The Association for Online Publishing (AOP) recently released a report regarding website advertising performance during Q3 in 2017. The report detailed several positive findings, namely a substantial climb in publishing revenues. The figure totalled 6.7% in growth overall compared to 3% for the same period the prior year.
The Digital Publishers Revenue Index (DPRI) report attributed the revenue increase to display advertising performance and subscriptions, which increased 37% and 21% when compared to Q3 2016. Year on year the two have increased by 18% and 11% respectively. Annual growth in digital publishing continues to remain on an upward trajectory with online video commanding a prominent 34% increase over the last 12 months.
Concerns were raised last quarter among AOP board members, but those anxieties have been allayed as a result of the recent findings. A recent Deloitte quarterly survey further served in reassuring cross-industry CFOs. Lead partner for media and entertainment at Deloitte, Dan Ison, commented on the findings, “Publishers are starting to benefit from adapting their business strategies to meet with changing media consumption habits. By the end of 2018, we expect around half of the consumers will have at least two online-only media subscriptions, ranging from video on demand to news and magazines, rising to four by the end of the decade.” On the topic of digital subscriptions and their relationship with consumers in the coming months, he had this to say, “The growth of digital-only subscriptions demonstrates that consumers are increasingly willing to pay for content online.” As consumers begin shifting their media habits away from a service-based relationship with publishers towards a subscription-based one, Ison asserts that publishers, “are starting to benefit from adapting their business strategies to meet with changing media consumption habits.”
Increase In Online Subscriptions
It is reasoned by Ison and his colleagues that by the end of 2018 half of all consumers are expected to commit to at least two online-only media subscriptions, be-it in the form of on-demand entertainment, news, or magazines. That number is expected to rise two-fold by the end of the decade. The trend reinforces the notion that consumers are increasingly likely to pay for subscriptions to online-only services. By incorporating these trends into your publishing approach alongside the proven strategies provided by industry consultants, such as AdMetricsPro, you can remain on top of trends and not only maintain steady revenues, but further increase your income as a result.
Increase in Mobile Activity
Mobile devices are increasingly becoming a platform relied on by consumers of digital content. Digital inventory geared towards smartphones and tablets marked a 52% increase in revenue overall, up 11% from the same period the following year according to the DPRI survey. Managing director at AOP, Richard Reeves asserted, “Once again we are seeing subscriptions, display and video leading revenue growth, highlighting the way publishers are adapting their priorities in line with industry trends and consumer behavior.” When the issue of ad-blocking technology and the recent surge in fraudulent ad inventory in regard to the future efficacy of digital advertising was raised, Reeves countered, “The digital publishing industry continues to face challenges relating to ad blocking and ad fraud, so it’s very encouraging that optimism on financial prospects saw an increase in Q3 2017, and – through new industry initiatives and greater collaboration – we hope to see this trend continue.”
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