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Revenue Streams.

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Presentation on theme: "Revenue Streams."— Presentation transcript:

1 Revenue Streams

2 What is a revenue stream?
An amount of money coming in to a business or organisation from a particular source.

3 Print Media-magazines
Men's Health Men's Health has most recently been selling "Eat This, Not That" books. The recession's effect on ad pages have been negative. "If anything, it's taught us that we have some real businesses here," Mr. Essig said. "During the recession we've had huge success with 'Eat This, Not That.' And it's been hugely profitable for the company." The pressure on traditional fronts has also increased the focus on new approaches that could grow quickly, such as an iPhone app that lets users buy additional content directly and the Men's Health Personal Trainer subscription site. "With these subscription sites, we've been forced to get more innovative about how far we can grow this brand," Mr. Essig said. "The thing we've learned most is the importance of diversifying."

4 Print Media-Newspaper
Many newspapers include coupons to support their review streams. They will have deals with the company that will contract with them that the amount of money they will receive for advertising would depend on the amount the voucher was used.

5 Broadcast Media-Tv Ad revenue: A major chunk of money earned by TV channels comes from selling advertisement spots. The ad spot rates are directly proportional to the GRPs and TRPs (as detailed in earlier answers). In effect higher GRPs (higher eyeballs) higher ad revenue. Sponsorship: This is a more recent avenue. Sponsorship include program/event sponsor, wardrobe sponsors, location sponsors. digital sponsor and what not. This help brands grab some more eyeballs. Subscription: When an end user subscribes for a particular channel either on cable or DTH or IPTV then the operator typically pays a subscription fee to the channel. This might not be applicable for free to air or smaller channel breaking into the market. Note that this is applicable over and above the carriage fee paid by channel to operators. Content royalty fee: TV channels generally own the content format of the shows produced by them. So if other channels would also like to produce the shows in the same format then they would pay a royalty fee. For example lets say channel 4 in the UK launched program 1 and ABC in Philippines was now produce program 2 in the same format as 1 then ABC would pay a royalty fee to channel 4 provided channel 4 owns the content format.

6 Broadcast Media-Radio
Events-Radio stations often hold special events, sometimes on their own and sometimes in concert with advertising partners. These sponsored events serve the dual purpose of attracting new listeners to the station and bringing in extra revenue through ticket sales and merchandising. Many talk radio stations will hold annual cruises or gala dinners during which on-air personalities will mingle with listeners, give speeches and generally let the public into their world. Tickets can be at a premium depending on the venue and the guests, and the proceeds earned by the station can be substantial. Adverts-On-air advertising makes up a major part of radio station revenue. Stations sell airtime to companies that wish to reach the audience with messages about their products or services. Spots vary in price depending on their length, the time of the day they run and the show during which they air. The positioning of each spot can also impact its value, with those aired immediately after the show moves to commercial and immediately before it returns commanding the highest prices. In some cases advertisements are read by on-air personalities in hopes that more people will pay attention when their favourite host is the one speaking. These spots tend to cost more than the traditional commercial.

7 New Media-Websites Revenue Streams Details For MAR 07, 2013 Stream
Type Status Amount % Total Total $ 100% Amazon affiliate enabled $14.70 0% WorldForWebsites $906.06 27% Prague Air Jar product $11.00 Prague Postcards $36.00 1% Website Starter Kit $248.00 7% Website Ads Advertising $ 63%

8 New Media-Websites Website advertising generates the greatest amount. This can come from banners along the boarders of the websites that depend on number of clicks they get as to the amount of money the website receives. They can also be sponsored by the product which they would have to mention within their website along with a perhaps bias opinion of the product that would promote people to buy it.

9 Comparison One very effective revenue stream is the events that the broadcaster's hold. They often get a lot of attention through their own publicity as, for example, a radio station could constantly be promoting their event through advertising broadcasts. An example of this would be the radio station “KISS” that are continuously hosting competitions and playing adverts that try and give tickets for their latest event. This is success comes from the vast amount of people that tune into radio stations. (Just one of KISSs channel reached 4,527,000 listeners last week.). So, when large companies host and advertise their own events it generates a great revenue stream for them because they will make money from the events, by selling tickets for example, and will be able to promote their event a lot cheaper as they own the means to do so. Something that’s no so good about this idea is that the events are extremely costly to host and are at most annual so wont constantly be generating a great sum of money, apart from ticket sales. Another successful way of gaining a revenue stream is discount vouchers in magazines or online. These are good for the magazine because they will initially get a sum for advertising, then have a stream created because the more the people use the vouchers, the more the company will get. This is good for them because they will constantly be befitting from the advert. There are however certain negatives, including that the business doing the advertising will have to cut their prices to make the offer desirable. Also if the advert is poorly designed or unsuccessful people aren't likely to use it meaning the magazine may not get the best cash flow from organising it. Furthermore, sponsorships offer a good idea for revenue streams especially for TV. A programme could agree to promote a product within their programme, which they would then receive money from. It’s a good way in prompting people to by a product. An example is that Emmerdale are sponsored by McCain's and so in shops will have all the products displayed in the freezer in the background of a shot. This is because if people keep seeing the product they would be reminded that they wanted to get some, or would make them more likely to pick up the product next time they see it in the shop. This is good for a constant revenue stream however for a limited time because the co0mpany would often be contracted for only a year for example. Also, the company wouldn’t really be able to see what affect the sponsorship had because there is no direct evidence but they could compare it to figures from when they didn’t have the contract. Overall I think the best, most cost effective option would be the discount vouchers because they provide a constant flow to the business from both sides and are not very costly to produce. They also don’t take a great amount of time to make.


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