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Recruitment advertising revenues up a quarter in Q1 2014

Total digital publisher advertising revenues up a fifth (18%) in 12 months to March 2014 Deloitte, the business advisory firm and the Association of Online Publishers (AOP) today revealed that digital advertising revenues from UK publishers recorded strong growth in the 12 months to March 2014. Total growth was up one-fifth (18.3%) in the period; the highest Q1 growth since the survey began.* The AOP Digital Publishers Revenue Index Report (DPRI) showed that recruitment was one of the success stories of the quarter, recording growth of 25.1% in the 12 months to March 2014 compared to this time last year**. This represents the fastest growth in the category since digital recruitment revenues were first tracked in 2009. Howard Davies, Deloitte media partner said: “Deloitte’s CFO survey revealed that 81% of CFOs expect UK corporates to increase hiring in 2014. This positive sentiment is demonstrated by these results, showing another strong period of growth for publishers. The growth in digital recruitment advertising reflects a growing confidence in the jobs market. Improvements in economic conditions have supported a fall in unemployment rates as businesses regain confidence in their financial security.”
UK Digital Publisher Advertising Growth
2010 - 2014 (12 months to March)
AOP & Deloitte DPRI Report, Q1 2014
  % Growth
Year Recruitment** Overall total*
2010 -16.9% -1.2%
2011 -1.0% 17.6%
2012 6.3% 13.0%
2013 7.3% 17.5%
2014 25.1% 18.3%*

Mobile remains the big winner
Revenue generated from mobile and tablet subscriptions and advertising continued to drive strong growth, up more than 60% in the first quarter of 2014 compared to the same time last year. Revenue from video advertising grew by more than a quarter (26.3%) in Q1 2014, demonstrating publishers’ ability to effectively monetise this medium.
UK Digital Publisher Advertising Revenue Growth†
Q1 2014 vs. Q1 2013
AOP & Deloitte DPRI Report
Digital advertising Format % Change
Total 14.7%
Video 26.3%
Recruitment 20.9%
Sponsorship 1.2%
Display 12.8%
Classified 2.5%
Mobile (inc. subscriptions) 60.8%
Industry average derived from revenue data supplied by 24 AOP publisher members.

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 remained high with 58% of respondents expecting to see double digital growth over the next 12 months***. This showed an uplift in confidence from Q4 2013, when 50% of respondents expected to see this level of growth. Whilst revenue from core advertising remains the priority for driving growth amongst AOP board members this quarter, the introduction of new products/services was also set out as a key driver of growth as publishers look to exploit continued work with new devices and introduce new products to take advantages of them. ends Read Evening Standard coverage here Read City AM coverage here
Notes to editors ***
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% 8%
6% to 10% 33%
11% to 15% 25%
16% to 20% 25%
20%+ 8%
††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 in line with the cross industry CFO group when asked if they felt more optimistic about their company’s finances now that they did three months ago. Risk appetite among CFOs rose to a six year high with 71% of CFOs saying now is a good time to take risk onto their balance sheet. This sentiment was also reflected in strategic priorities as both AOP members and CFOs have softened their focus on cost reduction compared to the previous quarter
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. About The Association of Online Publishers The UK Association of Online Publishers (AOP) is an industry body representing digital publishing companies that create original, branded, quality content. AOP champions the interests of media owners from diverse backgrounds including newspaper and magazine publishing, TV and radio broadcasting, and pure online media. For more information please visit http://www.ukaop.org.uk/