benchmarking digital marketing services - local media€¦ · possible north star metrics total...
TRANSCRIPT
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Benchmarking Digital Marketing Services
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Digital revenue & sales performance: How well are you doing?
How Do You Know?
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Keep Score!
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This is a start…
Need more granular data, and causal factors
LEADING
LAGGING
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Possible North Star Metrics
➢ Total Market & Existing Account Penetration ➢ ARPA ➢ Basket Size ➢ Retention / Churn ➢ Revenue Contribution per Product ➢ Operating Profit Margin per Product ➢ Active Digital Accounts per AE ➢ Digital % of AE’s Book of Business
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Which of these do you put the most value in?
Which can you actually access?
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What % of your total client base buys digital?
What % buys DMS specifically?
Do you break these out separately?
Breadth: Digital Penetration
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31.3%(but that’s total digital, including O&O)
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What % of revenue comes from digital-only advertisers? (i.e. non-core)
Borrell data suggests 50-60%
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Dep
th: A
RPA
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$614 (again, this is O&O + DMS)
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Churn
Source: Harvard Business Review
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Revenue Contribution, per Product
Programmatic / Targeted SEM / FB Ads
Social Media Mgmt Websites
SEO Email
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Operating Profit Margin, per Product
Programmatic / Targeted: 40-50%+ Websites: 50%
- Email: 40%+ - SEO: 40%+ - Social Media Mgmt: 25%+
SEM / FB Ads: 10-20% (all mgmt fees)
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Multimedia AE Benchmarking:
Digital Sales as % of Total Book of Business
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15.6% (up 2-3% YoY)
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Digital AEs: Base Salary
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~$35k
(Borrell 2013 Comp Report: $34,458)
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Digital AEs – Book of Business : Base Salary
3:1 (or higher)
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Other Ways You Benchmark AEs?
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Closing Thoughts
- Remember Drucker
- Leading Indicators
- Revenue & Sales
Breadth & Depth
Acquisition & Retention Economics
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Jed Williams Chief Innovation Officer Local Media Association [email protected] @williamsjed
Thank You!