Question

Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of a full-page color ad in the U.S. national edition of USA Today (newspaper) is $207,720 and its U.S. audience size is 1,711,696. The cost of a full-page color ad in the U.S. national edition of Bloomberg Businessweek (magazine) is $148,300 with an audience size of 900,000. The cost of a full-page color ad in the U.S. national edition of Sports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $3,800,000 and has an audience size of 108,400,000. Using this information, which of the five media alternatives has the highest CPM?

Answer 1

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16

Step-by-step explanation:

The CPM for each alternative can be expressed as;

CPM=total cost/audience size

a). CPM for U.S. national edition of USA Today is;

total cost of U.S national edition of USA toady=$207,720

U.S. audience size=1,711,696

replacing;

CPM for U.S. national edition of USA Today=207,720/1,711,696=$0.12

b). CPM for U.S. national edition of Bloomberg Businessweek (magazine) is;

total cost U.S. national edition of Bloomberg Businessweek (magazine)=$148,300

audience size=900,000

replacing;

CPM for U.S. national edition of Bloomberg Businessweek (magazine)=148,300/900,000=$0.16

c). CPM for U.S. national edition of Sports Illustrated (magazine) is:

total cost U.S. national edition of Sports Illustrated (magazine)=$396,600 audience size=3,000,000

replacing;

CPM for U.S. national edition of Sports Illustrated (magazine)=396,600/3,000,000=$0.1322

d). CPM for a 30-second ad on the most recent Super Bowl telecast is:

total cost for a 30-second ad on the most recent Super Bowl telecast=$3,800,000

audience size=108,400,000

replacing;

CPM for a 30-second ad on the most recent super Bowl=3,800,000/108,400,000=$0.035

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16