CKtalon Ads do not generate 5 SS worth of revenue. They generate about 0.25-0.5 SS each. Before Premium was introduced, it was using ads for revenue, and it was sorely insufficient to pay authors, translators, editors, and the publisher.
Cantiara I wasn't around when they first introduced premium chapters, so I can't say much about their reasoning behind it. And I didn't mean to barge in your convo, but I couldn't help but say something when I read the part of your post about WN renegotiating with advertisers because they should be paid more for those ads. Yeah, sorry, I could be meddlesome like that.
Well, the thing is, what you wrote, it doesn't work like that. WN, in this case, is just one of the many host partners of Google Adsense service. How it works is basically, advertisers pay Google to run ads on the Adsense network, then WN applied to become a part of that network (which is not a simple thing, you need to be eligible and approved by Google first), and then once they became a part of Google Adsense network, they get an ad code from Google and place it on their site/app. Then Google pays WN when those ads appear on their site/app.
So WN can't renegotiate with those advertisers directly, there were never any initial negotiations with them, to begin with. And no, they can't negotiate with Google either, because, well, I'm not gonna call Google a tyrant, because tyrant is a strong word, and we all do benefit from a lot of things that Google gives us, but they are one of the biggest players in the tech world, and so, if you're using their service, instead of negotiating with Google, you'll have to conform with their standards instead.
As far as I know, if you're a host partner, how much revenue generated by these ads depends on two things. Per Click and Per Action. Per Click is the most common type, WN gets paid every time we, readers, click and view the ads they're showing on their site/app. But this doesn't really generate a significant amount of money. The other type, Per Action is the one that generates more money. WN gets paid when we actually perform an action after viewing those videos, like downloading those games advertised in the multiplier videos, etc, because the action provides a direct benefit to the advertiser. But not many people do that if any at all. Well, I, at least, don't.
So, just like CKtalon said, and he must have calculated those numbers or gotten the data from a reliable source, the ads don't generate sufficient revenues to pay the content contributors here. I think the premium chapters would generate enough income if the ratio of paying readers is greater to non-paying readers, and I'm assuming it isn't. That's why they introduced Privilege to give their content contributors more incentives to do their work well.
