Question

Advertisers use the reach argument to say that on a per exposure basis, advertising is very very cost effective. Your professor is in strong disagreement with this statement. Can you tell me why advertising on an exposure by exposure basis is very very expensive and not generally cost effective at all?

Answer 1

Advertising on an exposure by exposure basis is highly expensive and not usually cost effective at all. This is because in a typical day a consumer sees and hears several advertisements. However not all of these advertisements create an impression in the mind of the potential customers. As a consumer you tend to forget most of the advertisements and commercials that you are exposed to.

Very few advertisements propel a potential buyer into action in the form of sale, or submitting a form (contact request or registration). Thus on a per exposure basis advertising is expensive as most of it does not result in a concrete and tangible action from potential buyers and target customers.