For many enterprise Marketing executives facing increased budget pressure, the ability to measure profitability of marketing activities is key. Using Magic Orange Profitability & Cost Transparency, Marketing teams are able to identify the value added by the activities they perform to support revenue generating activities. In absence of a system to reliably calculate profitability and costs, Marketing executives struggle to:

• Determine Return of Marketing Investment (ROMI) for campaigns

• Fairly charge back marketing costs to business units

• Defend the costs of Marketing Campaigns

• Understand which Marketing Channels are most effective

Magic Orange Profitability & Cost Transparency offers a flexible allocations platform for any method, including activity-based costing.

CREATE PROFITABILITY MODELS and calculate Return on Marketing Investment

EMPOWER BUSINESS units to make smarter decisions concerning Marketing usage

COMPARE Marketing PROFITABILITY across channels, products, campaigns and more

DEFEND MARKETING ACTIVITIES with driver based cost and revenue allocations

PROFITABILITY & COST TRANSPARENCY TRANSFORM THE BUSINESS VALUE OF MARKETING

ABOUT

www.magicorange.com Marketing

• Transparently allocate marketing driven revenue & costs fairly across marketing channels, campaigns and activities

• Elevate the perception of Marketing value through clear Return on Marketing Investment measures

• Find opportunities to run marketing more effectively through profitability analysis across different areas

• Setup cost and revenue drivers for marketing activities within budgets and forecasts

• Determine granular marketing spend demand by expected consumption volumes of activities

• Empower Finance team to easily understand how marketing costs are allocated to business units

MARKETING

FINANCE

BUSINESS UNITS

Struggles to showcase business value for marketing spend

Experiences difficulty in understanding how marketing activities drive budgets

Have an incomplete view of the marketing costs related to services and products being sold

• Be empowered to make smart decisions concerning the use of marketing

• Understand and address inefficient usage of marketing, target investments in high return areas

• Receive a true profit margin for delivering services and products to market

WHO WE HELP

www.magicorange.com Marketing

Source: Thompson Reuters, “The Secrets of Costing Shared Services”

Today, one of the most challenging parts of functionally

mastering and executing a costing methodology is the

allocation of shared services costs across the organization.

Setup revenue and cost allocation rules according to how your organization works and understand the relationship between shared services and products & services

ALLOCATION MODELING

Magic Orange consists of multiple modules containing views with insight into costs, catering for Shared Services, Finance and Business areas.

Automatically generate a granular Bill for shared services showing how their costs should be allocated to the business units they support

Review how well utilized or under utilized your existing investments in shared services are and get insight into which areas need attention

BILL OF SHARED SERVICE

SHARED SERVICE ASSET UTILIZATION75%

BENEFITS

COST & PROFITABILITY TRANSPARENCY MODULES

www.magicorange.com Marketing

Analyze cost information to make informed

decisions

REPORTING &INSIGHTS

• Get a complete picture of the true costs and profitability of marketing activities

• Identify problems and investigate why they exist

• Trace costs back to their drivers

UNDERSTAND PROFITABILITY & COSTS

• Understand how shared service assets are being utilized

• Spot opportunities to use existing assets more efficiently

• Decide whether to invest or divest assets based on their life cycle position

UTILIZE MARKETING RESOURCES EFFICIENTLY

• Improve decision making quality within business through accurate insight into the cost of running your business

• Seize otherwise hidden opportunities to optimize costs, increase efficiency and increase competitiveness

MAKE DATA DRIVEN DECISIONS

• Showcase Return on Marketing Investment metrics

• Increase Marketing credibility via increased transparency

• Convert the conversation from cost to value

ELEVATE PERCEPTION OF MARKETING VALUE

• Calculate the true profitability of running marketing services by accounting accurately for all indirect & direct costs

• Feed accurate data into your budgeting cycle

GET ACCURATE PROFIT MARGINS

• Eliminate reliance on high maintenance manual spreadsheets and processes

• Decrease turnaround time on profit and cost questions

• Spend more time analyzing and less time managing data

REDUCE MANUAL EFFORT

Using a standardized template, a marketing allocation model can be easily setup to provide transparency around how revenue and

costs are allocated and provide profitability insight across any required activities.

Magic Orange Profitability & Cost Transparency processes financial and shared services data, allowing the creation of cost allocation models and KPIs resulting in high value insight into how revenue and costs are allocated and how profitable business activities are.

DATA LOAD MODELING SOLVER

ALGORITHM INSIGHTS

Financial and Operational data sources

Uses business driver data to transparently allocate

revenue and costs

Patented calculated engine determines the unit

cost and profitability of activities

Insight delivered via cutting edge, interactive reports and dashboards

MARKETING ALLOCATION MODEL

OVERVIEW

MAGIC ORANGE PLATFORM

www.magicorange.com Marketing

BUSINESS UNIT 1

GLOBAL BRAND REFRESH

MARKETING STRATEGY

DIGITAL

REVENUE

BUSINESS UNIT 3

WINTER CAMPAIGN

MICRO-SITES

TELEVISION

CREATIVE AGENCY FEES

EVENTS

INDIRECT COST RECOVERIES

BUSINESS UNIT 2

SUMMER CAMPAIGN

MARKET RESEARCH

PRINT

SALARIES

BUSINESS UNIT 4

RADIO

MARKETING RESEARCH

BUSINESS VIEW OF MARKETING PROFITABILITY AND COSTS

MARKETING CAMPAIGNS

MARKETING CHANNELS

FINANCIAL DATA SOURCE

MARKETING SERVICES

Magic Orange uses business

drivers to allocate costs to business units

Assign costs from source system to

relevant Marketing Channels

Revenue, direct and indirect costs are sourced from appropriate

systems

Use rules to allocate channel

costs and revenue to campaigns and services

4

3

2

1

INSIGHTFUL ANALYTICS

Magic Orange Cost Transparency Product

www.magicorange.com

Magic Orange Pro�tability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gains the insight that matters most. Reports

con�gurable and can be tailored to meet speci�c reporting needs.

General Ledger Channels Campaigns Business Units

Marketing Cost Allocation Model

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Pro�tability and Cost Transparency enables

Marketing teams to setup a transparent chargeback system which transparently shows how and why costs are allocated to business units.

INSIGHTFUL ANALYTICS

Magic Orange Cost Transparency Product

www.magicorange.com

Magic Orange Pro�tability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gains the insight that matters most. Reports

con�gurable and can be tailored to meet speci�c reporting needs.

General Ledger Channels Campaigns Business Units

Marketing Cost Allocation Model

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Pro�tability and Cost Transparency enables

Marketing teams to setup a transparent chargeback system which transparently shows how and why costs are allocated to business units.

INSIGHTFUL ANALYTICS

Magic Orange Cost Transparency Product

www.magicorange.com

Magic Orange Pro�tability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gains the insight that matters most. Reports

con�gurable and can be tailored to meet speci�c reporting needs.

General Ledger Channels Campaigns Business Units

Marketing Cost Allocation Model

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Pro�tability and Cost Transparency enables

Marketing teams to setup a transparent chargeback system which transparently shows how and why costs are allocated to business units.

INSIGHTFUL ANALYTICS

Magic Orange Cost Transparency Product

www.magicorange.com

Magic Orange Pro�tability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gains the insight that matters most. Reports

con�gurable and can be tailored to meet speci�c reporting needs.

General Ledger Channels Campaigns Business Units

Marketing Cost Allocation Model

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Pro�tability and Cost Transparency enables

Marketing teams to setup a transparent chargeback system which transparently shows how and why costs are allocated to business units.

INSIGHTFUL ANALYTICS

Magic Orange Cost Transparency Product

www.magicorange.com

Magic Orange Pro�tability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gains the insight that matters most. Reports

con�gurable and can be tailored to meet speci�c reporting needs.

General Ledger Channels Campaigns Business Units

Marketing Cost Allocation Model

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Pro�tability and Cost Transparency enables

Marketing teams to setup a transparent chargeback system which transparently shows how and why costs are allocated to business units.

INSIGHTFUL ANALYTICS

Magic Orange Profitability and Cost Transparency provides cutting edge reporting and analytics, allowing teams to gain the insight that matters most. Reports configurable and can be tailored to meet specific reporting needs.

Easily track and understand how costs are allocated between different marketing activities and services. Magic Orange Profitability and Cost Transparency enables Marketing teams to setup a transparent charge back system which transparently shows how and why costs are allocated to business units.

MARKETING COST ALLOCATION MODEL

GENERAL LEDGER CHANNELS CAMPAIGNS BUSINESS UNITS

www.magicorange.com Marketing

Magic Orange is an energetic financial management solutions company with international presence. We have offices in the United

States, South Africa and via strategic partnerships hold international reach within Europe, the United Kingdom and Australia.

Magic Orange has a dedicated and professional team consisting of Chartered Accountants and technology experts that have a

strong track record in Finance and profitability and cost transparency in particular. They have been deeply involved in creating and

implementing cost transparency solutions at large institutions internationally.

Magic Orange Profitability and Cost Transparency provides multiple views of insight into costs, each tailored towards Marketing,

Finance and Business areas.

• What is the true cost of delivering a marketing campaign and service to the business?

• Are our campaigns working? How profitable are each of our campaigns?

• Are we utilizing our existing marketing resources efficiently?

• How much are we spending on each of marketing channels?

• How do our actual marketing costs compare to budget?

• Across which marketing services is our spend spread?

• How does our spending on specific marketing resources compare with what we budgeted?

• Which areas within marketing are we spending too much or too little on?

MARKETING

FINANCE

BUSINESS UNITS• How does our usage of marketing within the business affect our profit margin?

• Are we using marketing efficiently?

• What return are we getting for our marketing investments?

QUESTIONS ANSWERED

COMPANY OVERVIEW

CONTACT US For more information and a live demonstration of Magic Orange Profitability & Cost Transparency please contact us.

www.magicorange.com | info@magicorange.com

United States: +1 954 740 0159 | South Africa: +27 87 350 8870