NOCA Mission

• Unite as the marketing communications industry

• Promote the local marketing communications industry

• Make decision-makers aware of capabilities of the local marketing communications industry

First Step: Research to quantify the industry and gauge its economic impact

• Marketing communications industry economic impact study

• The Plain Dealer agreed to help find the answers.

Economic impact of the marketing communication industry was measured.

Study looked at three criteria of industry size

– Number of businesses

– Number of employees

– Total sales revenue

Compared several standard sources that could be monitored and updated over time.

– Used Economic Census as primary source, but compared estimates with other sources.

First challenge: Refine NOCA’s industry definition to access standard data sources

•NOCA’s common-sense definition of marketing communications industry was converted into NAICS Codes. NAICS Codes are the new version of SIC codes.

•NAICS codes slice industries into smaller segments– the more digits, the precise the definitions. We wanted 6-digit NAICS codes if possible.

51- Information511- Publishing

5111 – Print Publishing511110- Newspaper Publishing511120- Periodical (magazine) publishing…

5112 – Software Publishing515- Broadcasting

5151- Radio and TV Broadcasting515112- Radio Stations

Mktg Comm-related 54 Professional Serv

Mktg Comm-related 51 Information Industries

54 Prof Serv-AdvertisingAd agenciesMedia BuyingMedia RepsDirect MailOther Ad services

51 Information: ad supportedNewspapersOther PrintBroadcast TVCableRadioInternetDirectories & Mail ListOut Of Home

51 Information- Not ad supp.Book publishingSoftware publishingMotion Picture Prod.Music publishingSound recording

54 Prof Serv-Other comm. Graphic DesignComputer ProgrammingMkt Research/PollingPhotographyMarketing Consulting

Other Supportive Mktg Comm Services

32-33 Printing Services56 Telemktg Bureaus & Trade Show Org.61 Education

Tech and Trade SchoolsFine Art Schools

71 Performanceindep Artists, Writers & PerformersAgents & managers

81 Misc: Photo Finishing Labs.

“Marketing communications” includes media, professional services & many supportive services

•The industry includes many high-tech and high skill services. •It provides critical services to other industries in marketing and selling their products.

For this study, “marketing communication” industry included 52 6-digit NAICS codes

• Core of the industry was in two 2-digit NAICS codes- 51 Information and 54 Professional Services- closely related to advertising.

• Related supportive industries were in NAICS 32-

33 Printing, 61 Education, 71 Performance, 56 Administrative Support and 81 Misc.

Geographical Scope of Study: Eight counties in Northeast Ohio

Marketing communications is a big industry- 2,800 businesses in the 8-county area

Source: 2002 Economic Census,with Plain Dealer estimates of suppressed data.

NAICS Code # NAICS Sector (Selected NAICS Only)

EC Count of Businesses

51 19 Information 423

54 14 Professional Services 1,566

32-33 11 Printing & Mfg 421

61 2 Education 137

71 2 Performance 93

56&81 4 Admin Supp & Misc 112

52 Totals 2,752

Here’s how 2,800 marketing communication businesses compare to other industries

Comparison of Industry Establishments

5,591

10,949

4,865

7,226

2,752

6,090

2,827

800 988

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4,000

6,000

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12,000

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Marketing communications industry represents 39,000 jobs

• Equal to the population of Strongsville• Many high-skilled jobs and many in emerging technologies

NAICS Code # NAICS

Sector (Selected NAICS Only)

EC Count of Businesses

EC Employment

51 19 Information 423 12,345

54 14 Professional Services 1,566 11,298

32-33 11 Printing & Mfg 421 8,360

61 2 Education 137 1,321

71 2 Performance 93 560

56&81 4 Admin Supp & Misc 112 5,528

52 Totals 2,752 39,412

Here’s how the industry’s 39,000 jobs compares to other industries in Greater Cleveland

Comparison of Industry Employment

212,211

158,391

73,531

188,355

39,412

105,299

20,37029,727

18,402

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100,000

150,000

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Marketing communications generates $5 billion in sales revenue for the region

Comparison of Industry Sales Revenue ($Mil)

$46,219

$33,334

$26,832

$14,115

$4,960 $3,926 $2,665 $1,986 $1,658

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$5,000

$10,000

$15,000

$20,000

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$30,000

$35,000

$40,000

$45,000

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Marketing Communication has more sales revenue than Hospitality, Transportation, Arts-Entertainment

Note: Table ranked by receipts. Source: 2002 Economic Census, with Plain Dealer estimates of suppressed data.

Note: NOCA’s industries also included within their own (51,54, etc) NAICS codes

MARKETING COMMUNICATIONS INDUSTRY COMPARED TO OTHER GR CLEVE INDUSTRIES

NAICS CODE NAICS DESCRIPTION Receipts ($Mil) Estab Empl-- Total 214,643 76,369 1,288,41031-33 Manufacturing 46,219 5,591 212,21142 Wholesale trade 38,777 5,381 76,14044-45 Retail Trade 33,334 10,949 158,39152 Finance & insurance 26,832 4,865 73,53162 Health care & social assistance 14,115 7,226 188,35523 Construction 11,005 7,167 56,87654 Prof, scientific, & tech services 7,806 8,135 68,54051 Information 5,155 1,128 29,810

NOCA MKTG COMMUNICA 4,960 2,752 39,41248-49 Transportation & Warehousing 4,598 1,772 35,21781 Other services (exc. public admin) 4,584 8,057 65,12356 Admin, support & waste mgmt serv 4,027 4,169 82,68072 Accommodation & food services 3,926 6,090 105,29953 Real estate & rental & leasing 2,665 2,827 20,37061 Educational services 1,986 800 29,72771 Arts, entertainment, & recreation 1,658 988 18,402

Conclusions & implications for NOCA

• We’re a regional asset.• Infrastructure of go-to-market core competencies.• Opportunities for new generation jobs• Incubator of a growing start-up business segment.• Promote the industry—locally--regionally

Thank you!