Publishers increasingly need your business model target paid content. Especially digital payment models for exclusive content become system-relevant and Question of survivability for the entire publishing industry.
Why? Because that Ad business hijacked by companies like Google and Facebook has been. Just as the newspapers in the early days replaced the advertising business of the barkers and roaming bards. A normal process, but threatening the existence of many content providers.
The way food is Pillar of event events is crumbling. In any case, it will no longer be a decisive investment area for publishers to Corona. For many, only the digital paywall remains. So the limitation of the reader when opening or reading an exclusive content that requires a subscription.
At the end of this article you will find information about ours Digital subscription calculator, which we provide for publishers free of charge. So that you as a publisher Calculate your individual business casewhether a paywall is worthwhile or where there is growth potential.
The ad bookings with publishers break away and then remain at a lower level
Many website operators who have been using digital subscriptions for years have an enormous number of subscription contracts during the Corona crisis recorded.
Nevertheless, FAZ, Sueddeutsche, Zeit etc. sent their employees on short-time work. The reason for this is that digital subscriptions have not yet been expanded to such an extent that they represent the pillar - perhaps the only remaining pillar in the medium term - and compensate for the collapsing advertising business.
But the publishers will have no choice but at least 80% of your strategic efforts towards digital paid content. Whether already with an established paywall or with strong motivation to introduce it soon, everyone is faced with the challenge of scaling the business to a significant extent.
What needs to be considered when operating a paywall?
In addition to the Type of paywall - see the article “Metered model - this is how sizes like SZ-Plus and Handelsblatt premium paid content use" - and the technologies used, it is crucial that to know important metrics and KPIs.
Because if important things are not measured, which would be measurable, this is negligent and management failure!
Therefore, as the responsible publisher and product manager, it is crucial Knowing all relevant parameters or knowing which ones to pay particular attention to regularly is.
Successful publishers become eCommerce shops
To whom for two decades Online metrics from eCommerce and SaaS business models are unknown, such as customer retention rate, CLV, MRR, etc. should not panic, but should also have heard the shot. Everything that is sold digitally is subject to a different order than in print sales.
A publisher who pulls in a Plus article Paywall or wants to let it grow strongly or does not want to lose subscribers again after Corona should get the best online marketers and shop experts into the house for the process development. As employees and consultants.
It's just another world! Just like startups live in a different dimension than established companies. I find the following video from 2011 appropriate to clarify what gap there can be between experiences.
The Paywall calculator for digital plus subscriptions
Values and KPIs for payment barriers are abstract for some. These must also be linked to make the impact on the publishing business assessable.
Therefore, instead of a list of metrics, we provide one Calculator ready to give you an eThe first guardrail gives you everything you need to know when implementing a paywall should. The calculator provides special support Standard values customary in the market. This means that you can learn from the benchmarks what is relevant for your paid content business and what framework your business can move. See briefly Video of the calculator to overview:
Under following Link reach the of kontextR computer provided free of charge. Also interesting for advanced paywall providers. But above all relevant for publishers who want to build and develop the business.
Do you need more?
Some values will appear familiar to the print subscription distributor. In order not to make it too complicated, we have not all considered the metrics for already experienced with paywalls in the online tool.
These include the above mentioned for eCommerce, but also test subscription KPIs, package strategy, etc. Due to the scope, we provide the full calculation on request with advice and an Excel sheet für die individual business case calculation available.
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