The value of incremental reach

Date of publication: June 15, 1992

Author: Howard Kamin

Abstract:

Advertisers desire accountability for their media expenditures. Information Resources Inc. (IRI) findings and other studies highlight that a critical variable in explaining sales is prior brand purchase. Secondly, reaching more of the brand target tended -to generate sales increases. This paper reviews an analytic approach that attempts to integrate these two hypotheses. It does this by analyzing the potential effect of incremental brand reach and its contribution to sales. The method is to calculate reach and frequency of specific brand network TV schedules in terms of how well they reach brand users vs. non-users. The reach difference between them is Incremental Reach. Incremental reach is used to analyze how well a schedule is targeted and its estimated contribution to sales. Targeting users directly, rather than using surrogate age and sex demographics, can lead to significant increases in incremental reach and incremental sales.

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