Understanding the Factors that Drive Readers to Pay for News
In an era of abundant free content, news organizations face the challenge of convincing readers to pay for access to news. A recent study conducted by a research team consisting of Dr. Neil Thurman and Dr. Bartosz Wilczek of the University of Southern California, and strategic analyst Ina Schulte-Uentrop shed light on the factors that can influence readers' decisions to subscribe to online news. The study examined various advertising messages and their combinations to determine which approaches were most effective in persuading readers to pay for news.
The research team tested 16 different versions of online subscription pitches on 815 U.K. participants. These pitches were categorized into four main advertising messages: digital, social, normative, and price transparency. Each message was tested individually and in various combinations to assess their impact on subscription willingness.
The study identified two combinations that performed exceptionally well in convincing readers to pay for news. The first effective combination emphasized the importance of supporting independent journalism and the need for financial sustenance, and clearly stated that message to its readers. The second successful combination offered digital incentives to join the community the newsroom is catering to while also highlighting the economic challenges facing journalism. In both cases, transparency about why these newsrooms needed subscribers attracted more subscribers.
The research was conducted in a brand-neutral manner, meaning subjects were not given the names of the newsrooms they were assessing, but it is interesting to compare the approaches of leading U.K. subscription-based news organizations: The Guardian and The Financial Times. The Guardian, which uses a mixed model of free content and voluntary subscriptions with extra features, reminds readers of the content they have already consumed for free and urges them to support independent journalism. The Financial Times employs a different approach: a trial offer which leads into a paywall. The Times promises prospective readers expert content to entice them into subscribing. Both models contain a balance of complexity and simplicity in their approach to enticing readers. "One argument [for why readers should pay] is not enough. There needs to be a combination of arguments," said Bartosz Wilczek. "Three or four appeals is too complex, though." However, there is no “right answer” to the success of this formula.
Only nine percent of U.K. news consumers currently pay for news, indicating the need for news organizations to refine their advertising messages. To increase subscription numbers, organizations will need to start with price and need transparency, according to Wilczek. Paywalls will cause readers to become suspicious and if they are not presented with clear information, they are more likely to drop the newsroom as a source of news altogether. If a particular approach does not yield the desired results, it is essential to experiment with new approaches, paywall types, offers, and products. Experimenting and updating these policies constantly can also benefit subscription retention strategies.
While the study found that audience demographics had minimal impact on willingness to pay, two groups stood out: older readers and frequent mobile users. Frequent mobile users tend to be more digitally savvy and open to digital subscriptions. Older readers are more easily convinced to pay due to their specific interests, longer-term engagement with news, and more disposable income—which may also point to why distrust of the media is highest among young people.
As journalism changes, so does the need for it to be marketed in different ways. If newsrooms are going to opt for a subscription model, they must adhere to proven strategies to be successful. When the media landscape changes again, inevitably, they must also be adaptable and willing to try different methodologies to retain their subscriber base. By understanding reader preferences and adapting to their needs, news organizations can overcome the challenge of monetizing their content, ensuring a sustainable future for quality journalism.
