Webnovel.Forum

bachingchung it's true that most freemium apps' revenue were generated through Ads, but most ads nowadays are fixed on it's pricing and not based on the number of clicks.

That's mostly true except for Reward Video Ads AKA Full-screen video ads. The link I posted above was based on April 2018 pricing. In addition, 57% of webnovel.com traffic comes from 5 English speaking countries US, UK, CA, AUS, and India (4th largest English speaking population). All of which have Reward Video Ad programs.

Just those countries is a pretty large amount of potential Ad-Revenue, It could even be designed further to ensure that SS is still viable revenue model: For example, only allow a certain # of chapters to be unlocked via Video Reward Ads. People who can afford it will still prefer to skip ads.

It's also worth noting that I am talking about 15-30 second non-skippable video ads. In that way, revenue could be maximized. I'm also not talking video ads for only the last two chapters as it was implemented, which would only give you a day of revenue per chapter. I'm talking about all premium chapters.

And now we are back to the OP
It all comes down to maximizing revenue. As it stands now it appears that QI is only focused on SS purchases which ignores a primary segment of webnovel readers. Those who are cash-strapped and can't afford the $50-100/month it costs to read the current amount of premium novels on webnovel. Like college students.

Reward Advertising would tap into that market. The more options a company has to gain revenue the greater a chance of turning a profit. Cash-strapped users aren't going to stop reading Webnovel stories, they just read them elsewhere! This doesn't help the translator or the author OR China Literature.

Reward Video advertising might not bring in as much revenue as a pure spirit stones per chapter per reader but it certainly brings in more revenue then when someone reads the translation on another website.

This also brings us to one of the biggest problems QI has that comes from translations and trying to maximize revenue:

Speed of release
This isn't something that would have been much of a problem in China because authors have a limited release speed of 1-3 chapters per day. There is a natural limiter. Usually, it's one long chapter, two medium length chapters or three short chapters per day at most. WIth translation teams, it's possible to push out 3-4 medium length chapters per day OR MORE. This drives the monthly costs considerably higher than what is found in China! A great example is Immortal Mortal which runs ~$25 a month for 84+ chapters. Vastly more than the original work's monthly cost of 6 CNY (~$1) per month for 60 chapters.

This is especially true now that Patreon model is removed. Previously the increase in translation speed was primarily funded by a limited amount of readers who were paying for advanced chapters. This has now been removed and the costs are being pushed onto readers on webnovel. These costs aren't going to be sustainable for growth. Readers will simply read elsewhere.

Original Works
Of course, once Original English works go premium this will be cheaper for readers for that same reason (although I doubt they will be $1 for 60 chapters when they go premium). A single writer takes time to write, very few of them will be able to exceed even one chapter per day. It will make the cost much more affordable for readers. Of course, this also begs the questions. What about patreon for writers? Will Qidian be as heavy-handed as they are being with translators? I somehow doubt that.

Obviously, the discussion is just about maximizing revenue. Most readers want more chapters and they want them to be released quicker, but once the cost exceeds what they can afford, they just read the chapters elsewhere.

checkm8 Qidian can change to another bank while you can't change completely and adapt from ads to spirit stones so fast.

Seriously, changing to another way of transactions is easier that having the 100% of your revenues cut and trying all from zero.

EDIT: Amigo, business isn't about maximizing revenues, remember this line. You are thinking in short term, but I'm thinking in long term which is better. If Qidian depends on Google ads, then I only can say that it's just another stupid ZTE company.

EDIT2: Sorry, I forget to say this, there are too many wire transfer and also, those wire transfer doesn't follow USA laws which obviously doesn't affect Qidian if they change.

Fine, I'll bite:

China Literature is incorporated in the Cayman Islands, it's attempting to enter the international market. Qidian International (QI) is under China Literature.

Huangdi Qidian can change to another bank while you can't change completely and adapt from ads to spirit stones so fast.

This whole discussion was alternate or supplemental forms of revenue so that QI wouldn't solely rely on one primary source of revenue like they currently do. In case you are blind, their main source of revenue from readers is Spirit Stones.

Only 5.9% of readers actually spend money on chapters. That's according to the 2017 Annual Earnings report for China Literature.

So to dumb it down for you:
94% of readers spend nothing. That's a pretty large percentage, wouldn't you agree? Yes? Why not leverage that 94% of non-paying readers to gain additional revenue?

How do you gain a slice of that 94% of non-paying readers?
One option is Reward Video Ads to gain a slice of that 94% non-paying readers.

Understand that non-paying does not mean non-reading, they simply read VIP(Premium) chapters on other websites. Websites that are not generating any revenue for China Literature.

If you had bothered to read my earlier posts, you would have seen that I also suggested possibly limiting the amount of reward video ads that are possible to ensure that spirit stone microtransactions were still the primary method.

Huangdi If Qidian depend on Google ads

Once again pay attention. I was suggesting Reward Video ads as a supplement to micro-transactional purchases (Spirit Stones) on Apple and Google platforms.

Not to mention:

31% of all webnovel.com traffic comes from the US. If things go so far south that the US puts a block on QI it would basically kill it. Obviously, I'm not talking about China LIterature as a whole, it would survive just fine.

And: They are already doing Reward Video ads for their Daily Video Check-In. The code is already incorporated into their apps!

RIP ZTE (1985-2018) In your next life don't illegally export U.S. technology to Iran and North Korea

checkm8 Ok, this whole discussion is about alternative or supplemental, but it obviously doesn't work well for a long term which most big company works for.

And this is why I pointed it for you.

Qidian isn't using an one source of revenue, can't you see they are using Google Ads too? This might already tell you that this problem is already resolved

Or you consider that Qidian should use 50% of Google Ads? See below to see the problem of it.

China Literature is attempting to enter the global market, but this doesn't mean that they are obligated to follow other people's business methods. I pointed it in other thread and I will post it here.

The 5.8% is about China Literature inside of PRC, there are too many piracy sites. And as you see, it says 4.000 sites took down and still getting up.

This doesn't work well in the western for the piracy sites because it will takes down easily and neither you know how much Qidian International is already earning right now. Also it might not happens at all and if it happens you should still consider this:

Once Qidian become famous enough and still using Google Ads as they main source of revenue, then they should prepare to get a completely downfall like how ZTE is struggling right now. I think, you know the news about the Trade War, right?

Even using 50% of Google Ads as another alternative source of revenue, it will still cause a downfall, after all, who will want to buy that much of Spirit Stone when most chapter is free? (The explanation)

In the end, isn't Qidian still paying to the webnovels by each chapter? This mean that even if the free spirit stone used for the premium novels, the translator is still getting paid. This is about your other post saying that popular novels get shortchanged.

EDIT: To respond to your edit, since maybe I didn't read or you just edited it.

1.ZTE is part of the Trade War, only naives people think this is just because of illegally exports, also this is happening to Huawei when obviously they have nothing to do with against the U.S security.

2.Look, I think you are too later for the party. This Reward Video was already implemented long time ago just like how I stated above.

3.I agree with you, if U.S. puts a block on Qidian, it would basically kill completely Qidian, BUT if they use more than 50% Google ads. The world doesn't revolve on U.S. just like how Huawei is still surviving outside of their domestic market with U.S. not letting them get into their market.

EDIT2: Also I apologize to everybody, this isn't an intent to hate U.S. but since Google is part of U.S. and seeing what's happening currently to a company, it shows the true face of the business.

Huangdi

Huangdi Qidian isn't using an one source of revenue, can't you see they are using Google Ads too? This might already tell you that this problem is already resolved

I said primary source of revenue not only source of revenue. Learn to read!

In addition, I don't see why you are focused on Google Ads???? I never once said google ads.

From a previous post in this thread. Again LEARN TO READ There are several Video Reward Ad providers, not just AdMob (Google Video Reward Ads)
https://blognife.com/2018/04/29/mobile-cpm-rates-in-the-us-2018/

Huangdi This doesn't work well in the western for the piracy sites because it will takes down easily and neither you know how much Qidian International is already earning right now. Also it might not happens at all and if it happens you should still consider this:

You are apparently BLIND as well as illiterate since you haven't noticed the large number of aggregate websites providing webnovel and Qidian stories. Your belief that Piracy is only a Chinese problem is also incredibly naive.

Huangdi Once Qidian become famous enough and still using Google Ads as they main source of revenue, then they should prepare to get a completely downfall like how ZTE is struggling right now.

This is classic
A. ZTE is out of business, it shutdown today. There is no more struggle. Keep up with current events.
B. ZTE ran afoul of the US for selling US Technology to Iran & North Korea. Are you implying that China Literature will suddenly transform into a telecommunications equipment company and start selling US technology to Iran & North Korea????? You are living in a FANTASY WORLD. Get out more. Plus pay attention, ZTE was addressed in my last post. You still can't read can you????
C. When did I ever suggest Google Ads as a "Main Source of Revenue"????, you are blind. I said 'supplemental' revenue and once again I Never said Google Ads.
D. Why are you so focused on Google. Apple also has a mobile platform, a very successful one. In fact, Ad revenue is more lucrative on Apple's IOS platform. I don't understand your fixation on Google???? Apple is also a US company!

Huangdi In the end, isn't Qidian still paying to the webnovels by each chapter? This mean that even if the free spirit stone used for the premium novels, the translator is still getting paid.

Again, you aren't paying any attention. Translators are moving to a royalty system which means they are moving away from a Fixed-rate and thus revenue becomes much more important.

Edit: The high cost of premium will drive many readers to other websites. This has already been mentioned in another post but what costs $1/month in China on Qidian.com to read (remember 94% non-paying readers) costs $20-25/month internationally for the translation. That's for one premium novel.

If you think other websites won't try to take advantage of that high cost and provide pirate chapters you aren't paying attention. It will only become worse the more premium novels there are.

checkm8

1.-Ok, tell me the Video Reward Ad providers. I know you will provide every Video Reward Ad providers from U.S which obviously they follow U.S. Laws and this isn't different from AdMob. So, I don't see the difference? You know I'm talking about U.S and not only Google.

Don't expect other Video Reward Ad providers outside of U.S. to pay the same revenue as in the U.S, it will be lower. NOTE: They won't pay you a penny of Dollar. You focused on dollars 13$ to 16$, so let's focus on U.S. Even the link is about U.S.

2.I have never seen a Piracy Sites with over thousands of people reading Qidian novels.

3.COPY AND PASTE: ZTE is part of the Trade War, only naives people think this is just because of illegally exports, also this is happening to Huawei when obviously they have nothing to do with against the U.S security, or you really believe in these spies news? Also read that most big companies prefer long term over short term.

Also, do you really know what is happening in the Trade War, it even involve companies that did nothing against U.S. You think, Qidian won't be a target of U.S. or any company in the future?

Please go to Quora english and learn from others.

3.1.- COPY AND PASTE, about your ''Supplemental'': Look, I think you are too later for the party. This Reward Video was already implemented long time ago just like how I stated above. Are you really reading Qidian webnovel? Keep up to the news.

4.Please provide about the royalty system.

So you don't want Ads to be main source. However, as I see, you really want Qidian use more than 50% of ads since there's already rewarded video ads long time ago. Also please, read that gaining 50% of revenues from other services is a dead way, COPY AND PASTE: Even using 50% of Google Ads as another alternative source of revenue, it will still cause a downfall, after all, who will want to buy that much of Spirit Stone when most chapter is free? (Hope you read it again and see that spirit stone is useless)

5. Alright, I don't think Piracy is about Chinese problem, I believe that RIGHT NOW, there's not a lot of Piracy sites in the west and I can't see thousands of reader went to the Piracy sites. And this is after 4 years of webnovels.

EDIT: You are still using Chinese Qidian stats to provide how much Qidian international is going to earn? Well, it will be billions since Chinese Qidian is earning too much, even with that 5.8%.

Don't expect that Piracy sites won't appear, even if Qidian doesn't use spirit stone.

EDIT2: I already pointed your flaw with examples of other business of depending too much on other companies, but it seems that you try to get further more about ZTE (Iran, North Korea or whatever when I Already told you this is part of the Trade War and not just a common sanction because of illegal). I see, you prepare the war after an enemy shot you.

ZTE was destroyed so fast. Qidian International might die in less than a day for depending too much the services of others.

EDIT3: Will reply you tomorrow.