Total digital publishing revenue was up 31% in the third quarter of 2021 compared to the same period last year and reached GBP 149.4 million, UK-based Association of Online Publishers and Deloitte reports. 84% of the association’s board members report positive revenue growth. Respondents say new products are a priority.
The report says that despite a majority of respondents declaring continuous revenue growth, AOP board member confidence has fallen slightly, both in terms of the publishing industry as well as their company’s financial prospects.
“However, there is a suggestion of recovery in the fact that 100% of respondents considered new products to be a priority in the next 12 months— up from 55% in comparison to Q3 2020 — while cost reduction targets are taking a backseat, with 33% of publishers citing this as a priority, in comparison to 55% who said the same in Q3 2020.”
The report says display advertising remains the largest category by revenue for publishers, achieving growth of 29.8% to GBP 59.8 million in Q3 2021, in comparison to the same period in 2020.
“The continued impressive growth of sponsorship revenues, which increased by 69.9% compared to Q3 2020, marks another notable development.”
Subscription revenues rose by 24% in Q3 2021. Smartphone and tablet devices, as well as online video revenue saw substantial growth from Q3 2020 to Q3 2021, increasing by 86.6% and 304.2% respectively, the report says.
“Revenues from digital audio, incorporating internet radio and podcasts, reported a surge of 520.6%, with revenues catapulting from GBP 0.6 million from September 2020 to GBP 3.4 million in September 2021.”
B2B and B2C publishing revenues experienced growth both on a twelve-month rolling basis and as a year-on-year change. B2B revenue increased by 15.5% in Q3 2021 compared to Q3 2020, with a moving annual total of 5.3% equalling £49.8 million.
B2C increased 32.8% relative to Q3 2020, and a moving annual total of 22.5% to September 2021.