Case Study Client Situation
An increasing trend towards digital media consumption was leading to declining newspaper readership. The fast developing tablet application market represented a host of challenges in monetising digital content
Pacific Strategy Partners was engaged to:
- Size the potential app market and model the advertising revenue
- Define app ad sales tactics and strategy
- Give recommendations on how to grow the audience
Approach
- PSP developed a market sizing model using a tablet market forecast and print to digital customer migration patterns
- Different pricing models and competitive scenarios were tested to quantify uncertainty of the market
- Advertisement pricing / revenue calculation was developed based on print pricing schemes and app platform specific advertisement capabilities (engagement times, interactivity, audience quality) under the different scenarios
- Recommendations on pricing model, audience growth, short to medium advertising sales tactics and the long term strategy were developed
Impact
- Short term recommendations on app advertising sales tactics were rapidly implemented
- Long term strategic advertising guidance was incorporated into the development of the next generation of apps
