The Economic Sense of Personalization

The world’s largest content creators and distributors—Netflix, YouTube, and Amazon—rely on personalization to drive consumption.

As Netflix’s Carlos Gomez-Uribe and Neil Hunt explained, “If we create a more compelling service by offering better personalized recommendations, we induce members who were on the fence to stay longer, and improve retention.”

Netflix’s intuition paid off; as reported in MarTech Today’s October 2017 article, revenues and subscriptions increased.

Legacy publishers and content creators have long understood the business value of increasing audience engagement and content consumption. Improved subscriptions and ad rates across platforms directly correlate with audience engagement. Publishers who have adopted technologies that surface relevant content to users realize the ROI as a result of increased audience engagement.

As a publisher or e-commerce site, you have very little time to attract the attention of your audience and offer them content or product choices. Real-time behavioural content recommendations encourage individuals to consume and select more. It also creates an environment where users will come back and refer their family and friends.

Improving audience acquisition and retention are arguably the greatest challenges website operators face. Affordable, effective content personalization makes economic sense.

Mark Walker
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