Question

1. an advertising agency convinced freddys, a local fish market, to advertise on a national broadcast channel. after seeing the results of the campaign, the owner realized his decision led to ______.

increased revenue
frequency lapse
advertising waste
impression yield

Explanation:

Analyze the business scenario

A local fish market (Freddy's) has a highly localized target audience. Advertising on a national broadcast channel reaches a massive audience, but the vast majority of those viewers cannot visit a local fish market.

Evaluate the options

• increased revenue: Unlikely to cover the high cost of national advertising because the local business cannot serve national customers.
• frequency lapse: Refers to gaps in ad repetition, which is not the primary issue here.
• advertising waste: This occurs when advertising reaches people who are not in the target market (non-potential customers). Since a local fish market is advertising nationally, most of the reached audience is wasted.
• impression yield: A metric related to ad delivery efficiency, not the negative strategic outcome of mismatched geographic targeting.

Determine the correct term

Reaching non-potential customers due to geographic mismatch is the definition of advertising waste.

Answer:

• increased revenue
• frequency lapse
• advertising waste (Correct answer)
• impression yield