Supporting Email Publications Through Stand Alone Ads

Declining online ad sales has created a real crisis for email publishers who rely on ad revenue to support their business. As a result, many electronic publications have gone defunct while others have switched to a paid-subscription model. The latest creative solution is a twist that allows a publisher to keep their newsletter or email discussion list free, while at the same time makes use of that very same list for advertising purposes. Called “stand alone” or “solo” ads, these ads have certainly been stirring up some controversy.

The Changing Business Model

The Internet used to be a great free lunch. Free information abounded, just waiting for us to find it and use it. Then ads were introduced — after all, someone had to support the gathering, compilation, posting and maintenance of all this information. Email newsletters were really no different. Besides, back in the hey-days when everyone seemed to have advertising dollars to spend, why NOT charge for ad placements? New publishers cropped up daily, many of whose whole business model then relied upon these ad dollars.

As ad dollars fell off and the fee-based subscription model was introduced, many online readers became incensed that they had to pay for content that used to be free. Publishers argued that traditional off-line publications are chock full of ads, and they ALSO charge a subscription fee, so why should online content be any different?

Some online and email publishers are making their fee-based subscription model work, but others just could not successfully make the switch. Many of their subscribers would NOT pay for the content they previously received free of charge, figuring they could find the same or similar content elsewhere online but still for free. The introduction of the stand alone email ad gives email publishers a new (albeit untested) choice.

Stand alone email ads are exactly what they sound like: emails that are ads only, delivered to the subscriber list via its publisher. They can be text-only, HTML, or even rich email. They can be used in conjunction with a fee-based subscription model or with the free content model. With the fee-based model, the subscription list is divided into paying subscribers versus non-paying subscribers, with the non-paying subscribers subjected to the stand-alone ad (paying subscribers have the benefit of ad-free content). With the free content model, the publication itself may or may not be ad-free but subscribers could still find themselves receiving stand alone ads as a way for the publisher to generate additional revenues.

A good example of a well-known publisher testing the solo ad model is Adventive. Until recently, their moderated discussion lists have been advertiser supported. Realizing that not all of their subscribers would want to pony up a yearly subscription fee, but being unable to continue to support their lists without incoming revenue, Adventive made a decision that enables their content to remain available to non-paying subscribers. Adventive now sends their non-paying subscribers an advertiser- sponsored stand-alone email ad. There is only one sponsor per ad, and the email is completely devoid of Adventive content.

Before considering whether this model may be applicable for your situation, consider the following positives and negatives aspects of serving up stand-alone advertisements to your list:

The Positives

Your email publication is probably extremely targeted, whether it’s about snow skiing hot spots or industrial engineering. Whatever the topic is, your subscribers are interested enough in it to keep reading week after week. Just as you did before when selling ad space in your publication, you can continue to use your loyal, targeted audience to attract advertisers. Chances are, they will look favorably upon being the only sponsor of a competitor-free stand-alone ad sent to your subscriber list.

The advertiser can also flex more creative muscle with a stand alone ad. Rather than being confined to the parameters of the email publication, a stand alone ad can better serve the advertiser’s end means in reaching their target audience. The ad can be long/short, text/HTML, flat/interactive, etc. This is a new way of presenting a virtual unlimited array of ideas.

The Negatives

Your readers are loyal for a reason: they value your content. If you deliver too many ad messages, you run the risk of turning them away, or at the very least, simply deleting your sponsor’s message (not good in the long-term for your solving your fiscal woes). Certainly do not send out solo ads with greater frequency than you send out your email publication. Another good rule of thumb is to avoid inappropriate advertisers no matter how much you need the money. It’ll be ineffective for your advertiser and will quickly numb your subscribers to even being interested in your solo ads.

There are certainly going to be evolving solutions to the revenue dilemma as publishers strive to keep themselves afloat and still produce solid content. Stay tuned and we’ll keep you informed.

Related Links:

Adventive

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