What should your digital marketing services agency be … · Presented by Jed Williams, Chief...

Presented by Jed Williams, Chief Innovation Officer, Local Media Association

‘What should your digital marketing services agency be

measuring?’

Next Innovation Mission:

Atlanta & Raleigh-Durham| Feb. 5-7, 2018

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Presented by Jed Williams, Chief Innovation Officer, Local Media Association

‘What should your digital marketing services agency be

measuring?’

Digital revenue & sales performance:

How well are you doing?

How Do You Know?

This is a start…

Need more granular data, and causal factors

LEADING

LAGGING

Possible North Star Metrics

Total Market & Existing Account Penetration

ARPA

Basket Size

Retention / Churn

Revenue Contribution per Product/Vertical

Operating Profit Margin per Product/Vertical

Active Digital Accounts per AE

Digital % of AE’s Book of Business

Which of these do you put the most value in?

Which can you actually access?

What % of your total client base buys digital?

What % buys DMS specifically?

Do you break these out separately?

Breadth: Digital Penetration

31.3%

(but that’s total digital, including O&O)

What % of revenue comes from

digital-only advertisers? (i.e. non-core)

Borrell data suggests 50-60%

Dep

th:

AR

PA

$614

(again, this is O&O + DMS)

Churn

Source: Harvard Business Review

Revenue Contribution, per Product

Programmatic / Targeted

SEM / FB Ads

Social Media Mgmt

Websites

SEO

Email

Operating Profit Margin, per Product

Programmatic / Targeted: 40-50%+

Websites: 50%

- Email: 40%+

- SEO: 40%+

- Social Media Mgmt: 30%+

SEM / FB Ads: 10-20% (only mgmt fees)

Multimedia AE Benchmarking:

Digital Sales as % of Total Book of Business

15.6%

(up 2-3% YoY)

Digital AEs: Base Salary

~$35k

(Borrell 2013 Comp Report: $34,458)

Digital AEs – Book of Business : Base Salary

3:1 (or higher)

Closing Thoughts

- Remember Drucker

- Leading Indicators

- Revenue & Sales

Breadth & Depth

Acquisition & Retention Economics

Chief Digital Club: Sample Benchmarking Initiative

• What percentage of a traditional AE’s book of business is digital?

• How many digital accounts does a traditional AE carry in their book of business?

• For digital customers, what is their average monthly spend (ARPA)?

• What is your total digital account penetration?

• What are your top 5 verticals in digital sales?

Jed Williams

Chief Innovation Officer

Local Media Association

Jed.Williams@localmedia.org

@williamsjed

Thank You!