O Image Source

Reach and frequency are terms typically used when planning an advertising campaign. Reach is the number of people who are exposed at least once to an advertising message over a specific period of time, usually four weeks. Frequency is the number of times a person is subjected to an advertising message over a certain interval of time. You added that it is important to determine which is more effective, to touch $100$ viewers once or $25$ viewers four times? Impressions refer to the total number of exposures to your advertisement $($i$.$e$.,$ reach multiplied by frequency$).$ The media cost is the price you pay the TV channel to broadcast your advertisement. The target market is the total number of people who could potentially be exposed to your advertisement. The rating is a number, ranging between $0$ and $100,$ that corresponds to the amount of estimated viewers of a particular television program $($or$,$ the target market size reached by a campaign when it is broadcasted on a local TV program$).$ These data are sourced from surveys or research companies such as Nielsen.

Using the data below, you worked with Grazyna to calculate the revenue per ad dollar of the three TV campaigns being broadcast to Sacramento viewers during various programs.

Television Campaign: Local News Program

Number of Spots: $5$

Rate $($Ad Cost per Spot$)$: $$80,000$

Target Market $($Sacramento$,$ CA$)$: $466,488$

Rating $($Obtained from Nielsen Data$)$: $3\mathrm{.}8$

Revenue per Impression $($Obtained from Company Data$)$: $$65$

Television Campaign: Local Sitcom

Number of Spots: $8$

Rate: $$35,000$

Target Market: $466,488$

Rating $($Obtained from Nielsen Data$)$: $2\mathrm{.}5$

Revenue per Impression: $$45$

Television Campaign: Local Talk Show

Number of Spots: $10$

Rate: $$15,000$

Target Market: $466,488$

Rating $($Obtained from Nielsen Data$)$: $1\mathrm{.}6$

Revenue per Impression: $$25$