How does OCA determine how much to charge my office(s) for advertising expense?
OCAs standard policy is that an office will spend 7% of its collections on advertising. This percentage may be higher if the office is located in a large media market. Also, a minimum amount may need to be spent on a market to have an effective advertising campaign. These factors may cause the cost to exceed 7%. If an office has not yet reached maturity, the marketing department will extrapolate what revenue in a mature situation would be for the office based on the new contracts signed by the office. We advertised a lot less this quarter, but advertising cost only declined slightly. Why is this so? The billing done by most advertisers is very slow and inefficient. As a result, you will not be billed for advertising costs until a month, or sometimes two months, after the ad actually ran. Thus, a number of charges do not appear until later quarters because the advertisers do not have the actual amount of charges and do not bill these charges until substantially after the ad ran. As a re
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