75 Percent of Publishers Will Look to Implement Micropayments
In the face of print declining and the rise of digital, publishers and content owners are favoring implementing a micropayments strategy.
With audiences preferring to access content on a range of devices, they now want to be able to consume content on their terms. These changing habits mean publications across the newspaper, magazine and digital media industry are looking at new and innovative digital strategies to continue reaching audiences and drive revenue.
Micropayments: Under the Microscope
In its latest webinar, MPP Global examined micropayments in depth, discussing the business models available, the integration & on-boarding process, the benefits of aggregated transaction fees and back office management.
During the session, research was conducted which found that 75% of publishers believe micropayments would work for their publication. This confirms the experimentation we have been seeing in the market from the likes of Winnipeg Free Press, Blendle and L’Équipe, who have each implemented a different micropayment model and are seeing successful results.
With such a large portion of attendees agreeing, and publications around the world already implementing strategies, it’s clear micropayments are becoming more prominent in the media marketplace.
Publishers were also interested to find out how they could avoid cannibalizing digital subscriptions by implementing a micropayments strategy.
For Winnipeg Free Press, the newspaper implemented them in order to monetize the segments of its audience currently not paying for content. This method meant that it was able to target readers not prepared to pay for a monthly subscription, while the thought of smaller payments (determined by how much they choose to spend) is much more enticing.
The key to bear in mind when deciding on a micropayments strategy is how you deem the value of each piece of content. With a consideration for how much is too much for the reader, while how low you can go to make a profit, you need to still be offering a service which make both your subscription and micropayments services appealing.
The Benefits of Micropayments
The biggest driving force for Winnipeg Free Press when implementing micropayments was the opportunity to target segments of its audience previously not monetized. This business model also enables publications to get to market quicker, decrease transaction fees and reduce barriers to entry by offering a choice in how to pay for content.
By offering this to consumers, purchasing becomes easier and quicker for them, with one-click purchasing reducing the need of having to re-enter payment details each time they consume a new piece of content. Therefore, this content is more accessible and psychologically cheaper because each reader determines how much they want to spend each month, based on how much content they consume.
What the research shows is that in a world where digital is taking over, publishers are no longer fearful of looking to monetize their digital content in order to drive engagement and revenue. Instead, they are considering new ways of developing digital strategies which will both appeal to audiences and increase revenues.
With 75% of publishers questioned believing micropayments will work for their publications, we can expect to continue seeing exciting new business models and innovative strategies across the market.