Feeds

Tacky mobile ad networks could kill publishing, survey shows

Audience are leaving, but their dollars don't follow

  • alert
  • submit to reddit

The Power of One Infographic

As if they haven't got enough to worry about: magazines and newspapers are seeing audiences migrate to mobile, but the advertising revenues they need to keep their publications running just aren't following.

Traditionally, advertising eventually catches up with where the audience is – but on mobile, it hasn't. The anxiety is reflected in the UK Association of Online Publishers' (AOP) bi-annual survey - with advertising agencies getting the blame.

More than half of the 1,500 titles surveyed (55 per cent) blamed the ad agencies' reliance on "low value ad networks," according to AOP director Lee Baker, who thinks "ad agencies' attitudes rather than audience size are holding back revenue growth."

He adds: "Buyers have had their fingers burned."

Other factors for the immaturity of mobile advertising are the lack of metrics. It's difficult to measure how well an ad campaign is doing on mobile today, and advertisers have come to expect campaign data.

"We have have real time bidding exchanges for display - that needs to catch up on mobile," says Baker.

Advertising isn't the only source of revenue; iPad and mobile subscriptions are also a revenue stream. But the industry is hampered by the lack of a common platform that makes signing up to your favourite reads painless and easy. Amazon and Apple offer such a platform – but then gouge the publisher for 30 per cent of revenue.

For Baker, though, the Apple or Amazon tax isn't the biggest issue for publishers: it's the fact that the Walled duo are hoarding subscriber data.

And publishers aren't the only ones hurting; the growing realisation that mobile is hard to monetise was a factor behind the crash in Facebook's stock price. ®

The Essential Guide to IT Transformation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.