1. Using advertising rate information for these magazines www.rdglobaladvertising.com/rates/rates.shtml?united_states_english), determine the cost per thousand of a full page, 4-color advertisement. Which magazine is more cost effective for advertisers?
2. Suppose a manufacturer of a diabetes testing monitor wants to advertise in AARP Magazine. Refer to Appendix 2, Marketing by the Numbers, to determine by how much the manufacturer’s sales must increase to break even on the purchase of 10 full-page, 4-color advertisements in AARP Magazine. Assume that the company has a 40 percent contribution margin. Should the advertiser purchase this advertising space?
AARP Magazine and Reader’s Digest are the top two magazines with regard to circulation. They also attract similar audiences. Although consumers aged 50+ are plugged in online like younger consumers, they still like print media, making these two magazines valuable media vehicles in which to reach seniors with their advertising.