The Freemium Content Model Is Here To Stay, and That’s Great News for Everyone
As users remain frustrated by digital ads on media websites, and publishers struggle to keep up with the demand for free content — this tech giant has a better solution for the consumer / creator relationship.
There’s a saying, “you can’t get something for nothing”. But when it comes access online content, the statement is not only false — it’s also somewhat offensive to internet users who prefer to get their news online.
Ad blocking, the practice of using digital tools to prevent ads from showing on publisher sites, has doubled in use over the last four years, meaning news outlets and content creators are having to look into alternate ways to make money.
How creators can get paid through online media
There are a few ways for major legacy publishers like Wired Magazine or TIME to bring in revenue via advertising, but these three most common tactics also apply to self-employed bloggers, spokespersons, and anyone else who needs to generate income from web traffic.
By introducing paywalls
A paywall is a website function that allows publishers to restrict access to certain content for subscribers only. The paywall model has paid off for some, but for others it can introduce another set of headaches if users feel they’re being charged unfairly. However, Wired Magazine, recently introduced a paywall for its digital version along with expanded content sections and received mostly positive feedback.
By sharing free content
Think BuzzFeed. Think Breitbart. Most digital natives offer free content in exchange for ad viewership and/or affiliate marketing links. While most readers prefer the free content model (I mean, who wouldn’t?), it comes with its own set of challenges as publishers and bloggers often have to supplement the income lost from the rise of ad-blocking. This is usually done by introducing paywalls or sponsored content, often to the chagrin of their readers.
And therein lies the rub. Publishers need to be paid for creating content (as that is usually what’s expected for providing a service or product that people enjoy), but users have grown accustomed to finding cheaper or free alternatives for media and news.
What “freemium” really means
Freemium is the happy medium between the paywall method of getting paid and the non-getting paid method of free content. Freemium essentially allows bloggers to monetize their readership while still offering enough free content to maintain said readership.
News sites such as The Washington Post, most gaming and streaming apps, and even social networking sites like YouTube all operate on a freemium model which allows them to generate ad revenue on pages with free content and introduce a paywall for ad-free enjoyment.
For a while, the freemium model was a win-win for society and publishers alike.
Keep in mind the evolution of ad-blockers
Ad-blockers initially existed to give users an option to bypass the more disruptive ad styles that were cropping up at turn of the digital revolution.
While it can be helpful for publishers to determine which ad creatives or types are not favorable to their readership (no one likes an autoplay video!), the near default use of ad-blockers has created yet another revenue obstacle for indie bloggers — particularly those without relationships with major brands.
Google’s Funding Choices
Launched at the end of Q2 2017, Google’s ‘Funding Choices’ is expanding to more countries and gaining steam as a method for publishers to monetize inbound traffic with less reader disruption.
According to MarketingLand, “The program was created as part of Google’s “Coalition for Better Ads” efforts and is aimed at helping publishers recover lost revenue from ad-blocking issues.”
This is is a great way for publishers and readers alike to reach common ground on the topic of paid media. Google’s Funding Choices feature offers website visitors an option to turn off their ad blockers when visiting a preferred site in order to support their favorite publications or outlets, without bloggers themselves having to beg their readership for help.
Why Funding Choices is good news for bloggers
Well for one, it helps more independent or freelance bloggers generate revenue from ad traffic, and depending on the Funding Choices reporting features, it can even help a young writer pad their stats a bit. With Funding Choices, bloggers can choose between three options for their readership:
- A dismissible notification that doesn’t restrict access to content. This option simply notifies your reader that your site runs ads to fund its existence, and offers them an option to allow ads (without turning off their installed ad-blocker).
- A dismissible notification that limits access to content. This option tells your reader how much free content they have left this month and offers them an option to either 1) purchase an Ad Removal Pass (Google’s version of a soft paywall) or 2) allow ads on the site (without turning off their installed ad-blocker).
- A non-dismissible message that blocks content until user pays for access. This option will not let your readers access your website’s content until they either pay for an Ad Removal pass via Google or allow ads to show on the site (without turning off their ad-blocker).
Google is a third party, stepping in to moderate online advertising
While these features are not unique to Google, what is unique is that a third-party platform (and publisher, in several instances) is stepping in to mediate the business relationship between the media and the public.
While we’ve seen the downsides of how #adTech can manipulate our perception of news, the ethical issues with modern media are not going away, paywall or no paywall.
Giving users funding options to support the type of content they enjoy most not only helps maintain the quality of online news and media, it also allows publishers and bloggers to focus more on reporting instead of revenue.
What do you think: is this a win/win for bloggers or consumers?
Another way to let users opt-in to your exclusive or paid content is by signing up for a custom, vanity hashtag (like vanity URLs) and joining the waitlist for our text-enabled hashtag platform.
