• by Ray Schultz , March 21, 2024

Here are some results from U.K. publishers that could be mirrored in the U.S.

Overall digital revenue fell by 1.8% in Q4 2023 despite strong growth in the subscription, audio and sponsorship areas.

The reason was a 17.2% decline in advertising sales, according to the Digital Publishers’ Revenue Index (DPRI) from the Association of Online Publishers (AOP) and Deloitte.

Overall revenue totaled £174 million. 

“This quarter’s results are a wakeup call suggesting that relying on display revenues is a risk for publishers, as subscriptions continue growing year-on-year,” says Andy Cowen, lead partner for telecommunications, media and entertainment at Deloitte.

Cowen adds: “Audio meanwhile is a small but bright star, recording a 300% increase this quarter, following a 500% increase the previous quarter. Should this trend continue, this currently modest category could become a key revenue driver, and should be a priority for publishers seeking diversified, incremental growth.”

At the same time, subscription revenue jumped by 10.3% and sponsorships by 31.1%. 

But video advertising, which makes up only 4.6% of total revenue, fell by 24.5%.

Half of all publishers reported revenue growth in Q4, but 75% are focused on cost reductions, up from 50% in the prior quarter. 

The Q4 2023 DPRI report is based on a survey of 13 U.K. digital publishers, including nine B2C publishers  and four B2B publishers.