Engagement Master Class - September 2020 1215 Hightower Trail Building A, Suite 100 - FIPP.com
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Engagement
Master Class
September 2020
1215 Hightower Trail
Building A, Suite 100
www.mathereconomics.com
mathereconomics.com
10:1
RETURN ON
$6B+REVENUE
200
CLIENTS IN
18
YEARS EXPERIENCE &
INVESTMENT MANAGEMENT DIVERSE INDUSTRIES TURNKEY CONSULTING
Our typical client We provide customer Founded in 2002 with
Mather works with offices in North America
engagement provides a analytics and yield
organizations in several and Europe. Our consulting
10-to-1 return on management for over 200 services include extensive
industries to help them
investment. We increase clients with $6 billion in reporting with A/B testing
combined annual revenue
adapt their business models
revenue yield and reduce and model validation. We are
and 30 million customers.
to digital disruption. fully GDPR, CPPA compliant
risks from pricing actions.
and SOC2 audited.
2Publishers often leverage a composite digital engagement index, composed of five
different variables measuring intensity, frequency, recency, and breadth of digital content
consumption.
A composite index allows for use of several different types of digital engagement
metrics without negative effects of multicollinearity.
Intensity Recency Breadth Composite
Article Frequency Digital
(Page (Visits) (Days Since (Unique Engagement
Views) Page Views Last Visit) Sections) Index
3DIGITAL AUDIENCE THE VALUE OF CHANGES IN PRICING OPTIMIZATION
ENGAGEMENT KNOWING A READER ENGAGEMENT & PRICE ELASTICITY BY
SEGMENTS PREDICT CHURN ENGAGEMENT LEVEL
4AVG. PER USER
FLYBYS STABLE USERS ENTHUSIASTS FANATICS
PER MONTH
ALL USERS 6.9M 595K 340K 167K
PAGEVIEWS 1.4 7.0 14.4 100.7
ARTICLE PAGEVIEWS 0.9 2.6 4.4 27.2
VISITS 1.1 2.6 5.0 26.2
TIME PER VISIT 02:17 06:57 07:40 06:41
SCROLL DEPTH 28% 50% 52% 62%
AD REVENUE $0.01 $0.05 $0.12 $1.08
UNIQUE DAYS 1.1 2.1 3.6 9.5
% KNOWN USERS 0% 2% 5% 38%
CONVERSION RATE 0.00% 0.22% 0.28% 0.73%
5Year Over Year Performance Metrics: Indexed vs. April 2019 • The growth in volume of Fanatic users is the
Conversion Ratio Fanatic Conversion Ratio % Fanatic Conversions primary driver of the spike in conversions
Fanatic Users % Fanatic Users Conversions
4.0
observed during March – June 2020.
3.5 • Fanatic volume grew over 3X and the
3.0
Total Fanatic volume grew over
3X and the proportion of
proportion of total Fanatics grew by 2X,
Fanatics grew 2X, triggering a impacting total conversions 2X vs. 2019.
Index vs. April 2019
2.5 2X spike in conversions
2.0 Conversion ratios
• The conversion ratio for all users (0.04%)
remained consistent stayed consistent while the Fanatic
or declined vs. 2019
1.5
conversion ratio declined (1.4% in 2019;
1.0 0.77% in 2020).
0.5 • The proportion of Conversions from the
0.0 Fanatic segment declined slightly YOY (64%
in 2019; 58% in 2020).
6User Segments and Conversion Probability: Machine Learning Model Feature Influence:
Large Publisher with Registration Wall Large Publisher with Registration Wall
10 0.070% 0% 5% 10% 15% 20% 25%
0.063% Known User 20%
9 0.061%
0.060% Time Per Visit 14%
8 Page Views 12%
7 0.050% Visits 9%
Conversion Probability
Unique Users
Article Page Views 9%
6
Millions
0.040% Avg Depth 8%
5 Avg Velocity (Pixels Per Second) 7%
0.030% Avg Breadth 7%
4
Unique Days 5%
3 0.020% Hard Modal Count 3%
0.015%
Desktop 2%
2
0.010% Morning 1%
1
Weekday 1%
0 0.000% Local 1%
All Users High Propensity Known User Paywall Encountered in Prior Visit 0%
Segment Segment
7Registered users are 45%
moderately engaged, 40%
but subscribed users
35%
are most engaged.
30%
25%
Registered
20%
Subscribed
15%
10%
5%
0%
Very Low Low Medium High Very High
8Mather recommends considering engagement during pricing decisions. You may consider excluding
“sleepers” from price changes if they have zero engagement for long period of time
Sample* pricing recommendations by Audience Segment
• Fanatics & Enthusiasts: Regular renewal price change
.12
.11
• Stable & Dabblers: Moderated renewal price change
• Not Engaged: No price increase .08
Price Elasticity
* Note: these results will differ by product
.04
Read Mather’s White Paper
Digital Subscriber Price Optimization
.05
Fanatics Enthusiasts Stable Dabbler Not Engaged
Engagement Segments
9Full price digital subscriptions tend to have the highest engagement, while print + digital
and promotional digital-only subscriptions have lower.
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Low Low Medium High Very High
Print Activated KP PP Only–Intro
Digital NP Digital Only – Full Price
10Sample Regression Output
Engagement levels have significant effect on subscriber retention
Six Month Term
Bundle C
Bundle A
Bundle B 11100%
Sales channels attract customers with different levels
of engagement:
90%
• Direct sales to customers that go to the
subscription page directly are most engaged
80%
• Metered customers have next highest
engagement
Retention
70% Direct
Metered
• Premium/restricted content sales have the lowest
Restricted engagement
60%
Retention of these customers reflects their
50%
engagement levels at time of the subscription
purchase.
40%
1 3 5 7 9 11 13 15 17 19 21 23 25 Challenge – increase engagement following the sale,
Retention Weeks particularly those from premium content.
12Convert anonymous visitors to known readers
Segment audience by engagement for acquisition
and engagement
Consider engagement levels when adjusting
subscription prices Read Mather’s White Paper
User engagement, environment are
key inputs driving propensity to
subscribe
Trigger retention campaigns when engagement
falls below historical patternUSA EUROPE
1215 Hightower Trail Basisweg 30
Building A, Suite 100 1043 AP
Atlanta, GA 30350 Amsterdam, Netherlands
1215 Hightower Trail
Building A, Suite 100
770.993.4111
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