There are three cases, and in each case need to find which advertising magazines are efficient. Stub

There are three cases, and in each case need to find which advertising magazines are efficient.

 

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Stub Total Readers Digest Seventeen Total *000 187747 37423 3144 6499 Proj Pct. Pct. '000 Across Down 43349 7831 1027 1329 23.1 20.9 32.7 20.4 Index 100.0 91 141 89 100.0 18.1 2.4 Pop. Mechanics 3.1 You are considering advertising in the following magazines: Readers' Digest, Seventeen, Popular Mechanics You have access to 10% of the market. The customer pays $1.50 for the water and your variable costs are $0.50. The cost of producing the creative is $10,000. Case 1: Ad costs are CPM-$20 for all magazines. Case 2: Ad costs are CPM=$50 for all. Case 3: Ad costs are CPM=$20, but the product sells for $4.00. Stub Total Readers Digest Seventeen Total *000 187747 37423 3144 6499 Proj Pct. Pct. '000 Across Down 43349 7831 1027 1329 23.1 20.9 32.7 20.4 Index 100.0 91 141 89 100.0 18.1 2.4 Pop. Mechanics 3.1 You are considering advertising in the following magazines: Readers' Digest, Seventeen, Popular Mechanics You have access to 10% of the market. The customer pays $1.50 for the water and your variable costs are $0.50. The cost of producing the creative is $10,000. Case 1: Ad costs are CPM-$20 for all magazines. Case 2: Ad costs are CPM=$50 for all. Case 3: Ad costs are CPM=$20, but the product sells for $4.00.

Answer rating: 100% (QA)

To determine which advertising magazines are efficient we need to calculate the cost per thousand CPM for each magazine and compare it to the effectiveness of the magazine measured by the index Case 1 ... View the full answer