, and advanced TV data spending was up 19.5% to $700 million.

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