A Tale of Two Media Operations Departments
It was the best of times; it was the worst of times. It was the economy of 2023. And while economists will continue to debate if we are in an actual recession or just threatened by one, the fact is the Media and Technology sector has been affected.
Just how affected seems to be determined by company size. Our 2023 State of Media Operations report found that 49% of small media organizations (<100 employees) reported that the economy has not impacted their budgets. While 47% of large media organizations (>100 employees) said economic factors affected budgets. Let’s examine why smaller organizations may have an edge.
They are more agile and adaptable
Smaller media organizations are naturally more agile due to size. They are likely not carrying the bloat and bureaucracy that comes with larger organizations enabling them to quickly change their products or services to meet the needs of their customers. This is a significant advantage when customers seek ways to save money.
They are more cost-effective
Smaller media organizations often have lower overhead costs than larger media organizations. If you are already operating in a lean manner, you have a better ability to weather an economic downturn. Savings can then be passed along to the customer creating higher customer retention and positioning smaller organizations to be more competitive over the bigger guys.
They are more customer-focused
Smaller media organizations may be more niche focused and, therefore, may be filling a market need. Additionally, smaller organizations tend to have higher customer loyalty. Customer loyalty keeps customers returning, even in tough economic times.
They are more innovative
Due to their ability to be nimble smaller organizations are better able to take risks and innovate to match their customer needs. This can give them an edge over larger organizations which may be more risk-averse.
While size may not be an exact predictor or indicator of business health for media organizations in 2023, it seems to provide smaller organizations an edge over their larger competitors.
If you are a media organization facing some tough choices due to 2023’s economic headwinds, here are some tips to weather the storm:
Cut costs where possible and optimize your operations.
Have you found yourself with a reduced staff? Automate in areas where you can so that fewer manhours are spent on manual tasks.
Focus on your core customers.
Ask yourself, who are my most loyal customers? Prioritize their needs, ensure you meet them, and provide excellent customer service.
Be innovative.
Look for new ways to generate revenue. Do you rent assets? Are you optimizing the schedule of those assets so that they are rented more often? If not, you may be leaving money on the table
Stay positive.
Remember, this is temporary. Optimize your business and make investments to automate operations now so that you are better positioned for growth in the future.
Download Xytech’s 2023 State of Media Operations report for more insights on media operations.