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.

Tags:

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Early Bird Rates expire May 29. Register today 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

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

WEBINARS

Resources

Jobs

    • SEO Specialist
      SEO Specialist (HeBS Digital) - NEW YORK                             ...
    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...