N&C’s view, RM’s problems
The media sector is special in the world of Revenue Management, because of its exclusively BtoB model (radio or TV advertising agencies, physical billboards, digital). Salespeople have a lot of leeway in negotiations, often important, about a reference price. The sales formulas are varied, with prices per spot, prices according to the estimated audience for each type of profile (CGRP), audience guarantees, and costs per click or per mile on digital (CPC, CPM).
Here, the stock is not always known in advance, the offer can be packaged and in multi-support. The RM and Pricing levers are rich and intellectually very interesting, but in practice, they are difficult to implement and manage.
The missions carried out
- Framing missions on the guiding principles of an RM policy
- Work on the valuation of the stock and its right level of exposure
- Support for RM management
- Definition of good performance indicators
- Recommendations on the evolution of practices between RM and negotiation teams – Issuance of efficient arbitration rules between different competing demands
INDICES E.M.D.P by N&c
The sector is very involved in RM in all its forms (digital, radio, TV, billboards, etc.). RM is very close to the commercial sphere in a purely BtoB environment, with little obvious stock valuation.