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Transcript of 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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901
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.
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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.
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
Other Useful Metrics: Ad Sales
Effective CPM (yield /ratebase )
Average pages and revenue per salesperson
Market share by salesperson
Staff productivity the critical measurement
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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.
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
Sales Log
Classic example of improvement through measurement.
Useful for communication upstream and down.
History can reveal sales patterns, impact of incentives, etc.
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
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
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
Going Visual
Learn more quicker
Extremely useful in communicating with
nonfinancial staff.
Sometimes numbers obscure important facts.
Peter Hutchinson 650 363-8901
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
Peter Hutchinson 650 363-8901
Market Share in Pictures
Peter Hutchinson 650 363-8901
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%
Peter Hutchinson 650 363-8901
Sales Log Dashboard
Peter Hutchinson 650 363-8901 www.TheMagazinist.com
Beyond Standard Web Analytics
Relative profitability of online and print
Full cost of repurposed and combined activities
Performance as direct marketing vehicle
Peter Hutchinson 650 363-8901
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