Picture: Shutterstock/The Kong
Display advertising revenue growth has been reported by a survey of leading UK online publishers for the first time in three years.
The “unexpected” growth of 3.88% saw display advertising return to being the largest revenue category in the Digital Publishers’ Revenue Index in the third quarter of 2025 after being overtaken by subscriptions in Q1 2025 (and evenly matched in Q2).
A more nuanced approach to brand safety from advertisers, an increase in direct-sold deals, diversification of ad formats and efforts to meet demand outside the UK were suggested as potential reasons for the return to growth.
The Association of Online Publishers and Deloitte compile the Digital Publishers’ Revenue Index via a quarterly survey of 13 digital publishers (nine B2C and four B2B). It is therefore seen as a running snapshot of revenue across publisher types rather than a comprehensive report.
The last time display advertising increased in the DPRI was Q3 2022.
Display advertising revenue for the 13 publishers in the sample totalled £60.2m in Q3, with subscriptions on £54.66m.
Total digital revenue for the respondents was up by 4.24% year on year, marking the third consecutive quarter of growth.
However, this growth was described as “top heavy” and “uneven” as only half of respondents saw revenue increase and a third saw growth of more than 25% (the highest proportion up by this much since Q4 2021).
The biggest percentage growth areas were video (up 20.08%), off-platform (15.63%) and sponsorship (15.37%).
After unprecedented 72.9% year-on-year growth in digital audio in Q2 2025, the category saw a 4.47% decline in Q3. Meanwhile, recruitment revenue was down 94.08% although other classified was up 117.59%.
Why is display advertising revenue returning to growth?
Richard Reeves, managing director at AOP, said: “It’s fantastic to finally see both of the major revenue drivers for digital publishing return to growth.
“Though it’s too early to tell whether this marks a lasting change in fortunes for display advertising, I hope this is the start of publishers enjoying the best of both worlds following years of work in revenue diversification. If subscription growth becomes complementary rather than compensatory, then we will no longer have to fear an eventual subscription plateau.”
Reeves told Press Gazette that the display advertising growth was likely “distributed unevenly across publishers, with results skewed by certain sectors seeing stronger growth than others. The data supports this, as only around 50% of respondents reported growth, although this is an increase from 30% in the same quarter last year.
“News publishers, in particular, benefitted from several developments in 2025 that could have contributed to growth. These include more nuanced approaches to brand safety, where reduced reliance on blunt keyword blocking technologies and the emergence of contextual tools from companies such as Mantis have opened up previously restricted inventory.
“At the same time, advertisers have shifted towards more direct deals and brand-led activity, which favour premium environments and placements over pure performance buying.”
Reeves continued: “Publishers have also worked hard to innovate their ad offerings, with greater use of branded content and native deals (which are typically reported under ‘display’).
“This is reducing the number of low-value, generic ads on a page in favour of fewer, higher-impact formats at higher CPMs [cost per thousand impressions]. Many publishers have reported corresponding increases in RPMs [revenue per thousand impressions] as a result.”
[Read more: ‘Brave’ advertisers who advertise next to news are seeing results ]
Andrew Buckman, chief executive at advertising partner Publisher Collective, similarly suggested improvements in the narrative around brand safety as he told Press Gazette the growth was “a positive and reassuring industry signal and reflects a cautious re-entry of advertiser budgets into trusted ‘safe-reach’ environments.
“Following a prolonged period of economic uncertainty and heightened brand safety concerns, carefully curated publisher inventory offers stability, predictability, and lower perceived risk compared with parts of the open web and some social platforms. Historically, when confidence in ad spend begins to return, it tends to flow back toward familiar and proven channels.”
Andy Cowen, lead partner for telecoms, media and entertainment at Deloitte, said the “resurgence” of display advertising was “encouraging” but said the uneven distribution of the growth “highlights the underlying challenges in the sector”.
Asked for his views on why the return to growth may have taken place, Cowen said: “While the aggregated and anonymised nature of the data means we don’t necessarily see uniform change across the sector, this growth likely reflects strategic investments by publishers in digital news and journalism, alongside efforts to tap into demand beyond the core UK markets.”
[ Brand safety: Why social is far more risky than news for marketers ]
Keith Arrowsmith, global marketing director at programmatic adtech company Onetag, said publishers are benefitting from “better tech and data” as well as “being more direct about their value and the need for a fairer value exchange.
“When advertisers have more visibility into how placement, context, and engagement relate to performance, quality inventory and environments are easier for them to recognise, which will result in smarter budget allocation and greater confidence.”
Email [email protected] to point out mistakes, provide story tips or send in a letter for publication on our “Letters Page” blog