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Estimating potential radio ad revenues for a market

  • Russ
    • 21 posts
    April 4, 2011 7:45 PM PDT

    I've heard before that to estimate total radio ad revenues for a market, you take the market's retail sales and multiply it by 1/2 of one percent.

     

    But, is that total retail sales including non-taxables such as groceries, or just taxable retail sales?

     

  • Diane Scarpelli
    • 170 posts
    August 5, 2011 7:01 AM PDT

    I thought the multiplier was .0004.

     

    But either may still not be accurate. Local sales is usually calculated by local sales tax revenue #s and when someone in your market buys a pair of shoes online or out of market, that sale - which potentially could have been made at a local retail location - that is not included. The amount of retail done online or out of market cannot really be estimated in your market.

    And -  services are not taxed yet services are a growing category for radio. Medical services in particular.