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AOP and Deloitte reveal publishers’ total digital revenue increased by 6.8% on a 12-month rolling basis to June 2018
Findings from the latest Digital Publishers Revenue Index (DPRI), a quarterly report on UK publishing from the Association for Online Publishing (AOP) and Deloitte, reveals an increase in digital revenue in the last year, fuelled by continued strong growth in subscriptions and display advertising formats.
According to the DPRI report, combined digital revenue increased by 6.8% on a 12-month rolling basis, with display formats and subscriptions driving growth by 17% and 15% respectively.
However, the report also finds stark differences in the health of the B2C and B2B publishing sectors – in the 12 months to June 2018, B2C publications saw an 8.7% increase in annual revenue, whereas B2B titles witnessed a decline by 2.5% over the same period.
B2B publications experienced a 10% decline in recruitment and 9% decrease in other classified revenues. However, display and subscription revenues increased on a rolling 12-month basis, by 6% and 3% respectively.
| UK Digital Publisher Revenue (based on revenues for AOP publisher members) AOP & Deloitte DPRI report | ||
| MAT* to June 2018 vs. MAT to June 2017 (% change) | Q2 2018 vs. Q2 2017 (% change) | |
| Total DPRI revenue | +6.8% | -0.8% |
| Display Advertising | +17% | No change |
| Online Video | -2% | +14% |
| Sponsorship | -13% | -1% |
| Subscriptions | +15% | -3% |
| Recruitment | No change | -5% |
| Other Classified | +15% | -15% |
With a continued shift towards multi-platform campaigns over siloed channels, desktop-only revenue decreased by 35% year-on-year, with mobile-only revenue experiencing a 20% drop over the same period.
When looking at total industry revenues by platform, multi-platform revenue increased by 64% in Q2 2018 compared to Q2 2017, mostly due to a 190% rise in multi-platform display advertising revenue.
The findings also portray a marked contrast to the same quarter in 2017, with all formats declining on a like-for-like basis except online video, which witnessed a stunning 14% uptick in its fortunes.
The latest report highlights a shift in priorities for sources of future growth, with 67% of AOP board members citing non-advertising revenue as a high priority in the next 12 months, indicating an increased focus on more controllable cash generation factors.
Dan Ison, lead partner for media and entertainment at Deloitte, comments, “On the one hand, year-on-year growth of multi-platform revenue is a clear indication of how consumer media consumption habits have changed in recent years. Yet, and perhaps more significantly, it also suggests that online publishers are becoming more attuned to consumer behaviour and are adapting accordingly; launching campaigns that span across multiple platforms, rather than just mobile or desktop.
“AOP Board Members have renewed their focus around shoring up cashflow, and this could be interpreted as a shift to more defensive strategies, possibly in light of the introduction of GDPR and in the context of economic uncertainty for the short-medium term.”
*MAT – Moving Annual Total
