Online video growth slows but signals market maturity

Online video revenue has increased to 23% in the in the second quarter of 2014 compared to the same time last year, yet represents the slowest growth in the last 12 months, reveals new research.

Data from the Deloitte and AOP Digital Publishers Revenue Index Report indicates that the sector is beginning to mature as the market growth slows down.

“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.”

Mobile and tablet subscriptions have driven advertising revenues, as UK publishers expanded by 9.1%.

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.”