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ROAS* is the Rodney Dangerfield of media metrics. Gets not respect…after all, who needs to know whether advertising has generated any business value? And who needs a disciplined way to set the advertising budget when we already have the industry’s trusted planning methodology: “Hey, let’s plus that thing up a bit this year.” Or, “Sales […]

Cracking the Ad Responsiveness Code: A Tale of Two Theories

In: advertising, advertising effectiveness, Movable Middle, Reach, targeting
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A new approach to contrast Movable Middle and broad reach media planning theories proves which is best.

The most certain way to get more consumers to pay attention to your advertising is by targeting advertising to those who give a sh!t about your brand.

Marketing is not like slicing off a chunk from a loaf of bread where you get more in a bigger chunk. At some point, as you strive for more reach, you are moving ad impressions from high Movable Middle audiences to low Movable Middle audiences…not a good deal.

Ehrenberg-Bass researchers readily admit that consumers are heterogeneous in their brand preferences. Yet, they ignore the possibility that consumers also vary in their expected responsiveness to advertising even though they are mathematically linked.

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