Half the market will not take your money: The access problem for regulated startups

A recent study of Canadian publishers reveals a significant access problem for startups operating in regulated categories such as crypto, lending, and gaming. Outlets that accept these restricted categories charge roughly half the price for ordinary articles compared to those that do not accept them. Founders in these categories often overlook this price difference, which can impact their marketing strategies.

The cheapest quote in a media plan is usually the one worth worrying about, as the access side of the equation takes longer to assess than the price side. In Canada, which legalised two major categories and then restricted their promotion, media access can be easily measured. Out of 231 publishers, 49% quote a price for at least one restricted category, while the remaining 51% quote none.

Those two halves also price ordinary articles differently, with those accepting restricted categories charging 1.82 times less than those accepting none. When looking at audience reach instead of publisher counts, restricted categories reach 48% of the Canadian market, but the cheap placement at a median US$355 is still not a bargain.

It represents the price of what remains after three-quarters of the audience has removed itself from the plan. The dividing line between acceptance and refusal of restricted categories is compliance exposure, not taste. Publishers with strict advertising standards, disclosure policies, and named approval individuals exclude restricted categories as a class, while those without these safeguards accept everything.

In Southeast Asia, similar compliance rules are creating a similar access problem for startups in digital assets, lending, remittances, and gaming. Founders in these categories are pricing their media access as a bargain, but this sharpens the need for public proof before scaling their startup.