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!