Gross Profit Margin
Gross Profit Margin is ultimately the most critical metric to be tracked within your media company. Managing media costs through dedicated resources who directly interface with the buy side (publishers) and build relationships to gain exclusive access to digital inventory where advertisements are placed is one key strategy to optimize margins. Subscription direct-to-consumer offerings in the media space have also become more popular due to its production of steady and predictable revenue streams.
"Data and analytics are at the heart of everything that we do.”"
— Patrick Knight, COO DWA Media
Days Sales Outstanding
Days sales outstanding represents the average time it takes a media company to receive payment from its customers, typically advertising agencies. Advertisers typically pay their advertising agencies based on when the agency plans to pay for media. If agencies receive timely payments from their clients, then media companies can receive timely payments as well. Because your goals are aligned with the agencies, work with them as partners to achieve a healthy DSO. One strategy is to use electronic payments that can be sent to your customers immediately after a campaign is completed. A quick and efficient invoice production process can lead to faster payments.
- 109 days
- 72 days
- 59 days
- 46 days
The digital age has introduced new, more immersive and on-demand technology, changing the media industry permanently. To stay afloat in today’s competitive media landscape, revenue growth is dependent upon introducing new and innovative revenue streams that go beyond traditional platforms businesses may be accustomed to. Many media agencies are still relying on legacy media revenue streams, while others have embraced the change, introducing new sources of revenue like subscription services, live events, memberships, etc. Revenue growth is a key metric that differentiates the companies that are on the forefront of these changes from the companies still depending on outdated models.
Finance FTE per
IT FTE Per $50M
Your business may just be beginning to track this metric, perform this business function or identified this as a problem. Improved execution in this area should be a high priority.
Your business is competitive in this area, but there’s still room for advancement. Consider investments to improve related operations to achieve better results.
Best in Class
Your performance in this area is considered best in class and is superior to the average company in your sector. You’ve laid a solid foundation in this business function, and the next step is optimization.
You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.