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 usa today (newspaper) is $207,720 and its u. s. audience size is 1,711,696. the cost of a full-page color ad in the u. s. national edition of bloomberg businessweek (magazine) is $148,300 with an audience size of 900,000. 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 five media alternatives has the highest cpm?

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16

Explanation:

The CPM for each alternative can be expressed as;

CPM=total cost/audience size

a). CPM for U.S. national edition of USA Today is;

total cost of U.S national edition of USA toady=$207,720

U.S. audience size=1,711,696

replacing;

CPM for U.S. national edition of USA Today=207,720/1,711,696=$0.12

b). CPM for U.S. national edition of Bloomberg Businessweek (magazine) is;

total cost U.S. national edition of Bloomberg Businessweek (magazine)=$148,300

audience size=900,000

replacing;

CPM for U.S. national edition of Bloomberg Businessweek (magazine)=148,300/900,000=$0.16

c). CPM for U.S. national edition of Sports Illustrated (magazine) is:

total cost U.S. national edition of Sports Illustrated (magazine)=$396,600 audience size=3,000,000

replacing;

CPM for U.S. national edition of Sports Illustrated (magazine)=396,600/3,000,000=$0.1322

d). CPM for a 30-second ad on the most recent Super Bowl telecast is:

total cost for a 30-second ad on the most recent Super Bowl telecast=$3,800,000

audience size=108,400,000

replacing;

CPM for a 30-second ad on the most recent super Bowl=3,800,000/108,400,000=$0.035

The highest CPM is for the U.S. national edition of Bloomberg Businessweek (magazine) at $0.16

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