Digital audio revenues up by 520 per cent as publishers show ‘continued determination’
A new report published today shows a 31 per cent boost in publishing revenues in the third quarter of 2021 to £149.4m thanks to a colossal rise in digital audio, as well as the continued determination of publishers.
The latest Digital Publishers’ Revenue Index from the Association of Online Publishers (AOP) and Deloitte has revealed sustained growth in digital publishing revenues, with 84 per cent of AOP board members reporting positive revenue growth.
Display advertising remains the largest category by revenue for publishers, achieving growth of 29.8 per cent to £59.8m in the third quarter, in comparison to the same period in 2020. The continued impressive growth of sponsorship revenues, which increased by 69.9 per cent, marks another notable development.
Revenues from digital audio, incorporating internet radio and podcasts, reported a surge of 520.6 per cent, with revenues catapulting from £0.6m from September 2020 to £3.4m in September 2021.
Dan Ison, lead partner for telecommunications, media and entertainment at Deloitte, commented on this: “After withstanding the challenges of 2020, the digital publishing market has triumphed in 2021. The colossal rise in digital audio revenue comes as smart speaker adoption continues to grow. We know that 35 per cent of consumers now have access to a smart speaker, up from 29 per cent in 2020, with podcast and internet radio audiences also growing steadily. Digital publishers are finally tuning in to the new opportunities that audio channels offer.”
Subscription revenues have also seen year-on-year growth, rising by 24 per cent. Meanwhile, smartphone and tablet devices, as well as online video revenue saw substantial growth from the same period last year, increasing by 86.6 per cent and 304.2 per cent respectively.
Despite a majority of respondents declaring continuous revenue growth, AOP board member confidence has fallen slightly, both in terms of the publishing industry as well as their company’s financial prospects. However, there is a suggestion of recovery in the fact that 100 per cent of respondents considered new products to be a priority in the next 12 months, while cost reduction targets are taking a backseat, with 33 per cent of publishers citing this as a priority, in comparison to 55 per cent who said the same in 2020.
Richard Reeves, managing director at AOP, added that the figures represented publishers’ “continued determination” in the face of ongoing challenges.