Question

The basketball season is about to start, and the owners of the Red Lions team want to advertise that fact in their home metropolitan area. They plan to run a full-page newspaper ad in Metro News. The readership of Metro News is 850,000 and the cost of the ad is $82,000. What is the cost per thousand (CPM) of this campaign?

Answer 1

Answer:

$96.47

Explanation:

The Cost per thousand (CPM)  refers to the cost of a media used in reaching 1,000 members of an audience. The M in CPM is the Roman numeral for 1,000.

The formula for cost per thousand (CPM) is:

CPM = (Cost of 1 Unit of a Media Program) ÷ (Size of Media Program's Audience) x 1,000

Cost of 1 Unit of a Media Program (Cost of the ad) = $82,000

Size of Media Program's Audience(Readership of Metro News)= 850,000

Therefore:

CPM = (82000 ÷ 850000) X 1000

        =$96.47