Digital publishers in the UK experienced a 60% increase in turnover on average in 2006, and are predicting an average of 72% growth for this year, according to the latest membership survey from the UK Association of Online Publishers (AOP).
The forecast for 2007 is double what was forecast this time last year, whilst the AOP Census 2007 also found that digital now contributes an average of 12% of members’ overall revenue.
Total turnover for AOP members’ digital operations increased to £575 million, up from £344 million the previous year.
Advertising contributes the largest share of online revenue for digital publishers at 75%, whilst display advertising (including sponsorship) contributes 59% of overall income, classifieds contribute 16%, and paid-for content (including syndication) contributes 12% of revenues.
The latest Bellwether report from the Institute of Practitioners in Advertising shows that online advertising now accounts for £2 billion of marketing spend per year, with 19% of companies reporting an increase in Q1 2007 (see Q1 2007 Bellwether: Marketing Budgets Show Strong Growth).
The AOP Revenue from paid-for content increased by 50% in 2006. Nearly half of AOP members charge for content, up from 37% in 2006.
AOP members employ nearly 8,000 individuals in the digital side of their businesses, with 540 new jobs created in the last year alone by AOP members.
Publishers see broadband, mobile (and wireless) and communities as the biggest opportunities for the industry in 2007. The biggest threats identified were the number of new competitors, security, and Government/legal restrictions.
Simon Waldman, AOP chairman and group director of digital strategy, Guardian Media Group, said: “This is a remarkable set of figures. 2006 was a year of spectacular digital growth, innovation and investment by the UK’s media industry – and our forecasts show there is no sign of this letting up.”
At MediaTel Group’s ‘Future of Digital’ seminar held in London last month, panellists agreed that traditional media were making inroads into evolving for the digital age (see Traditional Media On Track For Digital Evolution)
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