Polish Digital Advertising Market 2023/2024. IAB Poland Report

illustration: Bing/Copilot

The internet has become a key driver of the media market, accounting for more than two-thirds of the growth of the entire communication segment.

Increase in Digital Advertising Expenditure

The growth rate is higher than in previous years, indicating increasing confidence among advertisers in the power of this communication channel. This impressive growth rate places Poland among the fastest-growing digital advertising markets in Europe.

Several key factors are driving this growth:

• Changing consumer habits: Poles are spending more and more time online, as shown by GUS data. In 2023, the average Pole spent 8 hours and 22 minutes a day using the internet, of which 6 hours and 12 minutes were on mobile devices. This creates excellent conditions for advertisers who want to reach their audience in their natural environment.
• Increasing effectiveness of digital advertising: Digital advertising offers a range of precise targeting options for ads to specific audience groups, making it a highly effective channel for reaching potential customers. IAB Poland research shows that 72% of internet users believe that online ads are helpful in making purchases, and 65% say they are influenced by them when making purchasing decisions.
• Growing importance of e-commerce: The COVID-19 pandemic further accelerated the rise of online shopping, which in turn translated into increased digital advertising expenditures in e-commerce channels. In 2023, the value of the Polish e-commerce market reached 180 billion PLN, representing a 17% increase compared to the previous year.

The trend of increasing digital advertising expenditure is expected to continue in the coming years. IAB Poland forecasts indicate that in 2024, the digital advertising market in Poland will reach a value of 9.2 billion PLN. Advertisers looking to succeed in today`s digital world must incorporate digital advertising into their marketing strategies and allocate appropriate budgets for it.

Dominance of Online Video Advertising

Online video advertising is undoubtedly one of the fastest-growing segments of the Polish digital advertising market. In 2023, spending on this type of advertising rose by an impressive 20.7%, reaching 1.5 billion PLN. This makes online video advertising the most dynamically developing format of digital advertising in Poland.

• Rising popularity of VOD services: Poles are increasingly using VOD services such as YouTube, Netflix, and HBO Max. In 2023, 82% of Poles used at least one VOD service, with 43% declaring that they subscribe to a paid VOD service. This creates excellent conditions for advertisers wanting to reach their audience while they watch video content.
• Increasing audience engagement: Online video advertising is characterized by a high level of audience engagement. IAB Poland research shows that 78% of internet users willingly watch online video ads, and 62% find these ads interesting.
• Effectiveness in generating conversions: Online video advertising is highly effective in generating conversions, encouraging viewers to take desired actions, such as purchasing a product or service. IAB Poland research shows that 54% of internet users made a purchase after watching an online video ad.

The trend of dominance of online video advertising is expected to continue in the coming years. IAB Poland forecasts indicate that in 2024, spending on online video advertising in Poland will reach 2 billion PLN.

Increasing Importance of Programmatic Buying

Programmatic buying, or the automated purchase of online advertising space, is becoming an increasingly important element of the Polish digital advertising market. In 2023, the share of programmatic buying in the online display advertising market reached 70%, marking a 10% increase compared to the previous year.

• Growing need for efficiency: Advertisers are increasingly seeking ways to improve the efficiency of their advertising campaigns. Programmatic buying offers a range of tools and technologies that allow for precise targeting of ads to specific audience groups, optimizing spending, and measuring campaign results in real-time.
• Automation of processes: Programmatic buying automates many tasks related to online ad purchasing, allowing advertisers to save time and money.
• Market transparency: Programmatic buying provides greater transparency in the online advertising market, making it easier for advertisers to control their spending and compare offers from different providers.

IAB Poland forecasts indicate that in 2024, the share of programmatic buying in the online display advertising market in Poland will reach 75%.

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Development of New Advertising Formats

The digital advertising market in Poland is constantly evolving, and new, innovative advertising formats are emerging. Advertisers are increasingly experimenting with these formats to reach their audiences in a more engaging and effective way. The most popular new advertising formats in Poland include:

• Native ads: These ads are integrated into the content of the website, making them less intrusive and more engaging for viewers. IAB Poland research shows that 67% of internet users view native ads positively, and 53% believe they are more credible than traditional banner ads.
• In-stream ads: These ads are integrated into video content on YouTube or other VOD services and cannot be skipped. IAB Poland research shows that 74% of internet users willingly watch in-stream ads, and 61% find them more convincing than traditional banner ads.
• 360-degree video ads: These ads allow users to view a product or service from different perspectives, providing a more immersive and interactive experience. IAB Poland research shows that 65% of internet users view 360-degree video ads positively, and 58% find them more memorable than traditional video ads.
• Wearable device ads: More and more people are using wearable devices such as smartwatches and fitness bands, creating new opportunities for advertisers. Ads on wearable devices can be displayed on device screens or as notifications. IAB Poland research shows that 56% of wearable device users are open to viewing ads on their devices, and 42% believe these ads are more useful than traditional mobile ads.

Challenges Related to Privacy Protection

Privacy protection is becoming an increasingly important challenge for the digital advertising market in Poland and around the world. In 2018, the General Data Protection Regulation (GDPR) came into effect, introducing a series of new regulations regarding the processing of personal data. The GDPR aims to enhance user control over their personal data and limit the ways companies can use that data without consent.

• Limiting targeting possibilities: Advertisers can no longer target ads to users based on as detailed personal data as before.
• Increasing importance of consent: Advertisers must obtain explicit consent from users for the processing of their personal data for advertising purposes.
• Growing awareness among users: Users are becoming increasingly aware of their privacy rights and have higher expectations regarding how their data is used.

IAB Poland is an industry organization that represents the interests of the digital advertising market in Poland. The Strategic Internet Report 2023/2024 is available for free download on the IAB Poland website: https://raportstrategiczny.iab.org.pl/