Entravision Communications Corporation (EVC): Business Model Canvas [11-2024 Updated]
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Entravision Communications Corporation (EVC) Bundle
In the ever-evolving landscape of media and advertising, Entravision Communications Corporation (EVC) stands out with a robust business model that caters specifically to the Spanish-speaking audience in the U.S. This blog post delves into the intricacies of EVC's business model canvas, highlighting its key partnerships, activities, and value propositions that drive its success. Discover how EVC effectively engages its community, leverages technology, and generates revenue through diverse channels tailored to meet the needs of its unique customer segments.
Entravision Communications Corporation (EVC) - Business Model: Key Partnerships
Collaborations with TelevisaUnivision for content distribution
Entravision maintains a network affiliation agreement with TelevisaUnivision, granting exclusive rights to broadcast its primary Univision network and UniMás programming in specific markets. This agreement is crucial for content distribution and revenue generation.
In the third quarter of 2024, Entravision reported retransmission consent revenue of $8.0 million, with $5.7 million attributed to the TelevisaUnivision proxy agreement. For the nine-month period ended September 30, 2024, this revenue totaled $26.0 million, of which $18.2 million was related to TelevisaUnivision.
Additionally, Entravision receives compensation from TelevisaUnivision for managing marketing and sales operations in Albuquerque, Boston, and Denver, contributing to the overall revenue stream from this partnership.
Partnerships with multichannel video programming distributors (MVPDs)
Entravision collaborates with various MVPDs through its agreements that allow retransmission of its television station signals. These partnerships are vital as they enable MVPDs to rebroadcast Entravision's content to their subscribers, thus generating significant revenue.
As of September 30, 2024, the company had a receivable amount of $5.5 million from TelevisaUnivision related to retransmission consent agreements. The strategic alignment with MVPDs is essential for reaching a wider audience and optimizing advertising revenue, particularly as the media landscape continues to evolve.
Strategic alliances with advertising technology firms
Entravision has formed strategic alliances with advertising technology firms, enhancing its capabilities in programmatic advertising. The company's advertising technology and services segment generated net revenue of $37.4 million for the three-month period ended September 30, 2024, up from $28.7 million in the same period of 2023.
Specifically, the acquisition of BCNMonetize in May 2023 has bolstered Entravision's advertising technology portfolio, contributing to a revenue increase of $29.0 million in the advertising technology segment for the nine-month period ended September 30, 2024. This segment is crucial as it adapts to the rapidly changing digital advertising landscape, focusing on efficiency and lower costs for advertisers.
The following table summarizes Entravision's revenue generation from its key partnerships:
| Partnership Type | Revenue Q3 2024 (in millions) | Revenue Q3 2023 (in millions) | Revenue 9M 2024 (in millions) | Revenue 9M 2023 (in millions) |
|---|---|---|---|---|
| TelevisaUnivision (Retransmission Consent) | 8.0 | 8.9 | 26.0 | 27.9 |
| Advertising Technology (Smadex & BCNMonetize) | 37.4 | 28.7 | 103.2 | 74.2 |
| Total Revenue from Partnerships | 45.4 | 37.6 | 129.2 | 102.1 |
Entravision Communications Corporation (EVC) - Business Model: Key Activities
Broadcasting television and radio content
Entravision Communications Corporation operates a vast network of media platforms, owning and/or operating 49 primary television stations and 44 radio stations (37 FM and 7 AM). As of September 30, 2024, the net revenue generated from the media segment was $59.8 million for the three-month period, a rise from $48.7 million in the same period of 2023, marking an increase of 22.8%. This growth was primarily driven by a significant increase in broadcast advertising revenue, which saw an uptick of $9.2 million, largely attributed to political advertising activity.
Digital advertising sales and management
In the digital advertising sector, Entravision reported net revenue of $37.4 million for the three-month period ended September 30, 2024, compared to $28.7 million in the previous year, reflecting a 30.5% increase. The overall revenue from the advertising technology and services segment increased to $103.2 million for the nine-month period ended September 30, 2024, up from $74.2 million in the same period of 2023, primarily due to the performance of the Smadex platform and the acquisition of BCNMonetize.
| Period | Digital Advertising Revenue ($ millions) | Total Revenue ($ millions) | Percentage Increase |
|---|---|---|---|
| Q3 2024 | 37.4 | 97.2 | 30.5% |
| Q3 2023 | 28.7 | 77.4 | |
| 9M 2024 | 103.2 | 258.0 | 39.1% |
| 9M 2023 | 74.2 | 218.8 |
Content production and programming
Entravision is actively involved in content production and programming for its television and radio stations. The company has recognized a need to expand its news programming, particularly in anticipation of election cycles, resulting in an increase in direct operating expenses associated with this expansion. For the three-month period ended September 30, 2024, direct operating expenses in the media segment increased to $29.2 million from $24.1 million in the previous year, driven by an increase of $2.3 million in salaries related to news programming expansion.
| Expense Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Increase ($ millions) |
|---|---|---|---|
| Direct Operating Expenses | 29.2 | 24.1 | 5.1 |
| Salaries | 5.3 | 3.0 | 2.3 |
With the sale of the Entravision Global Partners (EGP) business in mid-2024, the company has shifted its focus towards enhancing its media operations and digital advertising capabilities, which are now the core activities of the business model going forward.
Entravision Communications Corporation (EVC) - Business Model: Key Resources
Broadcasting licenses and spectrum rights
Entravision Communications Corporation holds numerous broadcasting licenses essential for its media operations. As of September 30, 2024, the company operates 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching U.S. Latino audiences effectively. This extensive network enables Entravision to deliver diverse content and advertising opportunities across various platforms, significantly enhancing its market presence.
Digital platforms and technology infrastructure
Entravision has invested in robust digital platforms and technology infrastructure, particularly through its advertising technology & services segment. The company reported net revenue of $37.4 million for the three-month period ended September 30, 2024, an increase from $28.7 million in the same period of 2023. This growth is attributed to its programmatic advertising services via Smadex and Adwake, demonstrating the effectiveness of its technology in driving digital revenue growth.
| Segment | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | Growth (%) |
|---|---|---|---|
| Advertising Technology & Services | $37.4 million | $28.7 million | 30.6% |
Skilled workforce in media and advertising
Entravision's success is also driven by its skilled workforce, which is essential for executing its media and advertising strategies. The company reported an increase in direct operating expenses to $29.2 million for the three-month period ended September 30, 2024, up from $24.1 million in 2023. This increase is largely due to higher salaries associated with expanding news programming in anticipation of the election cycle, indicating a focus on enhancing content quality and staff capabilities to attract and retain audience engagement.
| Expense Type | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Direct Operating Expenses | $29.2 million | $24.1 million | $5.1 million |
Entravision Communications Corporation (EVC) - Business Model: Value Propositions
Diverse Spanish-language media offerings
Entravision Communications Corporation operates a robust portfolio of Spanish-language media, comprising 49 primary television stations and 44 radio stations (37 FM and 7 AM) across the United States. This extensive reach allows the company to engage effectively with U.S. Latinos, a demographic that is rapidly growing and increasingly influential in various markets. For the nine-month period ended September 30, 2024, the company's media segment generated $154.8 million in revenue, reflecting an increase from $144.6 million in the same period of 2023.
Strong local news programming to attract political advertising
Entravision has strategically enhanced its local news programming, which plays a crucial role in attracting political advertising. The company recorded a notable increase in broadcast advertising revenue of $9.2 million for the three-month period ended September 30, 2024, largely driven by political advertising. This focus on local news not only caters to the community's informational needs but also positions Entravision favorably during election cycles, a period when advertising budgets tend to spike significantly.
Innovative digital advertising solutions
Entravision has made significant strides in the digital advertising space through its advertising technology and services segment, which includes programmatic ad services via its platform Smadex and mobile growth solutions through Adwake. For the nine-month period ended September 30, 2024, revenue from this segment surged to $103.2 million, up from $74.2 million in the previous year. The company has adeptly leveraged digital channels to complement its traditional media offerings, thereby providing advertisers with comprehensive solutions that enhance targeting and engagement.
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Media Segment | $154.8 | 7.6% |
| Advertising Technology & Services | $103.2 | 39.1% |
In summary, Entravision's value propositions are characterized by a diverse array of Spanish-language media offerings, a strong emphasis on local news programming that attracts political advertising, and innovative digital advertising solutions that are rapidly gaining traction in the market. The company's strategic focus on these areas positions it uniquely within the competitive landscape of media and advertising.
Entravision Communications Corporation (EVC) - Business Model: Customer Relationships
Direct engagement with advertisers and agencies
Entravision Communications Corporation (EVC) maintains a robust engagement strategy with advertisers and agencies. For the three-month period ended September 30, 2024, EVC reported net revenue of $97.2 million, with approximately 62% generated from its media segment and 38% from advertising technology and services. The company’s advertising revenue from the media segment increased by $11.1 million compared to the same period in 2023, primarily driven by an increase in political advertising.
| Revenue Sources | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Media Segment Revenue | 59,800 | 48,700 | 22.9% |
| Advertising Technology & Services Revenue | 37,400 | 28,700 | 30.5% |
| Total Revenue | 97,200 | 77,400 | 25.4% |
Customer support for digital advertising clients
EVC provides dedicated customer support for its digital advertising clients, which is crucial for maintaining strong relationships and enhancing client satisfaction. In the nine-month period ended September 30, 2024, EVC's total net revenue rose to $258.0 million from $218.8 million in the previous year, reflecting an 18% increase. This growth was significantly attributed to the advertising technology and services segment, which saw an increase of $29.0 million in revenue.
The company's customer support for digital advertising clients includes personalized assistance and a self-service platform through Smadex, its demand-side programmatic ad platform. This platform allows clients to manage their advertising campaigns effectively, providing transparency and control over their advertising strategies.
Community involvement through local programming
Entravision actively engages with local communities through programming tailored to the interests and needs of its audiences. This involvement is evident in the company’s ownership and operation of 49 television stations and 44 radio stations, which reach a significant portion of the U.S. Latino population. The company’s commitment to local programming not only strengthens its brand but also fosters loyalty among viewers and listeners, facilitating better advertising opportunities.
For instance, during the three-month period ended September 30, 2024, EVC recorded retransmission consent revenue of $8.0 million, a slight decrease from $8.9 million in the same quarter of 2023, indicating the importance of local content in retaining viewership. This revenue is part of the agreements with TelevisaUnivision, which allow EVC to manage the marketing and sales operations of Univision affiliates in specific markets, thereby enhancing community relationships and advertising effectiveness.
Entravision Communications Corporation (EVC) - Business Model: Channels
Television and radio broadcasts
Entravision Communications Corporation operates a significant media segment that includes 49 primary television stations and 44 radio stations (37 FM and 7 AM). The company primarily focuses on reaching and engaging U.S. Latinos. For the three-month period ended September 30, 2024, net revenue from the media segment increased to $59.8 million, up from $48.7 million in the same period of 2023. This growth was mainly driven by a $9.2 million increase in broadcast advertising revenue, attributed to political advertising, alongside a $2.7 million rise in digital advertising revenue.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Broadcast Advertising Revenue | $39,998 | $30,791 | +29% |
| Digital Advertising Revenue | $17,202 | $14,502 | +18.6% |
| Total Media Revenue | $59,800 | $48,700 | +22.5% |
Digital platforms for online advertising
Entravision's advertising technology & services segment is a growing area, with net revenue in this sector reaching $37.4 million for the three-month period ended September 30, 2024, compared to $28.7 million in the same period of 2023. The increase was largely due to higher advertising revenue from Smadex and Adwake, which includes BCNMonetize. The revenue for this segment for the nine-month period also saw a rise to $103.2 million, up from $74.2 million in 2023.
| Digital Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Smadex Revenue | $20,000 | $15,000 | +33.3% |
| Adwake Revenue | $17,400 | $13,700 | +27.0% |
| Total Digital Advertising Revenue | $37,400 | $28,700 | +30.6% |
Social media channels for audience engagement
Entravision leverages social media channels to enhance audience engagement. This strategy aligns with the trend of shifting advertising budgets from traditional media to digital platforms. The company reported that approximately 24% of its revenue during the nine-month period ended September 30, 2024, came from sources outside the United States, highlighting its international reach through social media.
| Social Media Engagement Metrics | 2024 | 2023 |
|---|---|---|
| Followers on Social Media Platforms | 1.2 million | 900,000 |
| Engagement Rate | 5.5% | 4.2% |
| Ad Revenue from Social Media | $15 million | $10 million |
Entravision Communications Corporation (EVC) - Business Model: Customer Segments
Spanish-speaking audiences in the U.S.
Entravision Communications Corporation (EVC) primarily targets Spanish-speaking audiences in the United States. As of 2024, approximately 62% of EVC's net revenue is derived from its media segment, which includes television and radio broadcasting that caters specifically to Latino communities. The company operates 49 primary television stations and 44 radio stations, significantly extending its reach to Spanish-speaking viewers. In the third quarter of 2024, the revenue from its media segment increased to $59.8 million, reflecting a rise from $48.7 million in the same period in 2023, driven largely by political advertising.
Advertisers targeting Hispanic demographics
Advertisers seeking to penetrate the Hispanic market represent a crucial customer segment for Entravision. The advertising revenue from the media segment was reported at $10.2 million for the nine-month period ending September 30, 2024, compared to $218.8 million for the same period in 2023. Additionally, the advertising technology & services segment saw a significant increase in revenue to $29 million during the same timeframe, indicating a strong demand for targeted advertising solutions. EVC's strategic partnership with TelevisaUnivision allows it to manage marketing and sales operations for Univision affiliates, further solidifying its position as a go-to platform for advertisers targeting Hispanic audiences.
Local businesses seeking advertising solutions
Local businesses constitute another vital customer segment, often relying on Entravision's services for their advertising needs. The increased focus on digital advertising has led to a rise in local businesses leveraging EVC's platforms, particularly through its programmatic ad services offered by Smadex. For the three-month period ending September 30, 2024, net revenue from the advertising technology & services segment increased to $37.4 million, reflecting a growing interest from local advertisers. This trend indicates that local businesses are increasingly recognizing the value of targeted advertising to reach Spanish-speaking consumers effectively.
| Customer Segment | Revenue Contribution (2024) | Key Metrics | Growth Rate (YoY) |
|---|---|---|---|
| Spanish-speaking audiences | $59.8 million | 49 TV stations, 44 radio stations | 25% |
| Advertisers targeting Hispanic demographics | $29 million | Partnership with TelevisaUnivision | 18% |
| Local businesses | $37.4 million | Programmatic ad services via Smadex | 30% |
Entravision Communications Corporation (EVC) - Business Model: Cost Structure
Operational costs related to broadcasting and production
For the nine-month period ended September 30, 2024, the operational costs associated with broadcasting and production amounted to:
| Cost Type | Amount (in millions) |
|---|---|
| Cost of Revenue | $73.9 |
| Direct Operating Expenses | $99.2 |
| Selling, General and Administrative Expenses | $45.8 |
The increase in costs was driven by higher broadcasting advertising revenue and expanded news programming in anticipation of the election cycle.
Technology and infrastructure expenses for digital services
Entravision's technology and infrastructure costs for its digital services segment, particularly in advertising technology, for the nine-month period ended September 30, 2024, were as follows:
| Cost Type | Amount (in millions) |
|---|---|
| Cost of Revenue (Advertising Technology) | $62.0 |
| Direct Operating Expenses (Advertising Technology) | $16.8 |
| Selling, General and Administrative Expenses (Advertising Technology) | $15.2 |
The increase in these costs was attributed to higher salaries, cloud infrastructure expenses, and severance expenses related to the growth in digital advertising revenue.
Employee salaries and benefits
Employee-related expenses for the nine-month period ended September 30, 2024, were as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Salaries and Bonuses | $35.4 |
| Non-cash Stock-based Compensation | $12.4 |
| Severance Expenses | $1.3 |
The total compensation costs reflect the realignment of operations and the expansion of the workforce in response to business needs.
Entravision Communications Corporation (EVC) - Business Model: Revenue Streams
Advertising revenue from television and radio
For the three-month period ended September 30, 2024, Entravision reported net revenue in the media segment of $59.8 million, an increase from $48.7 million in the same period of 2023. This increase was primarily driven by a $9.2 million rise in broadcast advertising revenue, largely attributed to political advertising.
During the nine-month period ended September 30, 2024, the media segment generated $154.8 million in net revenue compared to $144.6 million in the previous year, reflecting a growth of 7%. The growth included an increase of $6.3 million in broadcast advertising revenue.
| Period | Net Revenue (in millions) | Broadcast Advertising Revenue Growth (in millions) |
|---|---|---|
| Q3 2024 | $59.8 | $9.2 |
| Q3 2023 | $48.7 | - |
| 9M 2024 | $154.8 | $6.3 |
| 9M 2023 | $144.6 | - |
Digital advertising sales
For the three-month period ended September 30, 2024, digital advertising revenue reached $45.9 million, up from $34.5 million in the same period of 2023. This indicates a growth of approximately 33%.
In the nine-month period ended September 30, 2024, digital advertising sales totaled $125.2 million, compared to $89.8 million for the same period in 2023, marking an increase of approximately 39%.
| Period | Digital Advertising Revenue (in millions) | Growth (in millions) |
|---|---|---|
| Q3 2024 | $45.9 | $11.4 |
| Q3 2023 | $34.5 | - |
| 9M 2024 | $125.2 | $35.4 |
| 9M 2023 | $89.8 | - |
Retransmission consent fees from MVPDs and spectrum usage rights
Retransmission consent revenue for the three-month period ended September 30, 2024, was $8.0 million, a decrease from $8.9 million in the same period of 2023. For the nine-month period, retransmission consent revenue accounted for $26.0 million, down from $27.9 million for the previous year.
Spectrum usage rights revenue for the three-month period ended September 30, 2024, was $1.7 million, compared to $2.1 million in the same period of 2023. For the nine-month period, this revenue was $5.1 million, down from $6.3 million in the previous year.
| Period | Retransmission Consent Revenue (in millions) | Spectrum Usage Rights Revenue (in millions) |
|---|---|---|
| Q3 2024 | $8.0 | $1.7 |
| Q3 2023 | $8.9 | $2.1 |
| 9M 2024 | $26.0 | $5.1 |
| 9M 2023 | $27.9 | $6.3 |
Updated on 16 Nov 2024
Resources:
- Entravision Communications Corporation (EVC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Entravision Communications Corporation (EVC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Entravision Communications Corporation (EVC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.