DMA

Designated Market Area

A geographical region in the United States where the population receives similar television and radio station offerings. Marketers, advertisers, and media companies use DMAs to target specific audiences and allocate their advertising budgets effectively. Nielsen Media Research, a global measurement and data analytics company that provides insights into consumer behavior, coined and defined the term.

History of DMAs

Nielsen Media Research developed the concept of DMAs in 1966 to measure television viewing patterns and preferences across the United States. Before the introduction of DMAs, advertisers and media companies relied on a patchwork of local market definitions that varied by region and broadcaster. The DMA system provided a standardized, nationwide framework for defining television markets, making it easier for advertisers to plan and execute their campaigns.

Initially, there were 220 DMAs, ranked based on the size of their television households. Over time, the number of DMAs has fluctuated due to population changes and updates to Nielsen’s methodology. As of 2021, there are 210 DMAs in the United States.

Usage of DMAs

DMAs are primarily used by television networks, advertisers, and media buyers to make informed decisions about content distribution, audience targeting, and ad placement. Some key applications of DMAs include:

• Advertising: Advertisers use DMA data to identify the most relevant markets for their products or services and to allocate their advertising budgets accordingly. By focusing on specific DMAs, advertisers can reach their target audiences more effectively and optimize their return on investment.
• Programming decisions: Television networks and stations use DMA ratings to decide which programs to air, when to schedule them, and how to promote them. Shows that perform well in certain DMAs may be given priority or additional resources to maximize viewership and ad revenue.
• Syndication: Syndicated television programs, sold to individual stations or station groups, often use DMA data to determine which markets to target and how much to charge for their content. Programs that are popular in high-ranking DMAs can command higher licensing fees.
• Audience measurement: Nielsen and other research companies use DMA data to measure television viewership, market share, and audience demographics. This information is crucial for networks, advertisers, and media buyers to understand the performance of their content and campaigns and to make data-driven decisions.
• Local advertising: Small businesses and local advertisers use DMA data to identify the most effective channels and times to reach their target audiences within their specific market. This allows them to optimize their advertising spend and compete more effectively with prominent national brands.

While DMAs were initially developed for the television industry, the concept has been extended to other forms of media, such as radio, newspapers, and digital advertising. As media consumption habits evolve, the definition and application of DMAs may continue to change to reflect the growing importance of streaming services, mobile devices, and other emerging platforms.

• Abbreviation: DMA

Additional Acronyms for DMA

• DMA - Data & Marketing Association