Balancing the media budget, reach and frequency in marketing communications: a macro approach

Abstract

A macro model for the balancing of the media budget, reach and frequency
in marketing communications is presented. The model is solved for optimal
policies under four distinct decision environment scenarios. The first scenario
assumes that the media budget is given and the objective is to optimize the balance
between reach and frequency. The second assumes that frequency is fixed and the
objective is to select the optimal budget and the corresponding reach. In the third
scenario it is assumed that management did not make prior commitments and the
objective is, therefore, to optimize the media budget and the balance between
reach and frequency. In the last scenario, the case of fixed reach with the objective
of selecting the optimal budget and frequency levels is considered. Numerical
examples are utilized throughout the discussion to demonstrate how the suggested
model may be applied.