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Online paid content market to hit £8bn by 2017

11/1/2012

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The online paid content market is set to expand by a huge 65% to be worth £8 billion by 2017, new research shows.

Tablets and smartphones will spur the growth , with consumer spending on digital news set to increase by 77% to almost £250 million, the study from Forrester reveals.

News content spend will grow by 77% from €158m this year to €279m in 2017, according to the data seen by the Guardian.

"While consumer research for years reported that consumers claimed they wouldn't pay for content, the forecast revenues indicate otherwise," Forrester analyst Darika Ahrens told the newspaper.

The study also found the number of people choosing to buy news content online will jump 68% from 4.8 million to 8.1 million. By 2017, 20% of tablet users will pay for online content.

What does this all mean for marketers and business owners? Ahrens explains on the Forrester blog:"You will have fewer chances to reach consumers with traditional advertising."

She explains: "The very services driving growth in digital content consumption are limiting pure advertising opportunity for brands, by adopting payment models that don't require brand advertising for revenue and even driving consumer appetite for more ad-free content."

It also means brands must develop content capabilities to avoid losing ground, explains Ahrens. "It's not all doom and gloom. The growth in Western Europeans buying content shows us that audiences want, and value, content. Marketers can ensure their brand gains presence by developing content capabilities," she adds.

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