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Digiday Publishing Summit Europe, Piano

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Digiday Publishing Summit Europe, Piano

  1. 1. How do subscriptions actually work? THE BUSINESS PLATFORM FOR DIGITAL MEDIA — PIANO.IO
  2. 2. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 01 Piano works with hundreds of subscription websites, manages thousands of daily transactions, and tracks billions of monthly user interactions, giving us unique benchmark data on digital subscriptions and valuable insights.
  3. 3. All subscriptions are not created equal. At each stage of the purchase funnel, we see great variation between best-in- class and worst-in-class subscription marketers. Success 19% 2% 1% 15% 5% 2% 35%10% 5% PurchaseReach EngagementExposure
  4. 4. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 4 Yes, most users bounce. Most of the audience visiting a typical publisher site is coming once and never returning. On average that’s nearly 70% of the audience. For Piano sites, the lowest we’ve seen is 50% and the highest is nearly 90%. Of course the most valuable visitors are what we call Direct & Dedicated, which account for about 12%. 68% 20% 12% Direct & Dedicated Casual One-off Composition of unique users
  5. 5. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 5 But bouncers are not where the money is. Looking at pageviews, while the Direct & Dedicated visitors are only 12% of the audience, they account for 55% of page views. These are the visitors most likely to move through the funnel – they’re more engaged, more loyal and more likely to encounter an offer. 22% 23% 55% Direct & Dedicated Casual One-off Composition of page views
  6. 6. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 6 BEHAVIOR BEFORE CONVERSION MEDIA N AT LEAST ONE HOMEPAGE VISIT 59% AT LEAST ONE DIRECT VISIT 53% AT LEAST ONE RECIRCULATED PAGEVIEW 83% The home page matters Visitor loyalty and engagement is one of the best predictors of likelihood to subscribe. Piano data on engagement shows that homepage visits, direct visits and most of all, recirculation are all correlated with later conversion.
  7. 7. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 7 Most users never see an offer Piano data shows a median 2% of visitors to our customers websites ever see an offer to subscribe. On metered paywalls, low exposure rates could be because of a high page view limit. On freemium sites, it could be that the paid offering is poorly promoted. 2% 50TH PERCENTILE 19% 90TH PERCENTILE 1% 25TH PERCENTILE PURCHAS E REACH ENGAGEMENTEXPOSURE
  8. 8. THE BUSINESS PLATFORM FOR DIGITAL MEDIA Ironically, an ad can be where a conversation starts. Visitors who were asked to view a video ad in order to read an article were significantly more likely to register later — whether or not they viewed the ad. The same sort of increased engagement is true of ad blockers — after turning off their ad blocker, users typically increase their article views and total page-views.
  9. 9. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 9 Registration, newsletters, and guest passes drive results. It’s well-known that newsletters are an important step on the path to subscriptions. Any tactic that moves visitors from anonymous to known boosts conversion. The average conversion rate of registered users is 10 times that of anonymous visitors.
  10. 10. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 10 Just like in the real world, frequency matters, not just reach. It frequently takes a while to get users to click an offer. This chart shows the average across publishers of the share of total conversions driven by each offer shown. Some users convert quickly, but the majority take multiple offers to subscribe. Business model – metered, freemium or hard paywall – and promotion and offer tactics can have a big impact on results. Recent Piano research shows that price paid increases along with number of offers. Averageshareofconverters Offers shown
  11. 11. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 11 When users click. When users see an offer, about 5% click. Users click most often on metered sites if they’re highly loyal – so frequently hit the meter wall. They also click on metered, freemium and hard paywall sites when the offer is compelling – a free trial or initial low price. They rarely choose to pay to keep their ad blocker on if they are given an alternative, e.g. whitelisting or registering. PURCHAS E REACH ENGAGEMENTEXPOSURE 5% 50TH PERCENTILE 15% 90TH PERCENTILE 2% 25TH PERCENTILE
  12. 12. THE BUSINESS PLATFORM FOR DIGITAL MEDIA Conversion rate lift — Median difference Closable vs. Non-closable modals 12 14x Non-closeable offers perform much better Piano analyzed sites running both closable and non-closable modals. Non-closable modal, which we call “stops,” had a 14X conversion rate compared with closable modals, which we call “notifications.”
  13. 13. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 13 Piano Benchmark Data Few articles drive most acquisition Visitors are much more likely to convert on high-value content. Just 2% of articles generate 80% of new subscriptions bought on articles. Cumulativepercentage Percent of articles published
  14. 14. THE BUSINESS PLATFORM FOR DIGITAL MEDIA PURCHAS E REACH ENGAGEMENTEXPOSURE 10% 50TH PERCENTILE 35% 90TH PERCENTILE 5% 25TH PERCENTILE At the bottom of the funnel, friction is the frontier. 10% of users at the bottom of the funnel will actually complete a purchase. There can be multiple factors standing in the way. Bad user experience post-click is the most common – seeing a paid offer when you don’t expect one, or a higher price than you expected. Making payment easier can improve performance – one Piano client saw a 41% increase in mobile transactions after implementing Apple Pay.
  15. 15. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 15 Cancellations are front-loaded. Many factors — trial vs non-trial, monthly vs annual — effect cancellations, but in most cases, new subscriptions have the highest churn risk. 0% 10% 20% 30% 40% 1 2 3 4 5 6 7 8 9 10 11 12 A third of cancellations occur the first month Two-thirds of cancellations occur in the first 6 months ShareofCancellations Month
  16. 16. THE BUSINESS PLATFORM FOR DIGITAL MEDIA 16 Engagement remains critical after conversion. 0% 3% 7% 10% 13% Light engagement (1-5 Active Days) Moderate engagement (6-15 Active Days) High engagement (16-31 Active Days) Churn rates by engagement level ChurnRate
  17. 17. Cumulative subscription revenue UX change Design update Split test variant MAR2017 JAN MAY JUL SEP NOV MAR2018 JAN MAY JUL SEP NOV More actions drive more results. This chart from the case study for a Piano case study shows how hundreds of marketing optimizations and tests drive revenue growth.
  18. 18. piano.io One World Trade Center New York, NY 10007 USA +1 646 350 1999

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