Matt Lindsay, Chris Christian and Kent Schacht, Mather Economics.

1. Using Analytics to Drive Revenue

2. Introduction – Mather Economics2
• President and Founder,
Mather Economics
• Extensive expertise developing
pricing strategies through
customer specific predictive
modeling
• VP of Business Development
• Former Sr. level executive with
Dow Jones, Gannett, and
McClatchy leading audience
development and marketing
efforts.
Chris ChristianMatt Lindsay
• Director, Digital Services
• Doubled ESPN Insider Digital
subscription services to over
750,000 paying subscribers
Kent Schacht

3. Mather Economics: Firm Overview
⋙ Founded In 2002 to bring leading practices in applied microeconomics
to businesses
⋙ Extensive experience in yield management for media companies
⋙ Focus on advertising and subscription revenue optimization
⋙ 35 Employees
⋙ Based in Atlanta, offices in New York, Europe
3

4. Client Portfolio
⋙ Newspaper Publishers
⋙ Magazine Publishers
⋙ Digital Subscription Businesses
⋙ Instant Lottery Game Manufacturer
⋙ Satellite Broadcasting Company
⋙ International Hotel Company
⋙ Cell Phone Service Provider
⋙ Telecommunications Company
⋙ Cable Television Companies
⋙ Temporary Staffing Agency
⋙ Electric Utility & Power Coop
⋙ Multinational Financial Services Firm
⋙ Leading Fast Food Chain

5. Digital Media Revenue Optimization

6. Media Evolution:
Coverage, Platform
Change, Revenue
Model Does Not
Newspapers : Content
sold in a bundle
∙Focus on classified
revenue
∙Focus on advertising
revenue
∙De-emphasis on direct-to-
consumer revenue

7. Magazines: Content
unbundled
∙Focus on rate-base,
advertising revenue
∙Paying for subscribers
Media Evolution:
Coverage, Platform
Change, Revenue
Model Does Not

8. ⋙Digital: Opportunity
for depth, niche
coverage
∙Heavily reliant on reliance
on advertising
∙Traffic moving to mobile,
along with lower CPMs
Media Evolution:
Coverage, Platform
Change, Revenue
Model Does Not

9. Today: Trying to Put the
Genie Back in the Bottle
– At Least Partially
⋙Direct to Consumer
products emerging
throughout the digital
media landscape
⋙Diverse revenue
models offer more
predictability

10. Because the Digital
Revenue Model of
Choice in the Future Will
Contain D2C
⋙Self-sustaining digital
growth
⋙Diverse content,
evolving with platform
growth

11. ⋙Traditional Thinking:
How to Increase Digital
Subscription Revenue
⋙Investment
∙Product development
∙Marketing initiatives
∙Platform
⋙Business model
disruption
∙Meters
∙Paywalls
∙Hope and pray

12. The Secret Weapon -
Data
⋙ Revealed behavior
through data analysis has
replaced stated preference
⋙ Gives digital media
companies the power to
make truly informed
business decisions
∙Product
∙Price
∙Marketing
⋙ Integrate direct-to-
consumer revenue with ad
sales revenue

13. -- Derrick Harris,
Gigaom.com
March 4, 2015

14. ⋙Promotion⋙Programming ⋙Product ⋙Pricing
Mather’s Focus: Using Data to Fuel the Four P’s

15. ⋙Use data to make
smarter decisions about
what content is
produced and posted
⋙Know exactly what
each piece of content is
worth
⋙Factor in CPM,
subscription conversion,
impressions, traffic
Programming

16. ⋙Build product
offerings based on
audience behavior and
likelihood to engage
⋙ Package digital
subscriptions outside of the
bundle tradition
∙Focus on how users engage
with content
⋙ Present products to
customers based on how
they’re able to be monetized
∙Aim users into the appropriate
funnel based on how they bring
value
Product
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
UniqueVisitors
sports:football
sports:rosenblog
sports:columnists
news:local
sports:baseball:cubs
sports:basketball
sports:breaking
news:nationworld
suburbs
news
sports:college
sports:hockey
sports:smackblog
news:opinion
sports:baseball:whitesox
business
news:local:politics

17. ⋙Focus on the demand
curve
⋙ Segment pricing
based on audience and
value
∙Airline model – price based on a
number factors, one-size does
not fit all
⋙ Different content has
different value to different
types of users
∙Technology allows for targeted
messaging and experience
Pricing

18. ⋙ Data analysis builds
efficiency and maximized
yield based on preferred KPI
∙Build subscriber base
∙Build subscription revenue
∙Build ad revenue
⋙A/B Testing ⋙Segmented offers by
customer value
Promotion

19. ⋙Every media
company is full of
customer data
∙Data is like oil
∙Refining into action
⋙ The key to
monetization:
∙Program
∙Product
∙Price
∙Promotion
⋙The future is bright –
quality content will
always have value
Summary

20. Thank You
matt@mathereconomics.com
chris@mathereconomics.com
kent@mathereconomics.com