measure by measure a comprehensive look at publishing metrics publishing business conference march...

Measure by MeasureA Comprehensive Look at Publishing Metrics

Publishing Business ConferenceMarch 24, 2009

Peter Hutchinsonwww.theMagazinist.com

“That Which Is Measured Improves”

What you measure reflects how you manage.

Peter Hutchinson 650 363-8901 www.TheMagazinist.com

Our Agenda

1. Overview

2. Top ten critical measurements… plus a few

more.

3. A closer look: market share, sales log, yield.

4. Visual analytics and dashboards.

5. Online

Q&A and comments throughout… please.

Peter Hutchinson 650 363-8901

The Challenge: Finding Measures That Matter

Metric Meaning

There’s no value in meaningless metrics


Meaningful Metrics

Identify otherwise hidden strengths and

weaknesses…

Can measure staff performance…

Clarify interrelationships, simplify complexity…

May be helpful in the sales process…

Look over walls… beyond the P&L… and into the

future


Financial Performance Is a Byproduct…

Of market trends and changes…

Economic forces…

Competitive dynamics…

Staff performance…

Disruptive technology…

Perceptions of the brand…

Interruptions and distractions… etc…etc..

Examine causes, not just symptoms.


Some Quick Observations

Avoid shooting the victim: Information source sometimes measures performance in other areas and departments.

Favor lines over points: trends are often more important.

Identify loss-making and time-wasting activities.


The Top Ten

1. Renewal percentage

2. Ad revenue per page (yield)

3. Ad revenue per reader per year

4. Manufacturing and distribution cost

per copy

5. Productivity, especially ad sales


Top Ten, continued

6. Ad-edit ratio

7. Cost of sales (advertising and circulation)

8. 2-Year P&L per sub (revenue - acquisition cost) in

key sources.

9. Market share in ad pages.

10. Profitability of reader-based and ad-based

operations


Other Useful Metrics: Ad Sales

Effective CPM (yield /ratebase )

Average pages and revenue per salesperson

Market share by salesperson

Staff productivity the critical measurement


Other Useful Metrics: Circ

Sources ranked by P&L

Newsstand sell-through percentage

Insert card response rates and trends

Sub revenue per audited reader, newsstand revenue per

copy sold.

Operational efficiencies the critical measurement


Other Useful Metrics: Production

Cost per thousand pages.

Cost per copy, especially in various sizes and runs.

Cost per signature.

Cost of growth (or savings in reduction) the critical measurement


Market Share

Dual metrics: pages and revenue—pages more accurate.

Trends much more meaningful than individual points.

Especially important in economic downturns.

By territory: an invaluable tool for staff review.


Sales Log

Classic example of improvement through measurement.

Useful for communication upstream and down.

History can reveal sales patterns, impact of incentives, etc.


Contract Analysis / Yield Forecast

Invaluable in setting rates and

budgeting.

Also useful in staff communications.

Components of yield:

Size and frequency discounts—the rate gridRatio of color to black and whiteRatio of full pages to fractionalsAverage size of fractionalAverage contract frequencyMixture of rate cards


Going Visual

Learn more quicker

Extremely useful in communicating with

nonfinancial staff.

Sometimes numbers obscure important facts.


Market Share in Numbers

Pages by Issue Total

Jan 62.4 49% 65.8 51% - - 128.2 Feb 79.2 56% 61.8 44% - - 141.0 Mar 83.3 42% 68.5 34% 48.7 24% 200.5 Apr 98.6 58% 71.8 42% - - 170.4 May 114.0 63% 68.3 37% - - 182.3 Jun 57.6 32% 60.8 34% 60.2 34% 178.6 Jul 64.3 52% 59.3 48% - - 123.6 Aug 75.0 52% 68.6 48% - - 143.6 Sep 98.5 38% 73.3 29% 85.2 33% 257.0 Oct 75.0 51% 72.2 49% - - 147.2 Nov 62.0 46% 73.5 54% - - 135.5 Dec 81.5 29% 106.2 38% 89.7 32% 277.4

Total 951.4 46% 850.1 41% 283.8 2,085.3 Average 79.3 70.8 71.0 231.7

3-Month Average 72.8 39% 84.0 45% 186.7 6-Month Average 76.1 42% 75.5 42% 180.7

12-Month Average 79.3 46% 70.8 41% 173.8

Our Mag Competitor A Competitor B


Market Share in Pictures


Sales Log in Numbers

Daily Sales Log c

Issue of ___Closing Date ___Today's Date __

Salesperson TerritoryBudget

RevenueRevenue

to Date

Revenue to Date %of Budget

BudgetPages

Pagesto Date

Pagesto Date %of Budget

BudgetYield

Yieldto Date

Yieldto Date %of Budget

Sam Smith North 65,000 40,000 62% 26.5 19.0 72% 2,450 2,105 86%Jane Jones South 60,000 35,000 58% 24.5 15.0 61% 2,450 2,333 95%Willy White East 70,000 58,000 83% 28.6 20.0 70% 2,450 2,900 118%Betsy Black West 50,000 28,000 56% 20.4 14.0 69% 2,450 2,000 82%

Total 245,000 161,000 66% 100.0 68.0 68% 2,450 2,368 97%


Sales Log Dashboard


Beyond Standard Web Analytics

Relative profitability of online and print

Full cost of repurposed and combined activities

Performance as direct marketing vehicle


Closing Thought:Measure Like an Advertiser

Weighting

CPM, especially rates

Ratings: points, CPP

Reach and frequency

Percent of space devoted to content of interest.

Competitive pages

Trends and time

measure by measure a comprehensive look at publishing metrics publishing business conference march...

Documents

futurepeter hutchinson

ad salespeter hutchinson

ad revenue

ad pages

useful metrics

peter hutchinsonwww

cost of sales advertising

trendssub revenue