Magazine A has a cost for a full-page ad of $10,000 and a circulation figure of 5,000,000.Of these 5,000,000 subscribers,40 percent are tennis buffs.Magazine B has a cost for a full page of $10,000 and a circulation of 3,000,000.Of the 3,000,000 subscribers 75 percent are tennis buffs.If you sold tennis racquets and wanted to compare the cost per thousand (CPM)of these magazines,which would you choose?
A)Magazine A
B)Magazine B
C)Magazine A would be just as effective as Magazine B
D)More information is needed on audience size
E)More information is needed on costs

Question

Quizplus · Accepted Answer

To calculate the cost per thousand (CPM) for tennis buffs, we need to divide the cost of the ad by the number of tennis buffs per thousand readers.

For Magazine A: 
Number of tennis buffs = 5,000,000 x 0.40 = 2,000,000 
CPM = $10,000 / (2,000,000/1000) = $5

For Magazine B: 
Number of tennis buffs = 3,000,000 x 0.75 = 2,250,000 
CPM = $10,000 / (2,250,000/1000) = $4.44

Therefore, Magazine B has a lower CPM for our target audience and would be the better choice.

Magazine a Has a Cost for a Full-Page Ad of $10,000