Home  › Marketing › Local
borrell-dmr

Borrell Refines Local Digital Ad Market Segments

  |  September 10, 2012   |  Comments

Borrell has introduced Digital Marketing Regions as an alternative to DMAs. While Nielsen tracks 210 DMAs, Borrell's DMRs encompass 513 markets.

borrell-dmrLocal media research firm Borrell Associates wants to help local media companies get a better grasp on their digital ad market share. For many, data on Designated Market Areas – otherwise referred to as Television Market Areas – encompass areas that are too large to provide an accurate reading, so Borrell has introduced Digital Marketing Regions as an alternative to DMAs. While Nielsen tracks 210 DMAs, Borrell's DMRs encompass 513 markets.

On average, most local media outlets can reach 28 percent share of their DMAs at the most, with many hitting only in the single digits, said Borrell Associates CEO Gordon Borrell. But that can change drastically when looking at the more hyper-local DMRs. "You get up to...about 42 percent, but there are many, many more companies at the higher ranges," he said. He argued that the new regional system provides media firms with a better outlook on the amount of digital ad dollars they have the potential to earn in a given region.

While the average DMR takes in $36 million in local digital ad spending, the median DMR generates $10.6 million in digital ad revenue, reported Borrell. And then there are DMRs like Emporia, Kansas that sit within larger DMAs and draw far less – $1.39 million according to Borrell.

"If [AOL-owned local site network] Patch had this available to them several years ago before they started building out," he suggested, the company might have launched in a more select number of markets based on more-specific data. Patch, acquired by AOL in 2009, has struggled since its '07 launch, but the company reported "strong" revenue growth in Q2 of this year.

According to Borrell, his firm has been developing the DMR concept over the past two years, and worked with local media firms to refine the regions measured.

The disparities between DMAs and DMRs are especially clear in places such as the northeast, Borrell said. For instance, Boston, Philadelphia and Washington, D.C. are in the top 10 DMAs based on the number of TV households in each. But Borrell believes DMRs are a more appropriate measure of these larger areas because there are lots of smaller markets within each.

"If you look at some of the bigger markets... there are all these little population markets up there," he said. "These are hyper-local; these are more villages than they are big DMAs."

Borrell recently forecasted 30 percent growth in local digital ad revenues in 2013 to $24.4 billion.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...