UK Online media monetisation

Report Overview

UK Online media monetisation

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UK Online media monetisation
The commercial challenges for media online are well-documented: online advertising pays for utilities such as search and social networking many times over, but not for media beyond user-generated content and low-investment journalism
There are also costs from a user perspective: wasted time, harmful content created to attract views, and the collection, sale, use and frequent leakage to criminals of personal data
Different sectors have found varying success with alternatives: games, video and music are attracting user payments, driving the paid online economy up 15.5% to £8.2 billion in 2018

Contents

Introduction: diverse business models in online media

Online economy overview

  • The online content economies: advertising still rules, but user spend is growing
  • Most ad spend does not fund content directly, and most user spend is on videogames
  • Facebook, Google, and Google’s distribution partners are the beneficiaries of online advertising
  • The move online has cost media more ad money than it has provided

The costs of free

  • ‘Free’ business models have consumer costs: privacy, security, and attention
  • The ad-funded platform surplus reflects the value of user data
  • Privacy and security: people want to keep control of their data
  • The iPhone safe haven?
  • Apple is offering more secure services

Free vs paid in different media

  • The Anna Karenina principle of app stores: free (to download) is the only game in town
  • Paid online video is growing, and avoids some of the issues of video-sharing platforms
  • Considering the cost of zero-price video
  • Some news will always be free; payments can be motivated with the right product and message
  • Games are the payments success story, but some of this reproduces advertising’s user harms

List of charts/tables

Figure 1. Online economy, UK (£bn)

Figure 2. Penetration of payments for online media

Figure 3. Advertiser spend, UK (£bn)

Figure 4. User spend on online content, UK (£m)

Figure 5. Google ad revenue by type of site ($bn)

Figure 6. Share of UK online ad spend (gross of TAC)

Figure 7. Google Traffic Acquisition Costs ($bn)

Figure 8. Change in advertising spend since 2015 by media (£m)

Figure 9. Perception of extent of smartphone usage (% smartphone owners)

Figure 10. Example of consent management tool post-GDPR

Figure 11. % of respondents willing to give up service for a month at price offered

Figure 12. Monthly cost* and ad revenue per MAU by company in 2017 ($)

Figure 13. Data/privacy online by age, June 2018 (% of UK internet users)

Figure 14. Comfort with sharing personal data with a mobile service, 2017 (%)

Figure 15. Avg. data requests per hour* mobile operating system and collector

Figure 16. iPhone ownership by household income, 2018 (% smartphone owners)

Figure 17. Time/user of smartphone services by OS, UK Sep 18 (minutes/month)

Figure 18. Apple gross margin %, Q1 2019 per segment

Figure 19. Share of top iOS apps in the US by type of app

Figure 20. Reasons for using SVOD services, UK Q1 2018

Figure 21. Household penetration of SVOD services, UK

Figure 22. Average video viewing, all UK children aged 4-15 (mins/day)

Figure 23. Number of visits to MUSO-tracked* piracy sites in 2018 (bn)

Figure 24. Average number of trackers on mobile pages by publisher

Figure 25. Reasons for not paying for online news, 2018

Figure 26. Online consumer spend on content, 2018 (£bn)

Figure 27. Online consumer spend on content 11-16 year olds who gamble in-game items by age, GB 2017