When it comes to premium content, users want access to it, advertisers want to reach those users, and the content creators need to monetize in the process. So, what’s the best method? In this article, we will review user preference for accessing premium content, advertiser preference for delivering their messages, and how publishers can improve their revenue potential by encouraging in-app purchases.
User Preference
While there is a tendency to want to place content behind a paywall for immediate monetization, mobile publishers should be weary of this urge. According to July 2015 data from eMarketer, only 8% of users are willing to pay per view, and only 15% are willing to pay a monthly subscription. Meanwhile, 77% of users prefer to access premium content that is free and supported by video ads.
This isn’t surprising, as Business Insider recently found that most users don’t want to pay for apps, either. In fact, according to their study, 75% of users expect apps to be free, which coincides with the 77% figure found by eMarketer. In short, three fourths of users simply do not want to pay up front for mobile content and are much more likely to be receptive to an ad supported model.
Maximizing Revenue
To maximize ad revenue without adversely affecting the user experience, it is critical for publishers to integrate ad types that are more effective for their advertisers (and thus drive higher eCPMs). A recent IAB study found that twice as many users recalled mobile video ads than display ads, a nod to the format’s growing prevalence and superior performance. Specifically, 57% of users recalled mobile video ads, making it the clear choice advertisers looking to sponsor premium content.
Driving IAP
Of course, advertisers aren’t the only group who can leverage video to deliver effective messaging within apps: publishers often wish to further monetize their ad-supported content by driving in-app purchases.
To do this, publishers should not be shy about using video to drive those coveted IAPs, as users actually find these videos helpful when making a purchase decision. In fact, according to recent eMarketer data, 83% of users find videos to be helpful toward making a purchase decision.
With the clear power of mobile video to drive purchase decisions, it’s not surprising that top advertisers are planning to expand their mobile video efforts this year:
To summarize the findings from eMarketer, the IAB, and Brightroll, mobile video is:
- The dominant user-preferred method for accessing premium content for free
- The most effective format at user recollection
- Overwhelmingly helpful at driving purchase decisions
- Where the majority of advertisers expect to see the greatest increase in ad spend
Thus, before publishers turn to a premium paid model to monetize, it’s important to consider lowering the barrier to entry by supporting content with mobile video advertising and driving in-app purchases with mobile video.
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