Question

1. Suppose Alpen wants to start a TV advertising campaign to enhance brand awareness. It has allocated €722,000 for this purpose and the local rates for quality target viewers are €3.61 per thousand exposures. If the exposure frequency is 25 and the expected conversion rate from reached viewer to acquired customer is 1.75%, calculate the number of new customers that the TV campaign will produce.

Answer 1

Solution

Given that the budget for the advertising campaign is € 7,22,000

The local rates for quality target viewers are €3.61 per thousand exposures

The exposure frequency is 25 meaning the probability that we actually reach the people is 25

The expected conversion rate from reached viewer to acquired customer is 1.75%; meaning the probability that the reached people will become our customer is 1.75%

With €3.61 we will be able to reach 1000 exposures /chances to reach the people

So,with the budget of € 7,22,000 ,we will reach (7,22,000 * 1000) / 3.61) people

= ((7,22,000 * 1000) / 3.61) * (0.25) *(1.75 / 100)

= 8,75,000 new customers

Hope this solution is of help to you !! Please give a"ThumbsUp" rating in case you liked it !!