Northeast OhioMarketing Communications 2012 Industry Impact Study

May, 2012

BackgroundWhat:

• NOCA approached Neoconomist to update its 2009 Industry Impact Study.

Why:• The marketing communications industry provides a critical support service to

regional businesses and organizations.• Demonstrating a strong, vibrant, successful marketing communications industry

will help to attract and retain business throughout Northeast Ohio.• NOCA’s mission to make local companies and organizations aware of the breadth

and depth of the marketing communications industry in Northeast Ohio.

Who:• NOCA — Northeast Ohio Communications Advocates• Neoconomist — Published as an insert within Inside Business magazine.

Goal

Estimate the size of the area’s marketing communications industry by targeting:

• The number of businesses involved in the industry.• The number of individuals who work in the industry.• The economic impact of the industry by the size of payroll.

Methodology

• NOCA’s common-sense definition of the marketing communications industry was converted into NAICS codes – North American Industry Classification System as determined by the U.S. Census Bureau.

• NAICS codes slice industries into smaller segments – the more digits, the precise the definitions.

• The marketing communications industry was defined by a total of 59 6-digit NAICS codes.

• Additional data was pulled from the Census Bureau’s 2009 County Business Patterns data.

Methodology

• The core of the marketing communications industry was found in two 2-digit NAICS codes:51 Information54 Professional Services

– closely related to advertising

Methodology

• Related supportive industries were found in these NAICS codes:32-33 Printing42-45 Wholesale/Retail 56 Administrative Support 61 Education 71 Performance 81 Miscellaneous

Methodology

Using the 6-digit NAICS codes allowed the industry to be sliced into smaller segments.• 51 Information • 511 Publishing • 5111 Print Publishing • 511110 Newspaper Publishing • 511120 Periodical (magazine) publishing

• 515 Broadcasting • 5151 Radio and TV Broadcasting • 515112 Radio Stations

Methodology

Code 51: Information Industries51 — Information: ad supported

NewspapersOther Print (magazines, et.al.)Broadcast TVCableRadioInternetDirectories & direct mailOut-of-home

Methodology

Code 51: Information Industries51 — Information: Not ad supported

Book publishing Software publishing Motion picture productionSound recording

Methodology

Code 54: Professional Services54 — Professional Services: Advertising

Ad agencies Media buying Media representatives Direct mailOther ad services

Methodology

Code 54: Professional Services54 — Professional Services: Other

Graphic designComputer programmingMarket research/polling Photography Marketing consulting

Methodology

Marketing Communications Support Services32-33 Printing 56 Telemarketing & trade shows 61 Education

Tech and trade schools Fine art schools

71 Performance Independent artistsWriters & performersAgents & managers

Methodology

Study Included Eight Northeast Ohio Counties:AshtabulaCuyahogaGeaugaLakeLorainMedinaPortageSummit

Results

Marketing communications in Northeast Ohio is a big industry.

• 3,034 businesses• 44,611 employees• $2.0 billion annual payroll

– Nearly $45,000 per person

Results

2009• 2,752 businesses• 39,412 employees• Annual payroll not

measured

2012• 3,034 businesses• 44,611 employees• $2.0 billion annual payroll

When compared with the results from the 2009 NOCA study, the Northeast Ohio marketing communications industry has weathered the recession well.

Results

When compared to 2009, in 2012:

Number of businesses: 10%

Number of employees: 13%

ResultsGreater Cleveland-Akron Marketing Communications Industry (59 NAICS)

NAICS and Sector# of

NAICS CodesGr Cle-Akr

EstablishmentsGr Cle-Akr Employees

Greater Cle-Akr Annual payroll ($Mil)

Employees Per Establishment

54 Professional Services Total 14 1,489 11,546 $ 607 7.8

51 Information Total 19 377 10,930 $ 622 29.0

32-33 Printing & Manufacturing Total 11 372 7,489 $ 275 20.1

56 Administrative Support Total 4 183 6,221 $ 165 34.0

42-45 Wholesale/Retail Trade Total 4 267 5,471 $ 226 20.5

61 Education Total 2 169 1,610 $ 35 9.5

71 Performance Total 4 167 1,204 $ 54 7.2

81 Miscellaneous Services Total 1 10 140 $ 4 14.0

Marketing Communications Industry 59 3,034 44,611 $ 1,988 14.7

Source: 2009 County Business Patterns; NAICS are 6-digit   

Note: Counties include: Cuyahoga, Ashtabula, Geauga, Lake, Lorain, Medina, Portage, Summit. 

Note: Employees and annual payroll data for suppressed cells was estimated.   

ResultsWhere marketing communications businesses

rank within in Northeast Ohio

Education

Art/Entnmt/Rec

Transp/Wrhs

RE/Rental

Mktg Comm

Manuf.

Wholesale

Fin/Insur

Construction

Accomod/Food

Health/Soc Asst

Retail

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

908

1,013

1,751

2,785

3,034

4,809

4,883

5,223

5,872

6,130

7,387

9,478

2009 Greater Cleveland-Akron Establishments By Industry

ResultsWhere marketing communications ranks in

Northeast Ohio by number of employees2009 Greater Cleveland-Akron Establishments By Industry

Art/Entnmt/Rec

RE/Rental

Transp/Wrhs

Education

Construction

Mktg Comm

Wholesale

Fin/Insur

Accomod/Food

Retail

Manuf.

Health/Soc Asst

- 50,000 100,000 150,000 200,000 250,000

15,823

19,506

32,970

36,213

42,804

44,611

67,072

67,600

106,141

140,525

167,898

221,262

2009 Greater Cleveland-Akron Employment By Industry

Impact

• The Northeast Ohio marketing communications industry is a strong, vibrant resource for Ohio’s businesses.

• The marketing communications industry provides a critical service to other businesses by supporting the marketing, promotion and sales of their products.

• The industry is well stocked with go-to-market core competencies that can accelerate the sales, profits and growth of other industries.

• The industry provides opportunities for a new generation high-tech and high-skill jobs.

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