Revenue Projections

Stations

Select the station to be used.

Rate Classes

Select the rate class to be used in projecting revenue. This would typically be the Standard Rate Class. If the application is in a network environment and management is working on budgets you should call your Maxagrid Representative to assist with the creation of a Revenue Projection Rate Class. 

If there are any $0 figures in the daypart boxes, it is because there is no inventory left to generate new revenue. $0 is displayed if you are viewing the present week with some days in the past or viewing a daypart that has been sold out after calculating Booked + Pending business .

Projections

Click on the Projections tab the calendar will pop up automatically. For additional calculations in Revenue Projections, click on the Flight button (under grid) and choose the appropriate weeks. Select Broadcast calendar or Standard calendar. The default from Broadcast calendar to a Standard calendar may be set under the File menu by choosing System Setup and then System Options .

Selecting the Dayparts to Contribute to Projection

When doing a revenue projection, highlight the dayparts to be considered on the left side of the screen. Whenever first using the Revenue Projection module, typically everything except for overnights will be included when doing a projection. Without selecting any dayparts, everything on the right side of the screen will be $0. Typically red represents selected cells and green is unselected cells.

Note: To conduct a Revenue Projection, choose one of the three methods under Rates & Demand Options (upper right): Sold; Booked + Pending; or Booked Inventory Only.

0% Sold Method

Station managers should use the 0% Sold Method when looking at months in the future beyond meaningful traffic import information. This allows station management to determine if the rates called for in the application are going to allow the station to reach or exceed budget goals. It verifies that starting rates are in place prior to demand on inventory. Subsequent demand will raise rates using the various curves in the system.

Station managers who are projecting a Fill Factor % (sell out level) between 70-100%, you typically want the revenue projection on the Unsold + Booked line to reflect 85-90% of expected budget. The additional dollars will be realized as demand is placed on inventory and move up the rate curves. Stations using a Fill Factor % that is less than 70% should use just the Unsold + Booked figure because of less movement up the rate curves.

When using the 0% Sold Method, the box labeled Inv. Sold…Units, Current Value will be inactive, as well as the Booked Rev. and Pending Rev. boxes, and both the Adjusted Potential and Adjusted + Booked lines.

Booked + Pending Method

If the application is loading 13 weeks of traffic and you wish to do a revenue projection within the next three months then the Booked + Pending option should be selected. At this point it is possible to see a reflection of the present booked and pending inventory, and what the remaining potential would be. The application would reflect traffic information and pending business.

Enter actual dollars booked in traffic in the Rev. Captured box.

The application will automatically report pending dollars in the application in the Pending Rev. box if pending information has been entered through pending or through the proposal summary section of the application.

Enter a projected Fill Factor Applied % (sell-out level) for the month. The application will automatically fill in the % of Potential Applied.

Enter the % of Potential Applied(how much of the remaining inventory will sell, and the Fill Factor Applied % will fill in accordingly).

Booked Inventory Only Method

This works the same as Booked + Pending , but does not take Pending Business into account.

After selection of dayparts, the following information is displayed on right side of screen:

Inventory Sold

Using Booked + Pending Method, it represents how many units have been taken out of count by both booked and pending. In Booked Inventory Only it does not include pending units. (Not a factor in 0% Sold Method, so this box appears inactive.)

Current Value

The value of inventory if it is all sold at today's rates, in this rate class. Rates may be viewed by changing the drop down menu at the bottom of the screen to Rates Applied.

Unsold Potential

Units available in selected dayparts. In 0% Sold Method , it represents 100% of inventory available.

Units Value

Revenue available if all units are sold (100% sellout) at today's rates for this rate class.

Areas for Potential Adjustments:

Booked Rev.

Amount of revenue booked in traffic, as shown on a traffic skim with same date and time as traffic file.

Pending Rev.

Pending dollars entered into the application for the time period and dayparts contributing to the projection. If the box has a value of $0 then no pending has been entered into the application for the flight that has been selected. Input of pending business must be done from Bulk Pendings or the Proposal Summary under the Sales menu.

Fill Factor Applied (%)

Percent of total inventory that is believed will be sold for the period based on sellout history and anticipated demand (will fill in the % Of Potential Applied).

% Of Potential Applied

Percentage of remaining inventory that is believed will be sold (will fill in the Fill Factor Applied %).

Definitions for Calculations

Adjusted Potential

The application calculates the difference between the rates called for in the application, and how the station actually sold up to this point. For example, let’s say you are using the Booked Inventory Only Method and Maxagrid reports 1,000 units sold with a current value of $100,000. Checking with traffic finds you actually have $90,000 to show for those 1,000 units. The system will then adjust down your remaining potential dollars by 10%. It will also perform additional adjustment down to account for Fill % factors less than 100%. The final figure will be reported as the Adjusted Potential, and is located in the lower right hand corner.

Adjusted + Captured

The sum of actual booked dollars and pendings, in addition to the Adjusted Potential figure. This is the figure that represent what month end will be if the station continues to sell the same way it has been selling, and if the station hits the Fill Factor projected.

Unsold + Captured

On the other hand, this figure represents what the station can finish the month with if the rates called for by the application are used for the remainder of the month. The only adjustment it makes downward is for Fill % factor.

Inside the daypart boxes in the grid, the application default will display potential revenue. To review the rates used in your Revenue Projection, click on the Display Options drop down menu (under grid) and select Rates Applied. Select Units Applied for remaining unit counts.

Seasonal Demand

On this screen, it is possible to adjust the selected weeks' Seasonal Demand Indicators so that the pricing is pacing towards budget. First, type in the Desired Total Revenue Goal in dollars and click on Adjust Factors to Reflect New Goal . A window will pop up with the average rate change in dollars with the corresponding percentage increase of the Seasonal Demand Indicators . If these changes are reasonable, click on OK . At this time the changes have not been saved permanently. Go to the Projections tab and change the dropdown menu to Rates Applied to check if these new rates are actionable. After viewing all pertinent information, if you want to keep these changes, click on the Save button from the Seasonal Demand tab. If changes are not desired, click on Reset and the Seasonal Demand Indicators will revert to previous values. Station management also has option to restrict adjustments to certain weeks or days by highlighting that day(s) grid square and using the Update box. To increase a particular indicator up 10%, highlight, then type 110% and press Enter . If you need to lower rates, the same process applies. To take rate down 15%, highlight day(s), type 85% and press Enter . To print a Revenue Projection , click on the Print button.

If it appears like the station is not going to meet budget, please call your Maxagrid Representative for assistance on the best approach.