Today, broadcasters operate in a challenging environment and face increasing pressures from such factors as the economy, deregulation and competition. Many innovative managers are already using business intelligence (BI) or Analytics to gain sustained competitive advantage. Managers have the tools to make better decisions when they work with information interactively. Key questions that managers want answers to typically include: What will my revenue be for a given month or quarter?; Will I exceed the budget?; Am I currently under-performing? By how much?; Do I have the inventory to accommodate this revenue?; Do I need to adjust my rate card based on demand?; What is the net effect on my total revenue if I adjust the rates?; How is my revenue pacing this year compared to the same date last year?; How does it compare to my budget?; and What rates will help me reach my target revenue for each daypart, for different sellout levels?

Broadcast and cable managers make decisions in their businesses primarily based on information from their operational systems. They view information online and also run a variety of reports that are available with their sales and traffic systems. These systems provide information that is valuable in reaching conclusions and taking action.

Business intelligence applications include Decision Support Systems, Query & Reporting tools, Online Analytical Processing, statistical analysis, forecasting and data warehousing. An effective business intelligence solution must have a user-friendly interface, must offer out-of box analysis, and intuitively allow sharing of data. The human interface to the BI or analytics must be simple, visually intuitive and point-and-click. It should not require any technical background and a manager, executive, or analyst should be able to use the system and derive real value from it immediately.

Analysis and alerts can be sent automatically to managers so they can take the necessary action. These alerts may be via e-mail or ticker-like applications. The primary benefit of any Analytics system is its ability to distill vast quantities of data into usable information. It is clear that a credible Analytics system must have information that anyone can use immediately.

Examples of BI tools useful for broadcasters

Below are a few examples, courtesy of Video Communications, Inc. (VCI), of business intelligence or Analysis Tools that have been designed for broadcasters and cable nets. The overarching goal is to help managers make business decisions that will optimize revenue.

Activity Ticker: This is analogous to tickers that show changes in activity, including new orders and changes to existing orders, or activity for the month including booked, billed and unresolved makegoods.

Inventory Explorer: This presents a view of current inventory and allows drill down through a daypart or a program to the spot level for further analysis.

Base Rate: Determines the potential revenue from the remaining inventory for different base rates and sellout levels.

Revenue Trend Analyzer: By analyzing historical information, the Revenue Trend Analyzer reveals patterns for incoming orders for an advertiser, product, daypart or group of dayparts.

Pricing Template: A Pricing Template can assist managers in achieving a desired revenue goal by determining the pricing or rate structure that should be implemented. With the template, managers can perform "What If?" analysis by varying the rates and sellout levels while determining cost per point at the same time.

Multidimensional Analysis and Cubes: Managers think in multiple dimensions - program revenue for each station per program per advertiser per account executive; Accounts Receivable for each channel per Advertiser by aging bucket by business category, etc. This mental process is best supported by the exploration of data in a business context. To meet this need, the data can be arranged in multidimensional structures and presented to the user through tools which allow exploration of different relationships. Users have the ability to interactively look at the data in different ways, for example, by daypart, by advertiser, by salesperson etc. This process of multidimensional analysis is also called OLAP or Online Analytical Processing.