Should a paywall be a priority?

A: Yes.

You may be thinking, “Of course you’re going to say that Tim, you work at a paywall technology provider.”

I understand that appears to be an obvious conflict of interest, but the reasons I list are worth reading. The point isn’t to get you to put up a paywall this very instant, but rather to get the idea onto your digital strategy radar. I’ve listed three reasons below that support the idea that considering a paywall sooner than later is worth your time.

• Times are changing

To quote the 90s classic Wayne’s World, “We fear change”. Garth, one of the two main characters, says this as one of the show producers is suggesting they adjust the format of the show. That is a sentiment among many content creators who want to continue down the path that has been successful. If it ain’t broke, don’t fix it. Taking this approach would prevent some of the most phenomenal technological advancements of our time, take for example the electric car. HD televisions would never have been invented. Times are changing, and introducing something relatively new or, perhaps, unknown, does not imply an all-out abandonment of current practices. When DVDs were introduced, everyone didn’t immediately throw their VCRs in the garbage. In fact, the final VCR was produced just months ago. Successful change happens over time, not overnight. Therefore it is indeed time for the publishing industry to consider change.

Embrace the change. A paywall is an excellent opportunity to make a direct connection with your customer. You are saying, “Hey! This content is awesome, that’s why we’re charging for it. But, when you purchase this, you are directly supporting our journalistic efforts. Thanks for your support, we couldn’t do it without you!” That’s a pretty compelling statement to make to your loyal readers.

• Ad-blocking

I know what you are thinking, “What does a paywall have to do with ad-blockers?” More than you think, I assure you. Ad blockers have risen in popularity as a direct result of a poor user experience created by online advertising. The publishing industry first ignited the issue by providing free access to their valuable content, content that their loyal users were already accustomed to paying for in print. The publishing industry, inadvertently, has essentially cultivated an environment where gaining access to all content online for free, is expected. As a result, digital advertising became the main revenue source for most digital publishers, and the focus with regards to this revenue model became solely based on the almighty dollar, getting the most ‘bang for your buck’, which has compromised site design and the experience for readers. Sites are now cluttered with multiple ads, distracting ads without any consideration of relevance to the user. But, how are paywalls related to ad-blocking?

Ads are a way online properties earn revenue. Another way is to put up a paywall and sell your content. The only difference here is that the latter is a direct relationship with the customer. Instead of serving them 5 or 6 ads you’re saying, “We know that the ad model isn’t ideal, so we’re asking you to participate directly”. A message not dissimilar to the one I posed in the first point. But, you can see that ad-blocking is less of a revenue issue (long-term) and more of a customer relationship issue. If your content is quality and your users want to purchase it, having to worry about ads becomes a non-issue.

A paywall gives content creators the opportunity to frame the ad-blocking conversation in a way that more actively engages the reader. Just asking someone to “Please turn off your ad blocker”, is a less compelling argument.

• Diversify revenues

The days of earning great revenue solely from ads, enough to keep the whole ship afloat and pockets full, are waning. By no means is this the digital advertising death knell, but it’s a good indicator that digital revenues need to be diverse. Digital revenues ought to be viewed as a pie chart. If your pie is only one color, that could mean trouble down the road.

Programmatic, native, google surveys, subscriptions and offline events are all great ways for content creators to earn revenue. Note that a paywall would only apply to one of those: subscriptions. However, the idea of subscriptions, or paid content, could be further diversified. Giving readers several purchase options means that less money will be left on the table. The right paywall technology gives an opportunity to earn digital revenues in a variety of ways. This is all done as an addition to current revenue models, not as a replacement.

After reading, I hope you can see the importance of at least adding a “paywall strategy” to your digital strategy timeline for consideration. A paywall isn’t the silver bullet for content creators, but it certainly adds to the digital revenue arsenal.

Happy creating!