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April 17, 2023

Responsible Anti Ad Blockers with Micropayments

Ad blockers are becoming increasingly popular, and they are having a significant impact on advertising revenue. In fact, a recent study by PageFair found that ad blockers are costing the online advertising industry $22 billion per year. This is bad news for publishers. Many publishers rely on advertising revenue to keep their businesses afloat.

So, what can be done to address the problem of ad blockers? One solution is to offer pay-per-use experiences. This means that users can choose to pay a small amount, typically less than a buck, to access specific content or features. Another extension of this solution is time bounded pass—giving users full access for a stupulated period of time.

There are several benefits to pay-per-use experiences and time bounded passes. First, they allow publishers to monetize their content without relying on advertising. Second, they give users more control over their online experience. Third, they can help publishers create a more sustainable business model and build long-term relationships with these users and potentially nudge them to become subscribers.

Of course, there are some challenges associated with pay-per-use experiences. The biggest challenge is to track and manage these low priced payments, a.k.a. micropayments. Another challenge is that it can be difficult to convince users to pay for content that they may get for free elsewhere. However, with right pricing, and providing a frictionless payments experience, publishers can address these challenges and unlock a new revenue stream. Our platform, UKey, is one such solution that provides a dynamic pricing engine and facilitates micropayments using traditional payment methods (like bank accounts and credit cards).

Here are some examples of pay-per-use experiences:

  • Newspapers and magazines: Many newspapers and magazines can offer pay-per-article experiences. This allows users to access content without having to see see ads or subscribe.
  • Creators: Creators often give away their content for free in the hopes that their content be monetized through ad-share programs. But with pay-per-use experiences, creators can start earning from the get-go.
  • Streaming services: Streaming services like Pandora have business models that are powered by ads or subscriptions. An alternative to increase revenue and build a user base is to let users buy time bounded passes like a day pass. These passes gives users unfettered access to premium features for the duration of the pass.

As ad blockers continue to evolve and grow in popularity, publishers need to find new ways to monetize their content. Pay-per-use experiences are one promising solution.

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