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Amazon recognized as the only major publisher in Canada to report ad revenue growth following COVID-19, with 43% YoY increase, Standard Media Index report

The Standard Media Index (SMI) has recognized Amazon as the only major publisher in Canada to report ad revenue growth throughout COVID-19.

The firm has skilled a year-over-year enhance of 43 per cent. Moreover, in May and June, Amazon was the lone Top Ten media proprietor to truly develop ad revenue by eight per cent. All different media homeowners skilled a decline in ad revenue in June.

In June alone, Amazon noticed a rise in revenue to almost 25 per cent. The power of Amazon could be attributed to the necessity of e-commerce throughout the pandemic and shifting shopper behaviours, in accordance to SMI. All different media homeowners skilled a decline in ad revenue in June. Microsoft at -14 per cent and Jim Pattison Group at -69 per cent, skilled the largest drop.

“Not surprisingly, the vast majority of publishers have experienced significant decreases in revenues due to COVID-19. Bucking this trend was Amazon and Pinterest, both actually reporting growth in June 2020, when compared to June 2019. Amazon had an increase in ad revenue from national brands of +24 per cent and Pinterest had more than doubled their revenues, albeit off a low base. With shopping behaviour shifting from in-store to online, these results aren’t too surprising,” James Fennessy, international chief government officer of SMI, said in a current press launch. 

Moreover, the expertise class is the only product class that skilled growth in ad spend in June, SMI’s knowledge suggests.

Technology, which incorporates telecommunication, shopper electronics, and software program and web merchandise skilled a year-over-year enhance of 5 per cent in June. 

In Canada alone, the promoting business makes up CAD$14.7 billion {dollars} in annual ad revenue, in accordance to Statista. However, as a results of the many complexities and uncertainties being attributable to the ongoing pandemic, many manufacturers in the nation and round the world have been pressured to pivot hundreds of thousands of {dollars} in allotted promoting spend. Brands, companies, and publishers discovered themselves rapidly shifting content material and programming in vital methods.

“This international pandemic is having an impression on promoting markets which is much extra extreme than what we ever reported throughout the 2008/9 international monetary disaster when the dimension of the year-on-year declines being reported every month by no means reached greater than 16%,’’ James Fennessy, international chief government officer of SMI, stated in a separate report. “So this has been an sadly distinctive expertise given the sheer dimension of the ad spend declines being reported. The truth the common decline is a unprecedented 28.2 per cent actually highlights the degree of devastation wrought on a few of the media markets the place we observe ad spend.’’

SMI additionally revealed earlier final month that digital media is seeing the strongest restoration month-over-month in Canada as lockdown measures throughout the nation begin to raise.

Related:

Digital media seeing some upward momentum, however get better stays sluggish

“Over the past three months, we have seen the enormous impact COVID-19 has had across most facets of our lives. For the media and advertising industry specifically, we saw media investment in April drop to less than half of last year’s,” stated Fennessy. “Although, in May, we began to see some slight recovery in the market, not surprisingly, Television and Out of Home continue to struggle, with the suspension of sports programming and live events. Digital is the one area that has shown early signs of picking up, which we expect to accelerate in the coming months. E-commerce has helped to fuel this pick up in Digital, as more shoppers shifted to online purchases. We will be keeping a close eye on trending across media type and category in the coming weeks and months as we look to help all players in the Canadian media ecosystem understand where the best opportunities for growth lie.”

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