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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
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
@williamsjed
Thank You!
