Exercise ZF: Short-Rate Analysis Revisit the explanation of newspaper pricing. In July 2019, the ad executives at Nordstrom in Dallas, TX, planned their next annual advertising schedule that runs September 2019-August 2020. The plan called for 30 half-page b&w ads in the daily Dallas Morning News editions and 30 half-page color ads in the Sunday Morning News. 1. For what combined (Daily and Sunday) contract rate (not price) will Nordstrom qualify? x rate 2. Based on the combined contract rate, what is the contract price per ad that will be billed to Nordstrom as they run? Weekday $ Sunday $ 3. During the 2019-2020 contract year, Nordstrom actually ran all of the planned weekday ads but only 20 half-page color Sunday ads. Based on the contract rate established, what was the cost of all ads run? $ Weekday $ $ Sunday $ Total $ 4. What is the "earned" rate (not price) that should have applied to all ads run? X rate 5. What should have been the price of each ad based on the earned rate? Weekday $ Sunday $ 6. Based on the number of ads actually run and proper earned rate, what should The Dallas Morning News have billed Nordstrom? Weekday $ Sunday $ Total $ 7. When an advertiser does not fulfill its contractual obligations to the extent that different ad rates apply, this is called a situation. 8. What is the amount Nordstrom still owes The Dallas Morning News? (Step 6-Step 3) $ Exercise 7G: Cost Efficiency and Audience Conversion (A) Media Plan Components (B) Ad Unit (C) Cost per ad unit (D) FOI (F) Total Costs (E) HH Reached Per Ad (G) Total HH Impressions * Nat'l Magazines $94,000 4 Full-page, 4-color 4,200,000 30 second $20,500 8 2,150,000 Network TV (Fringe) Spot Market TV (25 deep) 30 second $14,600 10 1,875,000 Note: *FOI means Frequency of Insertion. Simply the number of ads run. 1. From the table above, compute the total cost for each medium and for the whole plan. Place your answers in the Total Costs column (F). 2. Determine the total HH impression delivery for each medium and for the total plan. Place yo answers in the Total HH Impressions column (G). 3. Compute the CPM/HH for this plan. $ 4. Compute the Adult universe assuming a HH universe of 105,400,000 and a conversion factor of 2.1 adults per household. 5. Compute the Adult impressions for this plan. 6. Compute the Adult rating point delivery for this plan. 7. Compute the cost per rating point (CPP) for this plan. $ The following questions are not related to the previous information or questions. 8. Three days before the Super Bowl, Chevy snags a "fire sale" deal for two unsold spots for $2 million each. The Super Bowl is expected to deliver 40 rating points for Persons 18+. How many rating points will this fire sale deal deliver? 9. Compute the expected CPP for Persons 18+ for the Chevy Super Bowl buy. $ 10. The CPP for the Academy Awards is $75,000. When comparing the Super Bowl and the Academy Awards CPP, what is the first question an astute media person would ask? 11. Now that you have gained clarity on comparing the Super Bowl and Academy Awards CPPs, what else could explain the difference? Exercise ZF: Short-Rate Analysis Revisit the explanation of newspaper pricing. In July 2019, the ad executives at Nordstrom in Dallas, TX, planned their next annual advertising schedule that runs September 2019-August 2020. The plan called for 30 half-page b&w ads in the daily Dallas Morning News editions and 30 half-page color ads in the Sunday Morning News. 1. For what combined (Daily and Sunday) contract rate (not price) will Nordstrom qualify? x rate 2. Based on the combined contract rate, what is the contract price per ad that will be billed to Nordstrom as they run? Weekday $ Sunday $ 3. During the 2019-2020 contract year, Nordstrom actually ran all of the planned weekday ads but only 20 half-page color Sunday ads. Based on the contract rate established, what was the cost of all ads run? $ Weekday $ $ Sunday $ Total $ 4. What is the "earned" rate (not price) that should have applied to all ads run? X rate 5. What should have been the price of each ad based on the earned rate? Weekday $ Sunday $ 6. Based on the number of ads actually run and proper earned rate, what should The Dallas Morning News have billed Nordstrom? Weekday $ Sunday $ Total $ 7. When an advertiser does not fulfill its contractual obligations to the extent that different ad rates apply, this is called a situation. 8. What is the amount Nordstrom still owes The Dallas Morning News? (Step 6-Step 3) $ Exercise 7G: Cost Efficiency and Audience Conversion (A) Media Plan Components (B) Ad Unit (C) Cost per ad unit (D) FOI (F) Total Costs (E) HH Reached Per Ad (G) Total HH Impressions * Nat'l Magazines $94,000 4 Full-page, 4-color 4,200,000 30 second $20,500 8 2,150,000 Network TV (Fringe) Spot Market TV (25 deep) 30 second $14,600 10 1,875,000 Note: *FOI means Frequency of Insertion. Simply the number of ads run. 1. From the table above, compute the total cost for each medium and for the whole plan. Place your answers in the Total Costs column (F). 2. Determine the total HH impression delivery for each medium and for the total plan. Place yo answers in the Total HH Impressions column (G). 3. Compute the CPM/HH for this plan. $ 4. Compute the Adult universe assuming a HH universe of 105,400,000 and a conversion factor of 2.1 adults per household. 5. Compute the Adult impressions for this plan. 6. Compute the Adult rating point delivery for this plan. 7. Compute the cost per rating point (CPP) for this plan. $ The following questions are not related to the previous information or questions. 8. Three days before the Super Bowl, Chevy snags a "fire sale" deal for two unsold spots for $2 million each. The Super Bowl is expected to deliver 40 rating points for Persons 18+. How many rating points will this fire sale deal deliver? 9. Compute the expected CPP for Persons 18+ for the Chevy Super Bowl buy. $ 10. The CPP for the Academy Awards is $75,000. When comparing the Super Bowl and the Academy Awards CPP, what is the first question an astute media person would ask? 11. Now that you have gained clarity on comparing the Super Bowl and Academy Awards CPPs, what else could explain the difference