SOURCE: Scout Analytics
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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/.