Warc Blog

Digital publishers express optimism

20 December 2013
LONDON: Digital advertising revenues rose by 18% for UK publishers during the third quarter of 2013, with high levels of confidence also being reported for the final quarter of the year.

A survey by business advisory firm Deloitte and trade body the Association of Online Publishers (AOP) found that 85% of AOP board members had enjoyed digital advertising growth in the third quarter. Newspaper publishers performed especially well, as half achieved growth of over 30%.

The results, according to Howard Davies, Deloitte media partner, demonstrated that "publishers are increasingly finding sustainable business models beyond pure print".

Online video was the fastest-growing ad format, up by one third year-on-year. It was followed by online recruitment advertising, which increased by 23.4%, sponsorship, up 21.9%, and display, up 14.1%.

Classified advertising was the only digital category not to experience double-digit growth in Q3. But the AOP noted that even at 4.2% growth, this was the highest level of growth for this category in 2013.

Tim Cain, head of research for the AOP, was bullish about the findings. "The growth across all kinds of advertising categories suggests digital media is being adopted as the primary means of advertising for consumers and businesses," he said.

It also reflected "confidence in the online sector's ability to deliver results from their advertising communications".

Publishers were also questioned on how they saw the market performing in the next 12 months. The resulting AOP Sentiment Index revealed they all anticipated digital adspend would grow in the final quarter of 2013, with 25% expecting it to see a double-digit lift.

And "advertising revenue growth" was the highest priority for three-quarters of AOP members over the coming year.

Four categories were highlighted for growth, with technology leading the way, potentially driven by rising competition in devices and consoles.

Fully 38% of publishers expected to see a rise in advertising spend among technology brands, ahead of 25% choosing retail and automotive, while just 12% thought FMCG brands would spend more.


Data sourced from AOP; additional content by Warc staff

 
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