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How Revenue Management maximises TV Revenue
Setting the right price for TV inventory is always challenging.
Ratings, market demand, and market expectations change daily.
This means the true market value of your inventory is quite
fluid, while typical ratecards and discount policies are relatively
static. How do you maximise revenue in these conditions?
Traditional TV sales systems have no particular method to
guarantee that TV stations gain the best revenue result. The
revenue left on the negotiation table due to less than perfect
pricing and inventory strategies, is often not even measured.
Experienced managers acknowledge that time spent analysing
and adjusting rates, fine-tuning placement polices and controlling
discount levels will certainly generate extra revenue, but
where do you start? How do you turn it all into a simple and
highly profitable process? How do you measure the revenue
gains?
Revenue Management systems have dealt with similar challenges
within the airline industry for decades. Airlines rely on
Revenue Management systems to pin-point those flights to discount
and those flights to raise prices on. The same Revenue Management
systems supply vital up to the minute data on 'fill' and 'yield'
trends over every section of the airlines inventory.
Broadcast Revenue has successfully applied these concepts
to TV inventory sales. In the process we provide the ability
to increase revenues and have a far better grip on the interplay
between rates, discounts and fill.
Used worldwide
TV stations Europe, Canada, New Zealand and Australia use
revenue management concepts. Revenue management is all about
increasing revenues without any substantial increase in costs.
The bulk of the extra revenue goes straight to the bottom
line.
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