Tuna Cetin
Total digital publishing revenue in the United Kingdom increased by 3% year-over-year to £176.9 million ($213.6M) during the last quarter of 2022.
That’s according to the most recent Digital Publishers’ Revenue Index (DPRI) from the Association of Online Publishers (AOP) and Deloitte.
In Q4 2022, publishers experienced the most significant growth in subscriptions, which increased by 12.9% year-over-year despite the economic challenges facing consumers.
While display advertising and online video revenue decreased slightly by 0.1% and %1.9% respectively, sponsorship revenue dropped by 24% Y/Y.
Meanwhile, revenues of recruitment classifieds and other classifieds, which were the growth leaders of the previous quarter, decreased by 3.6% and 10.7%.
The study showed that the shifting trend from desktop-only to mobile devices continued in the last quarter of 2022. While mobile revenue rose by 16.7% in Q4, desktop revenue fell by 9.5%.
On the other hand, multiplatform revenue experienced a 3.7% increase, primarily due to the remarkable growth of video (33.3%), subscriptions (12.9%), and display advertising (8.1%).
| UK Digital Publisher Revenue (based on revenues for AOP publisher members) | MAT to Dec 2022 vs. MAT to Dec 2021(% change) | Q4 2022 vs. Q4 2021(% change) |
| Total DPRI revenue | 4.4% | 3.0% |
| Display advertising | 16.6% | 0.1% |
| Subscriptions | 11.3% | 12.9% |
| Online Video | -0.5% | -1.9% |
| Sponsorship | -17.4% | -24% |
| Recruitment | 16.9% | -3.6% |
| Other Classified | 1.8% | -10.7% |
| Miscellaneous | -28.6% | 49.6% |
The Q4 2022 DPRI report also revealed that total digital revenues reached £637.7 million when considering a 12-month rolling period, up 4.4% from Q4 2021.
In addition, a significant proportion of publishers (75%) that participated in the survey said that they are prioritizing cost reductions, suggesting that the effects of economic pressures are now being felt more. This represents an increase from 50% in Q4 2022.
However, the report also revealed an increase in optimism towards advertising revenues, with 75% of respondents expressing confidence in the category, up from 50% in Q4 2022.
“It is reassuring to see that there is optimism amongst publishers, with 75% confident in the outlook for advertising revenues compared to just half at the same time last year,’’ said Dan Ison, Deloitte’s media, entertainment and technology partner.
“Many consumers remain committed to their subscriptions, despite tighter budgets as a result of higher cost of living,’’ he added. ‘’It is evident that the appetite for exclusive content remains intact, making it even more important for digital publishers to continue to prioritise consistent, high quality outputs to maintain consumer interest and drive growth.”
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