Measure by MeasureA Comprehensive Look at Publishing Metrics Publishing Business Conference March 24, 2009 Peter Hutchinson www.theMagazinist.com
“That Which Is Measured Improves” What you measure reflects how you manage.
Our Agenda • Overview • Top ten critical measurements… plus a few more. • A closer look: market share, sales log, yield. • Visual analytics and dashboards. • Online Q&A and comments throughout… please.
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 grid • Ratio of color to black and white • Ratio of full pages to fractionals • Average size of fractional • Average contract frequency • Mixture of rate cards
Going Visual • Learn more quicker • Extremely useful in communicating with nonfinancial staff. • Sometimes numbers obscure important facts.
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