how subscription billing solves the issue of ad blockers

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How Subscription Billing Solves the Issue of Ad Blockers

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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How Subscription Billing Solves the Issue of Ad Blockers


Websites during the early days of the Internet were a chaotic environment of popups and

advertisements filled with malware. As a result, consumers haven't fully trusted online

ads since, and many install software created to block these intrusions and let users

browse uninterrupted. According to Computer World, the gaming site Destructoid sees ad

block rates between 36 and 42 percent, meaning the company is losing about a third of

its potential advertising revenue. This is bad news for the website and other online

organizations that receive money for ads viewed. Some sites refuse to show their content

to users with ad blocking extensions unless they disable the software – or add the site in

question to its whitelist – and refresh the page. While this tactic might be effective for die-

hard fans, the new or casual user is just as likely to leave the website and head

somewhere else.

"36 to 42 percent

of Destructoid's

viewers use ad

blockers, severely

limiting revenue."

What these companies need to understand is that ad blocking

software isn't going away. Instead of fighting the consumer

preference for an ad-free experience, they should adapt and

figure out new ways to provide their services. The answer is

simple: Websites should convert to an online subscription

business model that lets users enjoy an uninterrupted

experience for a recurring fee.

http://www.computerworld.com/article/2487367/e-commerce/ad-blockers--a-solution-or-a-problem-.html















https://www.vindicia.com/solutions/subscription-billing/







3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Subscription billing solutions solve the revenue issue

According to 1to1 Media, the technology magazine Wired gave its ad-blocking users two

options. They could add the website to their blocker's whitelist, thus allowing it to bypass

the software and show users the same content with advertising. Otherwise, users could

pay a subscription fee to experience an ad-free version. There were two payment

options: $1 per week or $3.99 every four weeks.

"Our team of journalists creates 30 posts every day, with the same commitment to great

storytelling and impactful design as the magazine," Wired wrote on its website. "We have

valued ad-free access to this experience at $3.99 every four weeks.“

Similarly, the video startup Vessel gives users an adless experience for either $2.99 per

month or $19.99 per year. YouTube Red, one of the latest offerings from the popular

video platform, is doing the same. Subscribers can listen to music uninterrupted for

$9.99 a month.

Making ad-free subscriptions work

Recurring billing solutions are a fantastic way to provide an uninterrupted experience for

users who are already dedicated to a particular service.

"A subscription model relies on already having engaged and returning users who are

willing to set recurring payments,“ Felipe Ogibowski, CEO of the mobile app ad service

IconPeak, told 1to1 Media.




http://www.1to1media.com/view.aspx?docid=35732













http://www.wired.com/wired-ad-free-site-faq/
















But what about viewers who are new to the website? They have yet to see the benefits

of a certain service experienced by their more devoted peers and thus have little reason

to sign up for a subscription. The trick is for businesses to understand who these

potential subscribers are.

Developing a customer profile is a lengthy process requiring dedicated tracking and

considerable amounts of data. However, understanding it lets businesses design the

best acquisition methods and set subscription prices that are the most effective at

attracting, attaining and keeping customers.

As more Internet users install ad-blocking software onto their browsers, companies must

find new ways of receiving revenue. Subscription billing is the perfect solution. It gives

users a choice – as in Wired's case. They can either stop using their ad blocker or pay

for an ad-free experience. Either way, users get the content they seek, and the business

gains revenue. In addition, businesses that use subscription billing can rely on regular

payments from their customers.


About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

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