CPM, GRP and Gross Impressions
1. The following table shows the circulation and ad costs (full-page, full-color) for a list of magazines. Calculate the CPM for each magazine and identify the magazine that offers the best CPM.
Magazine Circulation Ad Cost
AARP 20,390,755 $ 248,800
Readers’ Digest 15,038,708 208,000
TV Guide 13,103,187 155,200
Woman’s Day 4,163,248 140,055
Sports Illustrated 3,280,233 170,000
People 3,169,697 96,210
Cosmopolitan 2,701,916 99,550
2. If you run 2 commercials during this week’s episode of “Friends”, 3 commercials during “Survivor”, and 1 commercial during “Breaking Bad”. The TV ratings for these shows are listed as follows:
Friends 13.9
Survivor 12.8
Breaking Bad 14.2
Suppose the number of audience is 36,000. Calculate GRPs and gross impressions.