How to Improve Programmatic Ad Viewability Without Affecting User Experience
The constant struggle to balance ad viewability and maintaining a positive user experience remains an ongoing challenge. As advertisers strive…
Recognizing the best models to monetize traffic is essential for those who want to make a viable business out of their website, and the optimal approach for selecting the revenue streams is usually closely related to the website type and the scale of traffic.
Although it’s safe to say that advertising has become the most popular source of revenue for content creators, especially in recent times thanks to the popularization of programmatic and the simplicity of its implementation, there are a handful of other options for generating additional revenue which can be exploited by Publishers.
Before taking the leap, it is very important to choose appropriate models of additional monetization so as not to hinder the performance of your principle revenue streams or impact negatively on the user experience, which can lead to significant churn.
In order to make this process easier, in this article we shall set out 10 of the most popular revenue streams for Digital Publishers, presenting their pros and cons
1. SUBSCRIPTION/MICROPAYMENTS
One of the most popular content monetization models happens to be a model that most Publishers are afraid of; due to the risk that they may end up driving users away from the site. Although this reluctance has its merits, modern media consumers are becoming discernibly weary of low-quality content and are displaying a willingness to pay for access to quality materials with an absence of advertising noise.
When you combine this fact with the number of limitations thrown at Publishers by legislators and ad tech platforms regarding advertising possibilities, such as GDPR or 3rd party cookie limitations, implementing a paywall seems like a good alternative and a risk worth taking.
This is especially so given that having an audience of paying readers is perceived as the most direct and most transparent way of generating revenue. Of course, there are some challenges with and downsides to this model, such as the creation of proper pricing and subscription packages, and constantly having to deliver quality content which will deliver on subscriber value. The biggest difficulty will be user retention whilst simultaneously looking to broaden the subscriber pool. There are many examples of subscription-only or hybrid models such as Nytimes.com; Washingtonpost.com or Wyborcza.pl.
2. ACTION FOR ACCESS
If your content cannot be recognized as premium, or simply your user base comprises a majority of users who are not willing to pay for access, there are a number of other options that will allow you to generate revenue. One of these options is Action for Access, which requires users to do something before they can access the content of interest.
The two most popular forms of this monetization model entail taking a short poll or survey or watching a video so as to unlock the content. In this way, users do not dip into their wallets, but “pay” for the content in a different way, one that is fair to both sides; provided however that the inconvenience of the requested action is not too burdensome.
This revenue source is very popular for mobile games or apps, but it’s getting more recognition among regular websites. Some examples are Brainly.com or Weszlo.pl
3. BRANDED/SPONSORED CONTENT
Branded Content is a monetization model funded or even created by the advertiser. Its purpose is to build awareness for a specific brand with its association with materials that share the same values. There is no need in this case for the content itself to promote a specific brand, but some level of product placement is possible.
The increasing popularity of this specific revenue stream derives from user frustration with traditional forms of advertising, which is perceived as increasingly redundant.
Instead, a properly delivered branded content strategy can bring multiple benefits for the publisher such as additional revenue; higher advertiser satisfaction arising from promotional performance, and decreased levels of user frustration thanks to the lower saturation of traditional advertising on the website.
Of course, there is also a risk that dedicated users will accuse the content creators of possessing a lack of neutrality and independence; so here the balance in creating and distributing such materials is key. Sponsored content is very popular among all kinds of Publishers, both medium and large, such as, for example: Dailymail.co.uk; Inquirer.net or Gazeta.pl
4. AFFILIATE MARKETING
Affiliate Marketing continues to establish itself as an effective marketing tool for both advertisers and Publishers. This is hardly surprising as the idea behind such a model of cooperation is quite simple.
The Publisher might have an upcoming listicle pertaining to, say, the best smartphones of the year, and then reach out to the affiliates who will then pay higher rates to have their smartphones featured.
The next step involves connecting them to the retailer’s network affiliate program and cashing out monthly retainers for possible sales commissions.
The better a Publisher’s content performs, the more the merchant sells, which as a result creates a great exchange of real value for both sides: the advertisers get clear proof of their budget performance, whereas the Publishers have achieved another revenue stream.
Of course, like the other models, this one is not without its risks and challenges, such as not getting paid by some of the partners or having trouble verifying who should be granted the commission in the last-click attribution model.
5. DATA BROKERING
Apart from the Publishers who have created their business models around affiliation, like Domodi.pl or Picodi.com, others like BuzzFeed or Plotek.pl are also rapidly verifying options so as to implement this model in their revenue mix by creating all sorts of rankings, inspirations or trend summaries.
There is a popular catchphrase, even used in the latest Bond movie that “data is the new currency”. For sure this applies very much to marketers as it provides the necessary insights about their target groups, which are linked to the generation of sales. For this specific reason, user data has also a great value for Publishers who knows how to use it.
Offering data packages via data exchange or a private marketplace sounds like the easiest way of generating additional revenue, so does the monetization of userbases from newsletters or mailing lists. But this is not the only option to increase the revenue as based on customer insights.
There are some opportunities which do not entail the selling of data but will improve the website revenue, such as the option of content customization in order to keep users longer on the page or to encourage them to come back for more materials that match their personal preferences. Around the world, news-outlet and horizontal websites make recourse to this strategy.
Needless to say, Data Brokering has been severely curtailed by the legal limitations imposed on it by GDPR or CCPA, not to mention stronger Browser-end limitation actions regarding the use of 3rd party cookies. Therefore before plumbing for this option, Publishers should consider the legal implications.
6. SOFTWARE
If a company’s resources are focused on the creation of custom solutions which hone team efficiency, this means that the company is poised to generate additional revenue. Taking into consideration that the processes and business challenges of digital publishers around the world are quite similar, many opt to purchase market solutions that address issues such as malvertising or blacklisting.
One such example is the recently developed Mantis software product, designed by Reach PLC, which aims at helping publishers to avoid losing money on keyword blacklisting due to the improper choice of words (simplifying). As the concept is relatively new, and will be validated by a big media group, it is safe to assume that companies will soon be queuing up to pay for the securitization of inventory with respect to advertisers.
7. EVENTS
Another out-of-the-box option for Publisher to generate content, without either creating content or fighting for display and video budgets, is the organizing of events. This monetization model is particularly attractive if its educational or networking oriented. Allocating internal resources to this kind of project will entail the renting of a venue, and the organization and promotion of the event.
Budgets and revenues can be boosted by money from sponsorship packages, paid keynotes, tickets and many other inventive options. Two good examples of this business model from the Programmatic media field are Exchange Wire’s ATS events or Digiday Publisher Summits, held in several cities around the world.
Of course, all of this will require time and resources in order to make it a recognizable and viable business, but with effort and commitment the rewards will be tangible.
8. CROWDFUNDING
If the previous monetization models are not an option, you can always try the crowdfunding model. Of course, this model works best when your user-base is faithful and when you have great original content that is prized and valued.
Getting money from your users will be easier if you are not monetizing your sites with ads, but one model does not entirely discount the other. Currently, popular resource-acquisition options are either internet collections or micropayments, but the sky’s the limit for imaginative entrepreneurs.
As for some examples of this kind of approach, we can mention Wikipedia, for example, which is not a usual publisher by definition, but it does provide users with valuable content and draws on voluntary donations. Another good example is the OKO Press publisher from Poland, which was only kept afloat in part thanks to payments from politically affiliated users – or some would say the neutrality of the portal’s creators.
9. E-COMMERCE
Selling ads, or driving attributions is just the beginning. If you are willing to go the extra mile in terms of the sales spectrum of your company, you can try diversifying your revenue streams by launching the e-commerce arm of your business.
A recent example of such a strategy is Complex, which started out as a buying guide for people interested in streetwear; and its latest strategic decisions have returned to those roots. On Dec. 9, they opened an online store called Complex Shop which will sell items from over 70 brands and feature collaborations produced just for Complex.
This kind of business model requires good connections and cooperation with product suppliers, but there is always an option to start small, with publisher branding, especially if your brand can draw users on a daily basis.
10. EDUCATION
Education today is seen as a valuable commodity, and people are willing to pay good money to learn from industry leaders, recognized experts or celebrities. That is why if a website or content creator is recognized by people as being a leader in some specific field, then sharing knowledge and experience for a fee can generate considerable revenue streams and make a monetization model out of sharing its knowledge with others.
You have probably heard about culinary bloggers who for hefty fees conduct workshops, attend conferences for 30 minutes presentations, host paid webinars, and publish books. These are just some of the monetization options which you may consider.
To name just a few companies which have plumbed for this model, we may consider the website niebezpiecznik.pl/, now doing security audits for many companies in Europe, or the blogger Skodovy, who started as a brand enthusiast writing content for fun, and who now is closely cooperating with the Skoda brand, and creating high-end quality materials for a wide group of users who share the same passions.
As you can see from two halves of this article, there is a number of options for publishers to diversify their revenue stream without choosing to do something totally unrelated. Of course, this almost always requires some additional effort and involves an allocation of time and resources. As it’s becoming ever-more difficult to grow businesses by way of the advertising model only, it’s only right to evaluate all options and to start with low-hanging fruits so as to verify whether they can yield value or not. If you don’t know where to start, or don’t have enough resources you can always consider one of our products or services which could be the answer to your needs.
