April 4th, 2011
Why More Marketers Are Underwriting Access to Paid Content
Ad Age Digital
The more media companies ask consumers to pay for digital content, the more brands are stepping in to foot the bill. And while consumers and marketers seem to love the arrangement, it could cut into the pool of advertising dollars and does nothing to wean consumers off the idea that content is always free.
Last week, Volvo began offering free streamed baseball games to the millions of Americans who own Apple devices through a partnership with Major League Baseball’s advanced media division. For one month, the automaker is covering MLB fans’ $25 subscription fee for live game video, marking the first time MLB has offered free access to all its games.
The move comes just weeks after Ford Motor Co.’s Lincoln brand stepped in to offer free passes to 200,000 of the people most likely to encounter The New York Times’ new digital paywall, opening up $150 worth of paid content. More recently, Microsoft has begun underwriting a month of Hulu Plus’s $7.99-a-month video service for people who downloaded the latest version of Internet Explorer.
While the moves may not be training consumers to open up wallets, they are encouraging sampling, bringing bigger ad dollars to publishers and, for brands, generating buzz and goodwill.
“Advertisers have been underwriting media for a very long time; this is just another way to engage with consumers,” said Connie Fontaine, manager of U.S. Lincoln marketing communications, who brokered the Times deal.
Read more: http://adage.com/article/digital/marketers-underwriting-access-paid-content/153081/