Is it still correct to look at time spent per media as a meaningful harbinger of revenue to come? In this presentation we show what we have learned from our experiences in working with our publishing partners.

1. MEASURABLE
DIMENSIONS
OF CONTENT
PRODUCTION
The 39th Magazine World Congress - FIPP
Rome, 25th September 2013
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2. INTRODUCTION
NO GREAT REALIGNMENT
Since 2010 a chart is wandering through the media world. It’s the infamous Morgan Stanley
chart pointing out how share of media time spent on the digital media landscape far
outstrips share of money spent on that landscape by advertisers. And the unbalance keeps
growing.
As publishers, we waited for the unbalance to stop, and finally make digital media a revenue
producer able to supplant, even improve previous revenue streams.
But is it still correct to look at time spent per media as a meaningful harbinger of
revenue to come?
At Applix we have developed several products and strategies to accompany our publishing
partners in their journey towards profitability. This is a summary of what we have learned
from all these experiences.
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

3. BUYERS’ MARKET
THE CHECKOUT COUNTER IS DEAD
The Internet is always on, you don’t turn it on or off anymore. Digital media experience is
different from previous media experiences.
The time spent online has grown exponentially, resulting in an excess of offer and lack of
demand, making advertisers unwilling to pay at previous levels such an abundant resource.
Mobile will add up further.
Content suffers from commoditization and the competitive pressure from platforms like
search, social, curation or RTBs.
We must sell something different from time or bulk views: RELEVANCE, a mix of
recurring engaged time and the ability to affect a user.
To make it economically viable, we must measure both the cost of and the return on
relevance, using technology as an enabler to compress the first and enhance the latter.
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

4. MEASURING RELEVANCE
CONTEXT MULTIPLIES THE VALUE OF CONTENT
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

5. RELEVANCE IS STUFF FOR QUANTS
THE HOUSE OF CARDS PARADIGM
Relevance is a mixed category that has well defined analytical and numeric markers:
■ AUDIENCE DATA
Did they see it, buy it, read it? - Who are they, where do they read it, for how long, with what level of interest? Did they share it or come back to it?
■ CONTENT DATA
Shelf life - Malleability - Ease of distribution - Adaptability to device forms
■ MONETIZATION DATA
Page views generated - Did advertiser want it? - Did e-commerce link work in it? - Did marketing services sell it?
- Did it generate leads?
Costs cannot be taken as an absolute dimension, but must be measured against the
relevance results to gauge their economic value.
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

6. DIMENSIONS OF COST
A FAULTY SYSTEM COSTS MORE THAN TALENT
■ DIRECT PRODUCTION COSTS
How much does each content cost to produce including tech and brand?
■ MALLEABILITY COSTS
Am I producing flexible content? Are there limits to re-assembly?
■ DISTRIBUTION COSTS
Can the content be distributed at minimal cost to all available platforms?
■ DISCOVERY COSTS
How much do I need to spend to put this content where it can be found?
■ DATA GATHERING COSTS
Have I produced content so that it can be measured along all the data dimensions I chose as relevant?
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

7. DATA DRIVEN CONTENT PRODUCTION
THE PLATFORM ALWAYS HAS MORE DATA
■ In a digital age, revenues no longer come from scarcity; they come from abundance
– people consume more media, on more devices, spend more time and give them more
importance through sharing.
■ Money and people come filtered by platforms (social, search, blog, adv exchanges,
curation, RTB); these are enabling factors for individuals, advertisers or publishers, but also
competitors for relevance.
■ Producing relevance is difficult and requires a mix between giving (thus knowing) what
the audience wants in the way that it wants it, and the incommensurable talent to give also
what it did not know it wanted.
■ We must see relevance as an economic category, as the single element that we sell –
either directly or to advertisers, e-commerce partners, event organizers or licensees.
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

8. DATA DRIVEN CONTENT PRODUCTION
SPEAK SOFTLY AND QUERY BIG DATA
■ Data driven content production starts with monitoring and defining relevance, which
allows to evaluate the production of each molecule of content against its efficiency in
generating such relevance.
■ The application of the model requires technological and organizational infrastructures
able to read return data and adjust, reassemble and redesign product and process
continuously to meet relevance goals.
■ The barriers to trying new stuff must be minimal, so must the costs of discarding
stuff that does not work and showcasing stuff that does work. This is done by technology
and people.
■ Once achieved, relevance is not forever. While most of the production process must
look at relevance now, one part of the organization must always read the data with an eye
to the next step.
MEASURABLE DIMENSIONS OF CONTENT PRODUCTION

9. CONTACT US FOR FURTHER INFORMATION
vp@applix.it
www.viewerplus.com
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