Survey finds many underestimate the effect advertising has on newspaper funding

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9th September 2015 11:28 - Media and PR

According to a survey by video advertising specialist, Teads, consumers do not appreciate how much contribution advertising revenue has on Survey finds many underestimate the effect advertising has on newspaper fundingfunding high quality editorial.

Carried out during August 2015, the survey of more than 2,000 adults revealed that 62 per cent of consumers underestimated or didn’t know that approximately half of UK newspapers’ revenue comes from advertising, a figure which increases to 75 per cent for online publications.

Of the respondents, 65 per cent said that they believed that society would be negatively affected if free or low cost, high quality editorial from newspapers, magazines and online sources were removed from society.

The survey also discovered that 15 per cent of the consumers in the survey have installed ad blockers, a figure with increases every month. The research found a correlation between those who had an ad blocker installed and how much they valued low cost or free editorial, with those with ad blockers valuing editorial, which is free or low cost more than the general population.

According to Teads, the increasing use of ad blockers could be detrimental, as recent research findings revealed that it would impact global revenues by more than £14 billion in 2015.

The survey respondents were also questioned about their attitude towards online ads. The findings showed that 52 per cent of consumers suggested that they’d enjoy watching video advertisements more if the content was relevant to what they were reading and a further 82 per cent said that they prefer video adverts with the option to skip.

UK Managing Director of Teads, Justin Taylor, said of the findings:

"Editorial content from premium publishers informs and entertains us every day, but most people don’t realise that it’s advertising that keeps this free or very low cost.

"However, we can’t blame people for using ad blockers online. Advertisers must respond with far better ads that are less intrusive and more relevant to consumers. We need to focus on creating experiences that are respectful of the end user and which engage, rather than enrage readers."

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