Monday, March 19, 2007

Paid to Read Industry

In this post I express some thoughts about the industry of “paid to read” stuff.

The “Paid to Read” phenomenon has been taking place for a while on the internet. Paid to read is meant to refer to an advertisement or a message carrying an advertisement (on it) in which someone is being paid just for reading. That kind of “business” can take several forms; most of them are emails, on-site ads and links. There is always an intermediate part between the advertiser and the ad viewer. That part publishes the advertiser ads and offer one portion of the advertising revenue to the viewers. In that way, the service provider motivates people to read ads. Both parts; the intermediary and the client benefit; it’s a win-win situation. Some questions, arise though; for example what about the benefits of the advertiser? Does he/she win? Are one’s ads effective? Below, I try to offer some perspectives…

One can state that as long as people read the ads just for the money incentive there is no real attention to the advertising message but only passive clicking actions. On the other hand, advertisements not including any incentive have the same appealing: no one seems to really enjoy seeing ads. You may be amused with some ads but I bet you are not looking forward to turn your TV on or browse a magazine just to see ads. Ads are always distracting. They try to distract you from whatever you were doing to pay attention to them. In most occasions that is the case. It’s Seth Godin’s distraction marketing theory. Consequently, whether there is, or there is not an incentive (of any kind), people in most cases do not authentically look forward to read ads.

Thus coming to the very first question about the effectiveness of a “Paid to Read” advertising message, if an ad is being placed just to inform consumers about the existence of a product or service, I hold the opinion that both ways of advertising (paid and non paid ads) are almost the same (as concerns effectiveness).

As concerns brand preference and reminding ads my views are: Usual advertising costs a lot more expensive in traditional media that Paid to Read ads. That may lead to the association of a brand being advertised through traditional ways with high value and successful product / service. On the contrary, cheap advertising of paid to read messages might cast a lightly negative impact to the viewers. The previous statements concern ads that are trying to remind the product / service to the user (or call to act) and to improve conceived brand value. Contrary, when there is too much clutter on reminding advertising it may affect viewers of traditional media channels negatively while this is not the case for viewers that get paid to see them. In other words, “Paid to Read” ad networks can effectively bear a lot of ad clutter while other common networks cannot.


…some more views:

Most common and simple forms of “Paid to Read” services refer to emails containing a direct link or/and an embodied advertising.

I personally use some Paid to Read networks, I have been paid a few dollars. Of course in this industry no one should expect to get rich.

Almost all of the “Paid to Read” networks offer user referral systems.

There is also the “Paid to Click” alternative industry. This is very similar to the “Paid to Read” stuff. I will not analyze it (at least in this post).

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