Industry News

Boostr introduces ad spend metric to help publishers grow enterprise value and combat churn

By PPA Staff

30 May 2022

boostr, a supplier of CRM and order management technology for publishers, has developed Net Advertising Revenue Retention - a metric aimed at helping publishers retain more income from advertising partners while improving their enterprise value.

boostr said NARR draws inspiration from the Net Revenue Retention metric employed by Software as a System (SAAS) businesses to measure performance based on customer churn.

The company found that revenue retention and revenue growth are positively correlated, and that digital publishers with the highest revenue growth rates from 2019-2020 had the best client and revenue retention rates.

In the same study, boostr found the top 75th percentile of publishers retained 72% of revenue year-on-year while the median was 55%.

NARR measures how much revenue is retained from a cohort of customers who spent at the same time the previous year, providing a measure of reccurring revenue.

Using the product dashboard, publishers can access further insights by breaking out NARR by advertiser, helping inform commercial strategies.

Furthermore, boostr said NARR helped publishers present in a more 'SAAS-like' way, which could contribute towards higher valuations, thus growing enterprise value for their stakeholders.

Patrick O'Leary, CEO & Founder at boostr, said: "When I'm talking to CROs and ask them what their churn is, half of them aren't sure, the other half often know, but it's a point in time view because it was so difficult to get the data."

Tim Daugherty, SVP Revenue & Digital Operations at Vice Media, added: "Revenue retention is critical for publishers and a healthy sign of a strong partnership. NARR provides publishers a new way to measure how they're doing and visibility where action is needed."

More information is available on the boostr website.

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