Question

You need to spend $300,000 on the Travel Channel

The Cost Per Rating Point (CPP) is $9,972

The average TV rating for most cable networks is 0.5. Therefore the average rating for a spot is 0.5.

How many rating points can you purchase? (HINT: You know your budget and you know the cost for each rating point. Using these, you can figure out how many total rating points you can purchase)

How many commercials will you get?   (HINT: From above, you know how many rating points you can purchase and you also know how many rating point each commercial is. Using these, you can figure out how many total rating points you can get. Be careful on your math! Really think about this one.)

If you want to purchase the following schedule, how much will it cost you?

One spot per evening for one week (Monday through Sunday) – show your work. (HINT: Think about how many total spots you are purchasing, then figure out how many rating points you are purchasing and finally what is the cost of these rating points?)

NOTE: Show your work for each answer.

This might seem like a challenging question. Just think of it from a logic standpoint. There aren’t any formulas that you need to know. Just think of it as a logical problem rather than a math problem. I suggest starting this early so that you can use the open forum if you get stuck and have questions.

Answer 1

Notations Budget Cost per rating point 5 300,000.00One spot per evening for 1 week $ 9,972.00 Total spots Cost per rating point Total cost 3.5 9972 C-(A/B) Number of rating points that can be purchased 30.08Total rating points Average rating for one spot $34,902.00 E-(C/D) Number of spots/Commercials 60.17