Dynamic Rate Card

Problem 1:

Too many broadcasters are losing 1-3% of their revenue just because their approach to ad pricing is old school and largely based on gut-feel.

But savvy media orgs like Hearst and Beasley are using advanced analytics to price ads right and reclaim that revenue.

How? A lot of stations use the old “hockey stick” approach to ad pricing – aka wait until demand materializes before increasing rates. 

(This is also known as rate escalation. Don’t say we didn’t warn you).

It’s a logical, common-sense approach. The only problem? It costs you revenue. Here’s how…

1. Broadcaster waits to increase prices until current sellout is high
2. Then they suddenly jack up rates really high
3. Their clients balk at the high prices
4. Broadcaster loses revenue 2 ways: waiting to increase price, then increasing price too high

Problem 2:

Manually managing and distributing rate cards takes valuable time that could be better spent on other sales activities.  On top of that, digging into the necessary supporting metrics (AUR, EUR, Sellout, Gross Revenue, etc.) to make data-driven decisions can be a tedious process that requires pulling information from multiple reports and systems.

Solution

Smart stations automate their rate card and use advanced analytics to execute a dynamic “linear” approach to ad pricing.

This approach is more sensical because it doesn’t cost you revenue like the hockey stick approach does…

1. Broadcaster uses advanced analytics to predict when sellout will be high
2. Their dynamic pricing system automatically raise rates earlier and more gradually
3. Their clients are happy with the reasonable rates
4. And they grow their revenue by 1-3%

How do we know? 

We’ve rigorously tested these approaches and linear wins every time.

RateOptics’s Dynamic Rate Card puts the power of dynamic pricing in your hands so you can reclaim your own revenue. And don’t worry, while we leverage sophisticated analytics behind the scenes, we present rate recommendations and supporting “metrics-that-matter” in a clean, easy to use front-end that ensures you don’t need a Ph.D. to use our application.

The other huge benefit? It also saves your sales managers the frustrating hassle of setting rates manually and pulling supporting data from a plethora of reports, giving them back time for sales. AND their sellers have access to a seller-specific rate card as well, allowing them access to real-time rates, every time.  For some broadcasters, this is their favorite part!

Curious? Learn more by schedule time to speak to an expert.