Scenario 12-2
When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition.For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older.In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas.American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts.The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300.The basic rate to reach the same 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300.
-(Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs.In other words, an advertiser might select American Life because it delivers the largest target audiences at the lowest cost.What is the term to describe this?

Question

Quizplus · Accepted Answer

The term to describe the efficiency of a medium in delivering the largest target audience at the lowest cost is known as cost per thousand (CPM). CPM refers to the cost an advertiser pays for reaching 1,000 potential customers or readers. In this scenario, American Life magazine offers different editions and demographic options for advertisers to reach their target audience efficiently. The basic rate mentioned for a full-page ad in the national edition ($91,300) and the single-column ad in the national edition ($31,300) also provide CPM values that advertisers can use while comparing different media options.

Scenario 12-2 When Advertisers Consider Running Ads in American Life Magazine, They