Harvard Business Review

JULY 2, 2014

These costs might cover the software needed to design the kite and be sure it is sufficiently aerodynamic, the fee paid to a graphic designer to design the look and feel of the kite, and the development of promotional materials used to advertise the kite. These costs are fixed because they will not change with the number of kites sold.

Variable Costs 18

Variable Costs Fixed Costs Sales Sales 18

Harvard Business Review

JUNE 22, 2015

.” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. The BEQ will be present on both sides of this equation because the number of units sold affects both the revenue the firm earns as well as the costs it must incur to earn it.

Variable Costs 15

Variable Costs Fixed Costs Advertising ROI 15

Harvard Business Review

MAY 9, 2013

Much like newspapers, conventional advertising agencies are becoming irrelevant. The radical democratization of business over the last decade created by open innovation, crowdsourcing, and co-creation is transforming how advertising organizations work.

Advertising 14

Advertising Variable Costs Media Fixed Costs 14

Harvard Business Review

JULY 2, 2014

These costs might cover the software needed to design the kite and be sure it is sufficiently aerodynamic, the fee paid to a graphic designer to design the look and feel of the kite, and the development of promotional materials used to advertise the kite. These costs are fixed because they will not change with the number of kites sold.

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10

Harvard Business Review

AUGUST 3, 2018

It failed to meet its revenue and subscriber growth targets. Information on revenue and its drivers are, without doubt, the digital companies’ most value-relevant disclosures from the investors’ perspective. The company’s first revenues indicate the acceptance of its product or services by customers.

Variable Costs 8

Variable Costs Revenue Assets Cash Flow 8

Harvard Business Review

MAY 18, 2018

per month per subscriber, and three movie tickets costs nearly $30, on average, meaning it’s losing nearly $20 per month per subscriber on a variable cost basis. Concessions are nearly pure profit and the most impulse-driven, expandable piece of a theater’s revenue.

Advertising 8

Advertising Variable Costs Revenue Operations 8

Harvard Business Review

FEBRUARY 22, 2011

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. Greater scale bestows greater competitive advantage.

Advertising 16

Advertising Variable Costs Scaling Media 16