Online video revenue up 23%, the slowest growth in 12 months as market begins to mature

Online video revenue was up 23 per cent in the second quarter of 2014 compare to a year previous, according to the Deloitte and AOP Digital Publishers Revenue Index Report.

However, this figure represents the slowest growth that online video has seen in the last 12 months, with the study suggesting that this is an early indication that the sector is beginning to mature.

“The growth rates in the core advertising categories reflect a maturing market,” said Tim Cain, head of research for the AOP.

“Whilst mobile advertising continues to grow strongly, the challenge remains to develop revenues at a higher level per impression.”

Total digital advertising revenues from UK publishers were up 9.1 per cent in the second quarter driven largely by mobile and tablet subscriptions and advertising, up by 69 per cent from 60.8 per cent growth in the first quarter of 2014.

Tablet revenues made up 60 per cent of the total mobile revenues in the second quarter of 2014; suggesting users are favouring a bigger screen experience for quality publications.

Howard Davies, Deloitte media partner, explained: “Publishers continue to embrace mobile as a platform and they are being rewarded with strong growth figures. We are seeing online publishers embracing flexible pricing options to make the most of this growing revenue stream.”

Desktop video similarly noted a 23.2 per cent increase in revenue from a year previous, as did recruitment ( 18.7 per cent). However, revenue generation from sponsorship dropped 14.2 per cent compared to a year previous.

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