Chart of Usages
Usage rights are often described as Above The Line (ATL) and Below The Line (BTL). In traditional advertising, the term ATL typically refers to strategies and activities that are focused on mass media channels to reach a broad audience and are "above the line" in a company's financial records where advertising costs are recorded as a line item. BTL advertising has referred to more targeted campaigns, focused on specific audience segments, often existing customers.
Digital advertising has brought about a convergence of ATL and BTL strategies. While ATL advertising still focuses on mass reach and brand awareness, it now leverages digital channels and data-driven insights. BTL advertising, on the other hand, has become more digitally sophisticated, enabling targeted, personalized, and measurable campaigns.
ATL usage is valuable for building brand awareness, reaching a broad audience, recruiting new customers and generating high financial and brand-building ROIs. BTL advertising tends to be more geared to customer retention and maintenance therefore a lower anticipated ROI correlating to the lower media expenses associated with BTL uses.
The shift, and extent to which digital and programmatic advertising has overtaken traditional advertising, has led to a reconsideration of which usages are now considered ATL and which are considered BTL. The AMA Chart of Usages presents common uses and territories in order or value with percentages for consideration. The suggested % values relate to a % of the negotiated fees. Another percentage is added for the territory and a percentage of those values is applied based on the duration.
For example: Digital Advertising use could be 15% of the negotiated photography fee. Another 15% of the fee is added for use in Europe. If the use is for 6 months, the usage fee is half of the value.
This is not a comprehensive chart of all possible uses or durations and is presented as a possible guide in calculating usage fees.
Media – Above The Line | % value of rate | Media budget required | Data returned to brand | Expected financial ROI | Expected brand building ROI |
---|---|---|---|---|---|
Streaming services/CCTV | 15 - 20% | Yes | Yes | High | High |
Programmatic (Targeted) Digital Advertising | 15 - 20% | Yes | Yes | High | High |
Digital Advertising (includes Third Party digital advertising) | 15 - 20% | Yes | Yes | High | High |
DOOH | 15 - 20% | Yes | Some | High | High |
POS / Third-Party Retail | 15 - 20% | Yes | Some | High | High |
Paid social media (includes Third Party social accounts, social media ads, sponsored and shopping posts) |
10 - 15% | Yes | Yes | High | High |
Broadcast | 10 - 15% | Yes | No | High | High |
OOH | 10 - 15% | Yes | No | Low | High |
Travel Retail | 10 - 15% | Yes | No | High | Low |
Consumer Print Advertising | 10 - 15% | Yes | No | Low | High |
Digital Collateral / Emails | 5 - 10% | No | Yes | High | Low |
Media – Below The Line | % value of rate | Media budget required | Data returned to brand | Expected financial ROI | Expected brand building ROI |
---|---|---|---|---|---|
Organic social and digital (Brand owned accounts and sites) | 0 - 2.5% | No | Yes | Low | High |
Owned POS | 5 - 10% | No | No | Low | Low |
Printed Collateral | 3 - 5% | No | No | Low | Low |
PR / Events | 0 - 2.5% | No | No | Low | High |
Internal use | 0% | No | No | None | Low |
Archival/Historical use | 0% | No | No | None | Low |
Territory (sample selection for reference, not a full list) | % value of rate |
---|---|
Single Country (excluding US + China) | 25% |
EMEA | 40% |
USA | 60% |
China | 60% |
Europe | 75% |
South America | 75% |
Asia | 80% |
WW | 100% |
Duration | % of calculated usage fee |
---|---|
1 week | 6% |
6 months | 50% |
1 year | 100% |
Perpetuity | 100% x 10 years |