CPM with Respect to Advertising Is Defined as The

question 152

Multiple Choice

CPM with respect to advertising is defined as the:

• A)cost per minute of television or radio time.
• B)reach multiplied by frequency divided by the cost of reaching 1,000 individuals or households with the advertising message.
• C)cost of reaching 1,000 individuals or households with the advertising message.
• D)cost of one medium relative to the cost of other media (e.g. direct mail versus television, radio, or outdoor), each of which are divided by the multiple of their respective reach and frequency.

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Definitions:

Expected Utility

A theory in economics that explains how people make decisions under uncertainty, based on the anticipated satisfaction or utility from outcomes.

Risk-averse

A description of an individual or entity that prefers to avoid risk, often opting for the less risky of available options.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Expected Total Utility

The sum of satisfaction or benefit that an individual expects to receive from consuming goods or services.