October 31st, 2024
By Katherine Ruane, Director of Marketing Strategy at Mather Economics
In our recent webinar, Free or Premium? How to Maximize Your Content’s Value, paywall experts Madeleine White (VP of Marketing at Poool and Editor-in-Chief at The Audiencers) and Jen de Ruyter (Senior Manager of Customer Operations at Mather Economics) shared insights on how publishers can use dynamic paywalls to effectively monetize their audience and content.
They explored the shift from static paywall models to adaptive, AI-powered strategies, which have shown remarkable results—like Business Insider’s 75% increase in subscriptions after implementing a smart paywall. This shift highlights how publishers can evolve from manual processes to dynamic, audience-centric approaches that drive revenue growth.
In this blog, we’re sharing the top three takeaways from the session. For a deeper dive, watch the full recording below.
- Asking the Right Questions
Madeleine began by reviewing the traditional questions publishers face when setting up and managing paywalls, such as, “What percentage of articles should be blocked?”, “How many articles should readers access before hitting the paywall?”, and “Which paywall model should I use?” She noted, “The decision of whether an article is free or premium is often made before it’s even written, but this is situation-dependent.” While approaches differ, leading publishers like The New York Times serve as key examples, reminding publishers that they don’t need to reinvent the wheel. Ultimately, the revenue-maximizing question is: How can I maximize the value of each individual reader?
And for the best part, you don’t have to be The New York Times to succeed with a dynamic paywall or to capture every revenue opportunity. Let’s dive into how publishers can get started and build from there!
- Data-Driven Personalization Powers Dynamic Paywalls
Editorial teams today have more data at their fingertips than ever, and while it can be overwhelming, success boils down to two principles: “Know Your Content” and “Know Your Audience.” Start by establishing a baseline understanding of how your content is performing, how it aligns with your business objectives and funnel, and how it meets readers’ needs.
On the audience side, it’s crucial to understand who you’re marketing to—identify which users are engaged and ready to purchase, which are still exploring your product’s value, and which may need further nurturing.
Image courtesy of The Audiencers
Segmenting your audience and content, and analyzing how they interact—such as which content drives the most engagement and which topics resonate with subscribers—are essential steps for creating a tailored paywall strategy. As Madeleine noted, if you’re new to paywalls, it’s helpful to begin with a freemium model and gradually add more dynamic layers. In practice, for readers with lower engagement levels or those new to the site, progressive steps like newsletter calls-to-action or registration walls, can effectively connect with readers, opening the door to greater engagement and, ultimately, subscription likelihood. On the other hand, for highly engaged readers or content that drives subscription lift, it’s essential to present the right offer, message, and price point as soon as possible to maximize lifetime value and capitalize on the total revenue opportunity.
In one example from the Kiev Independent, the creative presents the offer in a way that speaks directly to a reader’s preferences, boosting the likelihood of conversion and fostering a deeper connection with the content itself. This method is particularly powerful for top-of-funnel users who may need additional nudging to subscribe.
- Boosting Revenue & Efficiency with AI
Depending on the publisher, audience, and market environment, either a user-based or content-based paywall approach may be effective on its own. However, Jen emphasized that the real power lies in combining both for a truly optimized strategy. By leveraging AI, publishers are empowered with robust machine learning opportunities that consider both content and user data in the decisioning process.
An underlying intelligence layer is key to adapting to each unique reader and content type, powering a dynamic, audience-centric paywall strategy that maximizes engagement and revenue potential.
A recent study found that 75% of news publishers are utilizing AI in some form to enhance their operations. As Jen noted, whether using a custom or standard model, AI applied to paywalls enables data-based, algorithmic decisions that minimize engagement risks and ad loss while boosting subscriptions and overall revenue growth.
While AI can raise questions about editorial autonomy, it can also strengthen editorial strategy when thoughtfully applied. By automating routine tasks, AI frees teams to focus on core editorial objectives rather than operational paywall management. Configurable options and editorial guardrails ensure publishers maintain control over key performance metrics, such as paywall intercept rates, while reducing the need for frequent adjustments tied to seasonal or unpredictable news cycles.
With AI-powered paywalls transforming the industry, publishers are exploring this technology for a variety of reasons. Some are honing successful manual tactics and ready to automate further, others have encountered limited success or hit a growth plateau with existing strategies, and many are looking to overcome resource constraints or leap directly to best-in-class solutions. To support your team in this journey, we’ve created a practical guide to help you evaluate its potential to transform your own business.
Last but not least — Sophi and Poool have an integration!
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