If you ordered a TV commercial to run on a local TV program that could reach 500,000 households for a cost of $1,000, what would your CPM be? Group of answer choices $0.50 $2.50 $4.50 $5.00 $2.00
Question
If you ordered a TV commercial to run on a local TV program that could reach 500,000 households for a cost of $1,000, what would your CPM be? Group of answer choices
$0.50
$2.50
$4.50
$5.00
$2.00
Solution
CPM stands for Cost Per Mille, which is the cost of a thousand advertisement impressions on a single webpage. If you want to find the CPM for a TV commercial, you would use the formula:
CPM = (Cost of the ad / Number of Impressions) x 1000
In this case, the cost of the ad is $1,000 and the number of impressions is 500,000 households. So you would calculate it like this:
CPM = ($1,000 / 500,000) x 1000
This simplifies to:
CPM = $2.00
So, the CPM for this TV commercial would be $2.00.
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