(23) Mail Online US almost doubles advertising growth

Link: http://www.theguardian.com/media/2015/nov/25/mail-online-us-almost-doubles-advertising-revenues

Summary:

The popularity of Mail Online’s US site is starting to translate into meaningful revenue with advertising growth of more than 60% in the last eight weeks – almost double the rate it has seen over the last year. “The US is the standout story in terms of growth,” said Stephen Daintith, finance chief at DMGT. “Over the last year there has been a concerted effort to raise the trade profile, the ad agency profile, of Mail Online in the US. There has been lots of TV coverage, much more than we see in the UK, which has raised awareness among media agencies and in their [advertising] buying schedules. The [scale of] audience in the US is now starting to deliver the rewards we expected.” He added that initiatives such as a tie-up with Snapchat’s Discover service, which sees 10 stories carrying ads, and the development of e-commerce revenues have started to pay off.

Key data/statistical information:

• Mail Online derives 40% of its 212 million monthly unique users from US readers, more than view it in its home market in the UK, but to date the site’s scale has not been matched by the potential of advertising revenue generation.
• The US site experienced 38% year-on-year revenue growth in parent company DMGT’s financial year to the end of September, making about £18m in advertising for the period.
• In the first eight weeks of its new financial year, Mail Online US has seen advertising revenue surge by 64%.
• It is perhaps the growth surge of the US-site that leads Daintith to hang on to the possibility of making £100m in ad revenues by the end of September 2016.
• Mail Online missed its 2015 target of £80m, it made £73m in the year to the end of September, as year-on-year growth slowed from 41% to 18%.
• Mail Online derived about 66% of its £73m in total revenues from the UK in the year to the end of September, with 25% coming from the US and 9% the rest of the world.

What's my view?

I think that advertising is a kay part in making money and increasing popularity in todays new and digital media world. I find that it potentially be a unique way in which news can continue to thrive.