Because of management’s concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. Similarly, for newspaper ads, the preceding data are reliable up to a maximum of 20 the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads.įlamingo’s management team accepted maximizing the total exposure rating across all media as the objective of the advertising campaign. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. For radio ads, the preceding data are reliable up to a maximum of 15 ads. For planning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. After 10 ads, the benefit is expected to decline. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.Īt this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in each medium.

It is a function of such things as image, message recall, visual and audio appeal, and so on. The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. In a meeting with Flamingo’s management team, HJ consultants provided the following information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reached per ad, and the cost for each ad:Īdvertising Media Exposure Rating per Ad New Customers per Ad Cost per Ad The management team requested HJ’s recommendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertising firm of Haskell and Johnson (HJ). The Flamingo Grill is an upscale restaurant located in St.

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