In paid content, one of the challenges for corporate sales is finding demand for content that can be monetized – finding a good lead. Our research shows one of the best sources for leads is within existing individual subscribers where several individuals are sharing the access to the paid content. The charts below show a typical example of how to identify an individual subscriber that is a lead for an up-sell to a corporate or group agreement. The first chart shows the daily use profile for two different individual subscribers by graphing the total number of reports accessed over a 90-day period. Each daily use profile is color coded based on the unique devices used to access the reports. The […]
Archive | December, 2011
Engagement Rate is the Margin Squeeze in Digital Advertising
Engagement rate, the percentage of the audiences that consumes a particular piece of editorial content, creates the biggest squeeze on digital advertising profits. The advertising profit contribution of media is defined by the advertising revenue produced from page views minus the costs to create the content and sell the advertising. Unlike print media that uses circulation and pass-along rate to define sellable inventory of page views, digital media uses audience size and engagement rate. While pass-along rate acts as a page view multiplier on circulation, engagement rate is a page view filter on audience size. The consequence is that engagement rate puts a squeeze of advertising profit margins. To illustrate this point, the infographic below benchmarks advertising profit contribution of […]