In the age of endless streaming options, social media platforms, and digital advertising routes, it’s become trendy to pick on broadcast television. Actually, it has been for years. The talk of TV’s decline has been a hot topic for those in media, and the truth is, it has been affected to some degree by all of the above fragmentation.
For over two decades, ShareBuilders has been at the forefront of helping broadcasters understand their data. Today, we're excited to introduce Smart Forecast, a bespoke machine-learning model that predicts revenue forecasts with unprecedented accuracy. Alongside the recently releasedPrecision Pending, Smart Forecast joins a suite of new ShareBuilder AI tools dedicated to providing the broadcast industry with the most powerful analytics available. Smart Forecast was developed completely in-house and does not rely on third-party AI tools, ensuring client data always remains secure and private. For more about our commitment to privacy, see ourOur Approach to AI.
As I write this, stations we work with are running open in Prime. This trend isn't novel, having manifested itself since the onset of the pandemic. It's imperative to grasp the extent of this decline to adeptly navigate our pricing strategy in the times ahead. Although 2024 in specific markets holds promise with additional political demand, capable of plugging some gaps, a contingency plan is essential if this political demand fails to materialize, maximizing revenue amid a diminishing daypart.
Did you know that when you work with ShareBuilders, you get a weekly call with an experienced consultant and have an analyst working behind the scenes on your behalf? It’s like adding two new members to your team! At ShareBuilders, we believe that the human element of working with us is critically important. Weekly conversations with your consultant guarantee that you are getting the best possible results from our products based on the unique needs of your station and your market.
Welcome to the next episode of Heads Together - your go-to source for insights and information on the latest trends in the media sales industry. Our video series explores the most pressing topics and challenges facing media sales professionals today. We pair our consultants and clients to share their perspectives and advice on issues like pricing strategies and building solid client relationships.
Effective pricing is the cornerstone of a successful broadcasting business. In this regard, ShareBuilders' Holding Capacity model emerges as an invaluable tool for understanding the present and shaping the future of your revenue streams. At its core, this model offers insights into what your equitable share of revenue should be for a specific quarter or even an entire year. However, delving deeper into its intricacies can grant you a distinct competitive edge, enabling you to discern precisely where you wield pricing power and where it may be more limited. Guided by a dedicated ShareBuilders consultant, you can navigate this model to your advantage.
What is the best way to share rates with your sellers? First, it’s imperative to call the demand in the market to ensure we are pricing to optimize revenue based on current conditions. ShareBuilders has fantastic tools that can help you determine a realistic forecast based on history while also evaluating the current business climate. Next, you need to assess your people’s ability to negotiate. Do you have an experienced team, or is their first inclination to dive to the lowest level?
The Problem We Are Solving
In the ever-changing world of media sales, forecasting accuracy is crucial. However, we've observed a persistent gap between pending dollars and related booked revenue. Our data analysis has revealed that pending dollars can be consistently off by as much as 160% compared to what sales teams actually close at the end of each month.
This discrepancy is a consequence of various factors. Sales reps have different ways of approaching their pending dollars: some are constantly overconfident, or projecting higher closing rates; others may procrastinate in entering their pending deals into the system; and still, others might have an inflated expectation from certain accounts.
These factors and others culminate in an inflated pending amount, leading to a substantial divergence between the forecasted and actual revenue. Such inaccuracies can affect the strategic planning and decision-making process at various levels, ultimately impacting our customer’s bottom line. It is this very problem that we aim to help solve.
With over 20 years of experience in creating CRM solutions specifically for the media sales industry, our expertise at ShareBuilders is informed by an extensive understanding of the unique challenges and needs of this sector. Throughout these years, we've engaged in comprehensive competitor analysis, direct interaction with our customers, and meticulous study of sales rep behaviors.
We've observed that the human element can add unpredictability to forecasting. After trawling through vast datasets of pending deals and sales team performances, we've gained a profound understanding of how pending dollars are managed, and more importantly, how they could be estimated better. This insight into the intricacies of the sales process and the industry's unique needs has become the springboard for the development of our groundbreaking feature, Precision Pending.
This is just a preview of the decisions and understanding that led us to develop Precision Pending, a revolutionary feature of ShareBuilder AI. This tool is powered by machine learning, custom data modeling, and our proprietary algorithms. Unlike traditional methods, Precision Pending takes into account diverse factors, such as the sales rep's pending precision, pending trends, and the account's history, among others. By integrating these factors into the pending process, Precision Pending offers a more reliable and accurate view of pending dollars. This AI-driven solution brings more predictability to the process, mitigating the uncertainties associated with human predictions. With Precision Pending, we're taking a significant stride toward empowering our customers with the ability to predict revenue more accurately and consistently.
A Commitment to Continual Improvement
At ShareBuilders, we believe in constantly pushing the boundaries to empower our customers. That's why we're proud to announce that we're releasing Precision Pending to all of our customers at no additional cost. We see this as a collaborative journey where we learn, grow, and innovate together.
Our initial models project that Precision Pending can help reduce uncertainty between 30-50% from raw pending dollars. This is a significant stride towards helping sales teams to more reliably forecast revenue, but we do not intend to stop there.
As we continue to roll out this feature, we'll carefully monitor its performance and listen to our customers' feedback. Our aim is not only to improve Precision Pending but also to ensure that it continually adapts to the changing realities of media sales.
This is a significant milestone in our journey toward helping companies with confident revenue predictions. We believe that through persistent efforts and close collaboration with our customers, we can continually narrow the gap of uncertainty and revolutionize the media sales landscape. We are excited about the road ahead and hope you are too.
Welcome to the future of forecasting with Precision Pending.