Assume there are 109.7 million households with televisions in the United States.
ID: 374666 • Letter: A
Question
Assume there are 109.7 million households with televisions in the United States.
Sony placed one 30-second TV ad for PlayStation 4 during NFL Monday Night Football on November 4 and another on November 11.
The cost to place each of these 30 second TV ads was $180,000.
15 million households (assume with 1 person each) watched the game on Nov. 4 and the same number watched on Nov. 11.
PlayStation 4 has a target consumer group that consists of males, ages 18 to 34. 2/3 of all those who watched the game on Nov. 4 and Nov. 11 were males aged 18 to 34.
On November 4th, 75 million households had their televisions turned on. On November 11th, 60 million households had their televisions turned on.
To the nearest cent, what was the Target CPM (also called Weighted CPM) for these advertisements?
Enter dollars and cents but without the dollar sign.
For example, if the answer is $88.50, enter: 88.50
Explanation / Answer
Answer:
Given:
Total advertisement cost = $180000
Target Audience for Playstation 4 = 2/3 *(15000000)
= 10000000
Therefore,
Target CPM = (180000/10000000)*1000
= $18
This means that Sony would effectively be paying $18 to advertise to 1,000 people (CPM= $18).
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