1. Exercise 4 Cost-Per-Thousand and Cost-Per-Point
Media Flight Plan
Exercise 4
Cost-Per-Thousand and
Cost-Per-Point

2. Cost-Per-Thousand & Cost-Per-Point
1. Calculate CPM, Total Cost, and Total Gross Impressions for each of the magazine titles shown. As you do the math, fill in the empty cells.
CPM Formula:
Example Using Redbook:

3. Cost-Per-Thousand & Cost-Per-Point
1. Calculate CPM, Total Cost, and Total Gross Impressions for each of the magazine titles shown. As you do the math, fill in the empty cells.
Total Cost for each publication can be obtained by multiplying the Full Page 4 Color Cost (FP4C) by the number of insertions. Using Redbook as an example:
$121,500 FP4C Cost x 2 Insertions = $243,000 Total Cost

4. Cost-Per-Thousand & Cost-Per-Point
1. Calculate CPM, Total Cost, and Total Gross Impressions for each of the magazine titles shown. As you do the math, fill in the empty cells.
Total Gross Imp (000) for each publication can be obtained by multiplying the Women Aud (000) by the number of insertions. Using Redbook as an example:
8537 (000) x 2 Insertions = 17,074 (000) Total Gross Impressions

5. Cost-Per-Thousand & Cost-Per-Point
1. Calculate CPM, Total Cost, and Total Gross Impressions for each of the magazine titles shown. As you do the math, fill in the empty cells.
Total Cost and Gross Impressions for the schedule are obtained by summing the respective columns. Schedule CPM is calculated using the CPM formula and the schedule totals:

6. Cost-Per-Thousand & Cost-Per-Point
2. Which of the magazines in Exhibit I is the most efficient – has the lowest CPM? Name the magazine, and show your math for calculating the CPM.
Prevention; CPM = $1.35

7. Cost-Per-Thousand & Cost-Per-Point
3. Which has the highest CPM (is least efficient) among all magazines on the list? Name the magazine and show your math for calculating the CPM.
Time Magazine; CPM = $20.23

8. Cost-Per-Thousand & Cost-Per-Point
4. The universe for women is 106,894 (000). What is the rating for Redbook and Woman’s Day? Show your math. If you've forgotten how to calculate ratings, review the formulas in Exercises 1 & 2. Show your math.
Use the formula:
Substituting:

9. Cost-Per-Thousand & Cost-Per-Point
5. Using the information supplied, fill in the missing values for all empty cells. Remember to round CPP to the nearest dollar.
Formula for CPP:
CPP For Survivor:

10. Cost-Per-Thousand & Cost-Per-Point
5. Using the information supplied, fill in the missing values for all empty cells. Remember to round CPP to the nearest dollar.
Total Cost for each program can be obtained by multiplying the :30 Cost by the number of insertions. Using Survivor as an example:
$245,800 :30 Cost x 1 Insertions = $245,800 Total Cost

11. Cost-Per-Thousand & Cost-Per-Point
5. Using the information supplied, fill in the missing values for all empty cells. Remember to round CPP to the nearest dollar.
Total GRPs for each program can be obtained by multiplying the HH Rtg by the number of insertions. Using Survivor as an example:
11.5 HH Rating x 1 Insertions = 11.5 GRPs

12. Cost-Per-Thousand & Cost-Per-Point
5. Using the information supplied, fill in the missing values for all empty cells. Remember to round CPP to the nearest dollar.
Total Cost and Gross Impressions for the schedule are obtained by summing the respective columns. Schedule CPP is calculated using the CPP formula and the schedule totals:

13. Cost-Per-Thousand & Cost-Per-Point
6. What is the CPP for Survivor? What does it mean?
The CPP for Survivor is $21,374. Cost Per Point is the amount required to purchase a single rating point for a particular audience. It is obtained by dividing the total cost by the total rating points of the program or schedule.

14. Cost-Per-Thousand & Cost-Per-Point
7. Relating to the TV programs above, Nielsen Media Research estimates that Total TV Homes for the season in question is MM. How many impressions are produced by one ad in 20/20?
Use the formula (from exercise 2):
Substituting:

15. Cost-Per-Thousand & Cost-Per-Point
8. What is a Gross Rating Point? Using the universe in question 7, how many impressions in one GRP?
Gross means that the exposures contain duplication. The number of gross impressions in a single rating point is equivalent to one percent of the target audience.