So, What Exactly Is a Holding Capacity Model?

Mar 16, 2021 8:38:56 AM / by Katie Kelly

Inventory

Here at ShareBuilders, we pride ourselves on the depth of information our Holding Capacity models provide. Our system is complex and multifaceted, which can be intimidating to those unfamiliar with the tool. It’s easy to get bogged down in jargon, and sorting through the various indices can be rather daunting. Today we’re going back to basics- what is a Holding Capacity model, and how is it useful to you?

Holding Capacity is a measurement station’s ability to hold revenue within a Broadcast Television DMA. Broadcast advertising money is largely bought and sold by analyzing cost per rating point, so in its simplest form, a Holding Capacity model analyzes the number of rating points available, their relative value, and a station’s share of them in the marketplace. A useful Holding Capacity model will not only tell a client their expected share of a market’s revenue, but also provide a picture of what is happening in the market as a whole. Let’s take a closer look at some of the exciting tools a ShareBuilders Holding Capacity model provides.

Performance Index
Our system allows you to chart your Holding Capacity Share and your audited (or estimated) revenue share simultaneously. Comparing the two can provide critical insights. Is your station’s revenue share out-performing their Holding Capacity share? Let’s celebrate and formulate a strategy to keep it that way! Is there room for improvement? We can help you identify areas of opportunity. The Performance Index is one of the easiest to interpret features in Holding Capacity designed to make sure your station is getting its “fair share” of the marketplace pie.

Daypart Detail
An overall Holding Capacity share is a critical measurement, but we’ve found analysis of individual dayparts to be just as insightful. Understanding the expansion and contraction of TRPs in a particular daypart can help explain and predict share trends, especially when competitors make changes to their schedules. Fluctuations in News dayparts are notorious for shaking up an otherwise stable market- it is invaluable to be able to identify how and why these changes are occurring so that you can take action.

Forecasting Guidance
Forecasting is one of a Sales Manager’s most difficult and vital responsibilities. Holding Capacity is a tool that can be used to predict future share trends. Remember, you’re not forecasting and pricing in a vacuum! There is a finite amount of revenue in play, and Holding Capacity is designed to illustrate how we expect the money to be distributed. This knowledge can help you make informed, practical decisions when creating budgets.

Our highly trained staff of consultants and Holding Capacity experts are available to guide you through the ins and outs of this complex and valuable tool.

Katie Kelly

Written by Katie Kelly