Revenue and Spending Types

Estimates

Estimates are advertising, marketing or promotion figures based on complete, actual data for the year. Estimates are not considered volatile or subject to radical change. Borrell releases final estimates based on all 4 quarters of data at the beginning of the following year.

Projections

Projections are similar to estimates, but are based on partial-year data. They are more volatile than estimates, but less volatile than forecasts.  Borrell releases three quarterly projections for each year.

Forecasts

Forecasts are based on little or no actual data. Every forecast is based on a set of assumptions that are used to weight and proportion the estimates. Forecasts are therefore quite volatile and great care should be exercised when using them.

Revenue & Spending Direction

All Borrell Associates revenue and spending figures are based on where and to whom advertising and marketing expenditures are directed. These can be geographic locations, consumers or specific categories of business. Therefore, a single media company’s revenue can be attributed to several media categories depending on the media services it offers.

National/Regional

National or "Outside the market" expenditures are any marketing expenditures directed toward the market, but originating from businesses that have no locations inside that market. This includes national advertisers as well as small advertisers that happen to be located outside the borders of a given market.

Local

Local or "Inside the market" expenditures are marketing expenditures directed toward the market being measured that originate from businesses that have a physical presence within that same market.

Local Ownership

Local Ownership or "Local Local" expenditures are defined as marketing expenditures directed to the market originating from businesses with a physical presence in the market that are also owned and operated in that market. This is a sub-set of the “local” category.

Business-to-Consumer (B2C)

Consumer advertising or marketing expenditures are dollars spent by businesses with the intent to reach individual consumers.

Business-to-Business (B2B)

Business-to-Business advertising or marketing expenditures are dollars spent by businesses with the intent to reach other businesses.

Geography Types

Borrell Associates can provide market data reports that cover any configuration of counties – even non-contiguous – that a client wishes to examine. ZIP-Code-based market definitions may be available in some situations. Some typical geographic definitions:

TMA - Television Market Area

Television Market Areas (TMAs) are the areas for the cable must-carry/retransmission consent election. (47 CFR § 76.55) -  They are defined by the FCC as being equivelant to DMAs as defined by the 2000-2001 DMA Market and Demographic Rank Report, by Nielsen Media Research. According to Nielsen, DMA is “generally a group of counties in which the commercial TV stations in the Metro/Central area achieve the largest audience share.” This market definition scheme has come to be used for many marketing and research purposes. DMAs usually – but not always – consist of several whole contiguous counties. The term DMA is a registered trademark of Nielsen Media Research Inc.

CBSA – Core Based Statistical Area

A Core Based Statistical Area is the official term for a functional region around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB.)  The term "CBSA" refers to both metropolitan statistical areas and newly-created micropolitan areas collectively. Micro areas are based around Census Bureau-defined urban clusters of at least 10,000 and fewer than 50,000 people.

CSA – Combined Statistical Area

If specified criteria are met, adjacent metropolitan and micropolitan statistical areas, in various combinations, become the components of a new set of areas called combined statistical areas (CSAs). Using Census Bureau data, the OMB compiles lists of CSAs. The combined areas retain their own designations as metropolitan or micropolitan statistical Note that CSAs represent multiple metropolitan or micropolitan areas that have a moderate degree of employment interchange. CSAs often represent regions with overlapping labor and media markets. The use of CSAs as a representation for a single metropolitan area is rarely appropriate within the larger combined statistical area. There are 126 CSAs defined by OMB as of December 2006.

DM – Designated Market

A “Designated Market” is typically a selection of counties or ZIP Codes used to identify an area defined by an advertiser or media company for which the report is being produced.

Advertising Media Category Definitions

Newspapers

Advertising expenditures in any newspaper listed in “Editor & Publisher”, including weekday, weekly and biweekly publications.

Subcategories include:

• National Newspaper: Ads in nationally distributed newspapers and ads from national advertisers in local newspapers.
• Local Newspaper: Ads in newspapers local to the market measured.
• ROP (Run of Print): National or local display ads.
• Classified: Local or national classifieds ads.
• Preprints: Advertising inserts and circulars preprinted and inserted into the newspaper.

Other Print

Other Print includes ads in magazines, shoppers, penny savers, niche publications, etc. The category can be further defined as:

• National: Ads in nationally distributed magazines and publications such as “Wired” or “Road & Track”
• Local: Locally produced and distributed non-newspaper publications, including magazines, real estate guides, shoppers and niche publications.
• Alternative/Business Publications: Advertising in less-than-daily community papers, alternative or business broadsheets, and tabloids.
• Niche/Shopper: Ads in niche publications and shoppers, which include free classified real estate and automotive publications typically found at retail stores.
• Magazines: Includes ads in glossy magazines that are either local or national in distribution.

Directories

Directories include both trade and consumer directories distributed within the market. Examples include: "Yellow Pages", "Gold Pages", "Green Pages", "Silver Pages", The Thompson Directory and others.

Network Television

• National TV: Network TV ads, paid for and scheduled nationally.
• Network: Ads placed directly with networks to run nationally adjacent to network programming.
• Syndicated TV: Ads placed and paid for through syndicated programming.

Local TV Stations

Ads broadcast on any television platform. Subcategories include:

• Local TV: Locally generated ads, paid for by advertisers within the market.
• TV National Spot: National ads placed locally by the network.

Cable TV

Cable TV includes ads appearing on cable channels both local and national. Satellite TV is included in this category.

• Local Cable: Locally generated ads, paid for by advertisers within the market.
• Network Cable: National ads placed locally by the network.

Radio

Radio includes ads broadcast on any licensed radio station to the market measured, whether the station is within the market or not. Further defined as:

• Local Radio: Ads placed locally.
• Network Radio: Ads placed directly with radio networks that typically are run adjacent to nationally distributed radio programming.
  National Spot Radio: National ads placed locally by the network.

Out-of-Home

Out-of-Home includes any advertising viewed outside the home, such as billboards, public transportation, kiosks, electronic screens in grocery stores, and a growing variety of other platforms.

Cinema

Formerly included in our Out-of-Home category, Cinema advertising includes ads that are shown in movie theaters prior to the movie as well as other theater-based advertising. Payments by studios to theaters for showing trailers (“coming attractions”) are part of this category.

Direct Mail

Direct Mail includes advertising and promotional materials sent by mail to individual households or businesses. Further defined as:

• Local: Locally produced and distributed direct mail.
• National: Direct mail produced and distributed from outside the market measured.
• Solo Mail: Direct mail products that promote one business or advertiser.
• Marriage Mail: Direct mail products designed to accommodate multiple advertisers or businesses. Shoppers and coupon books sent in the mail fall into this category.

Online

Online is defined as any online, software or computer-based or computer-generated advertising media. Subcategories include:

• Display: Traditional Online advertising such as banners, listings (including classified ads), skyscrapers pop-ups, etc.
• Static Display/ROS: Untargeted standard online advertising such as banners, listings (including classified ads), skyscrapers pop-ups, etc.
• Targeted: Online display advertising targeted to specific sites, using demographics, segmentation, or other means. Social network advertising is included here.
• Paid Search:  Pay-per-click advertising messages that include the purchase of keywords on sites such as Google, Yahoo, Ask.com, MSN, etc.  Directory search type advertising is also included here.
• E-mail: Paid advertisements directed to a list or targeted group of respondents via e-mail, including SPAM. This is the Online equivalent of direct mail.
• Online Streaming Video: Streaming video advertising, including “pre-rolls” and “post-rolls,” paid "infomercial"-type videos, flash-animations and voiceovers.
• Online Streaming Audio: Streaming audio advertising, including voice "infomercial"-type ads, radio-type advertorial broadcasts and voiceovers.
•  Pure-Play: Pure-play Web sites are defined any site that gets most of its revenue from advertising that is not affiliated with a traditional media site such as a newspaper site, TV site, radio site, magazine site, etc.  This would include sites like Monster.com, Google and Yahoo.

Telemarketing

Telemarketing is defined direct telephone solicitations to consumers and businesses from within or outside the market measured.

Mobile

Mobile Ad Spending is a subset of Online Ad spending that is measured separately Ad Spending directed to mobile devices irrespective of the format.  This includes ads attached to text messages, mobile applications and mobile format WAPs.  Mobile devices include cell phones, smartphones, PDAs, mobile game players, ereaders, and GPS devices. Borrell measures Mobile spending in two different ways - Method of Delivery and Ad or Message Format.  The Ad Formats we use sync up to our standard online ad formats described above.  Method of delivery formats are defined below:

Method of Delivery

• SMS/MMS: Advertising directed to a mobile device via static or multi-media text messaging.
• E-Mail: Ad content directed to a mobile device via E-mail.
• Mobile Web/Browser: Advertising directed to a mobile device by means of a mobile portal or through a Web browser.
• App: Ads delivered through custom application downloaded by the user to their mobile device.
• In-Game: Advertising delivered through games located on devices.

The Following charts show how the ways we measure mobile spending overlap:

Ad Spending Format Vs. Method of Delivery

“Non-Advertising” Marketing Categories

There is much more to marketing than advertising. Additional “non-advertising” expenses make up the bulk of marketing spending for many businesses. 

Here are definitions of the “Non-Ad” categories that Borrell Associates currently estimates:

Promotions & Online Promotions

Promotions are a tactical tool used by product and brand managers with the primary goal of increasing short-term sales. It is said that advertising causes people to want to buy, and promotions cause people to want to buy now. This is an amorphous category that includes coupons, point of purchase, samples, promotional materials and sweepstakes. However, the biggest part of promotions involves cash – discounts, rebates, stocking fees, etc. 

Online Promotions: Includes Online sponsorships, Promotional downloads, loyalty programs, games, sweepstakes,      contests, couponing, discounts and rebates.  

• More detailed definitions of our Promotions and Online Promotions categories is detailed below:
• Coupons: Discount documents for specific goods or services, either printed or electronic.
• Point of Purchase: Includes costs of marketing at the point or area where the user is purchasing the item or services.
• Sampling: Free or discounted goods or services dispensed to a specific geographic or sociographic group.
• Specialty Media: Includes advertorial programs, magazines, newspapers, videos or other media produced for the sole purpose of advertising or promoting a product or service.
• White Paper Marketing: Reports issued to explain products or issues, resulting in leads or list addresses.
• Licensing: Fees paid for marketing efforts coordinated with and tied to an event or entertainment.
• Games/Sweeps/Contests: Contests or lotteries created to promote the goods or services of the sponsoring entiity.
• Sponsorships: Promotional funding of content or events.
• Proximity Marketing: The use of GPS or prospect input to market goods or services according to physical proximity -- the online decendent of Point-of-Sale (POS).
• Customer Retention: Promotions designed to retain and strengthen relationships between businesses and their customers.
• Event Marketing: Includes costs associated with conventions, conferences, promotional events, booths, etc.
• Online Event Management: The management and marketing of online events -- conferences, trade shows, and webinars. 
• Other Discounts/Rebates: Discounts, rebates, or concessions not offered in conjunction with coupons. Includes SPIFFS, rebates and incentives used to entice the user to purchase at the store or point of purchase.
• Promotions Product Offerings: Products developed and designed for the purpose of promoting a business or service.  Usually logo based items like pens, stress balls, stationary, etc.
• Offers: Promotions not related to discounts, but with the same intent. Extra merchandise, membership in a special organization, charitable donations associated with purchases, and the chance to meet celebrities are examples.

Ad Production

Ad Production covers expenditures to produce advertising, marketing materials or programming. It includes agency fees, photography, graphic design, video and film services, studio and equipment rentals, mailing list costs and fees for writers, artists, actors, designers and technicians. 

Sales Force Materials

These are expenditures associated with training salespeople to sell or market products and services by providing them with supporting materials and literature, and developing sales leads. Product brochures, price lists, and computerized presentations are included here.

Public Relations

This category of expenditures is associated with the placement of press releases, product announcements, interviews, and statements concerning a company, a product or a service in national or local media.

Online Public Relations: Mainly includes online news releases, white-papers and viral marketing campaign design.

Market Research

Market Research helps businesses find the best ways to spend their marketing budgets or capture ad revenue. It includes the external cost of performing primary or secondary qualitative or quantitative market research, including the acquisition of systems, data bases and reference texts.