Summary:
The owner of the Daily Mail has said that Mail Online boosted its ad revenues by 27% in the final three months of last year, as it announced that the paper is to increase its cover price for the first time in three years. Mail Online’s 27% boost in the final quarter is a promising sign, particularly given at one point last year its growth rate fell to single digits as the entire digital newspaper ad market faltered. DMGT announced on Thursday that the Daily Mail is to increase its cover price from 60p to 65p from 1 February, its first increase in three years.
Key data/statistical information:
- Daily Mail & General Trust reported on Thursday that Mail Online, which missed its £80m annual revenue target last year, had a growth rate of 16% in the year to the end of September
- The website saw digital ad revenues grow by 17% in the UK and 66% in the US in the three months to the end of December
- Elite Daily, the US-based news and entertainment website popular with 18- to 34-year-olds that DMGT acquired a year ago, saw ad revenue growth of 211% in the final quarter
- Advertising across the Mail business as a whole, including print and digital, was down by 3%
- DMG Media, the division which includes the Mail business, Metro and Elite Daily, said that in the four weeks since 27 December total underlying ad revenues are down 12% year on year
- Print revenues fell 20% in the four-week period, while digital grew by just 11%
- DMG Media said it still expects to deliver stable underlying revenues in the range of -2% to +2% for its financial year to the end of September
What's my view?
I'm not sure if people are going to be too pleased to see the price increase especially considering the factor that we live in era where people can get 24/7 news on-line for free. However, it is nice to see that Mail Online is making progress as it is a platform that I think the Daily Mail should really focus on as, today, people prefer reading their news on-line.
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