LOS ANGELES — TheVerge.com writer Chris Plante spotlighted Naughty America's for-pay porn strategy in an article titled "How one for-pay porn site is surviving in 2016."
Despite the market-shifting effects of rampant piracy and tube sites offering free porn, Naughty America has sustained its subscription model with shrewdly applied tactics and a keen analysis of the business landscape.
Naughty America CIO Ian Paul explained that tube sites are facing a shortage of quality content, which has "declined a lot lately, with a lot more recycled content or content poorly shot in hotel rooms." He also points out the prevalnce of ad-blockers that are "severely cutting into their ad revenue. Even PornHub is experimenting with a subscription-based premium service, perhaps because they're feeling the pressure."
The article then goes on to outline four key strategies Naughty America employs for thriving in the current market.
First, in light of the low ROI for trying to obtain traffic via search engine marketing, Naughty America introduces its brand to potential customers with a proactive social media approach — taking into account, for example, the clout of talent on Twitter prior to casting them in films.
Secondly, Naughty America fashions breadcrumb trails leading to their content. "When people start searching [for porn], they don't always know what they are looking for," Paul elucidates, noting that his company creates supplementary materials leading to a subscription page. "It can be ancillary images, promotional clips and searches that lure visitors. Even affiliate sites are viewed as part of the path towards paid commitment." Sometimes, this means utilizing free content as a means to a profitable end.
Next, Paul underscores the importance of creating "perceived value" greater than free content. Rather than trying to compete with the vast libraries already accessible to consumers, Naughty America strives to be more cutting-edge, like in its push for 4K videos and VR. "Even customers that see porn as a free commodity don't expect VR to be free," he said. "VR has raised the bar and is giving more people a justification to pay for porn."
Lastly, even lost customers can be redirected to recoup losses, by engaging in a referral partnership with competitors. "If you know a customer is going to leave you and there is nothing more than you can do about it, then why not refer them to your competitor and earn additional revenue?" Paul points out. "The referrals go both ways so we gain new customers this way, too."
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