WARC, 12 September 2013
LONDON: Digital publishers in the UK reported a 14%
year-on-year rise in ad revenues during the second quarter and there was
widespread expectation that growth would continue into the third quarter, a new
study has revealed.
The Digital Publishers Revenue Index Report, carried out by
Deloitte for the Association of Online Publishers, showed that online video led
the way, increasing 21.1%, followed by recruitment, on 15.4% and sponsorship,
up 14.9%. Display grew 11.7% while classified advertising was flat on 0.3%.
A total of 65% publishing respondents reported positive
total advertising growth in the second quarter of 2013, with only 3% reporting
negative growth.
"The second quarter ad revenue growth performance
reiterates that seen for the first quarter," said Tim Cain, head of
research at the AOP. "Once again premium content publishers' performance
continues to exceed the online industry as a whole."
Howard Davies, Deloitte media partner, echoed the remarks on
premium publishers, saying that growth was a reflection of their
"investment in the quality of their inventory, adoption of new trading
approaches, and the continuing appeal of high quality editorial content".
Cain also observed a shift in publisher sentiment during the
second quarter, "away from cost-cutting and towards investment in new
products and services" which he argued was indicative of a positive
outlook for the coming quarter.
The AOP Sentiment Index Report, published at the same time,
recorded 92% of AOP board members anticipating further growth in digital
advertising in the third quarter, with a similar proportion saying that
advertising revenue growth was their main business priority.
Just 33% saw cost reduction as a priority, compared to 46%
in the equivalent quarter of 2012. In contrast, 67% were looking to introduce
new products and services, up from 42% the previous quarter.
There was also a significant uplift in expectation of
technology advertising spend, potentially driven by competition in the device
arena.
Data sourced from AOP; additional content by Warc staff
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