Spurred in part by the rise of digital video advertising, online publishers are seeing the highest rates of growth since early 2010 in the UK. Digital advertising revenues rose 18 percent year-over-year in the third quarter of 2013. That’s according to a new report from consulting firm Deloitte and the UK’s Association of Online Publishers (AOP).
The large majority – 85 percent — of publishers surveyed in the AOP Digital Publishers Revenue Index Report said they had positive digital advertising growth in Q3 of this year. Half of newspaper publishers reported digital ad growth exceeding 30 percent.
Howard Davies, Deloitte media partner said: “These results demonstrate the growing digital strength of UK publishers and that money can be made from digital activities. Whilst there is still an element of exploration and testing, it is clear that publishers are increasingly finding sustainable business models beyond pure print.”
Online video was the fastest growing ad format for digital publishers for the sixth straight quarter. Revenue from online recruitment advertising grew by 23.4 percent in a sign of broader economic recovery.
|UK Digital Publisher Advertising Revenue Growth* Q3 2013 vs. Q3 2012|
|Digital advertising Format||% Change|
*Industry average derived from actual revenue data supplied by 27 AOP publisher members.
The report also showed that digital publishers are more optimistic about their companies’ finances than their counterparts in other industries. The Sentiment Index of publishers was 37 percent higher than the cross industry group polled in Deloitte’s CFO Quarterly Survey of more than 300 CFOs.
Digital publishers said they expect to see the strongest advertising spend growth in 2014 to come from the technology, retail, and automotive sectors.