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Assess Viability of New Revenue Streams

Technology Manufacturer

What we did
• Reviewed product plans, business model, customer delivery mechanism, and revenue stream sourcing from new consumer services and advertising platform
• Conducted product-present focus groups with consumers to understand value and likely use of new product features
• Interviewed marketers and advertising agency media buyers to understand potential use, competitive set, and purchase parameters for new medium
• Conducted due diligence on competitive media landscape; prepared cost-per-thousand analysis; developed pricing strategy; formulated advertising sales strategy; and identified candidate advertisers.

What we discovered
• New services had variable appeal to the consumer end-user
• Advertising agencies were unlikely to consider using the new medium until it could reach 50% of targeted audiences—and this level of distribution was 3-5 years away
• Only certain categories of marketers would consider the medium even with 100% reach

Strategy
• Revamp new feature set

Tactics
• Prioritized features based on consumer interest and likely revenue contribution
• Downscaled advertising sell-in strategy to test market status with progressive advertisers

Results
• Product was revamped to include only the most worthwhile features
• Advertising components were downgraded from importance and eventually dropped

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