Imagine a retail store, Small Sounds, that sells portable music players designed to appeal to a young, hip, urban audience. The daily newspaper in Small Sounds’ city, The Journal, has a circulation of 139,000 and the average response rate to a 1/16-page advertisement is 2%. If Small Sounds places that type of advertisement for their store, they can expect roughly 2,780 individuals to respond to their ad.

There is also a local alternative publication that features reviews of restaurants, movies, music, and clubs called Excite! The average response rate to a 1/16-page advertisement is equivalent to The Journal, but the circulation is much lower (29,000).

Depending on the cost, it would seem that The Journal would be the better choice for a Small Sounds' advertisement, because of its large circulation. However, consider the demographics of the readership. It’s likely that the readers of Excite! have much in common with individuals who might purchase music players from Small Sounds. The products and advertising message may resonate well with a much higher percentage of Excite! readers, resulting in a higher response rate.

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