Problem #1:

Total Population: 150,000,000

We have developed a 30-second TV spot to air this year, aimed at launching a new product to our target of young, affluent, male auto enthusiasts. We have a budget of $4,500,000 allocated for the product launch and want to run this commercial as many times as we can afford to run it. Our account planner has decided that a Big Bang approach is needed, and so all of the money needs to be spent within days of the product launch, but we can time the product launch when we want. Below are the options he has suggested. Because of the scheduling of these events, we can only choose onedo not mix and match television events.

Television Event Cost of Ad Expected Viewers % of targeted audience as viewers

Superbowl: $2,200,000 62,500,000 16%

Daytona 500: $1,200,000 32,000,000 25%

Academy Awards: $1,100,000 32,000,000 10%

Indianapolis 500: $ 440,000 12,500,000 40%

1. For each TV event above, determine CPM, GIMP, TIMP, Reach, and Frequency. (10 total points)

(4 total points)	CPM	GIMP	TIMP	Reach	TCPM
Superbowl	17.209	12,78,40,909.1		41.7%	107.556
Daytona 500	10.000	12,00,00,000.0		21.3%	40.000
Academy Awards	8.403	13,09,09,090.9		21.3%	0.840
Indy 500	3.442	12,78,40,909.1		8.3%	0.086

2. Which event should we advertise during, if our goal is to maximize GIMP? (1 point)

Academy Awards

3. Which event should we advertise during, if our goal is to maximize TARGET impressions? (1 point)

Indy 500

4. Which event should we advertise during, if our goal is to maximize REACH? (1 point)

Super Bowl

5. Which event should we advertise during, if our goal is to cost efficient with TCPM? (1 point)

Indy 500

6. Consider your calculations and what each of the figures tell you. Which event would you suggest advertising on? Be sure to explain in detail your rationale for your selection. (2 points)