Grow enterprise value using
Net Advertising Revenue Retention
Global media spend is forecast to grow by 14% (Magna) in 2021 with digital expected to grow 25% (eMarketer). Selling advertising has always worked on a transactional basis where publishers need to compete and win business on a deal by deal basis. Successful publishers have realized that revenue retention is a key to growth. In the May 2021Media Ad Sales Trends report, boostr found that revenue retention and revenue growth are positively correlated. In fact, the digital publishers with the highest revenue growth rates from 2019-2020 had the best client and revenue retention rates.
What is NARR
NARR is similar to the SAAS metric Net Revenue Retention (NRR) in that is measures how much revenue is retained from a
cohort of customers who spent at the same time last year. NAAR provides a measure of renewability and reoccurrence of revenue.
Drawing inspiration from running a SAAS business and knowing the power of the Net Revenue Retention metric and working alongside
publishers tackling the churn problem head on, boostr is excited to announce Net AdvertisingRevenue Retention or NARR. NARR provides
a SAAS play metric for publishers to help them grow by retaining more revenue while improving their enterprise value. Publishers often
trade on their ebitda multiple vs SAAS companies trading on their recurring revenue multiple, at higher valuations. Publishers who can
look more SAAS like are more likely to fetch higher valuations.