1. “THESE COMPASS NUMBERS LOOK WRONG” Compass User Group Webinar 01/04/2012

2. www.borrellassociates.com General categories of objections  “You show too much local spending in this medium!”  “You don’t show enough local spending in this medium!”  “You show too much local spending by this category!”  “You don’t show enough local spending by this category!”

3. www.borrellassociates.com Compass vs. traditional perspectives  Borrell data is advertiser-centric, not media centric Local advertiser spending, not local media company revenue  Different definitions of “local advertisers” Geographical SIC/NAICS codes  More competitors than you think  Different treatment of co-op spending

4. www.borrellassociates.com Let’s review: “Local ad spending” Spending that is from advertisers with a physical location in a market and that is directed to consumers who are also in that market.

5. www.borrellassociates.com Sources of “too much” local spending  Local advertisers buying ads from media companies that are not located in the market but serve it Local advertisers using out-of market TV and radio stations to reach local consumers  More media companies in the market than you usually think about E.g., Newspapers: national, ethnic, college, neighborhood, military, etc.  More SIC groups in our definitions of some business category than in yours

6. www.borrellassociates.com Sources of “not enough” local spending  Co-op advertising Appears to be local but is not, by our definition Jewelry, Automotive, Retail Home Improvement, … Local + national total may look more familiar  Major “local” advertisers are actually located just outside the market border  Spending by local advertisers targeted out-of-market  Narrower definition of category SIC groups by Borrell

7. www.borrellassociates.com Example: Automotive  Spending by local dealers In-market, out-of-market  Spending by regional dealer associations  Spending by manufacturers  Spending by private parties