Shrinkage is an allowance made for a reduction in the earnings of a business due to waste or theft. Sound like ad fraud and viewability issues we are plagued with now as an industry? TV doesn’t have this problem, however TV companies do because their audiences are spending more and more time on digital platforms.
Perhaps not a big problem on owned and operated properties, however publishers often rely on syndication partnerships for audience extension to fulfill buyer demand for premium video. Mitigating risk and exposure of ‘shrinkage’ in media today requires an adaptable media enterprise to prevent, act and react quickly.
This is a great business challenge that can be addressed if some of the business processes and best practices discussed in previous episodes in the “Building the Adaptable Media Enterprise” series are implemented. Portfolio level visibility, better forecasting and ‘Kaizen’ or continuous improvement would enable publishers to predict and prepare for the unique challenges of digital video. Ashley provides some suggested processes and best practices for organizations to maximize digital video revenue and minimize revenue loss from shrinkage.