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Know-How Exchange

Topic: Research/Metrics

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Metrics Allowing For Competitive Evaluation

Posted by taimour_khan on 250 Points
Hi- I'm trying to understand how to compare performance via Reach % and GRPs achieved v. competition and then drill down into basics such as type of channels where placements were done and slots (primetime/non primetime). However i fail to see how to compare performance via reach. Could anyone help?
  • Posted by Peter (henna gaijin) on Accepted
    Reach refers to the total number of different people or households exposed, at least once, to a medium during a given period. The only real comparison you would do is looking at the reach of your ad versus a competitors ad. You having a higher or lower reach than competitors doesn't really say much - just whether you are potentially getting in front of more of your target market than the other.
  • Posted by mgoodman on Accepted
    The reason you want Reach numbers is to see the effect of higher (and lower) frequency of exposure.

    REACH x FREQUENCY = GROSS RATING POINTS

    Suppose you deliver 400 GRPs in 8 weeks. Consider two scenarios: In one case the reach is 40. In the other case it's 80. In the first instance, your frequency is 10; the average person who saw your ad saw it 10 times. (400 / 40 = 10) In the second instance, the average frequency is 5.

    The cost in both cases is the same because you are buying comparable Gross Rating Points (i.e., same market, same target audience, same medium, etc.).

    If the first case generates more of whatever you want (e.g. sales, share growth, leads, etc.), then you've learned that you may need more than 5 exposures (on average) to make a significant difference with your advertising. If the second case outperforms the first case, then you've learned that with the current copy, 5 exposures (on average) is pretty effective and you should try to increase Reach (e.g., additional day-parts, more diverse demographics, etc.).

    CAUTION: Don't let the media calculations drive your advertising decisions, though. Your brand positioning and the effectiveness of your advertising copy are likely to be far more important. You would miss the big idea if you relied only on Reach and Frequency analyses.

    Also make sure you are considering Reach for YOUR TARGET AUDIENCE. If you only want teenage girls, Reach among all women won't be very helpful. Etc.
  • Posted by Shelley Ryan on Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!

    Shelley
    MarketingProfs

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