Download - Publishers Paradox: Increased Buys lead to Lower Profits

Andrew M. Davis - @TPLDrew AKAdrewDavis.com

Increased Buys Lead to Lower Profits

Publishers Paradox


The ParadoxMarketers are buying more,

while our profits decline.


Old Revenue Streams

Subscriptions

Events

Digital Ads

Print Ads

Hypothetical


NEW Revenue Streams

SubscribersPromotions

Native Advertising

Info Products

Podcast

Social Media

Video Ads

EmailEvents

Creative

Digital Ads

Print Ads

Hypothetical


The Sales Call

THE CMO: $100K Budget

Last Year’s Spend = $100K

Digital Ads

Print Ads


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 !


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? !


The Sales CallTHE RESULT: Increased costs (Facebook contests, podcast and videos.) Same net revenue. !


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.


The Challenge

Stop cannibalizing existing revenue streams.

Consider new revenue models.

Eliminate opportunities and simplify offering