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Ratings, CPP and CPM: Problem Set 1 You are the media planner for the Leo Burnett...

Ratings, CPP and CPM: Problem Set 1

You are the media planner for the Leo Burnett advertising agency in Chicago and one of your largest accounts is thinking about expanding into the Ohio market. Your job is to evaluate the top four television stations in Ohio and determine which stations are generally the most cost efficient when trying to reach the local adult population during prime time viewing. Therefore, you must calculate the GRPs, GIMPs, CPM, and CPP for each of the local stations.

           

Station

Adults

(impressions)

Ad Cost

(per Ad)

# of Ads

(frequency of Ad)

RTG

GRPs

GIMPs

WQAF

200,000

$9,000

12

15

180

2,400,000

WDAS

180,000

$8,300

14

16

224

2,520,000

WCWK

250,000

$10,800

7

25

175

1,750,000

WHME

80,000

$5,700

7

10

70

560,000

Station

CPP

CPM

WQAF

$ 600.00

$ 45.00

WDAS

$ 518.75

$ 46.11

WCWK

$ 432.00

$ 43.20

WHME

$ 570.00

$ 71.25

Overall, what station do you think was the best set of buys? Why?

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Answer #1

WDAS is the best set of buys as it has

  • Highest frequency of Ads
  • Per Ad Cost is second lowest
  • CPM is 2nd highest
  • GRP (Gross Rating Point) is highest
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