Existing payment tools can turn one-off users into subscribers

Rather than looking to the future and trying to predict the shiny, new technology and solution that will solve our current woes, we would be better served looking into and improving upon the solutions already available to us.

The holy grail of payments providers working within the digital media space is, and has been, converting users to subscribers.

The roadblock: How do you ease consumers that are used to getting their content for free into paying for content?

In a Reuters Institute survey of 194 global publishing execs, digital subscriptions were listed as the most important revenue stream in 2018, by 44 percent. However, in the same survey, 79 percent of readers stated it was “somewhat or very unlikely” that they would pay to access online news in the future. This research shows there’s a disconnect between publishers and the readers they hope to serve. Are publishers listening?

In terms of monetization, there’s a whole universe living between ads and subscriptions. While some publishers may be content with subscriptions in their current form, it’s time to explore bridging the gap between these two monetization models using the host of technologies and solutions currently at our disposal.

Contributions and donations. Not all revenue has to come from ads or premium content. Readers often want to reward quality content, and their donations and contributions can provide an additional method of monetization. For example, Buzzfeed implemented a contributions button this year asking readers to contribute anywhere from $5 to $100 as a means to generate revenue without cannibalizing its advertising revenue. Additionally, The Guardian has seen success with this model, with more than a million readers contributing financially to the paper. Implementing reader contributions can help to diversify the traditional revenue mix and remove the need for the often pesky paywall.

Paywall 2.0. And what about those pay later models — the metered model 2.0? These soft paywalls allow users to view a certain number of articles before requiring a subscription. New York Media, parent company of New York magazine, recently announced their decision to implement a metered paywall. This flexible approach to subscriptions can deliver valuable content to readers and ensure they come back for more by establishing the value proposition before payment.

Fueling the funnel with single article purchases. Finally, single article purchases can help navigate readers through the funnel of potential subscribers and turn them into paying customers. This low threshold method can ease readers into paying for content, as well as allow publishers to establish the value of their content. Readers simply must have it.

User centricity. Today, giving users a choice between various models and options on how to access their preferred content is a must. Choice is the new standard across all industries, payments included. Shouldn’t the user decide for themselves how they want to access their preferred content? And similarly, how are publishers allowed to make that decision for them?

Before we spend time looking toward the future, have we really exhausted every model available now? Heading into the next year, it’s time to look closer at the universe between advertising revenue and subscriptions. With the opportunities provided by contributions, metered paywalls and single article purchases, we have a wealth of solutions already at our fingertips. Let’s explore what’s possible for payments today, and save worrying about what’s next in monetization for later.