So there’s talk around that content providers, specifically the newspaper groups, are maybe looking at micropayments or small fees for users to view content.
It’s considered almost a necessity as they confront the fact that they may never turn a profit from running display ads.
It’s a relevant concern, and one that would be facing a number of them. Loads of users, minimal engagement, reasonable losses.
Australia is not immume. It seems the real money in Internet advertising lies in classifieds and search. High margin, low relative cost and no journalists.
That’s not to say display is a mugs game. There’s some revenue there … but moving forward the technology you possess and the valuable audience you attract (ie not a general mix of all people) will be the key. Even if you tick all the boxes it’s a tough slog and the margins will never be Goog-esque.
Anyway, back to the idea of ‘micropayments’. As an idea it’s novel but ridiculous.
People already pay for the Internet. They get a bill from their ISP every month. I get one for $80 every month. It’s only $9 less than my Foxtel bill.
Are Internet users going to pay a fee on top of their ISP bill to access news/information? Doubtful. As far as they’re concerned, they already pay more than enough.