UK publishers remain optimistic following positive growth in 2015

On 17 August 2015, Deloitte, the business advisory firm, and the Association of Online Publishers (AOP) released the latest findings from its Digital Publishers Revenue Index Report (DPRI). The report reveals that UK publishers have experienced positive growth in the last year, with 26 per cent of participants displaying annual growth of more than 25 per cent for the first time in five successive quarters.

The AOP Sentiment Index Report, part of the DPRI which questions AOP board members on how they anticipate the market will perform over the coming year, showed UK publishers had a positive outlook; 100 per cent of participants expect to see growth in digital advertising over the next 12 months. Publishers cited advertising revenue as their focus for growth during the next quarter, while fewer cited cost reduction as a source for future growth, a 24 per cent decline compared to the previous quarter.

Mobile advertising revenue continued to rise in Q2 of 2015, showing an increase of 21 per cent* over the year, with a 44 per cent* growth in smartphone display advertising revenue.

AOP Managing Director, Tim Cain, commented: The Q2 report once again highlights that advertising revenue reflects the increasing consumption of media on mobile and will remain a key focus for publishers during the next quarter. Publishers and advertisers alike need to recognise the impact of cross device, particularly mobile, when planning budgets and understand the value different devices hold along the path to purchase.

UK Digital Publisher Advertising Revenue Growth

Q2 2015 vs. Q2 2014 

AOP & Deloitte DPRI Report

Digital advertising format

% Change*

Total

5.9%

Desktop Video

15%

Recruitment

4%

Sponsorship

34%

Display

-4%

Classified

19%

Mobile (smartphone, tablet)

21% (44%, -9%)

Industry average derived from revenue data supplied by 23 AOP publisher members.

Howard Davies, Deloitte media partner, said: Publishers are now aiming to achieve growth through increasing advertising revenue rather than simply cutting costs. The optimism surrounding digital marketing is refreshing to see. This sea-change is largely down to the continuing growth of mobile and video advertising revenue that has been prevalent in the last 12 months and looks set to continue.

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