When to Combine Television with Online Campaigns: Cost Savings versus Extended Reach

This work investigates under what circumstances a television campaign should be complemented with online advertising to increase combined reach.
Goerg et al.

MANAGEMENT SLANT

  • Advertisers need to optimize budget allocation between television and online media.
  • Better tools are needed to determine the optimal shift of budget to online media, as well as the expected additional reach.
  • Advertisers should not rely solely on traditional characteristics, such as target demographics or cost per gross rating point, to evaluate the efficiency of their campaign.
  • The real determinant of an optimal strategy to maximize reach lies in cost per effective reach point and its marginal efficiency on each media channel.

INTRODUCTION

Online media have become increasingly important for advertisers to complement...

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