Ad sales at paid subscription sites

From: Willie Lubka <lubka_at_datdoo.com>
Date: Wed 20 Mar 2002 08:50:50 -0600

Recent posts about paid online subscriptions that
work have been interesting and useful (EIU.com is
another great example) but I'm wondering how ad
sales works with subscription models. Common
sense leads to two conclusions; that requiring
paid subscriptions would reduce audience size,
and also that consumers who buy subscriptions would
to see expect fewer ads (like on cable TV vs free
TV). Also, discussions about subscription models
often start with "in the face of weak ad sales,
publishers seeking alternative revenue streams are
exploring paid subscriptions, bla bla bla..." Are
there any paid subscription models that also include
successful advertising businesses? If the
demographics of those who pay for access to content
are more targetted and therefore more valuabe, do
higher CPMs makes up for smaller audience volumes?
How can people trying to sell (or buy) advertising
approach the context of paid subscription or PPV
sites?

Willie Lubka
  





Received on Wed Mar 20 2002 - 08:50:50 CST