Suppose the Cost of a Full-Page Color Ad in the U.S

question 214

Multiple Choice

Suppose 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 metric should be used to determine the most efficient medium would?

• A) reach
• B) frequency
• C) CPM
• D) rating
• E) GRP

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Definitions:

Net Cash Flow

The variance between the cash coming into and going out of a business within a set timeframe.

Compound Interest

The calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return, reflecting the time value of money.

Earnings Rate

The rate at which an investment or savings account generates income over a specific period of time.