Digital Advertising Revenues Remain Elevated for UK Publishers, Study Shows

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29th September 2014 10:39 - Media and PR

Digital advertising research shows revenues from UK publishers were up 9.1% in the second quarter of 2014 compared with the same quarter in 2013, according to recent research conducted by Deloitte and the Association of Online Publishers (AOP).

Collectively, revenue generated from mobile and tablet subscriptions and advertising were the fastest growing revenue stream for digital publishers, jumping from 60.8% in quarter one (Q1) of 2014, to 69.2% in quarter two (Q2).

The research’s findings suggest users lean towards a bigger screen experience for quality publications, with tablets making up three fifths (60%) of the total mobile revenues made in the second quarter of 2014.

With a 69.2% change, mobiles (including subscriptions) presented the steepest increase in advertising revenue growth between Q2 in 2013 and Q2 in 2014. Desktop video (23.2%), recruitment (18.7%), display (5.3%) and classified (9.5%) also witnessed notable advertising revenue growths over the same timeframe. Sponsorship (-14.2%) was the only area to incur negative growth figures.

Howard Davies, Media Partner at Deloitte, said: “Publishers continue to embrace mobile as a platform and they are being rewarded with strong growth figures. We are seeing online publishers embracing flexible pricing options to make the most of this growing revenue stream.

“The growth rates in the core advertising categories reflect a maturing market. Whilst mobile advertising continues to grow strongly, the challenge remains to develop revenues at a higher level per impression.”

Furthermore, according to the AOP’s Sentiment Index Report, which questioned AOP board members on how they anticipate the market to perform over the coming 12 months, three fifths (60%) of its respondents are more optimistic about the financial prospects for their company compared to three months ago - significantly higher than the average found throughout the wider industry.

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