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Yunjae Cheong A survey was conducted of 104 U.S. advertising-agency media directors regarding
The University of Alabama
current practices in media-schedule evaluations—for both offline and online media—
ycheong@bama.ua.edu
and the application and perceptions of reach-and-frequency estimation models.
Federico de Gregorio
Results suggest that traditional exposure-based criteria such as reach-and-frequency
The University of Akron
degrego@uakron.edu distribution remain important and often are used in evaluations of offline media
schedules. For online media, however, a majority of agencies rely on qualitative
Kihan Kim
Seoul National University
assessments followed by cost-based criteria or Internet-specific measures (page
kihan@snu.ac.kr views). The findings also indicate decreased levels of satisfaction with computerized
reach-and-frequency estimation models compared to media directors in the mid-1990s.
The authors urge continuous validation of model accuracy and development of new
reach-and-frequency estimation models.
The number of media outlets and advertising formats mons, Mediamark, and others (Leckenby
and Kishi, 1982).
has expanded rapidly and aggressively and continues Among academicians, considerable
work has been conducted on the develop-
to expand. ment of reach-and-frequency estimation
models for different media (Leckenby
and Kishi, 1984; Leckenby and Rice, 1985;
BACKGROUND and, in fact, was the dominant media- Rust and Leone, 1984; Danaher, 1991; Kim,
As media options expand and market- planning paradigm (Kreshel et al., 1985; 1994), with past studies revealing that the
ing-related data continue to proliferate, Leckenby and Kim, 1994; Cannon, 2001). majority of the leading advertising agen-
planners require new tools to make recom- EFP has been criticized, however, for at cies in the United States were using at
mendations and to conduct cost–benefit least two reasons: least one computerized model to estimate
analyses that justify these choices. reach-and-frequency distributions (Leck-
Traditionally, some of the planners’ • Its crude rules of thumb—seemingly enby and Kishi, 1982; Leckenby and Boyd,
key tools have been models that estimate arbitrary standards such as considering 1984; Leckenby and Kim, 1994).
reach-and-frequency distributions (Leck- 3+ exposures as effective These studies also showed that most
enby and Kishi, 1982; Leckenby and Boyd, • Its naïve theory that advertising must be media directors believed at least some
1984; Leckenby and Kim, 1994). Indeed, subject to a threshold effect, reflected in improvements in reach-and-frequency
surveys of ad practitioners on both the an S-shaped advertising response curve estimation models were required. Little
client and agency sides in the 1980s and (Stankey, 1989), when practice, response is known, however, regarding whether
1990s showed that reach and frequency (and to what extent) the use and percep-
curves tend to be concave, character-
were two of the most significant factors/ tions of reach-and-frequency distribution
ized by continually diminishing returns
criteria considered when selecting media have changed among media planners with
(Schultz and Block, 1986).
(King and Reid, 1997; Kreshel, Lancas- the advent of the Internet as a significant
ter, and Toomey, 1985; Leckenby and advertising medium. Digital marketing
These major shortcomings of EFP are
Kim, 1994; Leckenby and Kishi, 1982; had not gained sufficient momentum or
addressed in the recent media planning
Nowak, Cameron, and Krugman, 1993). attention to be included in the published
frameworks, such as Cannon and Riordan’s
The importance of reach-and-frequency research from the 1980s and 1990s. More-
1994 “Optimal Frequency Planning” (OFP)
distribution estimates is heightened by recent work primarily has focused on
and the concept of “FrequencyValue Plan-
increased usage of the concept of “effec- the effectiveness/efficiency of the online
ning” (FVP; Cannon, 2001; Cannon, Leck-
tive reach and frequency” among both reach-and-frequency data itself and not
enby, and Abernethy, 2002). The central
practitioners and academicians (Kreshel et industry practices.
idea of OFP and FVP is to weight every
al., 1985; Turk and Katz, 1992). With changes in the media environment
level of exposure in the frequency distri-
Effective reach and effective frequency and data availability since the mid-1990s,
bution with the probability that each level
analyses represent two perspectives on the application and perceptions of models
the same issue. Effective frequency asks of advertising exposure will have impact for reach-and-frequency distribution esti-
how many exposures are needed for an on consumers, as demonstrated by the mates may have changed. In line with this
ad to become “effective”; effective reach advertising response curve. thinking, the present study is intended to
addresses the number of people who There are currently numerous pro- replicate and expand upon the series of
are exposed at that level (Cannon and prietary and nonproprietary models studies by Leckenby and colleagues (1982,
Riordan, 1994). by which planners may estimate reach- 1984, 1994) and to assess media directors’
Over time, effective frequency planning and-frequency distributions for different perception of models for estimating reach-
(EFP) has represented the process through media. Firms such as Telmar and Inter- and-frequency distributions for both
which media planners put effective reach active Media Solutions (IMS) provide offline media and online media.
and frequency into practice. It has become computer programs to implement these It also will be useful to determine whether
an integral—even dominant—part of models and analyze the large-scale media there have been changes in the factors used
media-planning culture and procedures databases developed by Nielsen, Sim- to evaluate alternative media schedules.
There are currently numerous proprietary and media (Leckenby and Kishi, 1982; Leck-
enby and Kim, 1994) and on more recent
nonproprietary models by which planners may estimate work that had considered Internet-specific
items (Shen, 2002). In addition to respond-
reach-and-frequencydistributions for different media. ents’ personal characteristics and informa-
tion about their agencies, the questionnaire
consisted of four main parts:
RESEARCH QUESTIONS • How much improvement do media
The current study addresses the gap in directors perceive the reach-and- • Several questions were posed to deter-
understanding media directors’ percep- frequency distribution models used by mine the criteria used in evaluating
tion of models for estimating reach-and- their agencies to be in need of? both online and offline media. “Online”
frequency distributions and the criteria media in the survey referred to Inter-
used to evaluate alternative media plans METHODOLOGY net-based advertising forms; “offline”
by the following: Sample media designated TV, radio, magazine,
The current study relied on a Web-based newspaper, and outdoor forms.
• Utilizing the Leckenby and Kishi (1982) survey. As there is no single comprehen- • Several items assessed the importance
and Leckenby and Kim (1994) studies as sive directory of media directors/planners of those criteria in overall media eval-
guiding frameworks in the United States, a sampling frame of uation, followed by several items to
• Assessing practitioner viewpoints e-mail addresses was constructed from the ascertain the types of people who most
among a sample of large-agency, senior- “Advertising Red Books” online database commonly request reach-and-frequency
level media directors. (www.redbooks.com). distribution data.
The respondents of interest were U.S.- • Several items were included to deter-
Understanding practitioner opinions based media directors who worked in mine the specific reach-and-frequency
is important in that it provides an indi- advertising agencies with annual billings estimation models used by the respond-
cation of the concerns and practices of of $1 million or more. E-mail contacts for ents’ agencies.
the industry and potential future direc- the sample were found using the Red • A series of items dealt with the issue
tions for academic research. Specifically, Books database to search for such titles as of model performance from the stand-
the following research questions will be “media director,” “media account direc- points of estimation accuracy and per-
examined: tor,” and “group account media director” ceived need for model improvement.
When multiple persons were listed for a
• Which factors do media directors use particular agency, only one e-mail address An industry expert with more than 10
when evaluating alternative media was selected (note that not all agencies years of experience in advertising-agency
schedules? included the names and/or e-mail con- media planning evaluated the initial ver-
• How much importance do media direc- tacts for their media directors). After filter- sion of the questionnaire. Based on her
tors place on particular factors when ing for agencies with less than $1 million feedback, the questionnaire was revised
evaluating alternative media schedules? in annual billings and those that provided and finalized, and the survey Web site was
• Which reach-and-frequency estimation the names and e-mail addresses of their developed.
models do media directors commonly media directors, a final list of 584 poten-
use when developing reach-and- tial respondents from a sample of agencies Procedure
frequencydistribution estimates? ranging in U.S. billings from $1 million to Personalized e-mail invitations to partici-
• How accurate do media directors con- $1.9 billion was created. Mean number of pate in the survey were sent to those in the
sider the reach-and-frequency distribu- employees at the agencies is 58.2, with a list of 584 potential respondents. A note
tion models used by their agencies to range from 2 to 1,471. briefly explained the nature of the study
be? and its importance, a clickable link to
• How satisfied are media directors with Measures access the questionnaire, and a second link
the reach-and-frequency estimation The questionnaire was developed based to opt out of participation. Invitations were
models used by their agencies? mostly on existing studies of traditional sent individually—not as part of a mass
e-mail—and each invitation was person- an indication that media directors’ interest Table 1
alized with the first name of each poten- in this study had increased substantially
Titles of Survey Participants
tial participant to increase response rates from the previous survey was evidenced
(Heerwegh, 2005). An e-mail reminder by 96 percent of the respondents request- ’08 ’94
Title (percent) (percent)a
followed every 2 weeks for 6 weeks after ing the results of the study, compared to
the initial invitation using a similar com- 69.8 percent in the 1994 study (Leckenby Senior VP/Media
16 (15.4) 11 (17.5)
bination of personalization and individual and Kim, 1994). Director
messages. Of the media directors who responded VP/Media Director 20 (19.3) 12 (19.0)
Upon clicking on the link to participate to the survey, more than 87 percent worked Media Director 34 (32.7) 26 (41.2)
in the study, participants were taken to for full-service advertising agencies; the
Media Planner/
a page that served as the consent form. balance worked for media-planning/ 9 (8.7) 3 (4.8)
Manager
Clicking on “Next” at the bottom of the buying agencies. Although the response
VP/Director Media
page indicated their consent to participate. rate was relatively small, it appears that — 2 (3.2)
Research
The questions for the study were spread respondents represented a diverse sample
across a series of Web pages for ease of of agencies, with a range of U.S. billings Manager/Director
6 (5.7) 3 (4.8)
Media Research
presentation, with respondents clicking from $1 million to $1.5 billion. Approxi-
on “Next” at the bottom of each page to mately half the agencies managed more Media/Marketing
— 3 (4.8)
progress through the study. than $100 million in billings. Approxi- Director
17.8 percent. The response rates of two On average, the agencies that employed
similar previous studies were 33.3 percent the media directors had been in operation campaign development. (They also were
(Leckenby and Kim, 1994) and 45.4 per- for 25 years. Mean number of employees at offered a formal option to add additional
cent (Leckenby and Kishi, 1982). those agencies was 68.5, with a range from factors.) Each respondent was requested to
The lower response rate in the current 7 to 650. Compared to the sampling frame check as many factors as their agency uses
study may be a result of conducting an of all agencies in the sample, medium and in evaluating offline and online media.
online survey, whereas the previous two large agencies were more likely to respond As shown in Table 2, a total of 11 and 19
surveys were delivered by mail. It has been to the survey. Most of the participants factors were used for offline and online
the general tendency for response rates of were senior VP/media director, VP/media media, respectively; see Table 2; Leckenby
online studies to be somewhat lower than director, or media director (67.4 percent; See and Kishi, 1982, Leckenby and Kim 1994;
comparable mail surveys (Couper, Blair, Table 1). Furthermore, the respondents had Shen, 2002).
and Triplett, 1997). For example, a sum- an average of 20 years’ experience in media For the factors used to evaluate offline
mary of the response rates of a host of planning. The median age of respondents media, the proportion of agencies using
Web-based surveys in 1999 showed that was 46 years (with a range from 25 to 62), each criterion has increased significantly,
the majority were in the 15- to 29-percent and the sample was composed of approxi- compared to Leckenby and Kim’s 1994
range. mately 31 percent male and 67 percent analysis:
Despite such typically low response female respondents. More than 83 percent
rates, empirical comparisons indicate that had college degrees, and 10.1 percent had a • “Reach” increased by 11.5 percent (z =
online surveys do provide more complete masters’ degree or higher. 2.07, p < 0.05)
information than conventional mail-in • “Cost per thousand (CPM) to target
surveys, so the quality of the data is not Evaluating Media Options market” increased by 14.7 percent (z =
sacrificed (Bachmann, Elfrink, and Vaz- Respondents were provided with a pre- 2.52. p < 0.05)
zana, 1996; Mehta and Sivadas, 1995; determined list of factors that might be • “Qualitative factors” increased by 17
Schaefer and Dillman, 1998). In addition, used to evaluate media options as part of percent (z = 2.99, p < 0.01)
Continuity 54 (70.1) 41 (65.1) 2.02 48 (65.8) 0.57 For the factors specifically listed with
Quintile analysis 32 (41.6) 37 (58.7) 2.02 20 (27.4) 1.82 regards to online media, “click-through
Media type budget allocation 51 (64.6) 32 (50.8) 1.65 49 (66.2) 0.22 rate” (97.3 percent), “unique visitors” (94.6
percent), “page views” (92.0 percent), and
Online purchase rate — — 47 (63.5)
“ad impressions” (96.0 percent) were men-
Click-through rate — — 73 (97.3)
tioned most often.
Unique visitors — — 70 (94.6) Using a five-point scale anchored by
Visitor duration — — 59 (80.0) “very important (5)” and “not at all impor-
Hits — — 46 (62.2) tant (1),” respondents further were asked
to indicate the degree of importance they
Page-views — — 69 (92.0)
attributed to each factor they checked pre-
Ad impressions — — 72 (96.0)
viously (See Table 3).
Cost per action/outcome — — 63 (87.5) The most notable finding is that “CPM
Note: aFindings from Leckenby and Kim (1994), *p < 0.05; **p < 0.01. to target market,” “qualitative factors,”
b
Comparison with Leckenby and Kim (1994) of proportions of factors used for offline media evaluation. and “average frequency” received the sig-
c
Comparison with proportions of factors used for online media evaluation.
nificantly higher mean importance scores
of 4.48, 4.67, and 4.45 apiece, respec-
• “Total schedule cost” increased by 15.9 Notably, the proportion of respondents tively—increases from the 1994 study of
percent (z = 2.75, p < 0.01 mentioning “effective reach” has signifi- 4.20 (t = 2.05, p < 0.05), 4.10 (t = 3.99, p <
• “Effective reach” increased by 16.5 per- cantly increased by 16.5 percent from the 0.01), and 4.00 (t = 3.48, p < 0.01).
cent (z = 2.35, p < 0.05). 1994 study. The perceived importance rating of
Three factors often mentioned as being “total schedule cost” rose to 4.55, from
Consistent with the 1994 findings of used for offline media also were found to 4.30 in 1994—a possible indication of
Leckenby and Kim, the factors most often be used by a majority of the agencies for the increasing client-side demand on
mentioned as being used in media evalua- online media: accountability. For online media, “cost
tion were as follows: per action/outcome” (4.77), “qualitative
• “CPM to target market” (90.5 percent) factors” (4.76), “ad impressions” (4.71),
• “Reach (92.5 percent) • “Qualitative factors” (91.8 percent) “click-through rate” (shortened to “click-
• “CPM to target market” (92.5 percent) • “Total schedule cost” (89.2 percent). throughs” in Table 3 owing to space limi-
• “Qualitative factors” (94.8 percent) tations) (4.67), and “unique visitors” (4.67)
• “Total schedule cost” (93.7 percent). were the five most important factors.
and large agencies were Yr. (5) (4) (3) (2) (1) M (5) (4) (3) (2) (1) M
’08 53.3 36.6 6.6 3.3 0.0 4.40 30.0 23.3 26.7 20.0 0.0 3.63
Reach
more likely to respond to ’94a 47.6 28.6 4.8 0.0 0.0 4.50 — — — — — —
The survey also found that factors t(124) = 2.05* t(140) = –0.26
with a history in offline media evalua- Qualitative ’08 64.5 31.6 0.0 0.0 0.0 4.67 75.0 16.7 2.8 0.0 0.0 4.76
tion—for example, “reach” (3.63) and factors ’94a 30.2 33.3 14.3 0.0 1.6 4.10 — — — — — —
“GRPs”(4.51)—scored significantly lower t(121) = 3.99** t(139) = –1.15
in the importance ratings, which had
Total
decreased from 4.40 (t = 4.95, p < 0.01) ’08 61.5 28.2 3.8 2.6 0.0 4.55 58.9 26.0 6.8 0.0 1.4 4.51
schedule
and 4.35 (t = 3.82, p < 0.01), respectively, ’94a 46.0 12.7 17.5 1.6 0.0 4.30 — — — — — —
cost
for online media. This indicates either
t(122) = 1.53 t(141) = 0.26
a lack of faith in the measurement tools
for online media and/or a lack of proper Frequency ’08 23.4 45.5 3.9 5.2 2.6 4.02 13.0 35.2 5.8 1.4 2.9 3.92
distribution ’94 a
34.9 25.4 14.3 3.2 0.0 4.20 — — — — — —
measurement tools (See Table 4).
The definition of “effective reach” may t(108) = –0.95 t(101) = 0.47
vary from one time period to another ’08 46.8 31.2 5.2 5.2 0.0 4.35 7.2 15.9 10.1 5.8 2.9 3.45
GRPs
owing to the changes in media technol- ’94a 38.1 19.1 12.7 4.8 3.2 4.10 — — — — — —
ogy and environment. Therefore, the 67 t(115) = 1.49 t(95) = 3.82**
respondents who indicated they used
Average ’08 38.2 42.1 3.9 2.6 2.6 4.45 17.4 31.9 7.2 2.9 1.4 4.00
“effective reach” for either offline or
frequency ’94a 28.6 19.1 22.1 4.8 0.0 4.00 — — — — — —
online media evaluation in this study were
t(109) = 3.48** t(108) = 1.33
asked how their agencies defined the term
“effective reach.” Effective ’08 60.3 23.1 2.9 2.6 2.6 4.50 27.5 23.2 5.8 1.4 1.4 4.24
The most frequent definition of effective reach ’94a 41.3 19.1 6.4 1.6 0.0 4.50 — — — — — —
Table 7
Perceived Accuracy of Reach-and-Frequency Estimation Models by Medium
Not Used Within 1 percent Within 2–5 percent Within 6–10 percent 11 percent or more
Media Typea Reach Freq. Reach Freq. Reach Freq. Reach Freq. Reach Freq.
Network TV 27.3 27.3 4.5 4.5 13.6 18.2 31.8 22.7 22.7 27.3
Spot TV 4.2 4.2 0.0 0.0 25.0 33.3 41.7 29.2 29.2 33.3
Cable TV 13.6 13.6 4.5 4.5 22.7 31.8 31.8 18.2 27.3 31.8
Radio 8.3 8.3 0.0 0.0 16.7 25.0 37.5 29.2 37.5 37.5
Magazines 26.0 26.1 4.5 8.7 21.7 17.4 39.1 39.1 8.7 8.7
Newspapers 36.4 36.4 0.0 4.5 13.6 9.1 31.8 31.8 18.2 18.2
Outdoor 31.8 36.4 4.5 0.0 4.5 9.1 27.3 22.7 31.8 31.8
Internet 50.0 50.0 0.0 4.5 4.5 0.0 18.2 18.2 27.3 27.3
Telephone Directories 81.8 81.0 0.0 4.8 4.5 0.0 9.1 9.5 4.5 4.8
Direct Mail 81.0 81.0 4.8 9.5 4.8 0.0 4.8 4.8 4.8 4.8
Note: an = 69.
Another future path of study is to confirm whether the have not yet been embraced by industry
practitioners.
findings of the current study apply to smaller agencies.
FUTURE DIRECTIONS
One of the limitations of the current work
is that the findings are confined to the
In fact, in the evaluation of online importance of media-exposure models viewpoints of one nation’s media direc-
media, the media directors in the study has increased over time. Nonetheless, tors. Media planning experts in other
sample evinced clear preference for such however, the perceived accuracy of those countries/cultures may evaluate media
online-specific factors as click-through models has decreased. Indeed, the media using different factors (or prioritize them
rates, number of page-views, ad impres- planners surveyed seemed to be more con- differently) and view reach-and-frequency
sions, and unique visitors. The pattern of cerned about this level of accuracy than estimation models differently than their
results not only points to a limit in the per- their peers in the past were. U.S. counterparts. Though there have
ceived application of some offline media The proportions responding to the item been some isolated efforts in the litera-
evaluation criteria to online media forms who estimated their reach-and-frequency ture to assess non–U.S. media planners’
but reinforces the notion that media pro- distribution was different from the views on reach-and-frequency and media-
fessionals still consider online media to be “actual” by 11 percent or more were con- evaluation issues, these studies have been
a medium in flux. siderably higher than those documented rare. Exceptions include E. Bigné’s 1990
Further reinforcing the differences in in the Leckenby and Kim (1994) study. study of perspectives of media planners
how media planning experts view offline The irony is that, despite their concerns, in Spain; Leckenby and Kim’s (1994) com-
and online media, the current study’s find- less than a third of respondents indicated parisons of selected data with opinions of
ings show that fully half of respondents that their agencies had tested the accuracy Taiwanese and Japanese media experts;
use neither reach nor frequency distribu- of their models within the past 5 years. As an early conceptual work by Catry and
tion models in dealing with the Internet as the media business becomes ever more Chevalier in 1973 on the development
a potential ad medium. complex, these models are likely to be per- of French media models; and Simon and
Among those who used one or both ceived as even less accurate if no changes Thiel’s 1980 study of German media-plan-
types of estimation models for online are made. ning models. Updating not only would
media, more than half consider the models It is also notable that, compared to the illuminate any cross-cultural differences
to be more than 6 percent “off” in terms 1994 study, the proportion of respondents among media planners in terms of reach/
of accuracy, with almost a third believ- using “reach” and “effective reach” for frequency issues but would cast light on
ing them to be inaccurate in terms of offline media has increased, Reach still whether (and to what extent) the increas-
frequency estimates by more than 11 per- is one of the primary considerations for ing complexity of media is a global phe-
cent—despite the fact that online media offline media and, compared to the 1994 nomenon and how non–U.S. planners are
have been hailed for their ability to yield study, more media planners have accepted responding.
vast amounts of detailed audience/behav- the concept of “effective reach.” Another future path of study is to con-
ior information. The actual practice of Continuous development of more firm whether the findings of the current
media professionals, in fact, underscores accurate media exposure models remains study apply to smaller agencies. On the
the belief of many that data quantity is not a priority if improved reach-and- assumption that very small agencies may
synonymous with data quality. More sim- frequencyestimation figures are to provide not be divided into separate departments
ply, these findings may indicate that there the basis for the development of such and may not have a dedicated media
simply are not many reach-and-frequency schedule-evaluation metrics as “effective director, the current sampling did not
estimation models—whether online-spe- reach.” In fact, some of the newer media- include agencies whose billings were less
cific or media neutral—that planners trust exposure models developed in academia than $1 million. In fact, the mean number
enough to use in their work when it comes (e.g., “Conditional Beta Distribution,” of employees at responding agencies was
to Internet media planning. Kim, 1994; “Hyper Beta Distribution,” 68.5, indicating that the current study’s
As the amount of media data available Cheong and Leckenby, 2005) have been results are more applicable to medium-
to planners has continued to expand, the demonstrated to be more accurate but to-large agencies that deal with regional
better integrate the Internet’s unique char- assistant professor in the department of marketing at Cheong, Y., and J. D. Leckenby. “The Hyper Beta
acteristics with more traditional media. the University of Akron. His research interests are in Distribution as a Web Media Exposure Model.”
Finally, the authors recommend future the areas of product placement, cognitive processing In Proceedings of the 2005 Conference of the Ameri-
researchers expand the scope of studies of marketing communications, and academia–industry can Academy of Advertising, Carrie LaFerle, ed.
assessing reach-and-frequency estima- relationships. His research has been published in Houston: American Academy of Advertising
tion and media-evaluation perceptions to journals such as Journal of Advertising, International (2005): 165–173.
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directors. Although some studies have Management. Couper, M. P., J. Blair, and T. Triplett. “A
looked at media selection factors among Comparison of Mail and Email for a Survey
advertisers (King and Reid, 1997; King Kihan Kim (PhD, University of Texas at Austin) is an of Employees in Federal Statistical Agencies.”
et al., 2004; Nowak et al., 1993), none have assistant professor of the sport management program Paper presented at the Annual Conference of
investigated perceptions of advertisers in the department of physical education at Seoul the American Association for Public Opinion
and nonmedia department agency person- National University. His research interests include Research, Norfolk, VA, 1997.
nel regarding their desire to simulate real- sports communication and media, sports economics,
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