“these compass numbers look wrong”

1. “these compass numbers look wrong” Compass User Group Webinar 01/04/2012

2. General categories of objections • “You show too much local spending in this medium!” • “You don’t show enough local spending in this medium!” • “You show too much local spending by this category!” • “You don’t show enough local spending by this category!”

3. Compass vs. traditional perspectives • Borrell data is advertiser-centric, not media centric • Local advertiser spending, not local media company revenue • Different definitions of “local advertisers” • Geographical • SIC/NAICS codes • More competitors than you think • Different treatment of co-op spending

4. Let’s review: “Local ad spending” • Spending that is from advertisers with a physical location in a market and that is directed to consumers who are also in that market.

5. Sources of “too much” local spending • Local advertisers buying ads from media companies that are not located in the market but serve it • Local advertisers using out-of market TV and radio stations to reach local consumers • More media companies in the market than you usually think about • E.g., Newspapers: national, ethnic, college, neighborhood, military, etc. • More SIC groups in our definitions of some business category than in yours

6. Sources of “not enough” local spending • Co-op advertising • Appears to be local but is not, by our definition • Jewelry, Automotive, Retail Home Improvement, … • Local + national total may look more familiar • Major “local” advertisers are actually located just outside the market border • Spending by local advertisers targeted out-of-market • Narrower definition of category SIC groups by Borrell

7. Example: Automotive • Spending by local dealers • In-market, out-of-market • Spending by regional dealer associations • Spending by manufacturers • Spending by private parties