Spend - Offline Channels
What is this metric?
The Spend - Offline Channels metric assesses a brand's total estimated expenditure on advertising (e.g., TV, Out-of-Home (OOH), and Print).
How is this metric calculated?
BlueOcean calculates an estimate of a brand's total advertising expenditure across multiple media types, including Cable TV, FSI Coupon, Local Magazine, Local Newspaper, Local Radio, National Cinema, National Digital (Display, Social, Video), National Magazine, National Newspaper, Network Radio, Network TV, Outdoor, Regional Cinema, Spanish Language Cable TV, Spanish Language Network TV, Spot TV, and Syndicated TV.
Notes:
- Source Data completeness fluctuates based on media type and data status - preliminary or finalized. Additional spend data is captured in 6 to 8-week timeframes, leading to corresponding adjustments in BlueOcean brand reporting.
- Brands spending less than $10,000 per month typically won't register data with data source provider’s spend thresholds. Similarly, those spending under $25,000 annually are unlikely to register data.
Data source(s): BlueOcean-trained Proprietary Data Model considering estimated data from:
- Kantar
Data Source Update Frequency: Monthly
Can Ratios Impact this Measurement? No
BlueOcean Applicable Framework(s): BlueOcean framework │BlueOcean Basic framework
How is this information valuable to my brand?
The Spend - Offline Channels metric is a valuable resource for:
- Market Positioning: Knowing how much competitors spend on advertising provides insights into a brand's market positioning and aggressiveness.
- Competitive Benchmarking: Comparing advertising spending with competitors' spending helps to benchmark a brand's marketing efforts and evaluate whether it is overspending or underspending in relation to the market.
- Market Share Analysis: By comparing a brand's advertising spend to competitors, a brand can assess its market share regarding advertising presence. This helps identify opportunities for growth and potential gaps in market coverage.
- Budget Allocation: It assists a brand in making informed decisions about budget levels and allocation.
- Trend Identification: Tracking competitors' advertising spending over time can reveal spending patterns. This information is valuable for adapting a brand's advertising strategy to meet market changes.
- Strategic Insights: Understanding competitors' ad spending might give insights into their strategic priorities (e.g., a surge in ad spend might indicate a new product launch or aggressive customer acquisition).
- ROI Assessment: It allows a brand to assess the effectiveness of its advertising spend compared to competitors.
- Strategic Planning: The data helps shape a brand's long-term advertising strategy by providing a comprehensive view of the competitive landscape. This can inform decisions about where and how to expand advertising efforts.
- Brand Perception: Consistent and sizable advertising spending by competitors may impact market and customer perceptions of brand prominence and reliability. Understanding this enables a brand to position itself and its messaging strategically.
Additional considerations where this metric can play a role:
- Budget Optimization: Analyzing ad spend effectiveness helps optimize budget allocation across channels, campaigns, and timeframes.
- ROI Optimization: Measuring the return on investment (ROI) from advertising spend aids in understanding which campaigns or channels bring the most value and adjusting future spending accordingly.
- Strategy Refinement: Identifying which elements of a brand's advertising strategy are working (or not) allows for the refinement and scaling of successful tactics.
- Target Audience Impact: Comparing a brand's advertising spend and its impact (in reach, conversion, etc.) with competitors can offer insights into the efficiency and effectiveness of its advertising strategies targeting specific audience segments.
- Opportunity Identification: Brands can gain insights into competitors' advertising strategies and timing to avoid clashes with competitor campaigns or strategically plan campaigns to gain a competitive advantage.
- Pricing Strategy: If competitors' advertising spends are significantly higher and maintain comparable pricing, it may indicate higher margins or different revenue models, which could inform a brand's pricing strategy.
- Partnership and Collaboration: Identifying patterns in ad spend highlights potential industries or sectors for partnerships or collaborations, as it reveals where brands focus and invest.