Question

In order to compare the efficiencies of media, Derek calculates the CPM for each. For Golf Digest, the circulation is 500,000 and the cost for a full page ad is $40,000. The CPM for Golf Digest is:

Answer 1

$80

Step-by-step explanation:

CPM is the short form for 'cost per a thousand impressions.' Cost per thousand is a marketing expression used to refer to the cost of reaching 1000 readers, viewers, listeners, or webpage visitors. CPM is, therefore, the cost of advertising to an audience of 1000 people.

The Golf Digest has a circulation of 500,000. The cost of advertising is $40,000, which means the cost of reaching 500,000 people $40,000.

To get CPM, we first divide 500,000 by 1,000

=500,000 / 1,000

=500

CPM will be

= $40,000/500

=$80