Does operating in the modern business landscape always mean costs will rise? It was a familiar theme in reviewing some of the big media companies’ Q1 earnings. While many saw revenue growth, increased operating costs hindered their profitability.
The reasons behind these increased expenses are broad and varied. Inflation undoubtedly played a role, increasing the cost of almost everything under the operating budget. Finding ways to reduce these costs is a priority for any media company, regardless of size.
It’s a delicate balance in cost cutting, as media organizations don’t want to impact the operating budgets that fuel growth and revenue. It may be easy to knock down some overhead, but other ways exist to decrease spending without jeopardizing mechanisms that improve profits. One that should be at the top of the list is technology.
Organizations can adopt and upgrade their platforms with modern applications that drive efficiency, protect profits and eliminate waste. Consolidation is also a practical way to curb operational spending. Here are some key areas your media company should be considering.
Transitioning to Electronic Payments Improves Cash Flow and Reduces Costs
Getting paid shouldn’t be a considerable operating expense. It can be when businesses don’t have a streamlined, effective way to receive electronic payments. Consider the fact that there is a cost to receive paper checks, which can be $1 to $2 per check. Additionally, your accounts receivable team must manually enter these, impacting their productivity and ability to do more meaningful work.
You can eliminate this with a turn-key payment solution that connects to your traffic system and streamlines the process. It should include next-day funding and an integrated workflow. As a result, days outstanding can decrease by 32 days.
There is a cost for electronic payments in the form of processing fees. However, some platforms charge more than others. Look for a solution that has flat fees as opposed to tiered fees. The former usually costs less overall, and you have transparency regarding what you pay each month.
Adopting a Comprehensive Third-Party Digital Platform Eliminates Steep Ad Ops Costs
For many large media companies, third-party digital sales are the drivers behind increased revenue. However, doing all the ad ops in-house also comes with high operating costs.
In-House Professionals Are Expensive
First, you need digital advertising specialists. The average salary for these professionals is $60,359, and you’ll likely need several of these folks. As digital advertising changes, you may also have to invest in these employees with training and certifications.
Hiring costs can be even greater when accounting for turnover. According to the Society for Human Resources Management, the average cost per hire is $4,700. They go on to report that this is just the starting point, and the total cost can be three to four times the salary.
Further, most digital buys at the local level are high volume but low budget, so the cost to execute these becomes prohibitive at a point. Scaling doesn’t really decrease these dollars. On top of this, you still have fees for execution either directly on the advertising medium or with a DSP (demand-side platform).
Software That Does The Ad Ops For You
The path toward controlling these expenses is with a comprehensive third-party digital platform that does the ad ops for you. You only pay the software fee for the use of the technology and any media costs. Such a solution enables sellers to create proposals and orders easily and automates execution.
You’ll also be able to pull campaign performance reports and integrate billing. It consolidates your tech stack and allows you to be more agile.
A Connected Ecosystem Reduces Operating Costs
At the center of your station operations is your traffic system. An optimized, integrated radio traffic solution reduces operating costs in several ways.
Efficiency: Do More with Less
Doing more with less doesn’t have to strain your team or burden them further. Not when efficiency is the outcome. With a radio traffic system that connects to digital and a payments solution, you’ll reduce manual and duplicate work. Everything syncs, and you get more done faster without sacrificing quality or security.
A Single Provider for Service and Support
Is there a cost to having multiple vendors for all your advertising revenue needs? There certainly can be. There will always be one in terms of time, as one problem could impact all software. Additionally, you may have to pay excess fees to get help.
With a single source for service and support, you have one team to call or email. Support for our platforms is always available, and there’s no hourly cost.
Proposals for Radio and Digital Take Only Minutes
With Marketron NXT, you can create a customer-facing proposal with radio spots and digital tactics in minutes. You can even make it with them, showing them the targeting, budgets, geography and more. There are no back-and-forth frustrations like checking avails or compiling information to put in a template. If sellers spend less time building proposals, they spend more time with customers.
Drive Operating Costs Down with Modern Technology from Marketron
Each of these examples exists today for media companies through our technology platforms. You have the power to cut operating costs without impacting processes, efficiency or revenue. In fact, you can see all these things improve. See how we’re powering the future of local media sales with PayNow, Marketron NXT and Marketron Traffic.
Making Payments Easy
- Simplify payments with an integrated platform.
- Eliminate inefficiencies from manual work.
- Get paid faster and more reliably.
- Protect profits with competitive flat fees.
Supporting Local Digital Success
- Access multiple tactics, including display, geofencing, video, social, SEM, OTT and more.
- Create cross-channel proposals.
- Receive training, resources, learnings and ideas.
- Merge proposals, orders, billing and reporting into one system.
Driving Optimized Revenue and Ops
- Maximize inventory and revenue.
- Integrate seamlessly and completely with digital and payments.
- Increase sales productivity.
- Gain visibility with transparent and flexible reporting.
