SOURCE: Scout Analytics

Scout Analytics

January 19, 2011 08:18 ET

Scout Analytics™ Calculates Monetary Value of Loyal Visitors Versus Fly-Bys for Publishers

Research Shows One-Time Visitors Comprise 70-80 Percent of Audience, but Deliver Less Than 30 Percent Page Views

SEATTLE, WA--(Marketwire - January 19, 2011) - Scout Analytics™, the leader in digital revenue optimization for publishers, today released new research detailing the relative monetary value of online visitors. Throughout the fourth quarter of 2010, Scout Analytics profiled the relationship between frequency of visit and engagement for users at eight publishers. Scout Analytics quantified the revenue potential of loyal visitors to a site versus "fly-bys" generated by Search Engine Optimization (SEO). While SEO is the largest source of unique visitors, the research revealed it contributes only a minority share of impressions. In comparison, frequent visitors of a site generate significantly more impressions and return on a predictable basis to create recurring revenues.

"Very few publishers can build a sustainable business with SEO as their core strategy. Most digital operations today don't quantify their recurring revenue vs. fly-by revenue, which is risky," said Matt Shanahan, SVP of strategy for Scout Analytics. "Running a successful digital operation is no different than any other business where it's critical to develop long-term relationships. In this case, creating loyal visitor relationships increases revenue potential and predictability."

For digital publishers, the approach of reporting monthly uniques has long been seen as a critical metric for gauging the health of the business. However, according to the research performed by Scout Analytics, this practice can be misleading. For example, the value of one million fly-bys versus 100,000 loyal users is misleading because of the recurring revenue obtained by loyal users. In actuality, the lifetime value of an audience member is the best indicator of the long-term health of the business. According to Scout Analytics' calculations, here are the relative values of different types of visitors:

  • Fly-by -- Someone who visits once. For the purpose of this research, fly-bys are represented by one.
  • Occasional -- Visitor to the site two to three times per month. An ocassional visitor has an average revenue potential of 5:1 compared to fly-bys.
  • Regular -- Visitor to the site one to two times per week. A regular has an average revenue potential of 10:1 compared to fly-bys.
  • Fan -- Visitor to the site more than two times per week. A fan has an average revenue potential of 50:1 compared to fly-bys.

For an average publisher, fly-bys comprise 70-80 percent of their audience, but deliver less than 30 percent of page views. Recurring revenue comes from fans, regulars and occasionals. Given this, growing audience loyalty translates into increased recurring revenue and strength of business model. 

About Scout Analytics
Scout Analytics is the leader in digital revenue optimization for publishers. Scout Analytics' unique solution allows publishers to predict, target, and monetize visitor engagement. 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. Scout Analytics is a trademark of Scout Analytics, Inc.

Contact Information

  • Media Contact:
    Kristina Molfino
    Kulesa Faul Inc. for Scout Analytics
    650.340.1992
    Email Contact