benchmarking digital marketing services - local media€¦ · possible north star metrics total...
Post on 26-Apr-2018
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Benchmarking Digital Marketing Services
Digital revenue & sales performance: How well are you doing?
How Do You Know?
Keep Score!
This is a start…
Need more granular data, and causal factors
LEADING
LAGGING
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
Which of these do you put the most value in?
Which can you actually access?
What % of your total client base buys digital?
What % buys DMS specifically?
Do you break these out separately?
Breadth: Digital Penetration
31.3%(but that’s total digital, including O&O)
What % of revenue comes from digital-only advertisers? (i.e. non-core)
Borrell data suggests 50-60%
Dep
th: A
RPA
$614 (again, this is O&O + DMS)
Churn
Source: Harvard Business Review
Revenue Contribution, per Product
Programmatic / Targeted SEM / FB Ads
Social Media Mgmt Websites
SEO Email
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)
Multimedia AE Benchmarking:
Digital Sales as % of Total Book of Business
15.6% (up 2-3% YoY)
Digital AEs: Base Salary
~$35k
(Borrell 2013 Comp Report: $34,458)
Digital AEs – Book of Business : Base Salary
3:1 (or higher)
Other Ways You Benchmark AEs?
Closing Thoughts
- Remember Drucker
- Leading Indicators
- Revenue & Sales
Breadth & Depth
Acquisition & Retention Economics
Jed Williams Chief Innovation Officer Local Media Association Jed.Williams@localmedia.org @williamsjed
Thank You!
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