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The Power of Reach and Frequency In the Age of Digital Advertising

Article · December 2010


DOI: 10.2501/S0021849910091555

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The Power of Reach and Frequency
In the Age of Digital Advertising
Offine and Online Media Demand Different Metrics

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.

INTRODUCTION The most recent in-depth survey of media direc-


In recent years, the Internet has become a main- tors to provide a picture of how media planning
stream medium for advertisers. The number tasks are handled is more than 15 years old (Leck-
of media outlets and advertising formats has enby and Kim, 1994). Since that study, there has been
expanded rapidly and aggressively and continues only a handful of research on the practices of media
to expand; patterns of media consumption have planners; what has appeared has largely focused
constantly changed; and syndicated research firms on a specific medium, such as the Internet (Shen,
have come to provide marketers with more—and 2002) or newspapers (Reid, King, and Morrison,
more sophisticated—data (Turk and Katz, 1992; 1996). And, most often, that work has investigated
Edelman, 2007; Plummer, 2007; Kelley and Jugen- the opinions of advertisers, rather than agency-side
heimer, 2008). media specialists (King, Reid, and Macias, 2004).
Each of the changes poses serious challenges for Such analysis points to the need for a comprehen-
media planners. And, with the massive increase in sive assessment of media-planning practice.
the amount (and type) of data available, it would This study addresses the gap in understanding
be logical that the ways media practitioners handle perceptions of current practices in media planning.
media-planning tasks should have changed in the Specifically, it updates and extends the Leckenby
past decade as well. and Kim (1994) paper, “How Media Directors View
Unfortunately, very little is known about cur- Reach/Frequency Estimation: Now and a Decade
rent practices in—and perceptions of—the state Ago,” in the Journal of Advertising Research. To that
of media planning. Recent media-planning lit- end, the authors have surveyed senior media direc-
erature simply does not address such questions tors regarding various issues related to the factors
such as how planners evaluate alternative media used in evaluating alternative media schedules and
schedules or how they have reacted to recent major the usage and perceptions of reach-and-frequency
changes in the planning profession. estimation models for both off- and online media.

DOI: 10.2501/S0021849910091555 December 2010  JOURNAL OF ADVERTISING RESEARCH  403


The Power of Reach and Frequency in the Age of Digital Advertising

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.

404  JOURNAL OF ADVERTISING RESEARCH  December 2010


The Power of Reach and Frequency in the Age of Digital Advertising

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

December 2010  JOURNAL OF ADVERTISING RESEARCH  405


The Power of Reach and Frequency in the Age of Digital Advertising

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

mately 30 percent of the respondents Other titles 13 (12.5) 3 (4.8)


RESULTS were from agencies that had less than $50 Non-response 6 (5.7) —
Profile of Respondents million in billings, and 10 percent of the
Total 104 (100.0) 63 (100.0)
A total of 104 media directors completed respondents were from agencies billing
the survey, resulting in a response rate of more than $500 million per year. Note: aFindings from Leckenby and Kim (1994)

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)

406  JOURNAL OF ADVERTISING RESEARCH  December 2010


The Power of Reach and Frequency in the Age of Digital Advertising

Table 2 Despite those consistencies, however,


the proportion of some of the most pop-
Factors Used in Evaluation of Online and Offline Media
ular online-media factors were not as
Offline Online
popular­for online media:
’08 ’94 ’08
Factors (percent) (percent)a Zb (percent) Zc • “Reach” decreased by 50 percent (z =
Reach 74 (92.5) 51 (81.0) 2.07* 31 (42.5) 6.66** 6.66, p < 0.01)
CPM to target market 74 (92.5) 49 (77.8) 2.52* 67 (90.5) 0.44 • “Frequency distribution” decreased by
31.9 percent (z = 3.98, p < 0.01)
Qualitative factors 73 (94.8) 49 (77.8) 2.99** 67 (91.8) 0.74
• “GRPs” decreased by 58.9 percent (z =
Total schedule cost 74 (93.7) 49 (77.8) 2.76** 66 (89.2) 0.99
7.24, p < 0.01)
Frequency distribution 58 (74.4) 47 (74.6) 0.03 31 (42.5) 3.98** • “Average frequency” decreased by 41.7
GRPs 63 (80.8) 46 (73.0) 1.09 16 (21.9) 7.24** percent (z = 5.43, p < 0.01)
• “Effective reach” decreased by 37.5 per-
Average frequency 65 (85.5) 46 (73.0) 1.83 32 (43.8) 5.43**
cent (z = 4.92, p < 0.01).
Effective reach 67 (84.8) 43 (68.3) 2.35* 35 (47.3) 4.92**

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.

December 2010  JOURNAL OF ADVERTISING RESEARCH  407


The Power of Reach and Frequency in the Age of Digital Advertising

Compared to the sampling Table 3


The Importance of Factors Used in Media Evaluation
frame of all agencies
Offline Media Online Media

in the sample, medium Not Not


Very Important Important Very Important Important

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 — — — — — —

t(128) = –1.07 t(156) = 4.95**


the survey. CPM to ’08 50.0 43.6 1.3 0.0 1.3 4.48 54.2 34.7 1.4 2.8 0.0 4.51
target market ’94a 31.8 38.1 9.5 1.6 0.0 4.20 — — — — — —

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 — — — — — —

reach was “effective number of frequency t(112) = 0.17 t(110) = 1.40


exposure” (90.5 percent). Almost one-third ’08 24.0 40.0 9.3 4.0 1.3 4.03 18.6 41.4 14.3 0.0 0.0 4.06
Continuity
(31.3 percent) specifically defined it as a ’94 a
19.1 25.3 22.2 1.6 1.6 3.80 — — — — — —
minimum frequency exposure of three or
t(101) = 1.06 t(109) = –0.16
more. Other answers offered interesting
Quintile ’08 6.9 34.7 6.9 1.4 4.2 3.72 8.7 21.7 7.2 1.4 2.9 3.76
insights as well. One respondent noted
analysis ’94a 11.1 23.8 12.7 12.7 6.4 3.31 — — — — — —
that effective reach depends on unique
t(79) = 1.63 t(66) = –0.16
visitors within geographic or other demo-
graphic boundaries as defined by target Media type
’08 20.0 34.7 10.7 8.0 2.7 3.81 19.7 36.6 12.7 7.0 1.4 3.85
audience and syndicated research avail- budget
’94a 17.5 7.9 9.5 14.3 3.2 3.40 — — — — — —
able. Another wrote, “We believe that allocation

50  percent reach at a 3+ frequency is the t(88) = 1.48 t(110) = –0.25


minimum for all offline media types.” (continued)

408  JOURNAL OF ADVERTISING RESEARCH  December 2010


The Power of Reach and Frequency in the Age of Digital Advertising

Table 3 With respect to online media, one


respondent said online reach-and-fre-
The Importance of Factors Used in Media Evaluation (contd.) quency information is much harder to
Offline Media Online Media project, so media departments typically
Not Not look for higher share-of-voice by place-
Very Important Important Very Important Important ment by site rather than reach-and-
Yr. (5) (4) (3) (2) (1) M (5) (4) (3) (2) (1) M frequency data. Although there is still
disagreement on the specific number or
Online
purchase ’08 — — — — — — 40.8 22.5 5.6 2.5 1.4 4.35 range of “effective reach,” there seems to
rate be at least some agreement in using the
term effective reach in that most respond-
Click-
’08 — — — — — — 71.2 24.7 4.1 0.0 0.0 4.67 ents understood and tried to define it with
throughs
an effective number of exposures, which
Unique
’08 — — — — — — 65.3 29.2 1.4 0.0 0.0 4.67 has not changed since the Leckenby and
visitors
Kim 1994 study.
Visitor
’08 — — — — — — 31.0 47.9 5.6 1.4 1.4 4.20
duration
Use of (Computerized) Reach-and-
Hit ’08 — — — — — — 21.4 42.9 8.6 0.0 1.4 4.12 Frequency Estimation Models
Page-views ’08 — — — — — — 36.6 50.7 4.2 5.6 0.0 4.21 The majority of the respondent’s agencies
Ad used computerized models to estimate
’08 — — — — — — 71.8 25.4 1.4 0.0 0.0 4.71 both reach and frequency distributions
impressions
(96.6 percent and 93.2 percent, respec-
Cost per
’08 — — — — — — 73.2 18.3 1.4 0.0 0.0 4.77 tively) for a single media type (e.g., maga-
action
zines, which attracted 90.5 percent and
Note: aFindings from Leckenby and Kim (1994), *p < 0.05; **p < 0.01
87.3 percent, respectively, in the Leckenby
and Kim 1994 study).
Table 4 The current survey respondents were
asked to indicate the models their agency
Top Five Media Selection Criteria by Usage Frequency and
uses to estimate reach-and-frequency
Importance Ratings distributions from a list of 19 models
Top Five Factors by Usage Frequency (derived from Leckenby and Kim, 1994;
See Table 5). As a media department might
1994 Offline 2008 Offline 2008 Online
employ more than one model in its process
1. Reach 1. Qualitative factors 1. Click-throughs
of estimation, the reach-method question
2. CPM to target market 2. Total schedule cost 2. Ad impressions
generated 84 responses, and there were
3. Qualitative factors 3. Reach 3. Unique visitors
72 responses to the frequency-distribution
4. Total schedule cost 4. CPM to target market 4. Page views
questions.
5. Frequency distribution 5. Effective reach 5. Qualitative factors
The IMS models are currently the ones
used most often for both reach (39.2 per-
Top Five Factors by Perceived Importance
cent) and frequency (45.8 percent), fol-
1994 Offline 2008 Offline 2008 Online
lowed by Telmar models for both reach
1. Reach 1. Qualitative factors 1. Cost per action (14.2 percent) and frequency (16.7 percent;
2. Effective reach 2. Total schedule cost 2. Qualitative factors See Table 5). These data are consistent
3. Total schedule cost 3. Effective reach 3. Ad impressions with the findings from Leckenby and Kim
4. CMP to target market 4. CMP to target market 4. Click-throughs (1994).
5. Frequency distribution 5. Reach 5. Unique visitors
There was some indication that the
Note: Because of equal percentages or mean scores, the ties (equal ranks) are observed. popularity of some of the models used

December 2010  JOURNAL OF ADVERTISING RESEARCH  409


The Power of Reach and Frequency in the Age of Digital Advertising

Table 5 The proportion of the respondent’s agen-


cies that used other category-computer-
Models Used in Reach-and-Frequency Estimation
ized models to estimate both reach and
’08 (percent) ’94a (percent)
frequency distributions (21.4 percent and
Methods Reach Frequency Reach Frequency Z b
Zc 25.0 percent, respectively) were signifi-
IMS 33 (39.2) 33 (45.8) 26 (26.0) 23 (25.0) 1.92 2.79** cantly greater than those observed in the
1994 study (10.2 percent and 9.8 percent,
Telmar 12 (14.2) 12 (16.7) 18 (18.0) 17 (18.5) 0.68 –0.95
respectively; z = 2.37, p < 0.05 and z = 2.61,
Metheringham 6 (7.2) 6 (8.3) 15 (15.0) 12 (13.0) –1.67 –0.96
p < 0.01, respectively).
Beta Binomial 3 (3.6) 3 (4.2) 12 (12.0) 14 (15.2) –2.08* –2.30* Respondents were asked to indicate
MODAL II 0 (0.0) 0 (0.0) 9 (9.0) 8 (8.7) –2.82** –2.57* which types of personnel inside and out-
MEDIAC 0 (0.0) 0 (0.0) 2 (2.0) 2 (2.2) –1.30 –1.26 side of the agency usually requested data
related with reach-and-frequency dis-
Simulation 3 (3.6) 0 (0.0) 4 (4.0) 3 (3.3) –0.14 –1.55
tribution. As expected, media planners
Beta Matrix 0 (0.0) 0 (0.0) 3 (3.0) 3 (3.3) –1.60 –1.55
most often requested such information, as
Sainsbury 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — — observed in the 1994 study. Also consistent
Negative Binomial 0 (0.0) 0 (0.0) 1 (1.0) 1 (1.1) –1.30 –0.89 with previous surveys, media buyers were
Marketmath 3 (3.6) 0 (0.0) 0 (0.0) 0 (0.0) 2.69** — not prominent users of both reach and fre-
quency distribution information, although
Morgensztern 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — —
the results of 38.4 and 42.3 percent of
Agostini 3 (3.6) 0 (0.0) 0 (0.0) 0 (0.0) 1.91 —
the survey respondents indicate that the
Constant Casualness 0 (0.0) 0 (0.0) 1 (1.0) 1 (0.0) –0.92 –0.89 number of media buyers requesting such
Kwerel 3 (3.6) 0 (0.0) 0 (0.0) 0 (0.0) 1.91 — information is notably higher than it was
in the 1994 Leckenby and Kim study.
Hofmans 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — —

Dirichlet l 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — —


Performance of the Models
Loglinear 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — — Respondents were asked to rate their sat-
CANEX 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0) — — isfaction using a seven-point semantic dif-
Other 18 (21.4) 18 (25.0) 9 (10.2) 9 (9.8) 2.37* 2.61** ferential scale anchored by “Satisfied” (7)
and “Dissatisfied” (1). The study revealed
Total 84 (100) 72 (100) 100 (100) 92 (100)
somewhat lower mean satisfaction—4.67
Note: aFindings from Leckenby and Kim (1994), *p < 0.05; **p < 0.01.
for reach and 4.63 for frequency—com-
b
Comparison with Leckenby and Kim (1994) of models used in reach estimation.
c
Comparison with Leckenby and Kim (1994) of models used in frequency distribution estimation. pared to the previous Leckenby and Kim
(1994) study (4.8 and 4.5, respectively).
Excluding nonrespondents to this item,
in reach-and-frequency estimation has estimation, Beta Binomial (4.2 percent) and approximately 45.0 percent of respondents
changed, compared to the Leckenby and MODAL II (0.0 percent) were less frequently showed either negative or neutral degrees
Kim (1994) study. With respect to reach used (z = –2.30, p <. 01 and z = –2.54, p < of satisfaction with the current methods
estimation, Beta Binomial (3.6 percent) 0.01, respectively), but IMS (45.8 percent) for both reach-and-frequency estimation.
and MODAL II (0.0 percent) were less was more often used, compared to the 1994 Respondents then were asked how
frequently used (z = –2.09, p < 0.05 and z study (25.0 percent; z = 2.79, p < 0.01). accurate they considered their agency’s
= –2.82, p < 0.01, respectively) although The current study also offered an “other” reach-and-frequency distribution meth-
Marketmath (3.6 percent) was more often category: Specifically, follow-up questions ods compared to the “actual” reach-and-
used, compared to the 1994 study (0.0 per- regarding the specific nature of this other frequency distribution (if these could be
cent; z = 2.69, p < 0.01). category showed responses distributed known; See Table 6). For each estimation
With respect to frequency estimation, fairly evenly across Nielsen Stellar, Strata, method, 77.2 percent of those responding
consistent with the models used in reach Smart Plus, the AGB system, and Tapscan. estimated their reach estimate was different

410  JOURNAL OF ADVERTISING RESEARCH  December 2010


The Power of Reach and Frequency in the Age of Digital Advertising

Table 6 The percentages of respondents who


perceived that reach-and-frequency esti-
Perceived Accuracy of Reach-and-Frequency Estimation Models
mation models for magazines was accu-
Reach Frequency
rate within one percent of actual numbers
’08 ’94a ’08 ’94a were 4.5 and 8.7 percent, respectively,
Perceived Accuracy (percent) (percent) Z b
(percent) (percent) Z c
which was the highest among all media
Within 1 percent    2.8    2.0 0.94    2.8    2.0 0.29 types (See Table 7). Conversely, exposure
Within 2–5 percent   20.0   34.0 1.73   14.5   18.4 0.56 estimation models for radio were per-
ceived to be the least accurate. The per-
Within 6–10 percent   42.8   52.0 0.99   47.9   63.3 1.66
centages of respondents who perceived
More than 11 percent   34.4   12.0 2.78**   34.8   16.3 2.22*
that reach-and-frequency estimations
100 100 100 100 models for radio was at least six-percent
Total
(n = 70) (n = 50) (n = 69) (n = 49) different from the “actual” were 75.0 and
Note: aFindings from Leckenby and Kim (1994), *p < 0.05; **p < 0.01 66.7 percent, respectively. It is also note-
b
Comparison with Leckenby and Kim (1994) of proportions for the degrees of perceived accuracy of reach estimation models. worthy that 50 percent of the respondents
c
Comparison of proportions for the degrees of perceived accuracy of frequency distribution estimation.
indicated that they do not use reach or fre-
quency estimation for online media, which
from the “actual” by 6 percent or more. At from the “actual” by more than 11 percent may indicate a lack of (effective) compu-
82.7 percent, the corresponding response (34.4 percent for reach and 34.8 percent for terized models that incorporate the Inter-
for the frequency distribution was consid- frequency) and were significantly higher net data and the unique characteristics of
erably higher. These figures are higher than than those from the 1994 study (12.0 per- the medium.
those generated by the 1994 Leckenby and cent and 16.3 percent, respectively; z = Table 8 shows media directors’ per-
Kim study (64.0 percent for reach and 79.6 2.78, p < 0.01; z = 2.22; p < 0.05). Indeed, ception of the need for improvement in
percent for frequency), indicating decreas- only 2.8 percent of those responding to the accuracy of the reach-and-frequency
ing faith in the accuracy of the models. both reach and frequency estimations, distribution estimation methods used by
Additionally, the participants res­pond­ thought their models were within one per- their agencies. As expected, media direc-
ing to the items estimated their reach- cent of accuracy—similar to Leckenby and tors perceive the need to improve in the
and-frequency distribution were different Kim’s 1994 findings. accuracy of the reach-and-frequency

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.

December 2010  JOURNAL OF ADVERTISING RESEARCH  411


The Power of Reach and Frequency in the Age of Digital Advertising

Table 8 on qualitative considerations when they


weigh their media choices.
Extent of Improvements Needed in Reach-and-Frequency
This revelation comes despite the fact
Distribution Models that the media profession is increas-
Reach Frequency ingly complex, with more media/vehi-
’08 ’94a ’08 ’94a cle options and concomitant expansion
Improvement Needed (percent) (percent) Z b
(percent) (percent) Z c in data (Katz, 1991; O’Guinn, Allen, and
Semenik, 2009). Indeed, though qualita-
Great deal   24.3   23.1 0.15   24.6   24.5 0.00
tive factors were considered important in
Quite a lot   18.2   13.5 0.75   21.8   26.4 0.60
the Leckenby and Kim (1994) study, in the
Some   43.2   57.7 1.90   40.2   43.4 0.31 current research, qualitative considera-
None   14.3    5.8 1.51   13.4    5.7 1.36 tions emerged as the second most impor-
100 100 100 100 tant factor (tied with target market CPM)
Total
(n = 70) (n = 52) (n = 69) (n = 53) for offline media and second most impor-
tant factor for online media (outscoring all
Note: aFindings from Leckenby and Kim (1994), *p < 0.05; **p < 0.01.
b
Comparison with Leckenby and Kim (1994) of proportions for the extent of need for improvement in the accuracy of reach but one of the online-specific factors).
estimation models. Thus, in a more diverse media world,
c
Comparison with Leckenby and Kim (1994) of proportions for the extent of the need for improvement in the accuracy of
media directors seem to be eschewing
frequency estimation.
sophisticated/advanced empirical crite-
ria and, instead, relying on nonquantifi-
distribution estimation methods (See agency had tested the accuracy of any of able factors such as instincts, experience,
Table 8). Almost all respondents believe their reach or frequency estimation mod- or the “feel” of a medium. It may be that
at least “some improvement” is needed els within the past 5 years. senior media directors consider their pro-
for reach (85.7 percent of 70 respondents) Those who indicated that their agency fession has evolved too quickly, too richly,
and for frequency distribution (86.6 per- had tested the accuracy of reach-and-fre- and is too complicated to attempt empiri-
cent of 69 respondents). It is also impor- quency estimation models (20 respond- cal modeling with any trusted degree of
tant to note that almost one-fourth of the ents) were further queried as to the accuracy. The current study’s results also
respondents thought a “great deal” of standards they use to assess estimation show that more than a third of the sample
improvement is needed for reach-and- accuracy. The standards used to measure believe that the reach-and-frequency mod-
frequency estimation models—a figure the model accuracy included “compari- els being used currently by their agencies
similar to the 1994 data reported by Leck- son against actual, tabbed or survey data” are more than 11 percent “off” from reality
enby and Kim. (57.1 percent); “comparison against results (compared with approximately 10 percent
Finally, to understand also the issue from other models as the evaluation stand- believing this for reach models and 15 per-
of accuracy, the authors asked a series ard” (57.1 percent); “indications of model cent believing this for frequency models in
of related questions of the respondents. performance supplied by sources outside the Leckenby and Kim study).
For one, the research team asked the the agency” (42.9 percent); “availability The current study also reveals key
respondents to evaluate the importance of of various media statistics” (42.9 percent); results in terms of online versus offline
reach-and-frequency distribution model and “internal logic of the estimation mod- media, particularly in terms of media-
accuracy. Twenty-five percent of the els” (28.6 percent). exposure models and media-vehicle-
respondents said it is “very important”; selection factors. Some of the most
45.8 percent indicated the issue as being DISCUSSION popular criteria used for offline media
“somewhat important.” Longitudinal comparisons of the results (i.e., reach, frequency distribution, gross
Furthermore, despite the fact that the of the current study with findings from rating points (GRPs), average frequency,
accuracy of the models generally was the earlier works by Leckenby and col- and effective reach) were mentioned by
considered important by a majority of the leagues reveal some key findings for prac- less than half of the agency media direc-
media directors, only 29 percent of the titioners. First, the new data indicate that tors as a consideration in the evaluation
respondents (n = 69) indicated that their planners are relying to a greater extent of online media.

412  JOURNAL OF ADVERTISING RESEARCH  December 2010


The Power of Reach and Frequency in the Age of Digital Advertising

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

December 2010  JOURNAL OF ADVERTISING RESEARCH  413


The Power of Reach and Frequency in the Age of Digital Advertising

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