The Marketing Dashboard
It is generally understood that the sum of all marketing and advertising expenditures is the second largest expense in U.S. casinos. However, despite their impact on a property’s profitability, it is difficult to easily identify all of the costs that make up marketing and advertising on a property’s profit and loss (P&L) statement and see their effects on both property revenue and cash flow performance.
Most casino P&Ls do an excellent job of detailing each operating department’s revenue and expenses. However, marketing and advertising expenses can be found on multiple pages of this report. For instance, system generated comps (those generated by the casino’s player rewards program) normally appear in the slot club department. In addition, comp expense can be found in slots, table games, hotels and on almost every revenue-generating department’s monthly operating statement. Thus, answering the simple question, “what is the ratio of comp expense to property revenue?” becomes a time consuming task.View Full Article