Digital news media revenue continues to grow at a faster rate than the market, rising 8.5 per cent to $120 million in the third quarter and outpacing the total agency digital market, which declined by 4.5 per cent.
In addition, programmatic ad revenue jumped by 44.5 per cent in the third quarter to $12.1 million and the sector now attracts 13 per cent of all programmatic revenue in the market.
In print, revenue from newspaper-inserts, such as catalogues, grew by 7.9 per cent in the same quarter.
Unlike the monthly SMI data which reports agency only revenue, the quarterly News Media Index reports all print and digital ad revenue to Australia’s largest news media publishers from both agencies and direct advertisers and is independently verified by SMI.
“The News Media Index shows that publishers are growing their digital and programmatic share of ad revenue as we see a flight to quality, trusted content as concerns over disreputable sites, dubious content and fake news builds momentum. Advertisers can be guaranteed of brand safety in news media, which is why our publishers are the most trusted media channel for both content and ads,” NewsMediaWorks CEO Peter Miller said.
“It’s instructive that direct advertisers have greater confidence that news media works well, while the media agency market view differs. The fact is that news media continues to deliver large, highly engaged audiences who trust their preferred news source and adjacent advertiser messages.”
SMI AU/NZ Managing Director, Jane Schulze, said it was clear that advertisers are voting with their feet to significantly grow their investment on high quality news websites.
“This also means the news media industry continues to lead all media in the transition to a hybrid digital revenue model, with digital representing 23.8 per cent of all news media revenues in the third quarter of 2017, compared to 19.8 per cent for the same quarter a year ago,’’ she said.