Exercise 7D: Please help answer ALL questions. SHOW YOUR WORK please.

Exercise 7D: Effective Circulation and Cost Efficiency Analysis Revisit the portion of this chapter dealing with Gourmet News ad rates. The media plan for a new line of high-end cooking utensils calls for five 3rd cover, bleed ads. 1. At what frequency discount rate is this schedule priced? time rate 2. What is the space cost only for each ad? $ 3. What is the cost of each ad, including the bleed charge? $_ 4. What is the total cost of the five-ad schedule? $ 5. What is the total qualified circulation of Gourmet News? 6. What is the CPM for each cover ad based on the total qualified circulation? mula: Ad cost/Circulation x 1,000) (For- 7. The actual target audience for this campaign is Gourmet/Specialty Shops Gourmet Gift & Cookware Stores and Dept. Store Gourmet Depts What is the total population of readers within these three groups? 8. The relevant titles sought are Owners/Presidents is the total reader percentage for these two titles? % and Division/Store Mgrs % %. What 9. What is the "effective circulation" of this magazine? Multiply the total target readers (Step 7) by the relevant title percentage (Step 8). 10. What is the CPM for each cover ad based on the effective circulation? $ 11. Effective circulation + = Full Circulation ... Effective Circulation - Waste = Full Circulation zines for their client who makes espresso machines. The campaign will be six full page, 4-color For demonstration purposes, let's assume the media planner is considering two competing maga ads. The effective circulation cost efficiency analysis would look like the one in Exhibit 216 Exhibit 7.16 Publication Total Circ 25,695 25.300 Cost of each ad $6,694 $7.470 CPM for Total Circ $261 5295 Effective Circ 10.780 13,406 CPM for Effective Circ $621 $557 Gourmet News Gourmet Relaller While other considerations listed below may be involved in the selection of a trade magazine, this exercise shows that while Gourmet News is more cost efficient on the basis of total circula tion and Gourmet Retailer is a better buy on the basis of effective circulations. Other Cost Variables in National Consumer and Trade Magazine Advertising In the preceding examples, we covered five variables that can impact the cost of advertising in a national magazine. The size of the ad Number of colors Number of ads purchased (also called "Frequency of Insertion" or FOI in this book) Covers and other special positions Bleed Slx Other Cost Variables Specific to Magazines Regional editions. Many national consumer magazines sell space on a regional basis. Regional brands can access the circulation and prestige of a national magazine. The cost per thousand readers will be higher on a regional edition than the national CPM Split runs. When regional editions are available, national advertisers can run different ads in dif- ferent regions of the same issue, thereby being able to adjust the message for regional tastes or different products. Again, doing a split-run will be more expensive on a CPM basis than simply running the same ad nationwide. On-page customization. Advancements in magazine printing and binding technology have provided exciting new creative opportunities. The Cracker Jacks tear-off coupon is one example of what can be done (see Exhibits 7.17 and 7.18). The folded coupon was glued to a full , blank page. You could not miss it. You lifted the tab shown to reveal a message and instructions on how to remove the whole coupon from the page. Very tactile and memorable! Exercise 7D: Effective Circulation and Cost Efficiency Analysis Revisit the portion of this chapter dealing with Gourmet News ad rates. The media plan for a new line of high-end cooking utensils calls for five 3rd cover, bleed ads. 1. At what frequency discount rate is this schedule priced? time rate 2. What is the space cost only for each ad? $ 3. What is the cost of each ad, including the bleed charge? $_ 4. What is the total cost of the five-ad schedule? $ 5. What is the total qualified circulation of Gourmet News? 6. What is the CPM for each cover ad based on the total qualified circulation? mula: Ad cost/Circulation x 1,000) (For- 7. The actual target audience for this campaign is Gourmet/Specialty Shops Gourmet Gift & Cookware Stores and Dept. Store Gourmet Depts What is the total population of readers within these three groups? 8. The relevant titles sought are Owners/Presidents is the total reader percentage for these two titles? % and Division/Store Mgrs % %. What 9. What is the "effective circulation" of this magazine? Multiply the total target readers (Step 7) by the relevant title percentage (Step 8). 10. What is the CPM for each cover ad based on the effective circulation? $ 11. Effective circulation + = Full Circulation ... Effective Circulation - Waste = Full Circulation zines for their client who makes espresso machines. The campaign will be six full page, 4-color For demonstration purposes, let's assume the media planner is considering two competing maga ads. The effective circulation cost efficiency analysis would look like the one in Exhibit 216 Exhibit 7.16 Publication Total Circ 25,695 25.300 Cost of each ad $6,694 $7.470 CPM for Total Circ $261 5295 Effective Circ 10.780 13,406 CPM for Effective Circ $621 $557 Gourmet News Gourmet Relaller While other considerations listed below may be involved in the selection of a trade magazine, this exercise shows that while Gourmet News is more cost efficient on the basis of total circula tion and Gourmet Retailer is a better buy on the basis of effective circulations. Other Cost Variables in National Consumer and Trade Magazine Advertising In the preceding examples, we covered five variables that can impact the cost of advertising in a national magazine. The size of the ad Number of colors Number of ads purchased (also called "Frequency of Insertion" or FOI in this book) Covers and other special positions Bleed Slx Other Cost Variables Specific to Magazines Regional editions. Many national consumer magazines sell space on a regional basis. Regional brands can access the circulation and prestige of a national magazine. The cost per thousand readers will be higher on a regional edition than the national CPM Split runs. When regional editions are available, national advertisers can run different ads in dif- ferent regions of the same issue, thereby being able to adjust the message for regional tastes or different products. Again, doing a split-run will be more expensive on a CPM basis than simply running the same ad nationwide. On-page customization. Advancements in magazine printing and binding technology have provided exciting new creative opportunities. The Cracker Jacks tear-off coupon is one example of what can be done (see Exhibits 7.17 and 7.18). The folded coupon was glued to a full , blank page. You could not miss it. You lifted the tab shown to reveal a message and instructions on how to remove the whole coupon from the page. Very tactile and memorable