The cost of an ad in USA Today (newspaper) is $197,720 and has an audience size of 2,109,628.The cost of an ad in Sports Illustrated (magazine) is $336,000 and has an audience size of 3,150,000.The cost of a 30-second ad on the Super Bowl (television) is $3,000,000 and has an audience size of 100,000,000.Using this information, which of the following is the most appropriate metric to use to make the determination of which medium would provide the most efficient use of your limited resources?

Question

Quizplus · Accepted Answer

In order to compare the efficiency of the different advertising mediums, we need to calculate the cost per thousand impressions (CPM). This metric measures the cost of reaching 1,000 people in the target audience. Based on the given information, the CPM for USA Today is $93.67, for Sports Illustrated it is $106.67, and for the Super Bowl it is $30. Therefore, the most appropriate metric to use in this scenario is cost per thousand impressions (CPM), and the advertising medium with the lowest CPM is the most efficient use of resources. In this case, the Super Bowl has the lowest CPM, making it the most efficient use of resources.

The Cost of an Ad in USA Today (Newspaper) Is