Analysis of the German newspaper market and their implementation of paywalls. Mechanics and effects of paywalls. A business case for German newspaper «Die Zeit».
4. NewspaperNewspaper and OnlineOnline ad revenue
in Germany, in Bn EUR
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Source: Statista
Newspaper ads
Online ads
Paid content
6. Agenda
1. What are paywalls?
2. (How) Do they work?
3. How to implement a paywall
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►
7. Three paywall types
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Source: Own research
«Hard»
Paywall
Freemium
Metered
Paywall
Usually ~15 articles
by quality
by quantity
by time
8. Cannibalization – a reason for paywalls?
17.04.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 8
vs.
9. Digital news is a complementary product,
not a copy!
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Source: Vento (2012), Own research
Medium
Content
Delivery
e.g.:
fast-paced, personalized, short, ...
e.g.:
hyperlocal, opinions, blogs, ...
e.g.:
videos, photo slideshows, games, ...
DIFFERENT
10. Pay-WallPay-Wall vs. Pay-WillPay-Will
►Clear value, flexible payment mode(l)s, fitting for content
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Source: Leonhard (2012), Wagner (2012)
???
11. Flagship
Metered Paywall
Trash
Nothing to monetize
Content type vs. monetization strategy
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Source: Piano Media, Leap Media Solutions, Media Manager‘s Club, Own research
Niche
Hard Paywall
Commodity
Advertising
TRAFFIC
LOYALTY
12. Agenda
1. What are paywalls?
2. (How) Do they work?
3. How to implement a paywall
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►
13. Paywalls in Germany
Status quo
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Source: Statista, BDZV
2015 (total: 102)
2013 (total: 55)
14. Paywalls in Germany
PricingPricing and MeteringMetering models are very similar
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Source: BDZV, n-values in LTR order: 52, 51, 57, 33
<1€
15 -
25€
<10€
Daily Pass Monthly Pass Monthly Pass
+ePaper
15-20
Allowed Articles
per month
15. EffectsEffects of metered paywalls
General “wisdom”
traffic decline: 5 – 40%
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Source: Statista, Piano Media
Readers hitting PW: 1.3 – 6.5%
Subscribers: 0.01 – 2.0%
??
TRAFFIC
17. Agenda
1. What are paywalls?
2. (How) Do they work?
3. How to implement a paywall
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►
18. 3 phases of a paywall launch:
Overview
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Source: Vento (2012)
Pre-Pre-
Launch
Pre-Launch Post-Launch
LaunchIncrease # of readers Announce the launch externally Capture and retain customers
>3 months >3 weeks 3+ months
Action
Time
20. «Die Zeit»
Status quo
17.04.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 20
Source: Statista (Reach and ad revenue: (weekly) newspapers; Users: news websites, aged 14+), IQM, AGOF
500,000
25,000
120 Mn
Newspaper reach per year
ePaper reach per quarter
PI per month
#2
#6
#2
900k€
Total
ad revenue
per month
21. «Die Zeit»
Possible effects
17.04.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 21
Source: Statista, IQM, Piano Media
7.35 Mn
5.65 Mn
1.84 – 4.78 Mn
95k – 478k
<15k – 147k
Total visitors à 4 visits à 4 PI
Unique users
Unique readers
Readers hitting paywall
Subscribers
25 - 65%
1.3 - 6.5%
0.01 – 2.0%
76.9%
Market potentialMarket potential
Target marketTarget market
22. «Die Zeit»
Key outcomes
In the short run, <10k<10k subscriberssubscribers compensate
lost ad revenue of ~500k visitors~500k visitors
Pricing Ad model vs. user structure
Calculation: 500k * 4 visits * 4 PI = 8 Mn PI @ 20€ TKP = 160k€ = 16€ / subscriber
Example 1: «Süddeutsche»: 5.000 * 30 EUR = 150k EUR / month (potentially)
Example 2: «BILDplus»: Subscribers per Unique User rate of ±1%
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23. One more thing — alternatives?
Native advertising
Sponsored content (e.g., WirtschaftsBlatt, Buzzfeed)
Learn from mobile games
Gamification, tailored concepts
Micro-payments at point of need
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24. One-year effect of paywalls
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Source: completely made up
Hard paywall
Metered
Freemium
VISITS
UNIQUEUSERS
More
research
needed?
26. Key take-aways
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1. Know what and when to reveal
2. Communicate clear value
3. Know and hold your audience
4. Be creative!
28. Further reading
M. Olavarri (2013): «Das Paid-Content-Workbook»
M. Vento (2014): «Launching a Paywall»
P. Berger, D. Eng, D. LaFontaine, D.J. Siegel (2009): «The Free v. Paid Online Content Debate»
J. E. Cook, S. Z. Attari (2012): «Paying for What Was Free: Lessons from the NYT Paywall»
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30. How U.S. daily newspapers decide to
design and implement paywalls
Publishers consult each other, not audiences, before launching paywalls
Paywall-Meter ~10 articles
Daily newspapers infrequently conduct audience research prior to implementing paywalls.
Consulting with peers is far more common.
Paywalls exist on 70 percent of daily newspapers’ websites, up from 47 percent in 2012.
Metered paywalls are common; a near majority (49 percent) of those with meters allow six to 10 free
views before charging.
The study reports on a survey of 416 daily newspaper publishers or their designees.
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Source: Jenner/Thorson/Kim (2014)
31. World News
TV
Article clusters
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Sources: Piano Media, Leap Media Solutions, Media Manager‘s Club, Own research
Business
Culture
Local
Travel
Lifestyle
Sports
TRAFFIC
LOYALTY
32. Commodity
Advertising
Flagship
Metered Paywall
Trash
Nothing to monetize
Niche content most suitable for hard paywall
Specialized content
Finance, lifestyle, health, cars, hobbies, ...
Specialized coverage
Business data, charts, market analyses, ...
Unique content
Local/hyperlocal news, sports, reviews, ...
Exclusive content from behind the scenes
Editorial sources, chat online with journalists, ...
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Sources: Piano Media, Leap Media Solutions, Media Manager‘s Club, Own research
Niche
Hard Paywall
TRAFFIC
LOYALTY
33. EffectsEffects of metered paywalls
General “wisdom”:
5 - 40% decline of traffic
27.03.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 33
Source: Statista, Piano Media
100%
50 – 70%
25 – 65%
1.3 – 6.5%
0.01 – 2.0%
Total visitors
Unique visitors
Unique readers
Readers hitting paywall
Subscribers
34. 3 phases of a paywall launch:
Overview
17.04.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 34
Source: Vento (2012)
Pre-Pre-
Launch
Pre-Launch Post-Launch
LaunchIncrease # of readers Announce the launch externally Capture and retain customers
>3 months >3 weeks 3+ months
Action
Time
35. 3 phases of a paywall launch:
Detailed
17.04.2015 ROMAN ABASHIN. ANOTHER BRICK IN THE PAYWALL? E-MARKETING. WU WIEN 2015. 35
Source: Vento (2012), Own research
Pre-Pre-Launch Increase number of readers: Emotional campaign showing clear new value of website, get
goodwill, strengthen ties to (potential) customers. E.g., 3x unique users as a goal.
Website updated, content-rich and valuable for customers>3 months before announcment
Pre-Launch Announce the launch externally: Open communication (internal+external), customers’
capability to understand, emphasize added value, both emotional + rational.
Informed, converted customers without negativity>3 weeks before launch
1
2
Launch
Post-Launch Capture and retain customers: Strengthen emotional bond and rational appeal, detailed
offering with easy payment mode(l)s and clear calls-to-action.
Clear perceived customer value, retained customer base3+ months from launch
3
36. Pre-Pre-Launch strategy
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Source: Vento (2012)
Pre-Pre-Launch Reach the new reader target:
1.More online readers
Enhance both advertising and
subscription income
There are people who appreciate the
content but not in the printed form
New customers – always part of the
target
Retain customers:
1.Hold on to online readers
2.More combination orders
The wall mainly affects current readers
Not to have online orders at the expense
of print orders
Reached easily through owned channels
Bad timing for a large campaign
Print orders as the most potential target
>3 months before announcment
Message strategy:
1.Communicate effectively online newspaper value
2.Emotional appeal
Educate the audience: there is improved, valuable content online –
quality journalism – the reason to read online
Complementary online benefits differentiate from the print: fast
updates– what happens now, mobility, improved user experience
Reader contributes to the value: personalizing the service
Same reading experience, newspaper and quality but now it can
be read multi-channel
Power to the consumer: no guidance to a specific reading format
Interactivity: reader perspectives and participation in the news
process
Partner advantages attract readers
Emotional appeal: hyped and noted
Readers relate to celebrities telling about their relationship with the
newspaper
Informs why the newspaper is interesting
1
Offline Media
Own print paper, Other print papers, Local
radio, TV, Own events, Outdoor
advertisements, Other owned print material
Online Media
Own website, Facebook, Google
AdWords, Websites of group, Banners on
other websites, E-Mail, Twitter
New and current readers
37. Pre-Launch strategy
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Source: Vento (2012)
Pre-Launch Communicate improved online content
Education: content is valuable enough to be paid for – the fee is not laid on the old site but the new quality
journalism naturally is not free
More visible if simultaneous site reforms
Service and interactivity
Service in the online newspaper usage
The point of views of the readers, participation in the news process increases
Equality
Fair to the customers: no free-riders consuming news online without charge
Easy low-cost option
Easier (than in print) to become a customer
System explanation
Familiarize readers with the paywall
Justify and inform
Trustworthy, open, and emotional communication: motives and dates the process proceeds
>3 weeks before launch
2
Offline Media
Own print paper, Own and other events,
Classic PR
Online Media
Own website, Facebook
Current readers
38. Post-Launch strategy
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Source: Vento (2012)
Post-Launch Strengthen emotional bond
Emotional campaign still continued
Good and effective CRM
Rational appeal: package information
Informative appeal changed: detailed offering information
Easy payment mode(l)s
3+ months from launch
3
Offline Media
Own print paper, Other print papers, Local
radio, TV, Own events, Outdoor
advertisements, Other owned print material
Online Media
Own website, Facebook, Google
AdWords, Websites of group, Banners on
other websites, E-Mail, Twitter
New and current readers
Die Zeiten haben sich geändert: Vor 80 Jahren alle mit Zeitung
Jetzt? Alle mit Smartphone (auch dort die Zeitung lesend). Alle fünf Minuten kompulsiv spiegel.de und standard.at checken
Und wie haben die Zeitungen auf veränderte Medienkonsumgewohneiten reagiert?
STOOOOOP! Alle Paywalls hochgezogen.
NYTimes – 20 Artikel pro Monat lesen, darüber: zahlen
Wieso? In Zahlen gesehen: inflationsbereinigt mehr als 50% gesunken !!!!! wirklich weggebrochen
Online ads gestiegen und steigend
Aber wer macht Online-ad-Umsatz? NICHT die Zeitungen
Deswegen ist seit einigen Jahren der Paid-Content-Umsatz auch am Steigen, aber minimalst
Also was macht man?
BCG vs GfK
Nichts tun? Paywall hochziehen wie die Times? Davon handelt meine Präsentation
Was sind Paywalls?
Wie funktionieren sie? Funktionieren sie überhaupt?
Wie führt man eine Paywall ein?
Viele Wege, es darzustellen, das ist der einfachste:Drei grundsätzliche Arten, nach denen man eine Paywall takten kann
Hart
Metered , ca. 15
Freemium (gemischt)
manche Artikel nach einer Zeit
Gleiches Argument:Onlinezeitung 1:1 Kopie von Offlinezeitung?Nein
Hat zumindest das Potenzial, anders zu sein:
Das Medium (eher subjektiv, schnelllebig, kurzweilig, bspw. Katzenfotos nach der Mittagspause)
Der Content (sehr lokale Sachen möglich, Raum für Meinungen und Formate abseits der Linie, bspw. Blogs in NYT)
Die Präsentation (nicht nur Videos, Slideshows, Spiele, sondern auch Raum für Tiefe wie Datentabellen)
Kleine Schritte
Gute Modelle
Klarer Benefit
Je nach dem, welcher Typ Content, andere Strategie
Wie sieht die Realität aus?Allgemein am Steigen, ähnliche Modelle…Aber WIE und wie GUT funktionieren sie? Funktionieren sie überhaupt?
Entwicklung: Am Steigen!Harte Paywalls nicht allzu bewährt (super-easy, aber Angst? Scheiße?)Wie kommt es zu dieser homogenen Entwicklung?
Realität und Studien auf dem US-Markt:Man sieht, dass die Verleger viel bei einander abschauen, die Preise sind erstaunlich ähnlich und Modell relativ kohärent
Total visitors = Multi-device, Multi-user
Unique = Einzelpersonen
Readers = mehr als Homepage Contentseiten
Paywall = Anzahl der Artikel bei metered
Subscribers = Conversion rate
+ Gesamtrückgang
Manche besser, manche schlechter
Nur visits, ein halbes Jahr
Keinerlei Aussage
Aber egal. Was, wenn wir eine einführen?
DREI grundsätzliche Phasen:
Was man mitnehmen sollte:
Pre-Pre-Launch
Leser maximieren
Webseite relaunchen
Produkt herausstellen (Value added)
NIX ANKÜNDIGEN
Emotionale storys (Bild-style) emotionale Bindung
“Go online and see how they prepare for the upcoming battle” + Adresse Bindung und Präsenz von Online
More readers (Facebook, etc.)
Retain customers (better + new content)
Message strategy (Emotional)
2. Pre-Pre-Launch
Ankündigen (extern!!!) um Negatives abzufedern
Generelle, emotionale Information
3. Post-Launch
Nachfassen, wenn jemand abmeldet
Sonderangebote etc. ( NYT)
Nehmen wir die ZeitLetztens: “Wie guter Journalismus überleben kann”Chefredakteur: Ende letzten Jahres verneint, aber spielen wir’s mal durch
Gutes Standing
Wer vor der Zeit??
7 Mio
5,5 Mio Unique (gegeben!)
2-5 Mio LESER
100-500k sehen PW
&lt;150k , realistisch kurz- bis mittelfristig eher 15k
Süddeutsche = 30 Euro und klar einstellig Tausender
= 30*15.000 = 150.000 EUR =
Pricing hängt davon ab, wie die Ads verkauft werden. Contacts oder unique users? Wieviele Besuche, wieviele Seiten pro Besuch? Welcher TKP?
Insgesamt also betrachtet:Nach einem Jahr Effekt ausgeglichen, Freemium boostet eher Visits, Metered eher Unique User, die eine Hard Paywall eher unerfolgreich von den Metriken her, aber vielleicht durch Paywall revenue?
Was jetzt?Einführen oder nicht?
SEHR GUTE FREUNDIN “Paid Content ist wie ein guter Striptease”!!!
Ganz genau wissen, was man zeigt und ab welchem Zeitpunkt man damit aufhört
Der Bezahlwille kann nur getriggert werden, wenn der Wert klar ist
Man sollte User nicht nur akquirieren, sondern auch Wege finden, sie dauerhaft bei der Stange zu halten
Und kreativ sein: vor Experimenten nicht scheuen und vielleicht neue Wege gehen, die die Kollegen noch nicht völlig abgegrast haben
EINE Kategorisierung, je nach Webseitentyp unterschiedliche Antworten
Die Frage ist nun, welche Strategie fährt man bei diesem Typ?
Einfachste Strategie ist die schwerste:
Nur Nische eignet sich wirklich für Hard Paywalls
Was ist Nische?
Marktanalysen, extrem lokale Sachen, exklusive Kontakte, extrem spezifische Analysen (auch zeitlich zurückliegend Spiegel-Archiv)
Total visitors = Multi-device, Multi-user
Unique = Einzelpersonen
Readers = mehr als Homepage Contentseiten
Paywall = Anzahl der Artikel bei metered
Subscribers = Conversion rate
+ Gesamtrückgang
DREI grundsätzliche Phasen:
Was man mitnehmen sollte:
Pre-Pre-Launch
Leser maximieren
Webseite relaunchen
Produkt herausstellen (Value added)
NIX ANKÜNDIGEN
Emotionale storys (Bild-style) emotionale Bindung
“Go online and see how they prepare for the upcoming battle” + Adresse Bindung und Präsenz von Online
More readers (Facebook, etc.)
Retain customers (better + new content)
Message strategy (Emotional)
2. Pre-Pre-Launch
Ankündigen (extern!!!) um Negatives abzufedern
Generelle, emotionale Information
3. Post-Launch
Nachfassen, wenn jemand abmeldet
Sonderangebote etc. ( NYT)
DREI grundsätzliche Phasen:
Pre-Pre-Launch
3+ Monate
Leser maximieren
Webseite relaunchen
Produkt herausstellen (Value added)
NIX ANKÜNDIGEN
Pre-Pre-Launch: psychological tricks: change website design. NO HINTS OF PAYWALL. Goal: SMOOTH launch
Emotionale storys (Bild-style) emotionale Bindung
“Go online and see how they prepare for the upcoming battle” + Adresse Bindung und Präsenz von Online
More readers (Facebook, etc.)
Retain customers (better + new content)
Message strategy (Emotional)
2. Pre-Pre-Launch
3+ Wochen
Ankündigen (extern!!!) um Negatives abzufedern
Generelle, emotionale Information
3. Post-Launch
3+ Monate hinterher
Kunden rational und emotional informieren
Verschiedene Modelle, klarer Benefit
SO EINFACH WIE MÖGLICH MACHEN
Und bei Kunden nachfassen (Beispiel NYT!!!)
Pre-Pre-Launch: psychological tricks: change website design. NO HINTS OF PAYWALL. Goal: SMOOTH launch
Emotionale storys (Bild-style)
“Go online and see how they prepare for the upcoming battle” + Adresse
Reader target
more readers
Retain customers
Message strategy
Pre-Pre-Launch: psychological tricks: change website design. NO HINTS OF PAYWALL. Goal: SMOOTH launch
Emotionale storys (Bild-style)
“Go online and see how they prepare for the upcoming battle” + Adresse
Reader target
more readers
Retain customers
Message strategy
Pre-Pre-Launch: psychological tricks: change website design. NO HINTS OF PAYWALL. Goal: SMOOTH launch
Emotionale storys (Bild-style)
“Go online and see how they prepare for the upcoming battle” + Adresse
Reader target
more readers
Retain customers
Message strategy