Identifying this user base and engaging them better could increase returns.
This article recommends using metrics such as lifetime value (LTV) and average revenue per user (ARPU) for publishers looking to build user-centric business models. Opting for these over the “less nuanced” pageview metric could serve a publisher better in building a sustainable business model.
Identifying high LTV users or “power users” can also help publishers optimise experiences that are beneficial to both. Recognising what drives these users will allow optimisation of advertising and content to match their habits.
The article recommends publishers should invest in communities as this is where power users perform well. Instagram and Fortnite are presented as examples of brands whose success as publishers is owed to optimising for high LTV users.
[4 minute read; article may be behind a paywall]