Media Finance Focus 2016 Digital Finance Observations

Transcription

1 Media Finance Focus 2016 Digital Finance Observations 1

2 Agenda Introduction Overview of Cox Media Group Operations & Finance Layout Core Media Platforms Digital is a matrix organization Traffic & Financial Systems Landscape Common Workflows & Challenges when layering in Digital How our P&L focus has evolved Order to Fulfillment Order to Cash Challenges and what lies ahead? 2

3 Cox Media Group Digital Operations Core Businesses TV Radio Newspaper Digital Line Of Business Digital Operations & Corporate Teams 3

4 Cox Media Group Finance Structure Corporate Finance & Business Operations Finance Shared Services TV Radio NP Other Teams Corp FP&A Financial Reporting Revenue Analytics DIGITAL Platform O2C Enterprise Acct Procurement & Payables Financial Systems 4

5 Traffic & O2C Ecosystem TV Radio Verticals Newspaper 5

6 Our P&L focus has evolved. Revenue Cost of Sales Operating Expense Allocations Cost of Sales Key Drivers/Measurement: Revenue/Budget Sales Org Productivity Market Feedback Consumption of Services drive cost Product Margin & Yield Sales commissions Optimizing FTEs assigned to digital business Services by CMGt Content Services Page Views Impressions Delivered O&O Non O&O Audience Ext. SEM Non- Programmatic Revenue Sources 3 rd Party Access Google Ad Sense Gamut Rubicon AdapTV Taboola Google AdX Inventory Rate and Pricing Leveraging fulfillment providers delivering highest margins for a product Tight integration with fulfillment to control campaign onboard / offboard Non- N/A GROSS MARGIN Payroll & Benefits Commission Plans Headcount assignment Other direct purchased Non- Allocated Search Service Costs Allocated Ad Creative **Free are available central fulfillment Understanding the drivers for these allocations and managing your behaviors to avoid waste Understand available that are already part of your allocation to avoid local decisions for When you stop using platforms or = communicate to eliminate waste EBITDA MARGIN 6

7 Our P&L focus has evolved. Revenue Cost of Sales Operating Expense Allocations Cost of Sales Key Drivers/Measurement: Revenue/Budget Sales Org Productivity Market Feedback Consumption of Services drive cost Product Margin & Yield Sales commissions Optimizing FTEs assigned to digital business Services by CMGt Content Services Page Views Impressions Delivered O&O Non O&O Audience Ext. SEM Non- Programmatic Revenue Sources 3 rd Party Access Google Ad Sense Gamut Rubicon AdapTV Taboola Google AdX Inventory Rate and Pricing Leveraging fulfillment providers delivering highest margins for a product Tight integration with fulfillment to control campaign onboard / offboard Non- N/A GROSS MARGIN Payroll & Benefits Commission Plans Headcount assignment Other direct purchased Non- Allocated Search Service Costs Allocated Ad Creative **Free are available central fulfillment Understanding the drivers for these allocations and managing your behaviors to avoid waste Understand available that are already part of your allocation to avoid local decisions for When you stop using platforms or = communicate to eliminate waste EBITDA MARGIN 7

8 Our P&L focus has evolved. Revenue Cost of Sales Operating Expense Allocations Cost of Sales Key Drivers/Measurement: Revenue/Budget Sales Org Productivity Market Feedback Consumption of Services drive cost Product Margin & Yield Sales commissions Optimizing FTEs assigned to digital business Services by CMGt Content Services Page Views Impressions Delivered O&O Non O&O Audience Ext. SEM Non- Programmatic Revenue Sources 3 rd Party Access Google Ad Sense Gamut Rubicon AdapTV Taboola Google AdX Inventory Rate and Pricing Leveraging fulfillment providers delivering highest margins for a product Tight integration with fulfillment to control campaign onboard / offboard Non- N/A GROSS MARGIN Payroll & Benefits Commission Plans Headcount assignment Other direct purchased Non- Allocated Search Service Costs Allocated Ad Creative **Free are available central fulfillment Understanding the drivers for these allocations and managing your behaviors to avoid waste Understand available that are already part of your allocation to avoid local decisions for When you stop using platforms or = communicate to eliminate waste EBITDA MARGIN 8

9 Challenges & What lies ahead Transparency Accuracy Tracking Scalability Single Source Support for Delivery Communication Tight integration with order change Inventory Mgmt Rate Mgmt Customer Make Good / Adjustments Errors Too much human intervention Standard product sets Consistency across platforms Matching Revenue / Expense Margin reporting Continuous Order Fulfillment to Billing Integrated rate and inventory mgmt Human intervention must decrease Integrated Workflow Digital Order Management Drive consistency and effectiveness across the digital order process by linking inventory, order, fulfillment, and billing. 9

10 Advertiser / Campaign Profitability Roadmap Centralized Cost of Sales Vendor Agreements Centralized Payment Strategy Cost of Sales Estimates Recognize COS As Delivered Campaign / Market Delivery Data Adjust traffic system to require vendor delivery data Require Traffic Order Advertiser / Campaign Profitability Data Analyze & Cleanse Vendor Fulfillment Data Link Traffic Order to Fulfillment cost of sales Define Working Model Profitability Analytics (Dashboard) Monthly AUTOMATED analysis tools Data cleansing routines to identify bad traffic order entry communicated to market Dashboard Tools available to market DOBO s and DSM s July 2016 Oct

11 Focus on the future FOCUS on the Future Integrated Order to Fullfillment / Cash Process Strong link between revenue and COS Manage Product Margin & Profitability Expectations 04 Optimize Yield & Inventory 11