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Scenario 12-2 When Advertisers Consider Running Ads in American Life Magazine, They

question 55

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Scenario 12-2
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) An oak furniture manufacturer is considering buying an ad in American Life.The brothers who own the firm want to know more about the number of people who will see the ad, beyond just circulation figures.Their media planner talks about the average number of times an individual or household within a target audience will be exposed to the ad in American Life in a given period of time, a concept called

Definitions:

Statement Of Income

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, typically a quarter or year.

Realized Gains

Profits earned from the sale of assets or investments when they are actually sold, as opposed to when they increase in value on paper.

Amortized Cost

The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.