The effectiveness of an ad's placement is often judged by its cost per thousand (CPM), or the cost of reaching 1,000 audience members. For example, an ad that costs $20,000 to place in a major newspaper that is read by 1 million people has a CPM of:
Question options:

a. $2.00
b. $20.00
c. $200.00
d. $1,000.00

Respuesta :

The effectiveness of an ad's placement is often judged by its cost per thousand (CPM), or the cost of reaching 1,000 audience members. For example, an ad that costs $20,000 to place in a major newspaper that is read by 1 million people has a CPM of:

c. $200.00

Explanation:

  • The effectiveness of an ad's placement is often judged by its cost per thousand (CPM), or the cost of reaching 1,000 audience members. For example, an ad that costs $20,000 to place in a major newspaper that is read by 1 million people has a CPM of:
  • c. $200.00
  • Cost per thousand impressions (CPM), is a term that is often used in traditional advertising media selection.
  • It is also used in the online advertising and web advertisements.
  • CPM is calculated by taking the cost of the advertising and dividing by the total number of impressions and then multiplying the total by 1000 (CPM = cost/impressions x 1000)
  • The calculation is as follows;
  • [tex]\frac{20000}{100000}[/tex]×1000
  • The result is $200.