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.
According to the data, 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.”
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