Web publishing sales up by third as young take paid subscriptions

YOUNG readers snapping up online subscriptions to newspapers and magazines have helped digital publishing sales jump by nearly a third.

Digital publishing revenues rose by 32pc to £152m in the first three months of this year, according to data from the Association of Online Publishers (AOP) and Deloitte.

Most of the sales came from online display advertising, which climbed 5pc higher to £53.6m over the period.

However, subscription revenues surged by 49pc compared to the first quarter of last year.

Dan Ison, the lead telecoms, media and entertainment partner at Deloitte, said the level of subscription growth in the first quarter was “staggering”, compared to the 4pc rise seen two years ago.

“New data from Deloitte’s Digital Consumer Trends research highlights that consumers aged 18-24 are the most likely age group to have access to a paid news-site or magazine subscription.

Galvanising loyalty particularly among this age group should continue to be a key priority for publishers in the year ahead, alongside the development of content formats that appeal to new readers and subscribers.”

Business confidence remained strong across the industry, as total digital sales rose 10pc to £517m over the past year.

Digital advertising edged 2pc higher,

while online video and recruitment publishing fell by 23pc and 47pc respectively since 2020.

Meanwhile, 78pc of AOP board members said cost cutting would become a “high priority” for the year ahead despite the strong performance.

Media executives are turning to online subscriptions to build sustainable business models for the digital age as they struggle to claim a substantial share of the online advertising market from Google and Facebook.

Future, the magazine publisher behind Country Life, bought a string of titles including The Week for £300m last week in an attempt to strengthen its subscription business.

Both business and consumer titles recorded double-digit growth in digital revenues during the first quarter, the report found.

Digital sales at consumer titles climbed by 34pc to £139m in response to a 64pc rise in subscriptions.

Richard Reeves, the managing director of AOP, said: “The rapid increase in digital revenues across almost all categories is extremely heartening, especially after the lows of last year.

“With substantial growth in subscriptions, it’s great to see publishers continue to innovate and expand their offerings alongside digital advertising.”