Mail online advertising

Daily Mail website's ad revenues surge as paper announces price hike

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.

Related: Daily Mail owner in hunt for new chief executive

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.

“The US is doing exactly what we expected it to do, ” said DMGT finance director Stephen Daintith. “We worked very hard last year raising brand awareness, especially with agencies – what we call the Madison Avenue challenge. And there has been lots of coverage of Mail Online [stories] on TV. And we have the exciting prospect of a TV show coming later this year.”

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.

Daintith said print revenues fell 20% in the four-week period, while digital grew by just 11%.

“We do believe that print advertising in the UK is in a long structural decline, ” he added. “We are planning around that [and] we have been building our digital capabilities. I’d be wary of reading too much in just a four-week period. It really doesn’t take big sums of money to move the dial when looking at such small periods of time. It could be just a couple of campaigns. I wouldn’t read too much into it.”

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