A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday.There are two newspapers in the community in which the retailer operates.An ad in Newspaper A will cost $500,and an ad in Newspaper B will cost $375.Newspaper A has a circulation of 10,000,and Newspaper B has a circulation of 8,000.After calculating the CPM,you know:
A)Newspaper A is the more cost-effective buy
B)both newspapers are equally cost-effective
C)Newspaper B is the more cost-effective buy
D)neither newspaper is cost-effective For the most cost-effective buy: ($500/10,000)x 1,000= $50.For both newspapers an equally cost-effective buy: ($375)/8,000)x 1,000 = $46.875

Question

Quizplus · Accepted Answer

Based on the calculation of CPM, Newspaper B is the more cost-effective buy as it has a lower cost per thousand impressions than Newspaper A. Therefore, the retailer should choose to place the ad in Newspaper B.

A Retailer Wants to Run an Ad Announcing That the New