Over the past 5 years return on investment of K Group’s
advertising pricing strategies has averaged 30 times the consulting
cost in year one!
Here are some examples:
Rich Dobson – Senior Vice President,
Milwaukee Journal Sentinel
Prior to implementing the K Group Pricing strategy, our experience
was that 30% to 35% of our retail advertisers increased their
commitment year over year. With our new strategy we were able
to increase commitment for about 75% of our retail advertisers.
We achieved our budgeted revenue increase without a price increase
by changing our price structure.
K Group refined our retail rate card again in Nov 2002 for January
2003 implementation We asked K Group to review all of our classified
cards in 2003 for 2004 implementation. In 2005 K Group revised
our Automotive and Retail rates for 2006 implementation
Kimberly Parker – Vice President
Advertising, Virginian Pilot
W implemented K Group’s recommended pricing strategy in
October of 2001. Based on an analysis of our internal data,
we reaped $700,000 in incremental revenue on a base of $12 million
in the first six months as a result of the pricing action.
Chris Popper – Ad Manager, Wilmington
We implemented K Group’s pricing strategy for our local
retail and automotive categories in January 2003. Through the
first five months of 2003 we are up 9% over budget and continuing
to show strong performance.
Charley Ritscher – Vice
President Advertising, Richmond Times Dispatch
In Richmond we had worked internally to change our very complicated
and ineffective rate card for a number of months without success.
Our local retail category was stagnant due in large part to
our rate card - - only 2 in 10 advertisers increased their commitment
with us each year. Most stayed flat. Advertiser counts were
down and revenues had stagnated.
Within four months of implementing the K Group rate card recommendations
and training, we found that 55% of our advertisers had increased
their commitment. At the six month milestone we found that our
local advertisers were up 18.3% (versus a benchmark
of 2.4%, advertiser count had increased by 169, local ad rates
had increased by almost 4%. The paper looks better; readers
are happier and advertising remains strong.
After 18 months, we found that our small advertisers had achieved
a shift in momentum with a monetized value of to RTD of $1.6
million (incremental revenue).
Mark Gold – Retail Manager, Santa
Rosa Press Democrat
We implemented K Group’s new retail rate card in August
2002. Through first quarter 2003 we had increased commitments
for our local retailers in 8 of 10 cases versus a benchmark
in prior years of 4 of 10 advertisers increasing their commitment.
The Impact Ad program was particularly successful in moving
revenue and increasing ad size.
Monica Witt - -Minneapolis Star Tribune,
It went really well! I created a monthly calendar with all the
dates, including the BB (business builder) program in the spring-
like (K Group) suggested. The client was extremely happy with
the BB program and said there are probably (use it) 6-8 weeks
during the year. He also liked the other programs and he will
touch base with an annual plan pretty soon. . . . He said the
$160K investment level made sense. It was extremely helpful
going over this early with (K Group).
Bonnie Laux - - Retail Vice President (Minneapolis
We are doing well really with our small to mid-size accounts.
The structure has given many customers the incentive they needed
to sign contracts with us for the first time!
I am hearing good things (from our customers) about the (new
K Group Rate) structure. Enterprise (department) reports that
they are having success in closing new business and I have heard
of several within Regional Retail as well. Thanks for the great
work, I know that it will help us achieve our revenue objectives
this year and provide more value for our customers too.