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One of the most common measures in advertising is cost per thousandGroup of answer choicesimpressions.occurrences.purchases.new trials.frequencies.

Question

One of the most common measures in advertising is cost per thousandGroup of answer choicesimpressions.occurrences.purchases.new trials.frequencies.

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Solution

One of the most common measures in advertising is cost per thousand impressions.

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A media buying agency has recommended the following 3 options to a marketing manager for his advertising campaign with a budget of  $ 1 million. The 3 options utilize different amounts of the budget. The sales of this product are $24 million in a market of $200 million and the total advertising expenditure in the category is $8.33 million.  The product is not a new product but a brand leader in the market for some years. The 3 options are:Option 1                                  Option2                       Option 3GRPs   600                                800                               900Reach    70%                             60%                             65%CPM    $20                                 $20                             $20SOV       8%                                  12%                            16%Which option should the marketing manager choose? Explain your choice.

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