Talent shortage in digital ad industry remains severe, but could be nearing peak: IAB
Despite an increase in advertised digital advertising and ad tech positions, Australian vacancy rates for these positions have continued to climb. Despite this increase, data from the IAB Australia’s 2022 Industry Talent Report suggests that the vacancy rate may be about to peak, with a growing number of companies reporting no vacancies. .
Vacancy rates reached 11.8%, a 2% increase from September 2021 when the market was already suffering from a severe talent shortage.
The industry talent report revealed that strong market growth, changes in visa rules, lack of new talent entering the market and the arrival of new big local and global players have all contributed to the general talent shortage. The most competitive sector of the market was again for people with 3-5 years of experience.
Gai Le Roy, CEO of IAB Australia, said: “Demand for digital advertising and ad tech talent has once again reached record levels due to a combination of companies unable to find talent to replace employees. who have moved and an increase in staff for many organizations. . Although we are starting to see some companies with zero vacancy rates, which was rare last year, there are still over 1,800 open positions that require digital advertising skills. IAB Australia will continue to work with universities to help attract talent, develop appropriate training programs and provide support through initiatives such as the mentorship program.
The average salary increase over the past 12 months was 7.6%, with considerable variation across roles and companies.
Some organizations said they had to increase their average salary by up to 20%. 80% of organizations are looking to increase their number of employees slightly or significantly over the next six months, with the rest wanting no change. The use of offshoring has decreased over the same period, with 16% of companies intending to increase their use of offshoring compared to 28% in 2021.
From a gender perspective, the industry talent report found that while there is still equal representation in commercial roles, there has been an increase in executive commercial leadership positions being filled by 35% women, up from 26% in 2021. Nearly nine out of ten technical and engineering positions continue to be held by men, while research and marketing positions had the highest proportion of women (64% and 60% respectively).
The Industry Talent Report also revealed that most Australian digital advertising industry organizations now have formal policies for a wide range of issues.
In 2022, there was an increase in the number of organizations with policies on sexual harassment, but there was a slight drop in some other areas, including mental health and LGBTQ equality, due to the entry of small organizations into the industry.
Notably, there has been a significant increase in the number of companies introducing or planning to introduce sustainability policies and initiatives in 2022.