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Profit Allocation Model: Driving Growth and Student Engagement
​​​​​​Overview (3.8M College Students Subscribers)
In the 2023-2024 academic year, approximately 15.2 million undergraduate students were enrolled in U.S. colleges and universities. Our initial goal is to reach 25% of this population, which translates to enrolling about 3.8 million undergraduate students in our program.
Based on the analysis of major companies across various sectors including technology, e-commerce, fast food, coffee chains, and entertainment, we have estimated the combined advertising expenditures directed towards college students through direct email advertisements.
Here is a chart for the top companies in Technology, Entertainment, E-commerce/Retail, Food Delivery, and Grocery Store Chains, including their total advertising spend and estimated college-directed spend: (1)
Technology
Total US Estimated College
Advertising Advertising Spend
Company Spend (10-15% of total)
Apple $1.8B (2022) $180-$270M
Microsoft $1.5B (2022) $150-$225M
Google $2.6B (2022) $260-$390M
Intel $1.2B (2022) $120-$180M
Amazon $10.4B (2022) $1.04-$1.56B
Entertainment
Total US Estimated College
Advertising Advertising Spend
Company Spend (10-15% of total)
Disney $3.1B (2022) $310-$465M
Netflix $1.8B (2022) $180-$270M
Warner Bros. $2.5B (2022) $250-$375M
NBCUniversal $1.2B (2022) $120-$180M
Spotify $1.0 b (2022) $100-$150M
E-commerce/Retail
Total US Estimated College
Advertising Advertising Spend
Company Spend (10-15% of total)
Amazon $10.4B (2022) $1.04-$1.56B
eBay $1.2B (2022) $120-$180M
Walmart $3.7B (2022) $370-$555M
Alibaba $3.0B (2022) $300-$450M
Target $1.5B (2022) $150-$225M
Food Delivery
Total US Estimated College
Advertising Advertising Spend
Company Spend (10-15% of total)
DoorDash $163.5M (2022) $16-$25M
GrubHub $97.9M (2022) $10-$15M
Uber Eats $1.0B (2022) $100-$150M
Postmates $50M (2022) $5-$7.5M
Instacart $33.8M (2022) $3-$5M
Grocery Store Chains
Total US Estimated College
Advertising Advertising Spend
Company Spend (10-15% of total)
Walmart $3.B (2022) $370-$555M
Kroger $1.2B (2022) $120-$180M
Costco $1.0B (2022) $100-$150M
Albertsons $500M (2022) $50-$75M
Publix $300M (2022) $30-$45M
Coffee/Quick Service Restaurant
Total US Estimated College
Advertising Advertising Spend
Restaurant Spend (10-15% of total)
McDonald's $776.8M (2019) $77-$116M
Domino's $441.6M (2019) $66-$88M
Taco Bell $377.5M (2019) $56-$75M
Burger King $348.8M(2019) $35-$52M
Subway $250.5M (2019) $37-$50M
Wendy's $247M (2019) $25-$37M
Starbucks $416.7M (2022) $42-$63M
Dunkin' $135M (recent yr.) $14-$20M
Pizza Hut Over $100M (recent yr.) $15-$20M
Papa Johns $53.9M (2023) $8-$11M
Little Caesar Under $100M (recent yr.) $10-$15M
Chipotle $153.4M (2022) $15-$23M
Summary
These estimates assume that 10-15% of the total advertising budget is directed specifically towards college students, varying slightly based on each brand's known strategies and target demographics. The actual figures could vary significantly based on each company's specific marketing strategies and priorities.
Grand Total Summary
Total US Estimated College
Advertising Advertising Spend
Category Spend (10-15% of total)
Technology $17.5B $1.75 - $2.625B
Entertainment $9.6B $960M - $1.44B
E-commerce/Retail $19.8B $1.98 - $2.97B
Food Delivery $1.345B $134.5 - $202.5M
Grocery Store Chains $6.7B $670M - $1.005B
Coffee/Quick Service $3.4B $400 - $570M
Grand Totals:
Total US Advertising Spend: $58.346 billion
Estimated College Advertising Spend: $5.895 - $8.813 billion
Key Observations:
The total US advertising spend across all categories is approximately $58.346 billion.
The estimated college advertising spend ranges from $5.895 billion to $8.813 billion, representing about 10-15% of the total advertising spend.
E-commerce/Retail and Technology are the biggest spenders on advertising, with a significant portion potentially directed towards college students.
The Coffee/Quick Service Restaurant category, despite having more individual companies listed, has a lower total advertising spend compared to the top categories.
Food Delivery has the lowest total advertising spend among the categories, but it's likely that a higher percentage of their advertising is targeted at college students.
These figures demonstrate the significant financial investment these companies make in advertising, with a substantial portion potentially targeting the college demographic.
It's important to note that these figures are estimates based on available data and industry averages. The actual amounts spent on college advertising may vary depending on each company's specific strategies and priorities.
Summary Table
Lower Estimate Upper Estimate
Category ($5.895B ($8.813B)
Total Revenue $5.895B $8.813B
80% to Students 4.716B $7.0504B
Remaining 20% $1.179B $1.7626B
Expenses (1%) $58.95M $88.13M
Dividends (5%) $294.75M $440.65M
Retained Earnings (10%) $589.5M $881.3M
Profit/Cash (4%) $235.8M $352.52M
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Breakdown for 3.8M Students at Various Cash Credits Percentages
Student Payout Lower Estimate Upper Estimate
Percentage ($5.895B) ($8.813B)
30% $465.39 $695.76
40% $620.53 $927.68
50% $775.66 $1,159.61
60% $930.79 $1,391.53
70% $1,085.92 $1,623.45
80% $1,241.05 $1,855.37
Conclusion
By distributing up to 80% of the revenue as to students and allocating the remaining 20% to expenses, dividends, retained earnings, and profit/cash, you can ensure a balanced approach to rewarding students while maintaining financial stability and growth for the company. The suggested breakdown provides a clear allocation strategy for both the lower and upper revenue estimates.
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1. Summary of Sources
Amra And Elma LLC: FOOD MARKETING STATISTICS IN 2024
eMarketer: US Ad Spending 2024
Forbes: Ad Spending Growth To Accelerate In 2024
Statista: Digital advertising spending worldwide 2021-2027
Statista Market Forecast: Advertising - United States
Business of Apps: Food Delivery App Revenue and Usage Statistics (2024)
eMarketer: Worldwide Digital Ad Spending Forecast 2024
Marketing Dive: Dentsu now expects global ad spend to reach 5% growth in 2024
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