• by Ray Schultz , Columnist, December 13, 2023

Digital publishers, which now includes almost everyone in publishing, had a pretty good third quarter, judging by the Publishers’ Revenue Index (DPRI) from the Association of Online Publishers (AOP) and Deloitte. 

Of those polled, 58% saw growth YoY. However, overall digital revenue was down by -0.5% in Q3 YoY for a global total of £153 million, according to the small UK-based survey. 

There were notable declines in display formats (-4.2%), video (-14.3%), and sponsorships (-25.9%). But subscription revenue of 11.7% largely made up for these losses. 

“Despite a more subdued quarter for digital publishers, with a slight drop in growth year-on-year, there are still positive signs across sectors of the industry,” says Andy Cowen, lead partner for telecommunications, media and entertainment at Deloitte. 

Cowen continues, “Particularly encouraging are the green shoots of growth across digital audio which, although still a smaller revenue stream, has grown 500% year-on-year. This is a sign of ongoing diversification of revenue across the publishing industry and demonstrates consumer appetite for content across various platforms.” 

U.S. publishers worried about their revenue might see a portent in these findings. 

Multi-platform revenues grew by 10.5% YoY. But mobile sustained a 30% contraction and desktop revenues fell by 16.7% during the quarter. 

At the same time, display revenues grew in the multi-platform category by 3.9%. Mobile saw a 4.7% falloff, and desktop 18.1%. 

Video revenue was consistent across these categories, except in the B2B vertical, where video jumped by 50% despite a 5% decline in B2B overall. 

Meanwhile, all B2B brands have set new products and services as a priority. In addition, 75% cite increased cashflow, while 66% hope for non-advertising revenue 50% seek cost reductions and 33% aim for acquisitions.  

In contrast, only 50% see advertising revenue growth as a priority, down from 75% in Q3 2022. 

“Subscription revenues now account for almost a third of total publisher revenues, and by current trends, it could hit this milestone within a couple of quarters,” says Richard Reeves, managing director at AOP. “Decoupling revenues from the ups and downs of advertising spend can provide a greater degree of financial security, though this cannot be a solution for all properties.” 

Reeves adds, “Though overall revenues are flat, an increasing proportion of respondents reported year-on-year growth, at 58% in Q3, up from 50% in Q2 and 36% in Q1. This shows us there are extreme gaps in fortunes between individual publishers, and I urge a spirit of collaboration so that we can learn what is working for some and apply their success to the rest.” 

The report is is based on a survey of 13 UK digital publishers comprising nine B2C publishers and four in B2B.