The SRI (Syndicat des Régies Internet) and UDECAM (the Union of Consulting and Media Purchasing Companies) have just published the “25 th e-pub Observatory” their traditional report which aims to analyze the evolution and distribution of digital advertising revenue in France.
This document, produced by the American strategy consulting firm Oliver Wyman, provides an overview of the advertising market in France for the year 2020.
Although the first half of the year was impacted by the Covid-19 pandemic, the French advertising market experienced slight growth over the whole of 2020, thanks in particular to a rebound in the second half of the year.
Digital advertising revenue
Thus, for the whole of 2020, digital advertising revenues have increased by 3%, but it is estimated that the health crisis has caused the loss of around half a billion in the online advertising sector.
The different advertising levers have experienced varying fortunes in 2020:
Display suffered, with the exception of programmatic, with performance down 2%.
Search and Social did better than Tunisia WhatsApp Number List resist, in a difficult economic context, with respective growth of 3% and 7%.
Affiliation, Emailing and Comparators posted significant growth of 7%, which is mainly explained by a performance logic reinforced by the economic context.
Another highlight for this year 2020 is the gap that is forming between digital giants like Facebook, Amazon, Google, and the rest of the market.
Here are the details of that report.
As we said in the introduction, Display ends the year 2020 in decline (-2%), but it should be noted that Display players have been affected in very different ways depending on their sector of activity:
Publishing and info: This is the most important category on the market with revenues reaching 460 million euros. It shows a drop of almost 8% over the year. The impact of the pandemic has been very strong in 1 st half (-22%). Traditionally focused on Branding, publishing and information companies have suffered above all from campaigns focused mainly on ROI.
Video and music streaming: this category which weighs 284 million euros has seen the strongest growth in the display advertising sector with an increase of 7% over the whole of 2020. People have logically passed a lot of time on video and music streaming platforms because of the containment measures, and we note that the major advertisers have come back in force in the second half of 2020.
Retail and services: Very badly off at the start of 2020, with a first half down to -11%, the retail and services sector still managed to reverse the trend during the second half (+ 12%) , and ended the year with overall growth of + 5.2%, for revenues amounting to 232 million euros.
Radio and TV
This category was the most impacted by the crisis in 2020, with a drop of 8.5% (€ 164 million) over the year as a whole. Despite an increase of 3% during the second half of the year, the sharp decline observed in the first half (-22%), due to the sudden end of TV campaigns and their digital versions, could not be offset.
Finally on Display, note that native advertising has experienced good growth (+ 5%), and today it represents 23% of all Display-type advertising.
Programmatic advertising, for its part, now represents 61% of Display revenue.
Slightly growing, at + 3%, Search generated revenues of 2.5 billion euros in 2020, against 2.4 in 2019. The share of Mobile is also increasing, with 67% of the Search sector in 2020, against 63% in 2019, which gives advertising revenue of around 1.7 billion euros in 2020, against 1.5 in 2019.
Note that Retail Search occupies an increasingly important place, and has seen its revenues explode, from 192 million euros in 2019 to 254 million in 2020
The Social is well and ended the year with a remarkable growth of 7%. It is a type of digital advertising that remains strongly linked to mobile, with 94% of revenue generated on mobile devices, an increase compared to 2019. Of the 1.5 billion euros generated by digital social advertising in 2020, so almost all of it comes from mobile support.
Emailing and Comparators
With 7% growth, the Affiliation , Emailing and Comparator levers performed well in 2020, with revenues exceeding 820 million euros, which can be broken down as follows:
Comparators: 379 million euros in revenue (+ 8%)
Affiliation: 298 million euros in revenue (+ 8%)
Emailing: 148 million euros in revenue (+ 2%)
Forecast for 2021
The 2021 GDP forecasts let us predict that the French economy will probably experience a stronger rebound than the other major economic players in the European Union: + 5.8%, compared with + 3.5% for Germany , + 4.1% for Italy, and + 5.4% for Spain.
The consultancy firm Oliver Wyman estimates that the digital advertising market will grow by 7% in France, over the whole of 2021, and anticipates revenue for the French digital advertising market at 6.5 Billions of Euro’s.
Regarding the topics that will attract the attention of all professionals in the online advertising market, we note the concern about regulatory changes related to the confidentiality of user data, which make the near future difficult to read for players in the digital advertising ecosystem.