Data reveals increase in digital publisher revenues, bolstered by subscription growth

Published: 25 Sept 2024

Fall in display revenues compensated by growth across multiple revenue streams, finds data from AOP and Deloitte

London, UK, 24 September. The latest Digital Publishers’ Revenue Index (DPRI) from the Association of Online Publishers (AOP) and Deloitte reveals continuing diversification in revenue streams, with growth across multiple categories compensating for ongoing decreases in display advertising revenues. Overall, digital revenue for Q2 2024 increased by 2.5% year-on-year (YoY) compared to Q2 2023, for a total of £159.9 million.

The trend of increasing subscription revenues continues, growing by 10% YoY for a total of £50.8 million- almost a third of total revenues for the quarter. Display, though still the largest revenue category at £62.4 million, decreased by 8.5%, bringing the gap between display and subscription revenues closer than ever as publishers continue to reduce their reliance on advertising.

Other revenue categories also saw significant growth, with digital audio increasing by 36.8%, off-platform by 108.7%, and “miscellaneous” by 44.3%. Data monetisation is included within the “miscellaneous” category — which accounted for £11.4 million in revenues in Q2 — and the reported revenue increase is likely to be a result of deals with AI companies.

When dividing revenues by platform, mobile and desktop-only decreased at almost exact rates — 17.2% and 17.1% respectively — while multi-platform revenues increased by 8.8%. Following years of similar results, multi-platform now accounts for 80.4% of total revenues as platform-specific revenues consistently diminish.

Though revenues grew in Q2, only 35% of respondents reported positive growth, indicating that growth is highly concentrated among the top performers. When asked about sources of future growth, 100% of respondents see advertising, products/services, cost reductions, and acquisitions as high priorities, while 50% will be prioritising non-advertising revenues.

Andy Cowen, lead partner for telecoms, media and entertainment at Deloitte, said: “The ever-shrinking gap between display and subscription revenues for publishers is a sign that the industry has taken a permanent turn towards a different model for growth. The significance of subscription revenues, along with other categories such as digital audio, appears to be the ‘new normal’, representing a consumer that prioritises consistently engaging content. With AI investment becoming increasingly attractive for businesses, it will be interesting to see how publishers use this technology to make their content even better.”

Richard Reeves, Managing Director at AOP, commented: “This quarter’s results will be familiar to anyone tracking the DPRI reports, as it continues the trends that have defined recent years: ongoing diversification of revenues, reduced reliance on advertising, and the success of the subscription model. Now, if publishers are canny in their negotiations with AI companies, we may see yet another stream for revenue diversification emerge.”

-ENDS-

Notes to Editor

UK Digital Publisher Revenue (based on revenues for AOP publisher members) AOP & Deloitte DPRI report
	MAT to Jun 2024 vs. MAT to Jun 2023 (% change)	Q4 2023 vs. Q4 2022 (% change)
Total DPRI revenue	0.1	2.5
Display advertising	-10.9	-8.5
Subscriptions	9	10.0
Online Video	-13.3	-3.6
Sponsorship	3.6	-9.0
Recruitment	-30.6	-24.0
Other Classified	33.6	32.1
Miscellaneous	78.6	44.3
Off Platform	-21.3	108.7

About the DPRI Report

The Q2 2024 DPRI report — conducted by AOP and Deloitte — is based on a survey of 13 UK digital publishers comprising nine B2C publishers and four B2B publishers. The aim of the report is to provide an overview of revenue levels across multiple channels and platforms — as well as insight into publisher sentiment — and to benchmark these findings against previous quarters.

While the DPRI revenue index records a look-back of data over Q2 2024; the publisher sentiment index considers Board member observations given in Q3 2024 to provide a timelier understanding of current feelings. This is a reporting change implemented in 2019.

The information contained in this press release is correct at the time of going to press.

About Association of Online Publishers

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

www.ukaop.org.

About Deloitte

In this press release, references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

For more information, please visit www.deloitte.co.uk.