Smartphone display boosting mobile ad revenue for publishers

Mobile digital advertising revenues from UK publishers grew by 80% year on year in the first quarter of 2015, according to new research from Deloitte and the Association of Online Publishers (AOP), with growth predominantly driven by a significant increase in smartphone display revenue, up 114%, while tablet display ad revenue grew by 47%.

According to the report, publishers saw a growth of 5.6% in overall advertising revenues, however this was slower than previous quarters.

While online video remains a growing source of revenue, with digital publishers seeing over 17% growth compared to the same period last year, desktop digital display revenues shrank by 6% in Q1 2015, as the desktop display market sees a shift towards mobile display advertising.

“The shape of revenue continues to reflect the increasing consumption of media on mobile devices,” said Tim Cain, managing director of the AOP.

“We are beginning to see a change in digital advertising platforms and formats, which is shown in the figures. This is a trend that is likely to continue as consumers’ behaviour changes and new devices are released.”

Howard Davies, Deloitte media partner, added: “Publishers that have adapted to technological changes have been rewarded with strong first quarter revenue growth from mobile advertisements.

“From this research, it is clear that publishers must ensure they remain agile in the face of rapidly changing consumption habits in order to remain commercially successful.”