boostr announces Net Advertising Revenue Retention (NARR) to let publishers grow enterprise value and battle churn

Paid for Advertising – DigitalBoost Webinar

Ad sales have always worked on an accrual basis, with publishers having to compete and win business on a per-transaction basis. Successful publishers have realized that maintaining revenue is the key to growth. In the May 2021 Media Ad Sales Trends Report, Booster found that revenue retention and revenue growth are positively correlated. The digital publishers with the highest revenue growth rates from 2019 to 2020 had the best customer retention and revenue numbers. In the same study, Boostr found that the 75th percentile of publishers retained 72% of year-over-year revenue, while the median was 55%.

Unfortunately, most publishers can’t keep up with significant customer spending and have to find more new logos every year. While there are many reasons for this, publishers often don’t understand the problem. “When I talk to CROs and ask what their dropout rate is, half of them aren’t sure, the other half usually know, but it’s an opinion because it was very difficult to get the data,” says Patrick O’Leary, CEO, and Founder of Booster.

Inspired by the powerful SAAS net revenue retention metric and partnering with publishers to solve their abandonment issues, boostr is pleased to announce advertising net revenue retention or NARR. NARR provides a SAAS playback benchmark for publishers to help them grow, retain more revenue and improve their business value. Publishers typically trade at their EBITDA multiples compared to SAAS companies who trade at their recurring revenue multiples, at higher valuations. Publishers who are more SAAS-like are more likely to get higher ratings, increasing the company’s value to its stakeholders.

NARR is similar to the SAAS Net Revenue Retention (NRR) metric in that it measures the amount of revenue retained by a group of customers who spent the same amount of time last year, generating revenue replication. By breaking down NARR by advertisers, publishers can gain insights that empower revenue leaders to act with impact.

In addition to introducing NARR metrics to the media industry, Boostr is announcing NARR production for publishers. The booster provides an out-of-the-box NARR dashboard so editors can quickly gain insights into their NARR to develop strategies to expand it. The NARR verification screen is now available to empower customers.