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Types of Revenue and Spending FiguresAt Borrell Associates we look at marketing expenditures in three different ways: estimates, projections and forecasts.EstimatesEstimates 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 at the beginning of the following year.ProjectionsProjections are similar to estimates, but are based on partial-year data. They are more volatile than estimates, but less volatile than forecasts.ForecastsForecasts 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.Expenditure DirectionAll 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.NationalNational 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..LocalLocal 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 OwnershipLocal 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 TypesBorrell Associates can provide market data reports that cover any configuration of counties – even noncontiguous – that a client wishes to examine. ZIP-Code-based market definitions may be available in some situations. Some typical geographic definitions:DMA – Designated Market AreaNielsen Media Research Inc. has divided the U.S. into 210 Designated Market Areas to facilitate its television audience measurement services. 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 AreaA 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 AreaIf 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 areas within the larger combined statistical area. There are 126 CSAs defined by OMB as of December 2006. 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.DM – Designated MarketA “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 DefinitionsSome of the media categories and subcategories Borrell Associates currently measures include: NewspapersAdvertising expenditures in any newspaper listed in “Editor & Publisher”, including weekday, weekly and biweekly publications. Subcategories include:
Other PrintOther Print includes ads in magazines, shoppers, penny savers, niche publications, etc. The category can be further defined as:
DirectoriesDirectories 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. Broadcast TelevisionAds broadcast on any television platform. Subcategories include:
Cable TVCable TV includes ads appearing on cable channels both local and national. Satellite TV is included in this category. MobileAd Spending directed to mobile devices irrespective of the format. This includes ads attached to text messages, mobile applications and mobile format WAPs. RadioRadio includes ads broadcast on any licensed radio station to the market measured, whether the station is within the market or not. Further defined as:
Out-of-HomeOut-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. CinemaFormerly 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 MailDirect Mail includes advertising and promotional materials sent by mail to individual households or businesses. Further defined as:
InteractiveInteractive is defined as any online, software or computer-based or computer-generated advertising media. Subcategories include:
TelemarketingTelemarketing is defined direct telephone solicitations to consumers and businesses from within or outside the market measured. “Non-Advertising” Marketing CategoriesThere is much more to marketing than advertising. Additional “non-advertising” expenses make up the bulk of marketing spending for many businesses. Trade Shows & ExhibitionsTrade shows include any temporary venue that allows vendors to display their wares or services. It includes expenditures for mall shows, builder's shows, home improvement shows, local and state fairs, association convention display areas, chamber of commerce shows, health fairs, industrial shows and other exhibitions. PromotionsPromotions 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.
Ad ProductionAd 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 MaterialsThese 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 RelationsThis 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.
Market ResearchMarket 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.
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