Dive Brief:
- Google is helping publishers increase paid subscriptions on three new fronts, according to a report in Bloomberg. The offerings include a retooling of its "first click free" link on its search response pages, along with more online payments and subscriber targeting options. First click free offers readers a free preview of what paid subscription content looks like via links in Google search.
- Google is testing these options with publishers like The New York Times and the Financial Times, but noted it's talking to dozens of other media companies that are eyeing a pivot toward the paid subscription model. Richard Gingras, Google’s vice president for news, told Bloomberg that the shift is occurring as it's become clear that publishers can't survive on online advertising revenue alone.
- Part of the process is also adding subscription tools in Google's Accelerated Mobile Pages (AMP) open-source format, Bloomberg said.
Dive Insight:
The news from Google comes on the heels of a similar approach from Facebook. In June, CEO of News Corp., Robert Thomson, said the publishing giant was in advanced talks with Facebook about creating a "subscription mechanic" for its titles, including The Wall Street Journal. As Bloomberg notes in the Google report, the Journal felt burned after it dropped out of first click free, with traffic up but revenue taking a steep dive.
Publishers, for their part, will welcome these digital platforms supporting more paid content. Technologies like ad blockers have put a serious dent in revenue in recent years, with no signs of adoption slowing down. Facebook and Google could also get a cut of any subscriptions earned via their service, making for a win-win on the business side, but it's not yet clear how much traction the strategy will have consumers who are accustomed to getting all their news for free online and who will have no shortage of alternatives to turn to if their prime sources go behind a paywall.
A focus on subscriptions could also tie neatly into Google's recent introduction of a personalized news feed a la Facebook in late July. Unlike similar offerings, stories in Google's feed are chosen based on search history and topics that users choose to follow. In related Google search news, the company is rolling out six-second video previews on Google mobile search to let users know what videos the keywords pulled up, as reported by The Drum.
