January 12, 2010 09:06 ET

Scout Analytics™ Forecasts 2010 Trends in Behavioral Targeting

Depth of Customer Relationship Will Define Success in Revenue Optimization for Content Providers

SEATTLE, WA--(Marketwire - January 12, 2010) - Scout Analytics, the leader in subscription analytics for maximizing the lifetime value of customers in a recurring revenue business, today released the top trends in 2010 for revenue optimization by media and information providers.

Top Three Revenue Optimization Trends for Media and Information Providers in 2010

1. Increasing forecast accuracy from RFM-style analytics. RFM = Predictable Revenue. Recency (R), frequency (F), and monetary value (M) metrics heavily leveraged by ecommerce marketers are becoming critical metrics of content usage. A customer that depends on a service will have a high RFM score which represents a bigger recurring revenue opportunity whether as advertising and/or subscription revenue. The winning content providers know that search engine traffic is great lead generation, but that direct traffic with high RFM is where the long-term advantage lies. The ability to predict who will have what patterns of content usage allows media and information providers to manage the health of the business and future revenues.

2. Increasing emphasis time to revenue. Evidence = Accelerated Revenue. Time to result is the biggest challenge of any revenue initiative. Media and information providers are wrapping their content with new services such as search, visualization, mobile access, integration and workflow in order to grow the top line. Initiatives driven from evidence rather than intuition will make the difference between the winners and the followers. Getting deeper answers about what matters to customers most is the key to success. Which customers use content at work vs. at home? What percentage? Who uses content on the road vs. in the office? How is this changing? Statistical evidence to these and other questions will drive decision on new revenue initiatives for winning content providers.

3. Increasing use of pricing discrimination. Segmentation + Size = Maximum Revenue. Customer segmentation gives media and information providers more options and control. With the downward pressure on subscription rates, greater segmentation allows content providers to package and price for usage behavior of specific audiences. Likewise with the downward pressure on CPM rates, greater segmentation creates new opportunities for increased precision and increased CPM rates. Winners will use analytics to aggregate demographic and firmographic information, create deeper segmentation, and maximize revenues.

"Masked behind the debate on business models and paywalls is a bigger issue -- how deep is the relationship with your customer?" said Matthew Shanahan, senior vice president of strategy for Scout Analytics. "In 2010, revenue growth will be based on the depth of relationships with customers both new and existing. Behavioral targeting is at the core, the ability to understand customer behavior makes it possible to optimize recurring revenue, whether it is advertising or subscription driven."

Media and information providers have traditionally thought of themselves as publishers with an audience, a basic one-way communication representation. However, with the disruptive dynamics of digital media, that outlook is changing and the leaders in the new landscape are beginning to integrate richer services and transform themselves into solution providers for customers. It was from conversations with these leading content providers that Scout Analytics observed three key trends becoming critical to success in 2010. To learn more about these trends, visit the Scout Analytics blog at http://blog.scoutanalytics.com.

About Scout Analytics

Scout Analytics is the leading provider of analytics solutions that help measure and monetize customer demand to increase profits for recurring revenue businesses. Scout Analytics' unique SaaS offering delivers revenue optimization across multiple industries, including real estate, financial information services, SaaS and digital media.

Scout Analytics is a venture-backed company headquartered in Issaquah, Washington. To learn more about Scout Analytics, visit www.scoutanalytics.com or call 425.649.1100. Follow the Scout Analytics blog at http://blog.scoutanalytics.com/.