Key Points

  • Blending ad revenue and subscription revenue with rewarded video ads can boost earnings without ruining the user experience.
  • A rewarded video ad allows users to watch a short video ad in exchange for a reward.
  • Benefits of rewarded ads include scalability, great user experience, and diversified revenue streams for monetization.

Many subscription-based websites, apps, and platforms have never considered adding ads. Why? Well, it just doesn't fit into the model for those web and app publishers.

But what if you could create a seamless way to combine your existing subscription revenue model while introducing ad revenue in a way that's non-intrusive for users and highly lucrative for you? It might reduce your audience's chance of leaving your site to Google "how to get around paywalls." Let's face it: we've all done it. 

Fortunately, there's a better way. That's the power of rewarded video ads as part of a hybrid revenue model.

But first, it's essential to understand the two existing models - and how rewarded video ads can be used to blend them both.

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Web Rewarded Video Ads Pillar

Rewarded Video Ads: The Complete Guide to Using Rewarded Video on Web, App, and More

What is the Subscription Model?

With this model, users can access all of a publisher's content for a monthly or yearly fee. 

The subscription model has several benefits for both publishers and readers. For publishers, it provides a steadier income stream than advertising or pay-per-view models. In addition, subscribers are highly likely to be loyal users invested in the product. 

The subscription model gives readers unlimited access to a publication's content. They can also feel good about supporting the publication financially. In recent years, the subscription model has become increasingly popular with online and print publications.

While this model has its advantages, there are also some downsides that publishers should be aware of. One of the biggest problems with the subscription model is that it can lead to a decline in traffic. Many people are unwilling to use a paid app or website and will simply go elsewhere to find the online content they are looking for in a free app or website.

As a result, you end up sacrificing the ability to monetize those users who aren't ready for a full subscription. In addition, the subscription model can also make it difficult to attract new readers. Even if someone might be interested in your content, they may not be willing to pay for it to find out. As a result, you could miss out on potential fans and followers. 

What is the Ad Revenue Model?

Ad revenue is the lifeblood of many online businesses, and it works by selling advertising space on a website or app to interested companies or organizations. The amount of money that can be earned from ad revenue depends on a number of factors, including audience size, ad placement, the type of ad unit, and ad format.

This is in contrast to the subscription model, which relies on users paying a monthly or yearly fee to access the content. While the subscription model can provide a steadier income stream than ad revenue, attracting new users willing to pay for access can be more challenging. 

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Read the Publishers' Guide to Ad Revenue

What Are Rewarded Video Ads?

Rewarded video ads are a type of advertising that allows users to watch a short video in exchange for some sort of reward. Rewards can also include items, lives, or power-ups (popular in the gaming app space), or access to premium gated content (the most likely case if we are talking about a subscription model). 

Rewarded video ads are generally well-received by users, as they provide a way to earn rewards without paying for them. As a result, rewarded video ads are an essential tool for publishers looking to supplement a subscription model.

Benefits of Rewarded Video Ads for Blending Revenue Models

USER Engagement

We've already mentioned how users are comfortable with rewarded video ads. Adding them to the mix on your website or mobile app makes users feel they have power and choices, and they'll usually choose to engage with your ad to access premium content for free.

More Top-Line Revenue

In simple terms, rewarded video ads mean more ad revenue. You're also recapturing the users you would have lost if they had been confronted with a paywall and had been unwilling to pay.

Highly Scalable

Rewarded video ads are highly scalable. They can easily grow to meet the needs of any given platform, making them ideal for brands with a large or growing audience.

Premium Inventory for Advertisers

Rewarded video ads are considered premium inventory for advertisers, so they'll generally pay very well for these slots on your platform.

Contact Playwire to Get Started

We like making people happy. With a mixed revenue model using rewarded video ads, everyone wins. You benefit as the publisher, your users benefit from a great experience, and advertisers win with high-value real estate on your website or platform.

If you're ready to break out of your existing revenue model and start earning more while sacrificing less for your users, contact Playwire today. We can't wait to work with you.

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