What Is Reach Marketing? (And How to Calculate Market Reach)

By Indeed Editorial Team

Published August 22, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Reach marketing calculates the engagement metrics of your ad campaign to help companies optimize their time and use their resources. Understanding market reach helps you target your audience, enhance engagement, and increase a company's digital reach. As a marketing professional, knowing a campaign's reach helps you focus on achieving the best return on investment. In this article, we answer the question, "What is reach marketing?", explain its importance, share how to calculate it, explore how to calculate it, tell how you can use the results, review its types, compare it to impressions, and provide some tips.

Related: 10 Effective Strategies for Generating Leads in Marketing

What is reach marketing?

Knowing the answer to “What is reach marketing?” can help you better understand why this concept can help you improve an advertising campaign. Reach marketing refers to the estimated number of people who may have seen your advertisement online or offline. It's also how you determine if a marketing campaign is effective by calculating the number of potential customers it may attract.

For instance, if you have a spot on television, the market reach might be the number of people who watch that channel at the time the tv station shows your ad. If your ad is in a magazine, the total reach is the number of people who buy the magazine.

Why is reach marketing important?

This calculation is important because it can:

Minimize risks

Knowing how many customers your ad campaign can reach helps you make smarter decisions about the best way to spend your budget. This prevents you from overspending on marketing campaigns that can be ineffective. With such risks minimized, you can invest more in advertising campaigns that have a more profitable return on investment (ROI).

Plan well

Calculating market reach helps you understand how many potential new customers you can reach. This helps you ensure you have enough products manufactured or use enough human resources. Knowing customer needs and cultural trends can help you plan seasonal marketing campaigns.

Send appropriate messages

Reach marketing helps you understand who your customers are, which allows you to adjust the marketing language and tone to appeal directly to your audience. This enables you to create more effective and targeted advertising. It also prevents you from creating generic advertising that might not address the correct audience.

How to calculate market reach

Each advertising campaign has its own potential market reach. Making this calculation can help you estimate how many people the marketing campaign can convert into customers. Here's how you can calculate it:

1. Get your impressions

Most digital marketing platforms can calculate the market reach for all online digital campaigns. Some social media platforms allow you to check how many impressions your post made and your ROI. If the platform cannot provide you with those numbers, you can calculate the impressions by dividing the money spent on the campaign by the cost per thousand impressions (CPM) and then multiplying that by 1,000. The formula for calculating impressions is:

Impressions = Cost / CPM x 1,000

2. Determine your campaign's frequency

The average number of times a user sees the advertisement is the frequency of the campaign. The best way to calculate the frequency of the ad is to divide the impressions by the number of people who have actually seen the campaign. You can use this formula to determine the frequency:

Frequency = Impressions / Unique users

3. Calculate market reach

After getting the values for the campaign's impressions and frequency, you can calculate the actual market reach of the campaign. To do this, divide your impressions by the frequency of the ad campaign. You can use this formula to calculate the total reach :

Reach = Impressions / Frequency

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Using market reach strategically

Calculating market reach is the first step to building the most effective marketing campaign. Using market reach strategically starts with identifying the target customer. It can be tempting to create an advertising campaign that appeals to everyone, but you can typically see greater success when you create a strong marketing campaign for people who actually need the product. Once you know who those customers are, determine where they consume advertising the most.

When you know where your target audience is, conducting market research on each medium can tell you how many potential customers may see your advertising. This helps you create advertising with the potential to convert new customers. Other factors that can influence what advertising channels you use may include cost, customers' trust in a medium, and how many people may convert from viewers to customers.

Types of reach marketing

Here are the two types of reach marketing:

Narrow reach marketing

Narrow reach marketing focuses on a niche group of customers to ensure they receive the right message at the right time. As a niche group, these customers understand the products and services better. When customers believe that the product or service addresses their specific needs, you can see a higher conversion rate through your marketing.

Broad reach marketing

When companies aim to reach a large group of people with various traits, including locations, preferences, and needs, they use broad reach marketing. For broad marketing, use product aspects, such as price or options, which may appeal to a large group of people. As this approach reaches many prospects, it can help improve brand awareness.

Related: What Is a Target Market Analysis? (With Guide to Create One)

Is it better to track reach or impressions?

Market reach and impressions are two distinct metrics, and your goals determine which one is better for your campaign. Tracking impressions provide you with information about the advertisement in real time and whether you're overwhelming your audience with too many ads. If an ad is getting little to no impressions, you can change the framing or content to improve your metric.

Tracking the reach of your advertisement helps you understand how to make your campaign a success. If your ad has reached many people but you haven't had a good conversion, it's a sign that your ad's framework and content may require improvement. Keeping a broad audience enables many users to see your content who may then engage with it and share it with others.

Related: What Is Reach vs. Impressions? (And How to Choose Metrics)

Tips for increasing your marketing reach

Here are six tips to help you expand your market reach:

Network

Reaching all of your market audience can be difficult, as you may not have access to all your prospects, but there are many businesses that target similar audiences. Working with such businesses that target the same customers can help the business become more visible to its customers. Businesses get larger audiences when other credible businesses suggest their products or services.

Create newsletters

E-mail campaigns feel more personal and have the most clicks to the company's website than any other advertising channel. Newsletters help increase the market reach, but also help you target customers who are most likely to purchase the products or services. Newsletters are one of the marketing channels that offer the highest ROI.

Use social media platforms

Usually, people use social media platforms for many hours a day. Social media users see many types of content on their page or feed, including promotional content and advertisements. As these platforms have a fast content flow, they can be the easiest way to reach many people.

Try referral marketing

This refers to when the customers help you market the product or services by talking about the business to their acquaintances. This gives the business more credibility and helps you reach audiences you may not have reached using just your marketing campaigns. When a customer receives excellent service from the company, they communicate this to other prospects, which may contribute to increasing the customer base.

Related: A Guide to Marketing as a Career

Target your audience

Different audiences require different marketing strategies to have the most effect. This doesn't mean that's necessary for you to launch a campaign for each type of customer. You can diversify your marketing campaigns to reach different customers or people in different locations.

Use visual marketing

Messages are easy to consume and understand when presented in a visual form. For instance, people might avoid social media posts that have too many words on them. If you present the same information in image format, they're likely to read the small piece of content as they watch their feed.

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