S and S” which markets toothpaste, must allocate its annual advertising budget of 400,000 dollars for the New York metropolitan area. They can purchase local radio spots at 200 dollars per spot, local TV spots at 1,000 dollars per spot and local influencers' (with super white teeth) instagram advertesing at 400 TL dollars mentioning of the product name. Local contraction requirements specify that they must spend at least 60,000 dollars on TV. Their general cooperative advertising policy prohibits annual influencer expenditures in excess of 100,000 dollars or in excess of 50% of the TV expenditures, whichever is smaller. The payoff from each advertising medium is a function of its audience size and audience characteristics, measured in “audience points”. The radio spots, TV commercials and influencer mentions are empirically found out to score 60 audience points, 300 audience points and 540 audience points, respectively. You are asked to allocate this advertising budget so that maximum audience points are achieved.

Answer rating: 100% (QA)

It is always better to invest more amount to social media platfo... View the full answer