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TV Advertising Reach & Frequency Imbalance

The average TV-viewing US household now receives almost 200 channels. With viewers spread out over so many more channels, marketers need to run more ads to deliver the same number of (gross rating points) GRPs. However, many times, marketers are unsure of what makes up their GRPs. In other words, are the impressions allocated to greater reach or greater frequency?

An ad’s first exposure is the most powerful and effective—after all, people can’t buy a product they’re not aware of. Most marketers agree that there’s value in exposing consumers to repeated messaging, but at what point does additional frequency negatively impact sales? If an advertiser is aware of that threshold, is there a better way they can deploy their TV ad budget?

To help answer those questions, Simulmedia’s Business Insights team researched the TV ad campaigns of 28 national advertisers across five categories and examined a month in which those advertisers spent a total of $300 million on TV advertising. Our team then compared the ad exposure data and credit card purchases of 118,000 households to explore the impact of frequency on sales.

In this white paper, titled “TV Advertising Reach & Frequency Imbalance: How It Hurts Sales And What You Can Do To Prevent It” we discuss the results of our study and illustrate why marketers need to be aware of how their impressions are allocated. We also discuss common reasons why this TV advertising reach and frequency disparity occurs, and finally, demonstrate how Simulmedia is uniquely suited to help marketers overcome this challenge and get more value from their advertising dollars.