Digital publishing is a tough business. Monetizing content is done through the dual streams of advertising and audience revenue that have supported offline publishers for centuries, but new middlemen and platforms have disrupted both of these revenue categories, with each new entrant to the value chain claiming their piece of the digital revenue pie.
Digital advertising is rife with new technology vendors that promise to increase revenue through targeting and extending reach, but the effective cost-per-thousand for digital impressions continues to fall. Audience revenue is challenged by the plethora of free content that competes with paid offerings. Although improving, pure digital audience revenue is still in its infancy as a category, and the volume of pure digital subscribers is still small relative to historical print levels. The question facing publishers is how to maximize total revenue from their digital distribution channels across both primary revenue streams. An important tool available to publishers trying to answer this question is dynamic customer lifetime value scoring.