TechTarget Priority Engine has begun integrating first-party intent data with its proprietary third-party intent intelligence. First-party intent data enhances account rankings and insights. According to TechTarget, “Marketing and sales teams will now be able to leverage this new intelligence to get to the right accounts and prospects faster, increasing conversions and accelerating pipeline.”
Priority Engine launched three years ago with TechTarget’s firmographics and third-party intent derived from its 140 enterprise technology media sites. The new data includes Ideal Customer Profile (ICP) matching, vendor website engagement, and customer content and advertising across the TechTarget network.
First-party website intent is available through a partnership with KickFire.
account intelligence and tools include
Personalized account rankings based on first and third-party intent data
ICP definition and filtering
Enhanced qualification intelligence including buying stage, ICP match, and confirmed projects
Improved engagement signals such as account website visits, content downloads, and banner clicks
Recent activity indicators.
has always focused on delivering ROI,” said Michael Cotoia, CEO, TechTarget.
“These new updates now make it even easier for our customers to close
deals faster by helping them find the prospects that are directly in their
recent product enhancements include opted-in “Project Insiders” and “Confirmed
Project Details” that have been validated by project insiders.
Priority Engine has been deployed at over 400 customers including Oracle, Citrix, IBM, HPE, and AWS.
TechTarget added a set of Confirmed Projects to their Priority Engine service. Projects include company information, project location, project contact name, purchase criteria, and purchase details. Purchase criteria include top purchase drivers, product feature criteria, and vendors under consideration.
details include capabilities being considered, key factors in choice of
vendor(s), deployment method, departments where the purchase will be used, and
“The integration of Confirmed Project intelligence within the platform provides an expanded view of the Total Buying Team as well as new deal insights and angles – all in one place – to help Sales teams win more meetings, opportunities and deals. The addition of Confirmed Project data provides a much deeper layer of intelligence on project criteria, specific vendor shortlists and key purchase drivers which enriches and expands insights available within Priority Engine to give sales teams more points of entry into live deals.”
TechTarget Press Release
Projects are displayed alongside TechTarget intelligence including Owler
company overviews, TechTarget buying teams, DiscoverOrg contacts, and HG Data
Projects are collected by TechTarget’s “team of skilled in-house research
assistants who are responsible for calling active prospects from high-ranking
Priority Engine accounts.” Prospects exchange project intelligence in
exchange for TechTarget research.
TechTarget intelligence is accessible from “any browser and imported directly into Salesforce.”
“We saw rapid growth in the use of Priority Engine to fuel inside sales efforts in 2018 as more and more of our customers’ sales teams are using the insights we provide into prospect interests, research focus, vendor considerations, and tech installs. Using this data, leading sales teams have seen up to a 4x increase in opportunity conversion. The addition of Confirmed Projects within Priority Engine will fuel this growth even more.”
TechTarget SVP of Products Andrew Briney
Priority Engine raised revenues 29% in Q4 year-over-year and “bookings remain strong.” The firm signed an additional 32 customers in Q4 and the firm raised Priority Engine prices by 10% in January 2019 after raising them 20% in January 2018. The price increase was across all Priority Engine solutions. As price increases are recognized over the life of contracts and renewals are overweighted to Q4, much of the 2018 price increase will show up in 2019 revenues.
signed up prior to the beginning of the year were protected in their previous
year’s pricing, but then we added other add-on bundles and solutions,
because…we are integrating a lot of our branding lead generation offers into
Priority Engine,” said CEO Mike Cotoia. “So there is an up-sell
capability and opportunity for our customers to…create a greater share of voice
percentage within the markets they care about.”
“Our customers continue to increase their commitment to becoming data-driven sales and marketing organizations. This is creating opportunities to strengthen our partnerships with our customers by further embedding our purchase intent data into their systems to make their sales and marketing efforts more intelligent, competitive and efficient.”
TechTarget Shareholders Letter, February 6, 2019
TechTarget admitted that the data subscription business differs significantly from their traditional quarterly marketing campaigns. Over the past two years, they have learned that service requirements vary greatly by size. Larger firms “who have sophisticated systems and ample resources” can immediately leverage intent data for awareness campaigns and fueling sales outreach. Enterprise accounts have revenue renewal rates “well over 100%.” However, smaller firms require more handholding and renew at less than 100% of revenue. To assist SMBs, TechTarget has assembled a unified customer success team to offer post-sales service and support. “We believe over time that this will increase our revenue renewal rates with this customer segment. “
TechTarget described a strong IT spending environment with multiple catalysts for growth: AI, security, data analytics, and cloud migrations. In the US, accelerated depreciation of capital expenses through 2022 gives “companies a short window to invest in technology with favorable tax treatment.”
TechTarget, which offers both IT media sites and technology sales and marketing intelligence, posted $31.5 million in Q2 earnings, up 18% year-over-year. Growth was driven by their Priority Engine Technology Sales Intelligence service which grew revenues 60% year-over-year. The firm noted that “revenue growth continues to be driven by our leadership position in purchase intent data and our customers’ transition to becoming data driven sales and marketing organizations.”
IT Deal Alerts revenue was up 21% to $14 million as the customer base grew from 500 to 600 clients. The firm also signed more than 40 new Priority Engine clients in the quarter (to approximately 250).
The new Priority Engine enhancements, which were released in early May, have been “well received in the market place.” New features included improvements to the user experience, a new Salesforce widget, persistent URLs, list assignments, user roles, and improved topic filtering.
Furthermore, Priority Engine is shifting the firm to a recurring revenue model with 34% of revenue now attributable to longer-term contracts. Approximately 80% of subscription revenue comes from medium and large firms and 20% from smaller firms, “typically VC-backed start-ups.” The revenue renewal rate for medium and large customers is “well over 100%,” said the firm in its earnings press release. “Those customers are finding great value in our purchase intent data and are renewing and buying more from us at high rates.”
However, TechTarget has a higher churn rate on smaller customers due to common issues inherent to smaller firms such as “changing go-to-market priorities, budget or funding reductions, personnel turnover, etc.” The issue of small customer churn exists for both their core services and longer-term contracts. To reduce churn, the firm is taking three steps: improving the ease of use of products; expanding their Customer Success team which owns customer on-boarding, training and monitoring; and building a dedicated sales team responsible for renewing and upselling. Splitting sales into hunters and farmers will allow the “existing sales team to hunt for new opportunities.”