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Google will end its "first click free" policy, which required news publishers to give users free access to a certain number of articles, The Wall Street Journal reported. And Apple is letting certain publishers use their own ad tech to serve ads on Apple News, according to Ad Age.
The changes by the two companies make it easier for publishers to monetize users and convert readers into subscribers. That's especially important as more publishers turn to subscription plans to drive growth in the wake of declining ad revenue.
Here’s a breakdown of each change and why it's important:
- Ending "first click free" can help publishers boost subscriptions. Previously, publishers that didn't provide a certain amount of free articles were pushed down in search results. Because there will no longer be a penalty for instituting paywalls, more publishers may do so. Implementing paywalls can help entice more users to subscribe, unless users elect to seek news elsewhere.
- Allowing the use of other ad tech to set up Apple News ad campaigns will save publishers time. Publishers can just extend current campaigns using their own technology, instead of taking extra steps to set up a separate campaign through Apple’s ad serving technology.
It’s in Google and Apple’s best interests to implement these changes and help publishers monetize.
- Google can cash in on publishers' subscription revenues. Though exact financial details aren't ironed out yet, Google will likely take a small portion of subscription revenues, according to The Wall Street Journal. The company is building out other products to streamline the subscription sign-up process for users — Google aims to have a one-click subscription process, according to the company's VP of news — which can help further boost revenues for publishers, and ultimately Google as well.
- Apple’s change can cause publishers to post more Apple News content, which can attract more users to the app. Making it easier for publishers to set up ad campaigns within Apple News may boost monetization and spur them to post more content. More available content could attract more users to Apple News, where user adoption is relatively low. Apple News has close to 50 million monthly US visitors, according to comScore, and the news app comes installed on any iPhone, iPad, or iPod Touch running iOS 9 or later (nearly 90% of Apple devices are currently using iOS 10).
BI Intelligence, Business Insider's premium research service, has compiled a detailed report on publisher paywalls that:
- Takes a look at the increased adoption of digital paywalls in the last decade.
- Discusses the three main types of paywalls: strict, metered, and freemium content paywalls.
- Identifies necessary characteristics for publishers that succeed with each paywall and points out potential threats to these publishers.
- Lays out how millennials are shaping the future of the paywall model and forcing publishers to evaluate alternative methods to monetize users.
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On February 28, Axel Springer, Business Insider's parent company, joined 31 other media groups and filed a $2.3 billion suit against Google in Dutch court, alleging losses suffered due to the company's advertising practices.