I often find myself becoming an extension of the management team of the companies we serve. A task I gladly accept with my finance background and strong desire to analyze data.
Recently I was working with a management team to analyze some integrated packages they launched in 2017. During our analysis, I saw some numbers that raised a few flags that I thought would be important to further discuss and understand. In short when analyzing one of the magazines we saw that roughly 60% of the ad pages were sold through integrated packages however they only made up 35% of the revenue. How was this going to affect the profits of that issue? Why such a large spread in what the market is willing to pay for an ad page versus what we have discounted our pages in packages?
I think what this is telling us is that yes indeed integrated packages are getting people in the door but in many cases I see the large discounts being offered not always necessary. The market is telling us what a single page is worth and we should consider this when allocating revenue in our integrated packages. Offer discounts but not to the point that your profits are being sacrificed.
Are you able to get this type of analytics reporting out of your current software? If not, give us a call and we can show you how with LaunchPad it is possible.