Thought Leadership

Advertising Operations Reality Check: Do You Pass The Test?

By | May 2009

ROI Analysis
By evaluating metrics that help to quantify the 2 major strategic levers that Ad Operations can impact (operational efficiency and increasing the value of inventory), you should be able to identify:
1. Levers where your team has the greatest impact on revenue
2. Opportunities to innovate and refocus so that you may increase your revenue-generating ability
Please answer the below questions from Q4 2008 and total your points to calculate your Ad Operations ROI.

Ad Operations ROI = Value Score - Efficiency Score / Efficiency Score

POINTS KEY
A = 5; B = 4; C = 3; D = 2; E = 1

VALUE LEVER (optimal score = 15)
1. What percentage of your inventory was sold directly?
a) >81%
b) 61% - 80%
c) 41% - 60%
d) 21% - 40%
e) <21%

2. What percent of total clients did not renew in Q4?
a) <15%
b) 16% - 35%
c) 36% - 50%
d) 51% - 70%
e) >71%

3. On average, how many times did you make a modification to a campaign that ran in Q4?
a) Monthly (3 months)
b) Weekly (12 weeks)
c) Bi-Weekly (2x per week)
d) Daily (90 days)
e) Never

Total VALUE Points _____________

EFFICIENCY LEVER (optimal score = 3)

1. In Q4 2008, what was the average number of line items trafficked per trafficker?
a. <500b.
b.  500-999
c. 1,000-1,499
d. 1,500-2,499
e. >2,500+

2. What % of campaigns that ended in Q4 experienced 15% or less over/under delivery?
a. <49%
b. 50% - 69%
c. 70% - 84%
d. 85% - 94%
e. >95%

3. What was your ratio of Traffickers to Sales people (i.e.: Account Executives, Sales Planners, Sales Coordinators)?
a. 5:1
b. 3:1
c. 1:1
d. 1:3
e. 1:5

Total EFFICIENCY Points ___________