In this work, we propose a utility-driven preprocessing technique for high-efficiency screen content video (SCV) compression based on the temporal masking effect, which was found to be a fundamental attribute that plays an important role in human visual perception of video quality, but has not been fully exploited in the context of SCV coding. Specifically, we investigate the temporal masking effect from the perspective of perceived utility, which allows us to preserve the quality of the high utility content and substitute the low utility regions with the corresponding smooth version. To distinguish the regional utilities, a specifically designed block type identification algorithm for screen content is employed to measure the local properties. Subsequently, the Gaussian filter is applied to smooth out the high-frequency components in the detected low utility regions to save consumption bits. Validations based on subjective testings show that the proposed approach is capable of achieving significant bitrate savings with little sacrifice on the final utility compared with the conventional SCV coding scheme.