Online subscription models are becoming the default option for digital publishers looking to monetize their content in a sustainable and predictable way. What’s driving this change? Let’s take a closer look.
Subscriptions are in the spotlight today mainly because of the volatility that comes with the online advertising model, which was previously the default option for publishers. The outgoing model is now introducing a plethora of roadblocks such as banner blindness, ad blockers, and GDPR privacy regulations.
The fading ad revenue is forcing publishers to reconsider their strategy. While the ad based model is still far from being a non-factor despite its aforementioned deficiencies, subscription models are starting to gain serious traction. Interestingly, top publishers like The Wall Street Journal and Financial Times are showing how subscription and ad models can still co-exist.
[bctt tweet=”The ad blocking user penetration rate in the United States crossed the 30% mark in 2018.” username=”Namogoo”]
Many online publishers are still struggling to make the transition, mainly due to lack of experience and technical knowhow. Hence, Namogoo is proud to launch the Building Subscriptions for Digital Publishers: Insights From 20 Experts eBook to address this massive shift within the online publishing space.
Our FREE eBook covers the pivotal subscription model, which is giving publishers the ability to monetize their content effectively and seamlessly. We have interviewed 20 leading Software as a Service (SaaS) experts from companies such as Wix, Appsflyer, Sovrn, Spot.IM, Optimove, Recurly, Woopra, Teamwork, and several other to equip you with best tips and insights.
Why Software as a Service (SaaS)?
In a nutshell, this is because the content subscription model is based on the Software as a Service (SaaS), which is benefiting both businesses and clients.
Just when the internet volcano started erupting, companies started to realize that they could deliver usable solutions and resources as a online services. Cloud technology turned software from a product into a service, which, in turn, facilitated a new subscription based business model with automatic software updates already bundled into the pricing.
Salesforce pioneered the concept of delivering enterprise class applications via a simple and accessible web portal in the year 2000. Amazon was next. It launched Amazon Web Services, which is now one of the most recognizable packages in the software industry. Software giants such as Microsoft and Google didn’t stay behind for long. And the rest, as they say, is history.
[bctt tweet=”According to Forrester Research, the SaaS & Cloud market share is going to reach $241 billion in 2020. ” username=”Namogoo”]
The Rise of Content as a Service (CaaS)
With online advertising becoming increasingly volatile and jeopardizing the brand value of publishers, there is a now a need for a new revenue channel that is much more predictable and reliable in the long run. The ad based monetization model’s negative user experience has led to decreased traffic from the internet gatekeepers – Google and Facebook.
Content and media consumers today are becoming “immune” to ad banners, a phenomenon commonly known as banner blindness. Click rates, which are already much lower than a decade ago, can be defined as volatile at best. The growth of ad blockers has further capped the profitability potential of ad models.
These developments have lead to the birth of Content as a Service (CaaS), which essentially borrows the fundamentals of the aforementioned SaaS model.
However, successfully implementing the subscription model hinges on the publisher’s ability to acquire, retain, and engage subscribers. Of course, just like with pricing models, long-term success with this marketing strategy relies on monitoring of data, gauging the competition, optimizing metrics, and understanding the exact needs of their target audience.
Top publishers like the Wall Street Journal, The New York Times, and The Las Vegas Review Journal are staying competitive by embracing change, constantly measuring what’s working and what’s not, monitoring performance and making data-driven decisions to adapt to the rapidly-changing digital marketplace.
Building Subscriptions for Digital Publishers: Insights From 20 Experts
Just like the SaaS revolution didn’t happen overnight, growing pains are expected with the CaaS model. Transitioning can become tricky for publishers who are unfamiliar with the best practices and unaware of the risks involved. Hence, we have rounded up experts from 20 top SaaS companies to provide exclusive insights to help you create killer CaaS subscription models.
This exclusive eBook provides exclusive access to the little known secrets that are powered the subscription models in companies such as: Wix, AppsFlyer, Teamwork, Sovrn, Recurly, Spot.IM, UberFlip, Bizzabo, Optimove, Woopra and several others. The insights provided in this eBook is extremely relevant to digital publishers looking to adopt a paid subscription model.
The modern online publisher should also remember that every successful subscription model also requires a smooth user experience, something that requires constant monitoring of the 3rd party tags running on websites. Discovering the hidden performance costs of these tags is extremely crucial for maintaining your edge in todays competitive marketplace.
“The most common mistake that many publishers make is that they don’t fully evaluate the cost 3rd party software can have on the user experience and their website’s performance”, as per Chemi Katz, co-founder and CEO of Namogoo. “This can create a vicious cycle where users end up receiving an abated user experience, which, ironically, leads to increased churn.”
So what are you waiting for? Get your FREE eBook now and start building your own subscription model based on the inputs of the world’s leading experts!