Overview of this campaign
Our paywall model is based on the concept that each user has a different propensity to buy our product. Some users behavior suggest a very high propensity to buy a subscription, and, for them, we apply stricter access to content. For the ones who do not have a close relationship with our brand, the number of free articles is higher. The idea is to incentivate them to come back and, eventually, become a subscriber.
The hypothesis that different users should get different paywall rules was successful in bringing new subscribers and lead us to question whether we should change the marketing approach according to the profile of the potential client.
Instead of a plain offer, based on our main slogan, we invested in different arguments. For some who live in Rio, for instance, we used the advantages of being part of Clube O Globo, a discount club for our subscribers in restaurants, bars and spas in the town. For the ones who are interested in politics – a particularly important section in an electoral year – we tested a message regarding the importance of fair journalism for democracy.
The pricing was also variable based on the correlation between the number of hits in the paywall and the convertion rate. We discovered that, above a certain number of hits, the convertion rate drastically decreases. Therefore, the more times the user hitted the paywall, the more aggressive was the discount. If the lowest price was not effective, the user was invited to a one-month free sample.
The different approaches and the dynamic pricing strategy were developed in other channels such as e-mail marketing, social media, search engines, banners at the website and even the call center. Once you hit the paywall and don't buy our subscription, you start receiving offers in and out our website and, if you don't convert in 48h, you receive a phone call always using the same approach.
Results for this campaign
After an year of strong growth (183% yoy) in the digital subscriptions, our challenge was to keep growing our database without hurting our reach, engagement and churn rate. The different approaches designed to appeal for different kinds of users lead to an 63% increase in sales in 2018.
The number of subscribers rose 38% and we managed to have a 49% higher revenue coming from digital only subscribers. This growth of our base – based on exclusive content, to which only subscribers have access – did not hurt our performance in audience and churn rate.
According to ComScore data, O GLOBO had, in average, 22.8 million unique visitor per month in the website, above the results of its main competitors. And our churn rate decreased by 34% during 2018.