Dive Brief:
- A recent report from the Online Publishers Association show that some newspaper and magazine websites have been able to increase their ad rates after installing a paywall.
- Many publishers have been hesitant to erect a paywall because of fears that it would alienate readers and stall ad revenue.
- One main reason paywalls help to increase ad rates is that publishers can collect valuable first-party data from paying subscribers.
Dive Insight:
This is good news for publishers who have put off the revenue-generating paywalls for fear that it would negatively affect their advertising. Many publications are still skeptical of the paywall model, and for good reason. One study is not enough to prove it works, but for those publications that have been on the fence, this information could inspire them to test a paywall out.