UK publishers are facing a “digital tipping point”, according to the AOP and Deloitte, with digital revenues up 62% over the last four years.
More than £100 million worth of digital revenues were generated in the first quarter of 2016, according to analysis from the Digital Publishers Revenue Index (DPRI) – an 8.3% rise compared with the same quarter last year.
An -8% decline in display advertising, which accounts for a 35% share of this revenue, was offset by significant growth from online video (+43%), subscriptions (+29%) and sponsorship (+27%).
On an annual basis (April 2015 – March 2016), UK publishers generated combined digital revenues of £411.4 million (up 6.2% year on year), driven by growth from non-recruitment classified ads (+34%), online video (+25%), and sponsorship (+20%).
Meanwhile, mobile revenue increased 2.6% over the year, bolstered by a 19% rise in revenue from smartphones which helped to offset a -12% decline in tablet revenue.
[advert position=”left”]
“We see a clear indication that the UK’s online publishers have reached a tipping point in the physical versus digital debate,” said Deloitte’s Dan Ison.
“While it would be wrong for UK publishers to move away from physical entirely, adopting a digital-first business model is an important step to help sustain revenues in the medium term.”
Richard Reeves, managing director at AOP, which represents online publishers, said the results were promising for the industry.
“Despite the obstacles and challenges publishers face around digital, it is promising to see media owners embracing and benefiting from the opportunities,” Reeves said.
“The Q1 2016 DPRI shows publishers’ digital revenues are continuing to grow steadily and highlights the beginning of the shift away from display towards more creative ways of monetisation, including online video and sponsorship advertising. This is a trend we expect to continue throughout 2016.”
