Question

16. An online magazine charges $45,000 for a 3-month contract for a banner ad

displayed above its weekly feature article. The magazine has 120,000
subscribers and gets 195,000 hits per day. What is the banner's cost per
subscriber if a banner ad was taken for a year?

Answer 1

$1.50

Explanation:

There are 4 3-month periods in a year.

$45,000 per 3 months period × 4 = $180,000 cost

$180,000 ÷ 120,000 subscribers = $1.50

The banner ad costs about $1.50 per subscriber