Research into advertising revenues by the UK association of online publishers (AOP) and professional services firm, Deloitte, were announced today. Included in the report is a breakdown of how various digital advertising formats are currently faring.
Video is rapidly becoming more profitable for digital publishers. There has been a 56% increase year-on-year in respondents reporting growth in the channel. Other digital media formats aren’t so swift, with display’s 13% rise some way off video in second place.
Two thirds of respondents (66%) have experienced positive total advertising growth in the first quarter of this year across all channels. It’s the biggest movement the industry has witnessed since Q3 2011.
B2B Falls Behind B2C
Business to business (B2B) advertising growth has dwindled since last year thanks to a slowing in display. For the first three months of 2013 there was just 2% improvement, down on Q1 2012’s 6% increase.
Elsewhere in the sector, business to consumer (B2C) achieved 20% growth in Q1 2013, compared to 8.7% in Q1 2012. Deloitte media partner, Howard Davies, believes data is responsible for the contrasting fortunes of B2B and B2C.
“The differences between B2B and B2C sectors are perhaps starker than some would expect, but probably reflect the shift in the B2B sector towards more data-driven revenues,” Davis reasoned.
Ad Revenues Climbing
The figures, part of the Digital Publishers’ Revenue Index, show how UK digital publisher advertising revenues are up year-on-year to 16% in Q1 2013. All survey participants are expecting digital ad revenue to climb for the current quarter.
The AOP’s head of research and insights, Tim Cain, is forecasting a stronger period for the near future. “Q1 results actually indicate a strong upside for publishers,” he said. “This has fuelled a more positive expectation for the coming twelve months.”
AOP board members appear to back Cain’s assertions with their own priorities. Being able to make more revenue from advertising is of great importance to 92.3% of the respondents and their respective businesses.