Video Drives Publishers' Digital Ad Revenue Growth in the UK - eMarketer

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Video Drives Publishers' Digital Ad Revenue Growth in the UK

Video ads important for digital publishers

January 9, 2014

December 2013 data from Deloitte and the Association of Online Publishers indicated that publishers in the UK were seeing strong increases in digital advertising revenues. Indeed, year-on-year growth in Q3 2013 was 18.0%—the highest since Q2 2010.

Digital video ad revenues saw a particularly strong gain of 33.3%—the sixth consecutive quarter that video was the fastest-growing segment. This is somewhat unsurprising, given that increasing amounts of digital ad budgets are going to video in general.

UK Digital Publisher Ad Revenue Growth, by Format, Q3 2013 (% change vs. same period of prior year)

eMarketer forecasts that, following an explosive increase of 83.4% in UK digital video ad spend in 2013, further strong growth in this format will continue into 2014, when it’s set to rise 70.8%. Gains in video ad spend will continue to outpace that for other formats throughout the forecast period.

All this comes against the general background in the UK publishing industry of rising digital readerships. Data released in August 2013 by the National Readership Survey showed how some newspaper and magazine publications were seeing huge uplifts in readership when online consumption was included—The Guardian newspaper, for example, had more online readers than print readers.

Average Weekly Print & Online Readers in Great Britain for Select Newspapers/Magazines, June 2013 (thousands)

The logic for publishers in the UK is fairly straightforward: Digital readership is becoming more prevalent, and digital ad spend is increasing as a result (particularly on video). So, a rise in digital video ad revenues is an obvious outcome.


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