Suppose the Following Information: the Cost of a Full-Page Color

question 315

Multiple Choice

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 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 of the following is the most appropriate metric to use to determine which medium would provide the most efficient use of your limited resources?

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

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Definitions:

Dividend Per Share

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from revenue.

Marginal Propensity

The proportion of an additional income that an individual is likely to consume rather than save.

Saving

The portion of income that is not spent on consumption but is kept aside for future use, investments, or emergencies.