In media planning,[(Cost of ad space/circulation)x 1000] is the formula used to calculate:
A)index number.
B)cost per thousand.
C)absolute cost.
D)category development index.
E)brand development index.

Question

Quizplus · Accepted Answer

The formula [(Cost of ad space/circulation) x 1000] is used to calculate the cost per thousand (CPM) of an advertisement. This is a key metric in media planning as it helps to determine the cost-effectiveness of an advertising campaign. CPM is calculated as the cost of an advertisement divided by the number of impressions (or circulation) it will receive, multiplied by 1000. The resulting figure represents the cost of reaching 1000 people with the ad.

In Media Planning,[(Cost of Ad Space/circulation)x 1000] Is the Formula