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) Based on the figures provided, what is the CPM of a single-page, full-color advertisement in American Life's national edition?

Question

Quizplus · Accepted Answer

CPM (cost per thousand) is calculated by dividing the cost of the ad by the number of readers reached (in thousands), multiplied by 1,000.

For the full-page, four-color advertisement in the national edition: 
CPM = ($91,300 / 2,847.6) x 1,000 = $32.06

Therefore, the correct answer is C) $32.06.

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