Final answer:
Frequency capping allows advertisers to set limits on advertisement impressions to prevent ad fatigue and optimize campaign efficiency. It is regulated in various forms of media, with considerations for preventing media monopolies by entities owning multiple broadcasting outlets.
Step-by-step explanation:
Frequency capping is a term used in advertising that enables advertisers to set a limit on the number of times a specific advertisement is shown to the same person over a given period.
This concept is particularly relevant in the context of digital advertising, where the aim is to prevent ad fatigue among consumers and ensure a good user experience while optimizing the efficiency of the advertising campaign. Frequency capping can be set across various platforms including television, radio, and online channels.
The Federal Communications Commission (FCC) plays a role in regulating media ownership, including radio frequencies and television stations. Ownership rules vary for different types of media; for example, the FCC reviews regulations biennially to determine the number of broadcasting outlets that can be owned by a single entity.
While media monopoly restrictions within local markets are stringent, the number of radio stations one can own is more liberal, allowing ownership of up to eight stations in larger markets.