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UK publishers experience revenue growth in online video

Deloitte, the business advisory firm, and the Association of Online Publishers (AOP) yesterday released findings from the latest Digital Publishers Revenue Index Report (DPRI).

Author: News Desk

Posted on: 02 December 2015 06:10

UK publishers experience revenue growth in online video

Industry average derived from revenue data supplied by 23 AOP publisher members.

According to the report, UK publishers have experienced significant growth in online video, which saw an increase of 23.8% in Q3 2015 when compared with the same quarter last year.

The report also shows mobile advertising revenue for portable devices continues to experience year-on-year growth of 16.2%, with all growth being attributed to phone display advertising. Tablet advertising revenue, however, maintained its decline with a -23% decrease in Q3 2015 compared to the same period in 2014.

Richard Reeves, Interim MD at AOP, commented: “It is promising to see publishers beginning to successfully monetise online video, with some experiencing significant growth in advertising revenue. Many premium publishers have invested a lot of time and resource into ensuring their online video offer reflects their brand identity and resonates with the audience, enhancing the overall reader experience rather than detracting from it.

“Content marketing type formats are moving forwards, and during the next quarter we will be working closely with Deloitte to collect more specific data exploring how AOP members are utilising such formats to drive digital publishing revenue.”

The AOP Sentiment Index report, a section of the DPRI which measures how AOP board members anticipate the market will perform over the coming year, shows that two-thirds (65%) of participants continued to experience positive growth since Q3 2014, with almost a quarter (22%) displaying an annual growth of more than 25%.

Howard Davies, Deloitte media partner, said: “The optimism that we have seen in the industry over the last few months has been proven with positive year-on-year growth rates for both mobile and online video advertising. Significantly, the growth in online video has surpassed that of mobile for the first time since Q4 2014. Not only is this an indication that publishers have an improved understanding of how to use the advertising medium, but audiences are also more accepting of online video advertising.”

When asked about sources of future growth, nearly all participants (91%) cited introduction or expansion of products and services as their focus, additional to a continued overall focus on advertising revenue.

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