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There are 40,000 people in your entire target audience (males 20-25).

Each episode of Program A has 5,000 viewers from your target audience (males 20-25).

This means that the REACH for one episode is 5,000.

It also means that the RATING for Program A, for your target audience (males 20-25) = 5,000/40,000 = 12.5% or 12.5.

In other words, when calculating for ONE episode: Rating = Reach (for one show) / Target

Note: As you learned in Chapter 9, rating is a percent, but it is not expressed that way (e.g. a rating of 10 = 10%).

Program B has a Rating of 10% or 10.

An advertisement on PROGRAM A costs $100

An advertisement on PROGRAM B costs $80

a) What is the REACH for one episode of Program B for your target (males 20-25)?

b) What are the total gross impressions for running an ad three times on PROGRAM A for your target audience (males 20-25)? (Gross impressions = # times ad runs x # exposed in your target audience for that program)

c) What are the total Gross Impressions for running an ad two times on Program B for your target audience (males 20-25)?

d) What are the total Gross Impressions for running an ad three times on Program A and two times on Program B for your target audience (males 20-25)?

e) What is the total cost of running an ad three times on PROGRAM A and two times on PROGRAM B?

f) Using the total Gross Impressions from part 'd' as your total audience and the total cost from part ‘e' for your cost of the media buy, what is the CPM for running an ad three times on PROGRAM A and two times on PROGRAM B? (see Cost Efficiency of Media Vehicles)

g) What is the GRP for running an advertisement 3 times on Program A? (Refer to Exhibit 9-6 & text for help)

h) What is the GRP for running an advertisement 2 times on Program B? (Refer to Exhibit 9-6 & text for help)

Operation Management, Management Studies

  • Category:- Operation Management
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