FEED Issue 21

42 ROUND TABLE Audience Analytics

FEED: WHAT ARE THEMOST IMPORTANTMETRICS TOMONITOR FOR BOOSTING REVENUE FOR A VIDEO BUSINESS?

GABRIEL BERGER: This depends on the goals of the business and whether they are an SVOD, TVOD or AVOD provider. Revenue growth can be measured in terms of purchases for TVOD, while for AVOD the most important metrics are probably going to be the number of minutes’ viewing per user and the variety of content being watched, to attract advertisers. For a subscription service, providers are focused on making subscribers feel they are getting value for money to minimise churn and avoid the expense of attracting new customers. BHAVESH VAGHELA: There are really three primary metrics that any subscription-based TV or OTT service focuses on: acquisition, churn and revenue. You need to know what is attracting new customers and who they are. You also need to understand who your most valuable customers are and why, and

when they are likely to churn. And then you want to know what is driving revenue and how to boost average revenue per user. Data gathered into an SCV and analysed through predictive models can help with all of these metrics. ANNA ZAIKINA: The most common metrics for digital video content performance monitoring tend to include play, view-through and viewing retention rates, including frequency of viewing as well as subscriber retention where applicable. However, the metrics depend on a multitude of content and medium features, including the environment the video content is being served in, its length and the target audience characteristics, to name a few. The better a business understands the purpose of and the desired response to its video content, the clearer it will be to formulate their KPIs and define metrics to measure.

GABRIEL BERGER: GDPR came into effect 18 months ago, so businesses should be well versed in good practise in this area. Put simply, they need to ensure they have the appropriate permissions from the consumer to use specific data, and that they are able to surface this to users to give them the chance to opt out from certain communication, or to request the right to be forgotten. BHAVESH VAGHELA: The reality is that it depends on a business’s appetite for risk. Some companies don’t want to risk any communication at all to customers, whereas others take the view they have a ‘legitimate interest’ under the GDPR rules in communicating with customers who have signed up to a subscription. It all comes down to data being used correctly and efficiently. What is critical is to make sure any communication is targeted and tailored to individuals based on what insight the data provides into their interests, needs, usage and behaviour. Early in the customer relationship, operators must record marketing preferences and interests, and then manage them successfully to ensure communications are always relevant. Customers that are spammed with blanket messages that aren’t relevant are more likely to get annoyed and lodge a complaint. Analysing data to ensure each communication is individualised and appropriate means it is far more likely to be welcomed by a subscriber as an interaction that can lead to a positive customer experience. ANNA ZAIKINA: The consequences are yet to reveal themselves fully but, similar to other content-focused businesses, one of the main limitations will have to do with how much we know about our audiences – this will have an effect on how the content can be tailored to their preferences and demographics. FEED: HOWWILL GDPR AFFECT DIGITAL CONTENT BUSINESSES?

OPERATORS THINK THEY NEED TO COLLECT MASSES OF NEW DATA ON EACH CUSTOMER IN ORDER FOR IT TO BE USEFUL, BUT INMANY CASES, THE DATA THAT’S NEEDED IS ALREADY THERE

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