Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $327,897 and its U.S. audience size is 1,566,027. The cost of a full-page color ad in the U.S. national edition of Sports Illustrated (magazine) is $396,600 and has an audience size of 3,000,000. The cost of a 30-second ad on the most recent Super Bowl telecast is $3,800,000 and has an audience size of 108,400,000. Using this information, which of the following is the most appropriate metric to use to determine which medium would provide the most efficient use of your limited resources?

Question

Quizplus · Accepted Answer

CPM (cost per thousand) is the best metric to use to determine which medium would provide the most efficient use of limited resources. CPM allows for a comparison of the cost per 1,000 audience members reached, regardless of the medium. To calculate CPM, you divide the cost of the ad by the audience size, and then multiply by 1,000. By using CPM, it is possible to compare the efficiency of different advertising mediums.

Suppose the Following Information: the Cost of a Full-Page Color