Advertising Frequency and Diminishing Marginal Utility

diminishing-marginal-utility

Economists have a concept called Diminishing Marginal Utility. This means that each additional time a consumer consumes something they get less satisfaction from consuming it. So, if I have one coffee, I find it very satisfying, two could be OK, but by the time I get to three I’m not getting much additional satisfaction, infact, I’m going off coffee pretty fast. And if I were to drink ten coffees I’d feel like I was being tortured.

Now let me apply this thinking to the world of TV advertising and in particular, sponsorship. In the UK, quality drama is a favourite for sponsorship. One of the reasons for this is that these programmes attract a high quality loyal audience who make an appointment to view. Certain drama strands can be sponsored heavily in a cross-programme deal covering different programmes in the same genre. Whilst this may appear to present great media value it can mean over-exposure for both brands and consumers. Seeing a break bumper a couple of times is fine, but seeing the same branded break bumper ten times in the same evening can seem like drinking that tenth cup of coffee.