Programmatic advertising and Facebook payments drive growth for Digitalbox

Programmatic advertising and Facebook payments drive growth for Digitalbox

  • 25.03.2025 17:19
  • pressgazette.co.uk
  • Keywords: Programmatic Advertising, Facebook Payments

Digitalbox, publisher of The Tab and Entertainment Daily, saw a 30.6% revenue rise to £3.6m in 2024, driven by programmatic advertising growth and Facebook payments. Subscription revenue doubled, with TV Guide traffic up 90% year-on-year, and overall audience growth reached 10%.

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Digitalbox

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Digitalbox has experienced significant revenue and profit growth, driven by programmatic advertising and subscription revenue increases. Their audience traffic across various sites has grown, indicating a strong market position in online news.

Context

Business Insights and Market Implications Analysis

Financial Performance

  • Revenue Growth: Digitalbox reported a 30.6% year-on-year increase in full-year revenue, reaching £3.6m for 2024.
  • Profit Improvement: Adjusted profit (EBITDA) surged from £20,000 to £624,000, reflecting significant operational efficiency and growth.

Programmatic Advertising Impact

  • Revenue Contribution: Programmatic advertising was the primary driver of revenue, with yield increases exceeding 10%.
  • Market Positioning: Digitalbox emphasized its strong demand for ad inventory in the open advertising market, positioning itself as agile and competitive.

Subscription Growth

  • Subscription Revenue: The Daily Mash doubled its subscription revenue to £200,000, highlighting the growing appeal of paid content models.

Traffic and Audience Metrics

  • TV Guide Performance: Q4 traffic for TV Guide grew by 90%, with expectations to repay acquisition costs within two years.
  • Site Growth:
    • The Tab: 15% year-on-year traffic growth.
    • The Poke: 22% year-on-year traffic growth.
    • Overall network audience growth: 10%.

Competitive Dynamics

  • Declining Traffic Sources: Digitalbox noted a five-year decline in traffic from Google and Facebook, but highlighted improvements in Meta's financial support for news content.
  • Content Strategy: The success of high-quality entertainment content (e.g., Married at First Sight) was cited as a key driver of engagement.

Strategic Considerations

  • Market Recovery Anticipation: Digitalbox expects to capitalize on the anticipated recovery of the online ad market in 2025.
  • Expansion Plans: Ambitious goals include doubling business size over three years through organic growth and English-language market expansion.

Future Outlook

  • Long-Term Growth: The company’s focus on quality entertainment content and strategic partnerships positions it for sustained growth in a competitive digital advertising landscape.
  • Regulatory Impact: While not explicitly detailed, the mention of Meta’s improved support suggests potential regulatory or policy shifts favoring news publishers.