Andrew M. Davis - @TPLDrew AKAdrewDavis.com
Increased Buys Lead to Lower Profits
Publishers Paradox
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The ParadoxMarketers are buying more,
while our profits decline.
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
Old Revenue Streams
Subscriptions
Events
Digital Ads
Print Ads
Hypothetical
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
NEW Revenue Streams
SubscribersPromotions
Native Advertising
Info Products
Podcast
Social Media
Video Ads
EmailEvents
Creative
Digital Ads
Print Ads
Hypothetical
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Sales Call
THE CMO: $100K Budget
Last Year’s Spend = $100K
Digital Ads
Print Ads
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Sales CallTHE SALES PERSON: NEW Opportunities: - $100K in ads (like last year) - NEW Podcast = $10K - NEW Videos = $20K - NEW Facebook Contest = $10K Total Spend this year = $140K !
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Sales Call
THE CMO: $100K Budget
THIS Year’s Spend = $100K
FB Contest
Videos
Podcast
Digital Ads
Print Ads“I love all the new stuff. But I still only have $100K. What can I get in the print magazine for $60K? !
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Sales CallTHE RESULT: Increased costs (Facebook contests, podcast and videos.) Same net revenue. !
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Illusion
When we sell this way, it appears that we have tremendous growth in these new revenue streams and that print revenues are declining, when, in fact, gross revenues remain the same.
Andrew M. Davis - @TPLDrew AKAdrewDavis.com
The Challenge
Stop cannibalizing existing revenue streams.
Consider new revenue models.
Eliminate opportunities and simplify offering
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