Mark places one - page, four- color advertisements for a new kind of projector in two magazines: Adventure & Cautionary Tales (ACT), which reaches 52,000 people, and Horrors of the Silver Screen (HSS), which delivers a readership of 64,000 per issue. He estimates that 18% of the readers of Horror of the Silver Screen also read Adventures & Cautionary Tales. Assume that only one impression shall be made for one readership.
a) If HSS charges $1,000 per ad, what price per add would mark have to negotiate with ACT to obtain the same CPM as HSS?
CPM = Advertising Cost ($)/ Impressions Generated (in thousands);
Thus, New ad cost = desired CPM * # impressions
New ad cost =(52,000/1000)*(1000/(64,000 /1000))
The new ad cost = $812.5
So the answer :- $812.5 per ad
Mark places one - page, four- color advertisements for a new kind of projector in two...
Mark places one - page, four- color advertisements for a new kind of projector in two magazines: Adventure & Cautionary Tales (ACT), which reaches 52,000 people, and Horrors of the Silver Screen (HSS), which delivers a readership of 64,000 per issue. He estimates that 18% of the readers of Horror of the Silver Screen also read Adventures & Cautionary Tales. Assume that only one impression shall be made for one readership. a) If ACT and HSS charge $1,200 and $1,500...