What is this thing called a Paywall?
A paywall is a website feature implemented by brands with a content-first digital product that requires a certain fee to access their quality content. One might also suggest that a paywall is the only thing standing between them and great content from a user’s perspective.
So, how do you make sure your Paywall is not annoying your potential users while serving efficiently as the center of your acquisition strategy?
Well, yes, there are different types of paywall…
First of all, it is imperative for you to understand different types of paywall structures and their respective use cases because deciding when to use a specific type under which circumstances is, pretty much, your key to solve this little puzzle.
1. Soft Paywall
A soft paywall means that your potential users can access X number of content for free before deciding to sign up. While enabling a gentler entry point for potential users, it also allows users to make an informed decision on whether or not they like the content you provide.
You might also improve your product experience by adopting a data wall to collect more information about your audience and start creating user profiles based on real people using your product. From that point on, the possibilities are limitless.
You can start by performing a multi-variable test planned for different profiles. Triggered by various entry points to your product, content choice, or simple demographics, you can start customizing the experience and significantly increase your conversion chances.
However, this method also has its’ cons, and there is an essential one. Since there are so many other options for your potential users to choose from, this method can trigger churn substantially over time, and it implies ‘zero brand love.’ When something is easy to get, it often means it is easier to let go as well for many users.
2. Freemium Paywall
This method means you are giving specific content for free before sign up at all times. It feels close to the soft paywall method; however, there is one big difference between them.
Since the paywall method is significant for digital products with a subscription model at their core, choosing which content to give away becomes a more meaningful decision. Whether you are dealing with a VOD or any other editorial platform, a subscription’s purchasing decision is triggered by the content itself.
Imagine you want to watch one of the latest, most hip, Oscar-nominated movie, and you start your search online as most people do. Even though you might already have an established subscription elsewhere, this particular content may trigger you to buy a companion subscription depending on how much you want to watch. Now, imagine this content being free. Would you watch this content? Most probably. Would you consider buying another subscription? Well, no.
So, this method, while it is an efficient way to increase pre sign up traffic and your product awareness through that, it provides a minimal amount of motivation for conversion. Unless you have an excellent content catalog, this one is not your only weapon, and you are using this as a sales hook only.
3. Hard Paywall
It means your potential users will only see the hint of the content for free, nothing more. They will not experience the product beforehand, meaning they might end up being disappointed. If you choose this method, this will be your top risk. But if you are confident with your product experience, content catalog, and brand positioning, this may become a massive asset for conversion.
However, the decision to implement a hard paywall may require additional context before made. Whether you are working on an established product or developing one from scratch can make all the difference.
For example, if you plan to implement a type of Paywall for an established yet previously free product, a hard paywall may cause a significant (up to 80%) dip in visitors. Or if you are at the beginning of creating a product and do not have a robust content catalog, it may become tricky to increase conversions simply because you do not have what it takes.
4. Dynamic Paywall
Dynamic paywall methodology refers to customized content for a segment of potential users. It can be thought of as an advanced version of a data wall used in soft paywall methodology, only here the indicators collected for audience profiling is more detailed.
This methodology requires a substantial data infrastructure for measuring high numbers of signals, such as if the user is visiting for the first time, which genre they prefer, their devices, locations, time of day preferences, etc. Once the customization starts, it is always possible to assist that process through machine learning to create more flexible versions of your paywall, increasing your conversions eventually.
Summary
Before we wrap up this article, let me leave you with this:
Before deciding on your Paywall type or the extent of content that goes behind it, make sure you make your list for gains and losses against your business goals, marketing objectives, digital analytics, and of course, the soul of your product.
In the end, what your product stands for will be the answer regarding your Paywall strategy.
Credits
Sezen Ahıskal
Strategy Director @Spectailor
Thanks for reading! Since you made it this far, I’ll introduce myself.
My name is Sezen, I’m a strategist and I write stuff here sometimes.
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