On Wednesday nights,a hit TV show commanded the highest advertising rates for the network TV season,charging advertisers $658,333 per 30 seconds.This ad cost was based on an average rating of 16.3 for this program during the previous TV season.The hit show reached an audience of almost 25 million viewers during one week in April.Calculate the CPP.

Question

Quizplus · Accepted Answer

First, we must calculate the Cost Per Thousand (CPM) using the given information:

CPM = (cost of ad / size of audience) x 1000
CPM = ($658,333 / 25,000,000) x 1000
CPM = $26.3333

Next, we must convert this CPM to Cost Per Point (CPP) using the show's average rating:

CPP = CPM / rating
CPP = $26.3333 / 16.3
CPP = $1.6147

Finally, we must multiply this CPP by 25 to get the cost for a 30-second ad during the week in April:

30-second ad = CPP x rating x 25
30-second ad = $1.6147 x 16.3 x 25
30-second ad = $6,605.15

Rounding this to the nearest dollar gives us:

30-second ad = $6,605

Therefore, the CPP for this show's advertising is $1.6147 and the cost for a 30-second ad during the week in April is $6,605. The closest answer choice is D, $40,388.

On Wednesday Nights,a Hit TV Show Commanded the Highest Advertising