Published by MBA Skool Team, Last Updated: May 20, 2016
What is Net Reach in Advertising?
Net Reach in advertising refers to the total number of persons with at least one view of an ad, i.e., they have been exposed to the medium at least once. A viewer is considered to be reached if they have viewed the work at all.
This can be used for different demographics, including households.
The net reach is usually expressed as a percentage of the universal set. In net reach, each person who has at least one impression is counted, but they are counted only once, irrespective of the number of impressions of the person. Therefore, the number of impressions that a person has been subject to is irrelevant in the context of net reach. As a result, the value of the net reach will be lesser than that of the gross reach, since the gross reach metric uses the number of impressions as a unit of measure.
One of the aims of an advertiser would be to increase the net reach, while keeping the corresponding costs to a minimum. So the net reach is an important metric for measurement used in advertising management. Another important statistic that is used is the frequency of exposure.
For example, out of a population of 10000, if 2000 people have read an ad in the newspaper and 3000 have seen it on television, and 500 of these people are common to both, then the net reach would be (2000+3000-500) x 100 / 10000= 45% of the population
Hence, this concludes the definition of Net Reach in Advertising along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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