If a magazine ad costs $500,000, total readership is 20,000,000, but only 2,000,000 fit the advertiser's target profile, the weighted (or demographic) cost per thousand (CPM) would be:

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The weighted CPM is calculated by dividing the cost of the ad by the number of target audience (in thousands). So, $500,000 / (2,000,000 / 1,000) = $250.

If a Magazine Ad Costs $500,000, Total Readership Is 20,000,000