English High School

When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts.
The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300. The basic rate to reach the same 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300.
(Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs. In other words, an advertiser might select American Life because it delivers the largest target audiences at the lowest cost. What is the term to describe this?

Group of answer choices
price/cost transparency
cost per thousand
cost per rating point
net promoter score

Answers

Answer 1

the CPM for the full-page, four-color advertisement in American Life magazine is:CPM = ($91,300 ÷ 2,847,600) × 1,000CPM = $32 The term that describes an advertiser's choice to select American Life because it delivers the largest target audiences at the lowest cost is Cost per Thousand (CPM).

Cost per Thousand (CPM) refers to the cost of advertising per one thousand impressions. The M in CPM represents the Roman numeral for 1,000. CPM, also known as cost per mille, is a metric that calculates the expense of an ad per 1,000 views or clicks. It assists advertisers in comparing the costs of different ad types and formats, as well as evaluating the relative cost-effectiveness of various advertising channels.

The formula for calculating CPM is: CPM = (Cost of Ad ÷ Number of Impressions) × 1,000In the given scenario, American Life magazine's basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300.

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