As publishers ourselves, the team here at GRV Media (owners of PROP®), are always attuned to new developments in monetisation models.
As part of our occasional series looking at different models, this blog piece will look at micropayments, and how they may be used to diversify your revenue mix.
Micropayments are a relatively new and less well-used option to add to the monetisation mix, providing something of a halfway-house between asking users to commit to a full-on subscription, versus offering all content for free.
Micropayments can be worth considering for digital publishers to generate revenue, as they allow publishers to charge small amounts of money for individual pieces of content or access to more premium content.
This can be appealing to users who are willing to pay a small amount for a specific article or piece of content, but may not want to commit to a larger subscription fee.
Some limitations to micropayments…
However, it’s important to note that micropayments may not be the most effective strategy for all publishers or audiences.
Micropayments can be seen as an additional hurdle for users, as they may not want to go through the process of making multiple small payments for individual pieces of content.
Additionally, some users may be hesitant to provide payment information for small amounts, or may be turned off by the idea of paying for content altogether. It’s worth considering that, as some consumers cut back on subscriptions in leaner times (as reported recently in The Guardian), easy and small payments versus bigger commitments might become more attractive.
As noted in a recent article in Press Gazette, there remain some tech challenges for publishers who are thinking about deploying a micropayment system.
And, as with so many tech innovations, some of the bigger and more influential players need to get involved first for it to really catch on.
Ultimately, whether or not micropayments are a good option for digital publishers will depend on factors such as the publisher’s target audience, the types of content they produce, and the overall user experience of their website or platform.
It’s important for publishers to carefully consider the pros and cons of micropayments before implementing them as a revenue generation strategy.