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Revenue Management System for Broadcasters |
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| What is Revenue Management? |
Revenue Management is the process of maximizing revenue by optimally allocating inventory, forecasting demand and correct pricing of the inventory. It combines knowledge about market segmentation for pricing along with advanced statistical analysis to increase revenue. Price discrimination is the key factor for revenue management. |
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| Why Revenue Management? |
Opportunities for revenue management arise when: |
- Inventory is perishable
- Capacity is fixed
- Market segmentation based on willingness to pay is possible
- Sales are made in advance
- High fixed costs and low marginal costs
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| About ChaRM |
Using
our experience in the media industry and expertise in modeling, we have
developed Channel Revenue Maximizer (ChaRM), to help broadcasters
maximize revenue and improve efficiency. |
ChaRM helps broadcasters use available inventory optimally to maximize allocated ad revenue. It helps identify sellable inventory and expected demand thus providing a statistical basis for the sales force to align airtime rates. It ensures that the inventory is sold at appropriate rates through proper evaluation of all potential contracts. Apart from maximizing revenue the system ensures standardization of program promotion, sales and inventory allocation processes and also maintains a clear audit trail. |
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ChaRM consists of the following 6 modules:
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| 1. Ratings Forecaster - Read |
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Forecasts ratings of programs/day-parts, launches, high points using historical data; combines domain knowledge and statistical techniques |
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| 2. Demand Forecaster - Read |
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Forecasts demand for inventory on dates, program/day-parts |
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| 3. Deal Evaluator - Read |
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Structures deals which satisfy client's GRP and budget requirement while ensuring profitability |
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| 4. RO Planner - Read |
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Generates daily optimal ad allocation plans in an automated manner |
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| 5. Deal Planner - Read |
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Generates medium to long term plans for allocation of contracted inventory while saving premium inventory for future sales |
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| 6. Promo Planner - Read |
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Allocates promos optimally by considering GRP / frequency objectives |
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| BENEFITS |
| OPTIMALITY |
- Optimal allocation of daily inventory
- Plan promos across channels optimally
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| PROCESS AUTOMATION |
- Automated processes resulting in savings of time & cost
- Reduced dependence on user judgment
- Traceability of user actions and reasons thereof
- Scalability in terms of channels, clients, number of deals, release orders etc
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| PLANNING |
- Forecasting of program ratings and advertising demand
- Visibility of inventory, sold and available
- Real-time structuring of profitable deals
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Industry experience suggests that revenue management leads to substantial revenue gains of 2–8%.
By using ChaRM, premium ad inventory can be saved to be sold at higher prices in future.
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SERVICES
