Page 238 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes
Example: If an advertiser buys 30 or 60 seconds of TV time during a certain programme,
everyone who is tuned to this programme will not necessarily see the commercial for a number
of reasons.
In advertising terminology, frequency refers to the average number of times audience individuals
or households are exposed to a medium in an advertising cycle, not necessarily to the
advertisement itself. Most advertisers agree that 1:1 advertising ratio does not exist. An ad may
be placed in a media vehicle, and the fact that an individual has been exposed to it does not mean
that the ad has been seen. For this reason media buyers refer to the reach of media vehicle as
opportunity to see (OTS) an ad rather than actual exposure to it.
Total exposures
Frequency=
Reach
An example will illustrate the concepts of reach and frequency:
Survey sample size = 10 households with a TV
Survey period = 4 weeks

TV programme = S

Weeks A B C D E F G H I J Total exposures
6
1 S S - - S - S S - S

5
2 - S S - S - S S - -
3
3 - - S - - S - - - S
4 S S - - S - S S - S 6
Total 2 3 2 0 3 1 3 3 0 3 20

Total exposures = 20
Households that watched TV programme S (Reach) = 8

Total exposures 20
Frequency = = 2.5
Reach (OTS) 8

Media planners make compromises and strike a balance between reach, frequency, and the
number of advertising cycles in the planning period. In most cases the media budget is fixed,
and the planner cannot spend more on, say increasing frequency, without decreasing the
expenditures on reach or the number of advertising cycles. If the budgeting approach used is
objective and task method, then all three can be increased up to a more optimistic level. In
reality, there would always be a ceiling either because of one of the budgeting method used or
by some higher-level corporate decision. The tradeoffs are governed by the principle that it is
better to sell some people completely than many people not at all.
The trade-off between reach and frequency is most common. If it is advantageous to maintain
advertising continuity, or plan more advertising cycles, as with frequently purchased product
and service, then reach should be sacrificed. For infrequently purchased products, such as
consumer durable goods, it is advisable to increase reach and advertise only occasionally in
cyclic pattern. This may suffice to maintain audience interest without having to reach them
more frequently.

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