How publishers can combine free and paid-for online models successfully. Examples FT, econsultancy,

1. Copyright Penmaen Media
2010
Free to paid
Growing reader revenue across digital channels
Carolyn Morgan
Mediapro 2 Nov 2010
@carolynrmorgan
www.penmaen-media.co.uk
http://www.slideshare.net/CarolynMorgan

2. Copyright Penmaen Media
2010
VS

3. Copyright Penmaen Media
2010
What’s great about free?
• Cover the market/ no barriers
• Max reach for advertisers
• Search visibility
• Expand internationally
• Sample your content
• Easy to share via social media
• Tough for competitors
• Build database to market paid-for services

4. Copyright Penmaen Media
2010
But…
• Infinite inventory
• Ad revenues/yields falling
• Commerce revenues below expectations
• Feeding the content monster
• High cost/low revenues
• Many visitors view one article and go

5. Copyright Penmaen Media
2010
What’s great about paid?
• Niche audiences profitable at low volume
• Closer relationship with audiences
• High value, focussed group from advertisers
• Cross-sell other products/services
• Predictable revenues (subscription marketing)

6. Copyright Penmaen Media
2010
But…
• Difficult transition if content has been free
• Tough if you have a free competitor
• Need high quality content
• Not visible to search engines
• Smaller audience for advertisers
• Hard for casual readers to sample
• Can’t share content on social media
• Payment management complex

7. Copyright Penmaen Media
2010
Combining free and paid services
Free > Registered > Paid
For
publishers
Sample new
readers
Build a
reputation
Create a
database
Build
relationships
Membership
services
Build a
community
For
advertisers
Reach the
entire market
Target specific
groups
Deeper
relationships

8. Copyright Penmaen Media
2010
FT
• Free for up to 30 articles a
month; then £3 a week
• 180k subscribers (up 50%
in last 6 months)
• 400k downloads of ipad
app and £1m ad rev
• Print advertising just 40%
of revenue

9. Copyright Penmaen Media
2010
Econsultancy
• Free blog: >850k visitors a
month
• Registered users: 100,000
• Paid-for membership
research reports: 5,000
• Revenue shares 2010
– 15% ads
– 35% subs & pay as you go
– 50% events, training,
consultancy and data
• Revenue growth 30% pa

10. Copyright Penmaen Media
2010
Advanstar: the column
• Free digital magazine
reaches 140k
chromatographers
worldwide
• Free ning community has
2000 members
• Developing e-learning
materials: subs at $200pa

11. Copyright Penmaen Media
2010
K9 Media
• Free websites for dog-
owners
• Paid-for digital magazine
and e-books
• Extra offers and services
for members
• Flexible deals for
advertisers: data,
enewsletters, ads,
commerce links

12. Copyright Penmaen Media
2010
Runners World
• Free articles on website
• Extra benefits for
registered users: rate and
enter races online
• Subscribers get exclusive
content and advance race
booking
• 10 years of subscriber
growth

13. Copyright Penmaen Media
2010
Songlines
• Niche publisher – for world
music fans
• Free digital sampler – song
samples and links to and
from Amazon
• Drives growth in paid subs
to print and digital mags

14. Copyright Penmaen Media
2010
Tips on managing free and paid
• Extensive free content to draw in audience
• Valuable e-newsletter/ privileges to drive
registration
• Don’t try to charge for what was free
• Exclusive reports, specials, ebooks for subs
package
• Include “money can’t buy” access or events

15. Copyright Penmaen Media
2010
Why it works for
publishers
• Free replenishes
database
• Protects from
competitors
• Close to audience
• Multiple income
sources
Why it works for
advertisers
• Wide reach of market
• Targeting
opportunities
• Deeper relationship
with core

16. Copyright Penmaen Media
2010
Carolyn Morgan
• 15 years at specialist publisher Emap
• Launched, acquired, sold events, print, digital media
businesses
• Work with specialist media businesses on digital strategy
• Launched Specialist Media Show in 2010
• Write & speak on digital publishing strategy: Inpublishing,
Publishing Expo, Ipex, Media pro, Media futures,
themediabriefing
• Follow me on twitter: @carolynrmorgan
• Join the Specialist Media Network on Linked-in
• www.penmaen-media.co.uk
• www.thespecialistmediashow.com