Proposal

Establish a company standard for

measurement of Business Penetration

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

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

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

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.

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.

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.

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.

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.

Putting it together

Putting it together

RAW Number from Dun And

Bradstreet Business License file

Putting it together Before

After

Putting it together

Dun And Bradstreet Business License

file number AFTER removal of

“Children” account numbers

Putting it Together

Lines of

Business

REMOVED

from count

of

Businesses

Putting it together

% of Businesses remaining after removal

of SIC Code/Lines of business that are

realistically “never” going to advertise.

Number of Businesses remaining

Putting it Together

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.

Putting it together

The Percentage and number of realistic

advertisers remaining. From here the

penetration can be calculated.

Putting it together

Total of all advertisers running ads so far

this year running in each category.

Putting it together

Total of advertisers with Metro ZIP Codes

running ads so far this year running in

each category.

Putting it together

How our advertising is split across the

segments.

Putting it together

How businesses are split across the

segments.

Putting it together

Advertising penetration when calculated

against ALL advertisers.

Putting it together

Advertising penetration when calculated

against advertisers with Metro ZIP Codes

(that is local vs. Nevada or otherwise

located.

Additional Features

Additional Features