An advertiser wants to buy space on a popular reality TV programme and cannot discriminate between Masterchef Final and The Voice Final. Details of estimated audience size and advertising cost are as follows: Masterchef =2 million viewers; cost $45,000 per 30 sec spot. The Voice= 1.2 million viewers; cost $30,000 per 30 second spot. Masterchef is the optimal selection because it delivers the highest reach at the lowest cost per thousand.

Question

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Masterchef has a larger audience size (2 million viewers) than The Voice (1.2 million viewers) and a lower cost per thousand ($22.50 for Masterchef versus $25 for The Voice). Therefore, Masterchef is the optimal selection as it delivers the highest reach at the lowest cost per thousand.

An Advertiser Wants to Buy Space on a Popular Reality