Similarly, for online 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. 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 plan- ning 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 fist 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 At 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 recal, visual and audio appeal, and so on. 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 New Customers Cost xposure Advertising Media Rating per Ad per Ad per Ad Television 90 4,000 2,000 $10,000 $ 3.000 $ 1,000 Radio 25 Online 10 1,000 The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers.
The management team requested HJ's recom- mendation concerning how the advertising budget should be distributed across television radio, and online advertisements. To help plan an advertising campaign for the coming season, Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ). Case Problem1 PLANNING AN ADVERTISING CAMPAIGN The Flamingo Grl is an upscale restaurant located in St.
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