Interview with Tim Thormann: How the Kölner Stadt-Anzeiger appeals to modern readers with "Click & Read"

Tim Thormann, Head of Paid Content and Digital Subscribers at Kölner Stadt-Anzeiger Medien, talks to Purple about the "Click & Read" prepaid model launched in August 2023. It was developed to meet users' needs for flexibility and independence and allows them to read individual paid articles without a subscription. Among other things, Tim provides insights into the challenges of offer design, usage figures and target group approach as well as recommendations for the implementation of an alternative payment model.  

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Tim Thormann: "Readers want flexibility and independence"

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What is your professional background and what are your responsibilities in your current position?  

Tim Thormann: I've been working in digital marketing for eight years and have worked for various agencies in the Cologne area. As Head of Paid Content and Digital Subscribers on the publishing side, I have been responsible for marketing the paid products of the Kölner Stadt-Anzeiger and Kölnische Rundschau for a year now.   

What challenges do you think publishers are currently facing in terms of product design?  

Publishers should definitely consider the needs of users when designing their offerings. Although traditional subscription models are profitable, they sometimes fail to meet readers' needs. Readers want flexibility and independence - qualities that a subscription does not offer them.  

What prompted you to introduce the "Click & Read" prepaid model at the Kölner Stadt-Anzeiger and the Kölnische Rundschau?  

We were looking for a solution to counteract subscription model cancellations and thus subscription fatigue. Frequent reasons for canceling were that readers only wanted access to a paid article or did not make sufficient use of the subscription. This gave rise to the new prepaid model "Click & Read", which better meets the needs of many readers. 

How does this prepaid model work?‍

"Click & Read" basically works like a digital wallet. Our readers can buy coins, top up their digital wallet with them and unlock one article per coin. This gives them unlimited access to our paid articles on the website, even without a subscription. The coins have no expiry date and can be used until they are spent. If necessary, readers can buy new coins and remain completely unbound and flexible. "Click & Read" adapts to the needs of our readers.  

Why are there three specific price options for "Click & Read"?  

Our readers can top up their digital wallet with 3, 7 or 15 coins. We have set different entry prices to make buying as many coins as possible attractive: The more coins users buy, the cheaper the price per coin and therefore also per item. We observe that 80 percent of first-time users of "Click & Read" choose 3 coins at a price of 5 euros. They often choose higher amounts for subsequent top-ups. This indicates that they first want to familiarize themselves with the product and are satisfied with the product they have purchased.

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"Click & Read" serves as an entry-level product for undecided users

What advantages does the prepaid model offer compared to traditional subscriptions and how is it different? 

One major advantage is definitely the flexibility for our readers, as they are not tied to a subscription. This meets the needs of many people nowadays, who already have numerous subscriptions and contracts in their everyday lives. At a certain point, the limit is reached, which is why our model comes at just the right time.  

Do you want to address a specific target group with this model and which one?  

We like to use "Click & Read" as an entry-level product for users who are not yet ready to take out a subscription and use our content at irregular intervals. Due to our dynamic paywall, people who visit our website for the first, second or third time always receive a paid "Click & Read" product. The more frequently these users visit the website and the more content they consume, the more likely it is that "Click & Read" products will no longer be displayed. Users who spend a particularly high number of coins per month and for whom the subscription would be more favorable receive subscription offers via newsletter at regular intervals.

Would you also like to address a specific age group?  

In short, no. With Click & Read, we want to monetize everyone who is not yet ready for a subscription. However, we can see that our new model is particularly popular with younger people. With "Click & Read", we are currently reaching a target group that we would probably not be able to monetize without this product. Our data reflects this: only 10 percent of "Click & Read" users have previously used the Plus subscription. This means that we are not cannibalizing our subscription users with the new product, but rather addressing new customers and thus monetizing a largely different target group.  

"Click & Read" users bought more than 25,000 coins in one year

How is the service used by the readership?  

We have been offering "Click & Read" for almost a year now and have gained almost 3,200 coin users during this time. In total, more than 25,000 coins have been purchased, of which around 16,000 have already been used. This corresponds to a 65 percent share of coins in use, and the trend is rising. We have also compared the life cycle of users who have used our trial month in the past with that of "Click & Read" users. The results show that we generate 300 percent more revenue with "Click & Read" than with the trial month. We are absolutely satisfied with this.  

"Click & Read" is currently only offered on the web, not for the app. Are there any plans to extend this payment model to other platforms?  

Yes, this model will also be available for the app in the near future.  

How is the success of "Click & Read" measured? Can you provide an overview of the performance of the offer? 

First and foremost, we want to satisfy our users. We have more and more users who are topping up coins for the second or third time. This shows us that the model works well and is well received. We even have some heavy users who have already recharged up to 20 times. For us, success also means that we can now monetize users that we probably wouldn't have monetized otherwise. The usage share of coins spent is an important KPI for us, which we track closely. Our data shows that this percentage is continuously increasing. So far, 64% of users have topped up their wallet once with coins; at the beginning of the year, this figure was still around 50%.

KStA monetizes a special target group with "Click & Read"

How complex is it for publishers to integrate such a model into their existing systems?  

We used a product from Plenigo to integrate the "Click & Read" model. Plenigo already had a product that formed the basis for our payment model, so the effort for us was not great. The customizations to our system were mostly limited to the front end. We developed designs for the model and the rest was provided by Plenigo. It took about two months from the first meeting to "Click & Read" going live. Without Plenigo's technical foundation, it would have been much more complicated for us.   

What recommendations would you give to publishers who are considering switching from traditional subscriptions to a different payment model?  

We use "Click & Read" in addition to our subscription offers, so in our case there has been no change. The two payment models work very well in parallel for us, as we monetize a special target group with "Click & Read". Our aim with "heavy users" is to draw their attention to the subscription.  

It is important not to cannibalize the subscription model, as this generates the most revenue. However, you should always ask yourself what value an article has. We have defined that an article should be worth at least one euro. However, the value should be higher for complex research with articles spanning several pages, podcasts or other more elaborate productions. This further development of pricing is also potentially possible for us.

How do you see the future of payment models in journalism and what trends are you observing?  

When it comes to payment models, the needs of users are important, especially flexibility and independence. We combine this with the "Click & Read" model. I think it's important that publishers offer alternatives to subscriptions that allow users to start at a lower price. Many work with the subscription trial month. We have abolished this because "Click & Read" is our entry-level product and we can see whether users become subscription customers over time and whether we can monetize them further.  

I am personally convinced that subscriptions should be enriched with additional benefits. For local companies like us, this is an opportunity to enter into partnerships with other local businesses. For example, users of the Plus subscription could save 10% on their bread rolls at the bakery around the corner or attend concerts at a lower price. With such enrichments, we not only offer our users benefits, but can also justify the price of the subscription more strongly. In terms of trends, I see a tendency towards bundling among large publishing groups. In this case, offers in which several titles are offered at a special price are attractive.  

Thank you very much for your insights, Tim.  

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