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References & data sources

Every stat on this site has a source.

When the calculator says “CTV recall 60-70%” or “82% weekly local reach for radio,” we’re not making it up. Every claim links back to the study, publisher, or statute it came from. Verify the math yourself.

Tax-treatment notes throughout the site are general information, not legal or financial advice — talk to your CPA or attorney about how anything below applies to your specific situation.

A note on the links: each citation below links directly to the specific study, report, or statute it references. Statutes, IRS publications, FASB standards, and Census data have permanent URLs and won't move. Research publishers (Nielsen, eMarketer, Westwood One, HBR, McKinsey) occasionally reorganize their sites — if a link 404s, the report title is preserved so you can search for it on the publisher's site. Notify us if you find a broken link.

Section 1

Channel effectiveness — measured performance data

The calculator on this site ranks channels by statistically measured effectiveness for each goal. These are the studies and reports that anchor those rankings.

  • AM/FM radio reaches ~82% of US adults weekly (2023, down from ~92% in 2018).
    Source
    Nielsen Audio Today — How America Listens (June 2023)
    Publisher
    Nielsen
    Date
    2023
    Notes
    Weekly cume reach across all AM/FM radio listeners aged 12+. Nielsen publishes ongoing audio-listening updates through its Insights portal; this is the most recent comparable report. Westwood One has also published the underlying Nielsen 18-49 weekly-reach figure (81%) at: https://www.westwoodone.com/blog/2023/10/23/nielsen-total-audience-am-fm-radio-ratings-continue-to-beat-tv-among-persons-18-49/
  • Connected TV reaches ~87% of US households; ad recall 60-70%, completion rate ~95% on non-skippable inventory.
    Source
    Nielsen: U.S. TV household data reveals shifting trends
    Publisher
    Nielsen
    Date
    2024
    Notes
    Nielsen tracks CTV household penetration and ad-recall benchmarks through its Insights portal; current The Gauge dashboard tracks streaming share live at https://www.nielsen.com/data-center/the-gauge/
  • AM/FM radio drives an incremental 20-24% reach lift on top of TV-only campaigns.
    Source
    Nielsen: AM/FM Radio Elevates The Media Plan With Dramatic Lifts In Incremental Reach
    Publisher
    Nielsen + Westwood One
    Date
    2024
    Notes
    Across five Nielsen Media Impact case studies commissioned by Westwood One, AM/FM radio generated a +20% lift in incremental reach; in a separate retailer ROI study Nielsen reported +24% incremental reach to TV media plans.
  • AM/FM radio delivers stronger ROAS than commonly perceived, with AM/FM and streaming audio both top-tier in Nielsen MMM rankings.
    Source
    The Business Case for AM/FM Radio Advertising: Be Known Before You're Needed
    Publisher
    Westwood One Audio Active Group
    Date
    2025
    Notes
    Westwood One's aggregated audio ROI research finds $1 invested in audio generates ~$3.12 of profit within 1-13 weeks and ~$6.29 over a two-year period; Nielsen MMM analysis of 2,857 campaigns consistently ranks AM/FM radio as a top-tier ROI medium.
  • Streaming audio reaches 67%+ of US adults monthly; ad recall 35-45%.
    Source
    US Digital Audio Listeners and Penetration Forecasts
    Publisher
    eMarketer / Insider Intelligence
    Date
    2024
    Notes
    eMarketer forecast tracks monthly US digital-audio listener penetration; current figure exceeds 70% per topic-page summary at https://www.emarketer.com/topics/category/digital%20audio
  • Geofencing campaigns drive 10-30% measurable foot traffic lift in attributed visits.
    Source
    Foursquare Attribution — Omnichannel Store Visit Measurement
    Publisher
    Foursquare
    Date
    2023
    Notes
    Foursquare Attribution case studies report foot-traffic lifts from 2.5% (broad reach) to 23% (QSR mobile-app campaigns) to 30%+ (competitor-conquest targeting); methodology detailed at https://foursquare.com/resources/blog/ad-tech/location-foursquares-attribution-methodology-takes-your-media-dollars-further/
  • Geofencing campaigns drive measurable foot traffic and store-visit attribution.
    Source
    Foot Traffic Attribution & Analytics — Comprehensive Guide
    Publisher
    Reveal Mobile
    Date
    2023
  • Meta (Facebook + Instagram) brand-lift studies report 8-15% ad recall lift on awareness campaigns.
    Source
    About Brand Lift Tests — Meta Business Help Center
    Publisher
    Meta for Business
    Date
    2023-2024
    Notes
    Meta's Brand Lift Studies use randomized control trial methodology and report ad recall lift as the primary awareness-objective metric; methodology guide at https://www.facebook.com/business/m/brand-lift-questions-guide
  • Average Google Ads conversion rate ~7% across industries (2024); ROAS varies by vertical.
    Source
    Google Ads Benchmarks 2024: New Trends & Insights for Key Industries
    Publisher
    WordStream by LocaliQ
    Date
    2024
    Notes
    Average conversion rate across all industries was 6.96% in 2024; top performers (Automotive Repair 12.96%, Animals/Pets 12.03%, Physicians/Surgeons 11.08%) and lowest (Furniture 2.53%, Finance/Insurance 2.78%, Real Estate 2.91%).
  • Retargeting display delivers significantly higher CTR than cold prospecting (~0.7% vs ~0.07%) and 3-10x ROAS lift.
    Source
    How to Establish Marketing KPIs That Work for Your Business
    Publisher
    Criteo
    Date
    2023
    Notes
    Industry benchmarks consistently show retargeting CTR at ~10x the prospecting rate (0.7% vs 0.07%) and Meta retargeting ROAS at 5-8x vs 2-4x for prospecting.
  • New ad campaigns typically deliver 70-80% of benchmark ROAS during the first 3 months; peak performance lands months 4-9 as conversion data accumulates, retargeting pools mature, and search/social bidding stabilizes.
    Source
    State of Marketing Report 2024 + Google Ads optimization timelines
    Publisher
    HubSpot / WordStream / Meta Business
    Date
    2024
    Notes
    Multiple sources confirm: Google Ads requires a "learning period" of 7+ conversions per ad group before bidding stabilizes (Google Ads Help). Meta's machine-learning phase needs ~50 conversions in 7 days before audience optimization plateaus (Meta Business: https://www.facebook.com/business/help/433385333434831). WordStream benchmark studies show conversion-rate improvement of 25-40% from month 1 to month 6 as account history accumulates. HubSpot finds median time-to-peak-ROAS across paid channels is 4-9 months for accounts that maintain consistent budget and structure.
  • YouTube TrueView view rate ~31-32% cross-industry average; CPV $0.02-0.04 typical range.
    Source
    About YouTube ads and view metrics
    Publisher
    Google Ads Help / Think with Google
    Date
    2024
    Notes
    Q1 2026 data shows skippable in-stream cross-network CPV at $0.024, YouTube-only range $0.029-$0.039. Above 35% view rate is good, 45%+ is excellent.
  • Display advertising ad recall 5-15%; banner blindness limits awareness lift.
    Source
    IAB Research & Insights
    Publisher
    IAB (Interactive Advertising Bureau)
    Date
    2023
    Notes
    IAB/Dynamic Logic studies (originally 2001) plus subsequent eye-tracking research from Lumen and Nielsen consistently show display banners deliver lower attention and recall than other digital formats; 56% of display impressions per Google measurement data are never seen by a human.
  • 5-to-7 brand exposures typically required before a consumer takes action.
    Source
    "Why Three Exposures May Be Enough" — Krugman 1972
    Publisher
    Journal of Advertising Research (Taylor & Francis)
    Date
    1972 (foundational); extended by Schmidt & Eisend 2015 meta-analysis
    Notes
    Original Krugman paper at the Tandfonline link. The Schmidt & Eisend (2015) meta-analysis in Journal of Advertising — https://www.tandfonline.com/doi/abs/10.1080/00913367.2015.1018460 — finds attitude maxes around 10 exposures and recall increases linearly through 8 exposures, supporting the modern 5-7 (awareness) / 6-9 (conversion) ranges over the original 3-exposure rule.
  • ~70% of US adults use Facebook; ~30% engage daily.
    Source
    Social Media Fact Sheet
    Publisher
    Pew Research Center
    Date
    2024
  • Approximately 85% of US adults use Google for search-driven decisions.
    Source
    Search Engine Market Share (US)
    Publisher
    StatCounter Global Stats
    Date
    2024
  • 88% of US households have at least one streaming video service; pay-TV penetration now at 64%.
    Source
    Major Pay-TV Providers Lost ~5,000,000 Subscribers in 2023 (LRG Press Release)
    Publisher
    Leichtman Research Group
    Date
    2024
    Notes
    LRG's research tracks both pay-TV and streaming household penetration; additional reports at https://leichtmanresearch.com/research/
Section 2

Tax & accounting — advertising as a deductible investment

When we say "advertising is 100% deductible" or "brand equity becomes goodwill at sale," these are the underlying statutes and accounting standards.

  • Advertising is an "ordinary and necessary" business expense, fully deductible in the year incurred.
    Source
    Internal Revenue Code Section 162
    Publisher
    US Code via Cornell LII
    Date
    Current
  • IRS guidance confirming advertising as a deductible business expense.
    Source
    IRS Publication 535 — Business Expenses (and successors Pub 334 / Pub 463)
    Publisher
    Internal Revenue Service
    Date
    Final Pub 535 published 2022; current guidance in Pub 334 (sole proprietors) and Pub 463 (business expenses)
    Notes
    Pub 535 was retired after the 2022 tax year. Equivalent advertising-deduction guidance is now in IRS Publication 334 (chapter on business expenses) and Publication 463. The underlying statute — IRC §162 — has not changed.
  • Acquired goodwill and intangible assets are amortized over 15 years as Section 197 intangibles.
    Source
    Internal Revenue Code Section 197
    Publisher
    US Code via Cornell LII
    Date
    Current
  • Advertising costs are expensed as incurred under generally accepted accounting principles.
    Source
    FASB ASC 720-35 — Advertising Costs
    Publisher
    Financial Accounting Standards Board
    Date
    Current
  • Vehicles depreciate over 5 years; office furniture / equipment over 7 years.
    Source
    MACRS Depreciation Schedules (IRC Section 168)
    Publisher
    Internal Revenue Service
    Date
    Current
Section 3

Industry advertising-spend benchmarks

The "5-10% of revenue" rule of thumb and the industry-specific multipliers in Step 1 of the calculator come from these benchmarks.

  • Average small-business marketing spend is 5-10% of revenue; aggressive growth or new-market entry typically requires 12-20%.
    Source
    SBA Small Business Marketing Guidance
    Publisher
    US Small Business Administration
    Date
    Current
  • CMO survey data on marketing spend as a percentage of revenue, by industry.
    Source
    Gartner Annual CMO Spend Survey
    Publisher
    Gartner Research
    Date
    2023-2024
  • Industry-specific advertising-to-revenue ratios (legal, healthcare, restaurants, home services, etc.).
    Source
    Deloitte CMO Survey
    Publisher
    Deloitte / Duke Fuqua / AMA
    Date
    2023-2024
  • Lifetime customer value vs customer acquisition cost benchmarks across local-service categories.
    Source
    HubSpot State of Marketing Report
    Publisher
    HubSpot
    Date
    2024
  • Industry-specific advertising spend as a percentage of revenue (used directly in Step 1 of the Budget Size Advisor):
    Source
    Composite of SBA + Gartner CMO Spend Survey + Deloitte CMO Survey + industry trade reports
    Publisher
    SBA / Gartner / Deloitte / Statista
    Date
    2023-2024
    Notes
    Home services / contractors 10% · Restaurants / bars / hospitality 4% · Retail / e-commerce 7% · Healthcare / clinics 5% · Addiction recovery / behavioral 7% · Auto dealers 2% · Real estate 10% · Legal / professional services 6% · Financial / insurance 5% · B2B services 5% · B2C services (local) 8% · SaaS / tech 15% · Nonprofit 5% · Tourism / events 8% · Manufacturing / industrial 3% · Other 7%. These reflect total marketing-and-advertising spend as a share of revenue; pure-advertising spend is typically 50-70% of that.
Section 4

Budget Size Advisor — stage and growth multipliers

The Step 1 calculator applies a stage multiplier and a growth-goal multiplier on top of the industry baseline. The multipliers are not pulled out of thin air — each one comes from established growth-stage theory and marketing-funnel research.

  • Launching businesses typically need 1.5-2x the industry baseline to build initial awareness; growth-stage 1.2-1.4x; established 1.0x; mature 0.6-0.8x.
    Source
    Making the Business Case for Your Marketing Budget
    Publisher
    Harvard Business Review
    Date
    2018-2024
    Notes
    Calculator uses: Launching 1.7x, Growing 1.3x, Established 1.0x, Mature 0.7x. Anchored on HBR research and McKinsey marketing-effectiveness studies; HBR's analysis of 4,700 companies across recessions also found companies maintaining or increasing marketing spend grew up to 17% faster post-downturn.
  • Aggressive growth targets typically require 1.3-1.5x the maintenance budget; major expansion 1.6-2x.
    Source
    The Multiplier Effect: How B2B Winners Grow
    Publisher
    McKinsey & Company
    Date
    2023
    Notes
    Calculator uses: Maintain 0.8x, Steady 1.0x, Aggressive 1.4x, Major expand 1.8x. McKinsey finds B2B winners pursuing 5 simultaneous growth strategies (advanced sales tech, hybrid sales, hyperpersonalization, marketplaces, e-commerce excellence) are 2x more likely to capture 10%+ market share growth — and that level of acquisition requires above-baseline marketing investment.
  • Goal-mode (target-revenue) campaigns require ~1.25x the baseline maintenance spend because acquiring new revenue costs more than retaining existing.
    Source
    The Value of Keeping the Right Customers
    Publisher
    Harvard Business Review (Reichheld / Bain & Company)
    Date
    2014 (foundational); reaffirmed 2020-2024
    Notes
    Reichheld's Bain research finds acquiring a new customer is 5-25x more expensive than retaining one, and a 5% retention improvement increases profits by 25-95%. The 1.25x boost in goal-mode reflects the additional acquisition investment required to grow into a target revenue number rather than maintain current.
  • 5-10% of revenue rule of thumb anchored on SBA guidance for small business marketing budgets.
    Source
    How Much Should I Spend on Marketing?
    Publisher
    US Small Business Administration
    Date
    Current
    Notes
    SBA recommends 7-8% for B2C, 2-5% for B2B, with newer or aggressively-growing businesses spending 12-20%.
  • CMO Survey industry-rate data: marketing budget as % of revenue, by sector. (General citation linked from every industry baseline in Step 1.)
    Source
    The CMO Survey (biannual cross-industry data)
    Publisher
    Duke Fuqua School of Business / Deloitte / AMA
    Date
    2024 H2
    Notes
    Publishes biannual cross-industry data on marketing budget as % of revenue. Latest report shows wide variation by sector (consumer services 12.4%, B2B services 6.2%, B2B products 4.3%, healthcare 4.2%, retail 9-12% mid-market, SaaS 12-20%, restaurants 3-5%, home services 8-12%, etc.). Calculator baselines pick a working mid-point per industry; stage and growth multipliers adjust from there.
  • Retail and e-commerce baseline of 9% of revenue spent on advertising. Anchor for the calculator's "Retail / e-commerce" industry preset.
    Source
    The CMO Survey — Marketing Spending by Industry Sector (B2C product 11.7% / B2C services 12.4% / large retail anchors 5-6% / DTC e-com 15-20%)
    Publisher
    Duke Fuqua School of Business / Deloitte / AMA
    Date
    2024 H2
    Notes
    CMO Survey reports a wide retail/e-commerce range across business size and channel mix: enterprise retail anchors around 5-6% of revenue, mid-market omnichannel retail around 9-12%, and small DTC e-commerce brands often run 15-20%+ of revenue on paid acquisition. The calculator uses 9% as a mid-range default; the stage and growth-goal multipliers adjust from there.
  • Effective-frequency theory: most consumers need 5-7 brand exposures before they take action.
    Source
    The 5 Key Learnings From The Attention Stage (Lumen Research)
    Publisher
    Lumen Research (with original Krugman 1972 foundation)
    Date
    1972-present (2025 attention update)
    Notes
    Lumen's eye-tracking research finds an ad seen once delivers ~9% spontaneous recall; five exposures raises recall to 56%. Original Krugman 1972 paper at https://www.tandfonline.com/doi/abs/10.1080/00218499.1972.12519370 and Schmidt & Eisend 2015 meta-analysis at https://www.tandfonline.com/doi/abs/10.1080/00913367.2015.1018460 extend the 3-exposure threshold into the modern 5-7 (awareness) / 6-9 (conversion) range.
Section 5

Local market data — Rapid City & the Black Hills

Audience figures and station details for the Rapid City DMA and the four Black Hills stations referenced on this site.

Section 6

Methodology notes

How the calculator computes recommended budget, effective frequency, and channel-mix allocation.

  • Effective frequency target of 3+ exposures for awareness, 4-6+ for conversion-stage campaigns.
    Source
    Advertising Repetition: A Meta-Analysis on Effective Frequency in Advertising (Schmidt & Eisend, 2015)
    Publisher
    Journal of Advertising (Taylor & Francis)
    Date
    2015 meta-analysis (extending Krugman 1972)
    Notes
    Meta-analysis finds attitude peaks around ten exposures and recall increases linearly through eight exposures, supporting the repetitionist school over the minimalist school. Original Krugman 1972 paper: https://www.tandfonline.com/doi/abs/10.1080/00218499.1972.12519370
  • Frequency sweet-spot and saturation thresholds by campaign goal — Leads 4× min / 6-10× sweet / 12-20× heavy / 20×+ saturation; Foot traffic 5× / 7-12× / 15-25× / 25×+; Awareness 3× / 5-10× / 15-25× / 30×+; Recruit 3× / 5-8× / 10-15× / 15×+. Past saturation, additional impressions produce diminishing returns and risk ad fatigue.
    Source
    Schmidt & Eisend (2015) meta-analysis of advertising-repetition studies; Tellis "Effective Frequency" (Journal of Advertising Research) and the IAB Programmatic Standards on effective reach & frequency
    Publisher
    Journal of Advertising (Taylor & Francis), Journal of Advertising Research (ARF/JAR), Interactive Advertising Bureau (IAB)
    Date
    1997 (Tellis); 2015 (Schmidt & Eisend); IAB current
    Notes
    Schmidt & Eisend (2015) is the modern definitive meta-analysis (https://www.tandfonline.com/doi/abs/10.1080/00913367.2015.1018460) showing attitude peaks around 10 exposures and recall plateaus past ~8. Gerard J. Tellis "Effective Frequency: One Exposure or Three Factors?" Journal of Advertising Research (https://www.journalofadvertisingresearch.com/content/37/4/75) establishes the diminishing-returns curve and saturation point. IAB Programmatic Standards on reach and frequency: https://www.iab.com/topics/programmatic-advertising/. Foot-traffic and B2B-recruit upper bounds are anchored on Foursquare attribution studies (https://foursquare.com/business/) and LinkedIn Marketing Solutions audience reach benchmarks (https://business.linkedin.com/marketing-solutions/insights/reach).
  • Channel CPMs and minimums on the calculator anchored on real digital rate-card data (Haugo Digital rate card) and current market averages.
    Source
    Haugo Digital programmatic rate card
    Publisher
    Haugo Broadcasting Digital
    Date
    Current
  • Audience-size estimates per region (Local ~75K, Area ~300K, Region ~1.5M, State ~5M) are working approximations derived from Census-block-level US adult population in the Rapid City DMA and surrounding DMAs, scaled to the geographic radius of each tier.
    Source
    US Census ACS 5-Year Estimates
    Publisher
    US Census Bureau
    Date
    2022 5-year ACS
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