Digital publishers struggle to monetise mobile ads
According to the Digital Publishers Revenue Index Report from the Association of Online Publishers and Deloitte, mobile spending was lower between Q1 and Q2 2015. Growth in mobile revenue decreased from 80% to 21.5% during the first half of the year. At the same time, Facebook and Google rushing to dominate the digital ad market makes it even harder for publishers to push through.
Tim Cain, Managing Director, AOP, says:
“The Q2 report once again highlights that advertising revenue reflects the increasing consumption of media on mobile and will remain a key focus for publishers during the next quarter. Publishers and advertisers alike need to recognise the impact of cross device, particularly mobile, when planning budgets and understand the value different devices hold along the path to purchase.”
However, the data also highlighted that spending on smartphones continued to rise at 44% whilst tablet spend dropped by 9%. Digital ad revenues were up 5.9% overall. Equally, publishers remain positive on their outlook for digital revenues. All 23 AOP members said they expect growth within digital advertising over the coming year.
Howard Davies, Media partner, Deloitte, adds:
“Publishers are now aiming to achieve growth through increasing advertising revenue rather than simply cutting costs. The optimism surrounding digital marketing is refreshing to see. This sea-change is largely down to the continuing growth of mobile and video advertising revenue that has been prevalent in the last 12 months and looks set to continue.”
Given the fast rise of smartphone ownership, publishers will need to confront the issues they may face with mobile advertising, such as formats and difficult campaign tracking methods, without interrupting the user experience.