The Trade-Offs
In my view, the immediate trade-off between the two proposed business models can be described as:
- ad-replacement model: does not require users to pay, but users still have to see ads.
- ad-free model: requires payment from users, but provides an (almost) ad-free experience.
Neither model requires (as currently proposed) significant infrastructure change from publishers.
There is however, another difference between the two models that I believe needs to be considered carefully:
- ad-replacement model: Brave is ultimately funded by advertisers, not users.
- ad-free model: Brave is ultimately funded by users, not advertisers.
This is important because over the long run, misaligned incentives can cause Brave to lose touch with its privacy mission, independent of its initial goals. For example, consider the erosion of privacy that happened at Google since its inception. From this point of view, the ad-free business model is more appealing.
Current problems with Ad-Free
From a user's point of view, I see two value propositions in using Brave's ad-free mode:
- Avoids visual pollution - User does not see ads and page loads faster
- Avoids tracking - User privacy is respected
This is the value proposition I believe Brave wants to provide. However, it is not currently possible for a user to determine whether she is getting this. In other words, the current design of ad-free mode does
not provide accountability. This is because:
a. Brave does not block first-party ads, so some ads may still show up.
b. The publisher has not agreed to respect user privacy and may choose to violate it.
Avoiding visual pollution
Let us first consider (a).
If a user goes to a website and sees zero ads using Brave, the user can immediately see the value of Brave. On the other hand, if the same user goes to a website and sees fewer ads. It is almost impossible for the user to perceive any benefit in using Brave as the user has no baseline comparison level. So, fewer ads just seems like: "this adblocker is not working properly, I can still see some ads." In other words, in ad-free as currently proposed Users do not know what ad-blocking value they are getting.
In ad-free mode, the user will only perceive a clear benefit in using Brave if no ads at all are seen and, thus, even first-party ads need to be removed. Clearly, this makes the problem harder, but assume for
now that this is possible. There is still the other problem with ad-free: How much should users pay?
How much should I, as a user, be willing to pay to see ad-free content? What is a fair price? Users have no easy way to know this. Users do not know how much they should pay and as a consequence do not know whether they can afford an ad-free web experience. Even if users browsing in ad-free mode saw value in the experience, they may still think that they are over paying for it.
Here's a personal anecdote as an example:
I have been using blendle.com recently. In that website, every article comes with a different price. I find it very hard to justify paying $0.49 for most articles of the Wall Street Journal when I see that most articles from the New York Times are available for $0.19. Why the price difference? Is the Wall Street journal over charging me? (Thankfully, in Blendle I can withhold payment if the article is not good.)
I believe Brave can help users determine how much they should pay for an ad-free web visit. The current ad auctions run by 3rd-parties provide an upper-bound on the price a user should be asked to pay. Today those auctions are run based on user tracking data. But it may be possible to leverage this information to help users and automate "ad-free biding" in the browser. That's my suggestion. If users knew that an ad-free web experience costs approximately $9 a month (or whatever), they may be more willing to fork out the cash. Paying $9 a month without knowing how many ad-free days one is going to get is not a deal I would take.
Avoiding Tracking
Let us now consider (b).
Currently, publishers are not required to preserve user privacy and they have financial incentives to subvert it. Given the chance, they may come up with ingenious ways to track users. To demonstrate Brave's value proposition, Brave should require that publishers adopt an appropriate "Do Not Track policy" (e.g. https://www.eff.org/dnt-policy) before they are able to receive funds from ad-free users. This forces publishers to be accountable. It doesn't solve the problem, but now Brave users have set a benchmark and can sue publishers who violate their privacy, whereas before there was no such single friendly benchmark and, thus, it was not so easy to sue.
Conclusion: Ad-Free requires infrastructure changes
If one accepts the premise that users will not pay unless they see value, the above argument has an important consequence: Making the value of ad-free mode visible to users requires cooperation from publishers to establish a good "Do Not Track policy" and to negotiate a fair price for blocking all ads, including first-party ads. Thus, this mode may be a harder sell in the short-term despite keeping Brave on the side of users over the long-term.
As currently proposed, "ad-free mode" will not provide users with incentives to spend money as they will not see any clear value in it. I believe this can and should be addressed.