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 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 (television)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

The most appropriate metric to use in this situation would be CPM (cost per thousand). CPM allows for a comparison of the cost of an ad in different mediums, taking into account the audience size. Using the given information, we can calculate the CPM for each medium:

- The Wall Street Journal: CPM = ($327,897 / 1,566,027) x 1000 = $209.39
- Sports Illustrated: CPM = ($396,600 / 3,000,000) x 1000 = $132.20
- Super Bowl: CPM = ($3,800,000 / 108,400,000) x 1000 = $35.08

Based on these calculations, the Super Bowl would provide the most efficient use of limited resources in terms of CPM.

Suppose the Following Information: the Cost of a Full Page