The Pros and Cons of the New Ad-Based Video Paywall Idea

Perhaps you’ve heard that the new, hot thing in paywalls is unlocking content after consumers view a Web-based video ad. But is this really

Perhaps you’ve heard that the new, hot thing in paywalls is unlocking content after consumers view a Web-based video ad. But is this really a good idea?AdAge first reported on this new business model and the technology developed by Content Unlock to support it. A number of consumer magazines, including Maxim, Radar Online and Guitar World are already using it.In short, consumers can read content after watching a 15-30 second video ad.But this model is likely to suit advertisers best and consumers least.Video advertising online does yield high returns for advertisers. In fact, shoppers who view a product video are 174% more likely to make a purchase and 52% more confident in their purchase than those who do not. So, as opposed to banner and display ads, advertisers are going to favor video advertising online.However, the experience is mixed for consumers. Consumers are trained to expect video advertising when watching video content, such as television programs, movies, and even YouTube videos to some extent (although the time limit on the latter is much shorter than the other forms of content). But, as Alexis Costa of Bonnier mentioned during Folio:’s MediaNext event in January, if people are expecting a reading experience, they may be annoyed when presented with auto-cued video.Furthermore, it’s no coincidence that only B2C publications have signed up for video ad-based paywalls. Auto-cued video paywalls are an extremely bad idea for B2B sites. There’s nothing more embarrassing in the office than having your computer blast an advertisement unexpectedly. Even if you’re looking at job-related information, you’ll look like the slacker surfing the Web at work.B2B sites who adopt video ad-based paywalls should expect high bounce rates.Meanwhile, video streaming sites looking to monetize their own videos will likely be served well by this model.

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