What is a paywall and why are publishers implementing them? Simply put, paywall is a system that prevents users from accessing certain content without a paid subscription. The WSJ and NYTimes were among the first major news publications to implement a paywall, charging for online content. Paywalls exists for various reasons, but the main motivation is revenue. News publications need revenue to produce content. This might help publishers but how does this impact advertisers? 

As an agency, the first thought is that this will limit ad reach. This will restrict audience size because users don’t want to pay for content if they can find it elsewhere at no charge. With limited access to the content, there are less ad impressions. This can drive the cost of ads on premium sites making it more expensive for advertisers to target their audience. 

However, on the flipside of a paywall, it can increase user engagement. Users who are willing to pay for a subscription are likely to be highly engaged and genuinely interested in the content to pay for it. They’ll spend more time on the site, interact more with the content. This can lead to higher engagement rates and better brand recall. One can argue that it cost more to advertise behind a paywall but the benefit of that is being seen beside high-quality trusted content. This gives advertisers brand credibility and premium placements.  Another upside of a paywall for advertisers is often, subscribers have to provide user data so this allows advertisers more precise ad targeting and higher conversion rates. 

With the pros and cons of a paywall, advertisers can adapt by investing in sponsored content or branded content. This offers advertisers the ability to interact with targeted users without relying only on display or video ads. Advertisers can also look for mixed models where their can run in free and premium content so brands can expand their reach. 

Paywalls can be challenging for advertisers due to the limited reach and decrease in ad inventory, but it also offers unique opportunities for brand when they adapt to the change. Brands can still have impact in the paywall space if they leverage premium placements, high-quality content sponsorships and first party data. Digital advertising is an ever-changing landscape and successful campaigns can be achieved with refined strategies and continuous optimizations.