Proposal

1
Proposal

• Establish a company standard for measurement of
  Business Penetration

2
Current Status

• Inconsistent use of sources of both business
  advertising and businesses in the market.
• Inconsistent factors used to define an
  advertiser.
• No standard for what businesses are included, or
  how they are excluded from the calculations
• No consistency from year to year in process

3
Needs

• Single approach to the calculations
• Consistent approach to the calculations
• Repeatable approach to the calculations
• Year-over-year trending capabilities
• Ability to drill into segments

4
New approach

• Agreement between key departments on definitions
  and rules
• Determining advertisers
• Determining what advertisements count
• Determining segments (cleanup effort)
• Determining businesses
• Filtering businesses
• Revisiting rules annually

5
The New Approach

• Determining advertisers
• Single source The Data Warehouse
• SAOE or Mactive account numbers define unique
  advertisers.
• The SIC code on the account record defines
  segment.
• The ZIP Code of the advertiser determines Zone.
• Advertisers placing Transient ads are NOT
  included in the analysis.

6
The New Approach

• Determining Businesses
• Single source Dun and Bradstreet File
• Businesses are limited to Maricopa and Pinal
  County.
• A unique Global Ultimate Duns Number determines
  unique businesses.
• The SIC1 code determines segment.
• The Physical ZIP Code determines Zone.

7
The New Approach

• Refining business count
• Within each SIC code grouping, each Line of
  Business is reviewed for advertising potential.
• Lines of Business where there is no expectation
  of ever seeing advertising are removed from the
  count of businesses.
• This process removes businesses like Aircraft
  engines and engine parts and Anthracite mining
  from the business counts.

8
The New Approach

• Refining business count continued
• With specific Lines of Businesses removed, a
  realistic list of businesses remain.
• However, within that list, there are small
  businesses and other groups of businesses that
  will never advertise.
• A unique Potential Advertiser Adjustment Factor
  is applied to each segment to put a segment level
  filter to arrive at a final business potential
  count.

9
The New Approach

• Rules
• The Lines of Business excluded will be reviewed
  annually. Adjustments to the list will be
  carefully weighed and agreed upon before
  implementation.
• The final Potential Advertiser Adjustment
  Factor will be reviewed annually. Adjustments to
  the list will be carefully weighed and agreed
  upon before implementation.
• ONLY ONE VERSION OF THESE ADJUSTMENT FACTORS WILL
  BE USED AT ANY GIVEN TIME.

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RAW Number from Dun And Bradstreet Business
License file
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Before
After
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Dun And Bradstreet Business License file number
AFTER removal of Children account numbers
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Lines of Business REMOVED from count of Businesses
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of Businesses remaining after removal of SIC
Code/Lines of business that are realistically
never going to advertise.
Number of Businesses remaining
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Sample segment Casino
Of the 21 remaining businesses, only about 45
look (by name) to have any potential of ever
advertising.
This is the factor that will be toughest to
refine.
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The Percentage and number of realistic
advertisers remaining. From here the penetration
can be calculated.
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Total of all advertisers running ads so far this
year running in each category.
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Total of advertisers with Metro ZIP Codes running
ads so far this year running in each category.
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How our advertising is split across the segments.
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How businesses are split across the segments.
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Advertising penetration when calculated against
ALL advertisers.
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Advertising penetration when calculated against
advertisers with Metro ZIP Codes (that is local
vs. Nevada or otherwise located.
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Additional Features
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Additional Features