UK publishers boost online video revenue

Annual online video revenue for UK publishers was up 23.8% in the third quarter of 2015, according to new figures from Deloitte and the Association of Online Publishers.

Mobile advertising revenue also experienced good year on year growth, up 16.2%; however, tablet ad revenue continued to decline with a -23% decrease in Q3 2015 compared with the same period last year.

Richard Reeves, interim managing director at AOP said the figures were “promising” as publishers increasingly invest in video.

“Many premium publishers have invested a lot of time and resource into ensuring their online video offer reflects their brand identity and resonates with the audience, enhancing the overall reader experience rather than detracting from it,” Reeves said.

“Content marketing type formats are moving forwards, and during the next quarter we will be working closely with Deloitte to collect more specific data exploring how AOP members are utilising such formats to drive digital publishing revenue.”

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The report also measures how AOP board members anticipate the market will perform over the coming year, with two-thirds (65%) of participants experiencing positive growth since Q3 2014, and 22% displaying an annual growth of more than 25%.

Howard Davies, Deloitte media partner, said: “The optimism that we have seen in the industry over the last few months has been proven with positive year-on-year growth rates for both mobile and online video advertising.

“Significantly, the growth in online video has surpassed that of mobile for the first time since Q4 2014. Not only is this an indication that publishers have an improved understanding of how to use the advertising medium, but audiences are also more accepting of online video advertising.”

When asked about sources of future growth, nearly all participants (91%) cited introduction or expansion of products and services as their focus, additional to a continued overall focus on advertising revenue.