The Organisation Census captures the mood and intention of the UK publishing industry across a number of areas including investment, structure and future challenges for the forthcoming twelve months. A total of 35 organisations, representing some 1500 respected publisher brands and publications, from AOP Board, Associate and Affiliate membership completed the survey this year. Additionally, qualitative interviews were conducted with AOP Board and Affiliate members. AOP members represent the broad range of newspaper and magazine publishing, TV and radio broadcasting and pure online media in the UK.
Publishers Optimistic
Lee Baker, director of AOP said: “UK online publishers are optimistic about their businesses for the coming twelve months. We are encouraged by the feedback from our members for this year’s Organisation Census, as the industry is actively honing businesses models. Publishers are taking advantage of overseas and specialist markets; developing apps and digital editions; and experimenting with technology and confidently embracing new formats and multi-platforms for distribution of their product and content. The proliferation of devices over the past few years – and more importantly growing consumer adoption of these platforms - has propelled us into an era that is exciting publishers as they take advantage of the most significant developments in technology in publishing since the invention of the printing press.”
Editorial Revitalised
Diversification was prevalent as nearly three quarters of publishers surveyed expect to expand the number of products within their digital portfolio in the next twelve months, due to the adoption of new technology and platforms. Consequently, content, especially editorial, has been revitalised by delivery across new and multiple platforms to new or existing audiences; and publishers continue to cite advertising as a key and healthy revenue generator for online businesses.
Investment
Over three quarters of respondents expect to increase investment in their businesses this year, but acknowledge the main challenges are managing growth and showing a return on investment. Leading the challenges to development is that of successfully managing CMS and API changes, which was highlighted by one in two publishers and is necessary to improve workflows and deliver efficiency in the drive to deliver platform agnostic content.
Technology
Publishers are expanding their portfolios of product offerings by increasing their external partnerships or outsourcing around the area of mobile and apps for smartphones and tablets. The key areas for growth in technology investment, according to respondents, are led by mobile and apps (91%), data (63%) and social media (63%). Video is an important medium for publishers, as content or advertising, as 56% of respondents say that video investment will grow in 2011.
Revenue
Advertising is the largest revenue generator for publishers; with display advertising the top priority area of growth. Half of the publishers surveyed say display is their number one priority, and 83% rank it as a top 5 priority. The Top 5 priorities for growth are: Display (83%), Sponsorship (71%), Mobile (68%), Data (54%), eCommerce & Affiliate (51%).
The value of data is a key theme in this year’s census as publishers seek to maximise the value of their audience data commercially through ad targeting and lead generation but also seek to deliver high value information services. That can be from existing rich content, especially in specialist markets where there is a strong audience need, or by acquisition or partnership of other data rich information businesses. Overall, 63% of publishers are quite or very likely to introduce more paid-for elements into their portfolio in 2011 by moving into new content areas and platforms as opposed to locking down existing content.
Staff / Structure
Staffing levels are bouncing back to pre-recession levels as 73% of publishers surveyed said they expect to increase staff numbers in 2011, (80% in 2007; 55% in 2008; 34% in 2009, 53% in 2010).
The top areas of staff growth are advertising sales (47%); apps development (41%); database and data analysis (38%); SEO (34%); mobile development (31%) – a clear emphasis on revenue-generating roles. There is still a strong bias towards investing in training: with 49% of publishers expecting to grow investment in training, and 49% of publishers maintaining investment at the same level as last year.
Summary
The Census results show that this will be a year of experimentation and expansion. Publishers are in an R&D phase, as likely to launch new products as they are to develop the existing business, and we should also expect to see plenty of acquisition activity ahead too. Revenue diversification is the mantra, and new digital channels led by apps and digital editions and mobile sites will be central planks of the strategy for most this year.
The focus on staff acquisition and investment in skills training is being driven by the need to introduce new skill sets as businesses focus on the development of new channels and deepening their customer understanding, with roles expanding in apps and mobile development, database and data analysis and, of course, ad sales which will always be a priority as a primary revenue generator.
Despite the emphasis on diversifying revenue streams, the great majority of publishers still consider the ad model will continue to be their priority focus for revenue growth and while advertising may be volatile, when markets improve there’s belief that it will continue to deliver good growth opportunities.
About the survey
The AOP Census, currently in its ninth year, is an annual survey of AOP members’ businesses to provide an insight into the digital publishing industry, and provide a benchmark for members. The survey, fieldwork, analysis and management of the AOP Organisation Census was conducted by Tim Cain, head of research and insight at AOP in February 2011. This is the third year that the Census has been split into an ‘Organisation’ survey published in Spring, and a ‘Content & Trends’ survey due to be published in Summer 2011.
