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Digital Publisher Advertiser Revenues Up Nearly A Fifth in 2013

Deloitte, the business advisory firm, and the Association of Online Publishers (AOP) today revealed that UK publisher digital advertising revenues were up nearly one fifth (18%) in 2013 compared to 2012. This is the highest year-on-year growth since the revenues were first tracked in 2008.* Mobile revenues are up by more than 80% in 2013, compared to 2012. Overall digital advertising growth The AOP Digital Publishers Revenue Index Report (DPRI) showed 2013 had been a particularly strong year for UK digital publishers. Nearly three quarters (73%) of AOP respondents* reported positive digital advertising growth in 2013. John Barnes, Chairman of the AOP and MD Digital and Tech Incisive Media, commented: "Since its inception in 2008, the AOP DPRI report has become an accurate barometer of the UK digital media sector, representing the diverse businesses of the AOP membership. This year’s 18% growth year-on-year is the highest we’ve seen for any year since the DPRI began and the growing optimism for the financial prospects of the digital publishing industry is shown in the AOP sentiment index." Growth of mobile Revenue generated from mobile and tablet subscriptions and advertising were the fastest growing revenue streams for digital publishers, up more than 80% in 2013 compared to 2012. Revenue from advertising on smartphones grew more than 60% between September and December 2013.  Classified advertising achieved conservative growth of 1.9% year-on-year for 2013. This suggests that this format may be maturing and, for certain services, generalist publishers face increasing competition from specialist sites. Howard Davies, Deloitte media partner said: “These results demonstrate the ability of UK publishers to make money from mobile products and services. We should now expect to see publishers experiment with innovative products and flexible pricing options to maximise this revenue stream.”
UK Digital Publisher Advertising Revenue Growth†
2013 vs. 2012 (full year)
AOP & Deloitte DPRI Report
Digital advertising Format % Change
Total 18.0%
Video 40.9%
Recruitment 22.6%
Sponsorship 20.3%
Display 16.3%
Classified 1.9%
Mobile (inc. subscriptions) 80.5%
Industry average derived from revenue data supplied by 24 AOP publisher members.

Read more coverage on the lastest DPRI report here:

The Guardian
The Independent

AOP Sentiment Index The AOP DPRI is complemented by the AOP Sentiment Index Report, which questions AOP board members on how they anticipate the market to perform over the coming 12 months. AOP members’ confidence in the financial prospects of the industry rose for the first time since the third quarter of 2012. It revealed that 44% of respondents were more optimistic and none were less optimistic about financial prospects for the industry compared to three months ago**. Growth expectations varied with half predicting single digit increase and half double digit increases***. Three quarters of respondents selected ‘Advertising revenue growth’ as the highest priority for their business over the next 12 months suggesting publishers will look to focus on core revenues streams.
*UK Digital Publisher Advertising Revenue Growth
2009 - 2013 (full year)
AOP & Deloitte DPRI Report, Q4 2013
Year % Growth
2009 -9.4%
2010 15.4%
2011 11.8%
2012 12.2%
2013 18.0%
** UK Digital Publisher Advertising confidence in the industry††
Q4 2013 v. Q3 2013
AOP & Deloitte DPRI Report, Q4 2013
% of AOP board members by confidence in financial prospects of the digital publishing industry compared to three months ago Q4 2013 Q3 2013
More optimistic 44% 25%
Unchanged 56% 75%
Less optimistic 0% 0%
 
*** AOP Sentiment Index Gauging Digital Publisher Confidence & Priorities over
the next 12 Months†† Published in Conjunction with the Digital Publishers Revenue Index (DPRI), Q4 2013
% of AOP board members by expectation of advertising spend growth in the digital publishing industry over the next 12 months Q4 2013
0% to 5% 25%
6% to 10% 25%
11% to 15% 31%
16% to 20% 19%
††Survey of AOP Board Members.  Positive Industry Outlook Confidence amongst digital publishers remains significantly higher than the average found throughout wider industry. The Deloitte CFO Quarterly Survey questions 300+ CFOs of leading companies across industry sectors to gauge market optimism. Those taking part in the AOP Sentiment Index were found to rank 28% points higher than the cross industry CFO group when asked if they felt more optimistic about their company’s finances now that they did three months ago. This increased optimism did not translate into a greater focus on expansion. 19% of AOP members stated ‘The introduction of new products and services’ as a high priority in the next 12 months compared with 40% of CFOs, suggesting that respondents believe there is still significant headroom for organic growth in Online Publishing. About Deloitte In this press release references to Deloitte or Drivers Jonas Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. The information contained in this press release is correct at the time of going to press. Member of Deloitte Touche Tohmatsu Limited.