Publishers are testing a new monetization tool from Google called Offerwall, which lets audiences unlock access to content on their websites by selecting from a range of options such as purchasing a subscription, viewing a video ad, sharing data, or making a micropayment for short-term access.
Google is promoting Offerwall as a way for publishers to diversify their revenues and explore “alternative monetization” approaches as questions mount about the viability and sustainability of ad-supported models.
In its conversations with publishers, Google has pointed to the deprecation of third-party cookies and growing privacy regulation as direct threats to their revenues. The online ad giant has also suggested the rise of the creator economy is making consumers more open to supporting publishers via subscriptions and other direct payments.
Google began pitching Offerwall to publishers last year, including those in international markets like Japan and India. Publishers currently testing it include digital lifestyle publisher BDG Media, India-based Sakal Media Group, and LoveToKnow Media, which operates a range of properties including Bibliography.com and YourDictionary.com.
The tool, currently in “beta,” is part of Google’s Ad Manager platform and is developed by its “Funding Choices” team. Toolkits asked consumer revenue executives at major U.S. publishers if they had been briefed by Google on the product but most were unfamiliar with it. Google did not respond to requests for comment.
How Offerwall works
Publishers can control the choices included on Offerwalls based on their product offerings, business priorities, and preferences. They can present one or more of the following options, which users can select to unlock access to content:
- View an advertisement: Publishers can create “rewarded” ad units, including videos, that users can view in exchange for access to their sites or specific content.
- Share first-party data: Visitors specify their interests from a list of choices to gain access to content. Interest data is then shared with publishers via Google’s “publisher-provided signals” feature and can be used to target ads across their properties.
- Buy short-term or single-article access: Visitors can pledge to pay for access to content for a specific period. This feature is offered via integration with micropayments platform Supertab, and visitors only pay when their “tabs” with the third-party company reach $5.
- Purchase a subscription: Publishers can also implement custom options, like prompting visitors to purchase a subscription, complete a registration, or log in.
For example, some Bibliography.com visitors have been offered the ability to unlock a 24-hour ad-free experience in exchange for viewing a video ad or pledging to pay $0.50 via Supertab. MIC.com, a BDG Media property, has offered users 12 hours of access in exchange for viewing an ad, or one hour of access for pledging to pay 10 cents.
Publishers can create rules for where and when Offerwalls are displayed, including:
- Limiting Offerwalls to specific portions of content.
- Setting meters and frequency thresholds to determine when or how often Offerwall messages are shown (for example, after 5 page views).
- Customizing content access permissions based on visitors’ choices. For example, users who select Offerwall option A might be granted X number of article views, while users who select option B might be granted Y hours of access.
Diversifying revenue beyond ads
As digital media faces mounting challenges, it’s clear that publishers with diversified revenue streams are faring better than those reliant on advertising and sponsorships. Many publishers are now prioritizing subscriptions and reader revenue as the foundation of their business models and audience strategies as a result.
Google acknowledges that advertising revenue alone may not be sufficient to support many publishers’ businesses. The online ad giant has slowly rolled out tools and products in recent years designed to help publishers monetize their audiences directly, including Reader Revenue Manager and Subscribe with Google. It’s also invested in various programs and schemes designed to help news publishers develop reader revenue lines, particularly via its Google News Initiative group.
Meanwhile, publisher interest in more flexible access options is growing. Many publishers remain committed to subscriptions and paid access models but say they intend to continue adjusting and evolving their approaches to ensure they’re extracting as much value as possible from their audiences.
Practically speaking, that may mean adding more flexible subscription terms and layering on alternative access options designed to meet the needs of different segments of their audiences. Publishers say they’re increasingly optimizing for total revenue, which will see them attempting to balance subscription revenue with other streams such as advertising, commerce, licensing, and events, and generally taking a more holistic view of individuals’ commercial relationships with their brands.