It’s Not Just About Paid Versus Free

A look at The Wall Street Journal’s online audience funnel.

By Bill Mickey
Monday, July 6, 2009

A lot of the talk around paid online content lately has rightly focused on whether or not a Web site visitor will make the jump to a paid model. Yet that conversion may work best if it’s not a hard break from free to paid. The Wall Street Journal’s site, for example, pulls its more than 38 million monthly visitors through an “audience funnel” that gradually pulls readers into a registered model, then to subscriptions and, finally, to premium subscribers. Importantly, each level has distinct assets that are aligned with their respective pricing level.

Free Level

Free content visitors on WSJ.com have grown 138 percent since 2006, said Gordon Mcleod, president of the WSJ’s Digital Network, in his keynote at the 2009 Audience Development Show held in Chicago last May. What has become key at this stage, said McLeod, is clearly identifying what is behind the pay wall. Surprisingly, this has not always been the tactic—content levels use to be purposefully vague. “It’s really helped make subscribers feel more comfortable because they’re seeing that most of the site can’t be accessed and it’s the most valuable content,” said McLeod. “On the other hand, as we bring in more free users, it gives them a sense of the quality of the paid content and our upsells are easier.”

At the free level, readers get selected new content, smart phone access, and the out-of-home “Office Media Network” of monitors displayed at busy, “high-profile” buildings.

Registration Level

At this tier, users have free access to personalized news feeds, participation in the site’s community and commenting features and additional news alerts and exclusive newsletters. Critical for this level, said McLeod, is to keep the registration process easy. It’s an important first step, because registered users are more likely to become a paid subscriber by a ratio of 6 to 1.

Subscription Level

At this level, users can pay for access to “core curated” Journal content unavailable anywhere else. This is the deep, investigative, Pulitzer-level content, said McLeod. Also available is the ability to preview new tools and community features before anyone else; and access to enhanced mobile platforms such as the WSJ Anywhere program.

McLeod noted an emphasis on selling bundled print and online subscription products. The bundles have been successful at driving online growth, especially for print hold-outs in a digital world. “The pricing is competitive, but it’s a great transition product. Down the road we think there will be fewer print subscribers and more digital, and this is a great way to get them to transition.”

Premium Subscribers

When advising on what content should be paid, industry types often say that highly service-oriented content is best suited for this. Indeed, WSJ’s premium-level products are aggressively priced, but offer the most actionable content of the bunch: A Barron’s Stock Alert service for an introductory price of $795; the Hulbert Financial Digest for $59 per year; and WSJ.com’s Political Diary Newsletter for about $8 per month. At this level, said McLeod, it’s important to keep innovating and offering new products to keep the pipeline full and subscribers interested.