Exhibit 7.12 Sample Rate Card Based on Dollars Spent 1-3 Months 4-6 Months 6-9 Months 10-12 Months Premium Plus, Power Tiles, Skyscrapers Monthly Dollar Commitment Adult CPM Adult CPM Adult CPM Adult CPM $17.25 $14.66 $12.08 $8.63 $15.53 $13.20 $10.87 $7.76 $0-$1,000 $1,001-$2,000 $2,001-$3,000 $3,001-$4,000 $13.80 $11.73 $9.66 $6.90 $12.08 $10.26 $8.45 $6.04 Super Tile Ads 1-3 Months 4-6 Months 6-9 Months 10-12 Months Monthly Dollar Commitment Adult CPM Adult CPM Adult CPM Adult CPM $11.73 $9.66 $6.90 $13.80 $12.65 $10.75 $8.86 $6.33 $0-$500 $501-$1,000 $1,001-$1,500 $1,501-$2,500 $2,501-$4,000 $11.50 $9.78 $8.05 $5.75 $10.35 $8.80 $7.25 $5.18 $8.63 $7.33 $6.04 $4.31 Exhibit 7.14 DOR DO BASI Harvard Business Review PRINT EDITION RATE CARD Estimated Pass-along: 3.3 readers per copy CIRCULATION & READERSHIP Paid Circulation 210,300 Circulation Break-out by 51% C Suite title 45% Top Mgmt/VP 8% CFO 7% CMO 9% CIO STANDARD ADVERTISING UNITS Size Black & White Two-Color Four-Color $42,350 $48,000 $51,250 Full Page 1/2 Page Spread $50,600 $51,750 $55,300 2/3 Page $33,850 $41,000 1/2 Page 1/3 Page $27,500 $19,100 $38,150 $31,050 $21,500 $33,300 $23,100 Covers 2nd Spread $122,950 3rd $56,350 4th $66,600 FREQUENCY DISCOUNTS 3x 6x 9x 12x 3% 6% 9% 12% Agency Com 15% (continued) SPECIAL UNIT PRICING Bound-in card $30,600 premium Split run copy $1,500 premium Bleed 10% premium Inserts Call for quote 2018 ISSUE DATES & CLOSINGS Issue Month Fractional Orders On Sale Fractional Ad Due Page/Spread Page/Spread Orders Dues Ads Due Due Oct 26, 2017 Nov 14, 2017 Nov 9, 2017 Nov 20, 2017 Dec 26, 2017 Feb 27 Jan 2 Jan 16 Jan 11 Jan 22 Feb 22 Mar 13 Mar 8 Mar 19 Apr 24 Jan/Feb Mar/Apr May/Jun Jul/Aug Sep/Oct Nov/Dec Apr 26 May 15 May 10 May 21 Jun 26 Jun 28 Jul 17 Jul 12 Jul 23 Aug 28 Aug 30 Sep 18 Sep 13 Sep 24 Oct 30 Source: Harvard Business Review, 2018. Exhibit 7.22 LAMAR BILLBOARD RATES: PORTLAND, OR DMA OUTDOOR ADVERTISING CPM CPP Weekly Facings GRPS 4-Week Imp (000) 32,058 4-Week Rate 4-Week Reach % 4-Week Freq. 19 300 32 $190,400 65% $635 $5.94 $6.24 250 26 26,047 62% 16 $162,500 $138,180 200 21 57% 14 $6.57 $650 $691 $739 150 16 $110,800 51% 12 $6.91 21,038 16,029 11,020 5,009 100 11 $80,190 42% 10 $7.28 $8.08 $802 $808 50 5 $40,375 23% 8 Source: Lamar Outdoor, 2018. Exhibit 7.23 Ranker for radio stations in Portland, OR. Target Demo is Men 18-34 Station Estimates M-F 6a-10a (Ranking) M-F 10a-3p (Ranking) M-F 3p-7p (Ranking) (1 tie) 1.8 8,400 Sat-Sun 6a-12m (Ranking) (5) 0.6 3,600 KNRK-FM (1) 2.4 (1 tie) 2.4 Average Rating Average M 18-34 11,700 12,300 KYCH-FM (1 tie) 2.4 Average Rating Average M 18-34 (2) 1.5 7,500 (1 tie) 1.8 8,400 (1 tie) 0.9 4,200 12,000 KGON-FM (2) 1.5 Average Rating Average M 18-34 (3 tie) 0.9 5,100 (3 tie) 1.5 6,900 (1 tie) 0.9 4,800 7,500 KRSK-FM (3 tie) 0.9 (5) 0.6 (5) 1.2 (1 tie) 0.9 Average Rating Average M 18-34 4,800 3,000 6,300 4,800 KWJJ-FM (4) 0.9 (3 tie) 1.5 Average Rating Average M 18-34 (3 tie) 0.9 4,200 (1 tie) 0.9 4,500 5,100 6,600 Source: Nielsen, 2018. Exhibit 7.24 Spt Wk 1 $ Wk 1 Adults 18-34 GRP CPP Rch % $.00 Freq Total $$ AQH Rtg 13.3 Rch (00) KKRZ-FM 198 25 $4,950 66.5 74.44 26.6% 1193 2.5 M-F 5a-10a 280 M-F 10a-3p 260 M-F 3P-8pm 250 M-Su 6a-12m 50 Sa-Su 6a-8p* 150 KKCW-FM 207 lalalalala $1,400 $1,300 $1,250 $250 $750 $5,175 2.6 3.7 2.7 2.4 1.9 3.2 13.01 107.69 18.5 70.27 13.5 92.59 20.83 9.5 78.95 16.0 323.44 9.3% 11.6% 9.6% 10.0% 7.3% 6.4% 417 530 446 446 331 296 1.4 1.6 1.4 1.2 1.3 2.5 12.0 25 1.5 M-F 5a-10a 300 M-F 10a-3p 300 M-F 3P-8p* 280 M-Su 6a-12m 35 Sa-Su 6a-8pm 120 KEWS/KEX 140 5 5 5 5 5 25 $1,500 $1,500 $1,400 $175 $600 $3,500 0.6 1.2 0.7 0.5 0.2 2.3 3.0 500.00 6.0 250.00 3.5| 400.00 2.5 70.00 1.0 600.00 11.5) 304.35 2.0% 3.2% 2.5% 2.1% 0.8% 5.0% 98 147 114 105 36 232 1.9 1.4 1.2 1.3 2.3 M-F 5a-10a M-F 10a-3p M-F 3P-8p* M-Su 6a-12m Sa-Su 6a-8p* Total 250 250 150 25 25 182 5 $1,250 5 $1,250 5 $750 5 $125 $125 75 $13,625 ciolololo 0.4 1.0 0.4 0.4 0.1 18.8 2.0) 625.00 5.0 250.00 2.0) 375.00 2.0 62.50 0.5 250.00 94.0 1.5% 2.6% 1.4% 1.7% 0.4% 34.8% 64 117 70 83 16 1571 1.3 1.9 1.4 1.2 1.3 2.7 Exhibit 7.25 WCCO 4 Minneapolis-St Paul OCBS Daypart/ Program Week 1 - Week 2 Week Week 3 4 TI A25-54 Spots Rating A25-54 Imp(000) Dur Cost M-F 6a-9a :60 $575 5 5 5 5 20 1.5 15 WCCO/CBS News M-F 3p-4p Dr. Phil :30 $825 2 2 2 2 8 1.8 18 M-F 4p-7p Rotator :15 $1,050 3 3 3 3 12 3.0 30 M-F 7p-8p Extra/Ent. Tonight Tu 8p-9p :30 $1,050 3 3 3 3 12 3.3 33 NCIS :30 $9,000 1 1 2 5.4 54 Wed 8p-9p Survivor :30 $10,500 1 1 2 5.4 54 :30 $12,000 1 1 8.4 84 Thur 8p-9p Big Bang/Young Sheldon M-Su 11p-11:35p WCCO 4 News M-F 11:35-12:30 Late Show w/Colbert WCCO Totals :60 $1,125 3 3 3 3 12 1.8 18 :30 $950 2 2 2 2. 00 8 1.2 12 Total Cost $103,400 20 19 19 19 77 258.8 1,704 Source: WCCO TV, 2018. THE RIGHT COST 259 Exercise 7E: Finding Media Prices, Audiences, and Efficiencies Consult the rate card for the print edition of the Harvard Business Review, Exhibit 7.14. time rate equating 1. What frequency discount would be used for an eight-ad schedule? to a % discount on all ads 2. What is the cost of each 72 page, 2-color, bleed ad that is to run eight times in the Harvard Business Review (HBR)? $. 3. If one of the ads in HBR is scheduled to run in the May/June edition, what is the deadline for the ad material to be at the publication? 4. Assume 51% of HBR readers are CEOs. Not counting any pass-along readership, how many CEOs read HBR? 5. Based on the cost in question 2, what is HBR CPM for CEOs only? $ Consult the Outdoor (Billboard) advertising rate card, Exhibit 7.22. The GRP and impression fig- ures here are for Persons 18+. 6. Assume you are buying a 200 showing (200 GRPs per week) and your target audience is women 18-34, which is 22% of the 18+ population in Portland. How many target impressions are delivered by this buy over a four-week period? 7. What is the cost of this campaign? $_ 8. What is the CPM for the effective circulation among Women 18-34? $_ Consult the radio station ranker, Exhibit 7.23. 9. How many Men 18-34 does each ad reach on the second most popular radio station in the M-F Morning Drivetime daypart? 260 1 CHAPTER 7 10. How many rating points does each ad deliver on that radio station? 11. Knowing that one rating point represents 1% of the universe, what is the correct mathematical expression for your answer to question 10? 12. What is the radio universe of the 18-34 Male audience? (Q9 / Q11) Consult the typical radio schedule, Exhibit 7.24. 13. How many rating points (GRPs) does this schedule deliver? 14. What is cost of this schedule? $ What is the CPP for this schedule? $ 15. What is the total Cume Reach % from the table? 16. What is the cost for each percentage point of Reach? Consult the WCCO-TV proposal, Exhibit 7.25. 17. What is the total cost of the proposal? $ 18. What is the total number of impressions delivered among Adults 25-54? 19. What is the CPM for this proposal? $ Consult the rate card for OregonLive.com, Exhibit 7.12. 20. You are spending a total of $7,500 evenly over five months on Super Tile Ads that will ap- pear on OregonLive.com. What is the CPM price for all Adults? $ 21. Your target audience for this buy on OregonLive.com is actually Males 18+, which represents 48% of the adult population. What is the CPM for this target audience effective circulation? $ Show your work in the space below. Exhibit 7.12 Sample Rate Card Based on Dollars Spent 1-3 Months 4-6 Months 6-9 Months 10-12 Months Premium Plus, Power Tiles, Skyscrapers Monthly Dollar Commitment Adult CPM Adult CPM Adult CPM Adult CPM $17.25 $14.66 $12.08 $8.63 $15.53 $13.20 $10.87 $7.76 $0-$1,000 $1,001-$2,000 $2,001-$3,000 $3,001-$4,000 $13.80 $11.73 $9.66 $6.90 $12.08 $10.26 $8.45 $6.04 Super Tile Ads 1-3 Months 4-6 Months 6-9 Months 10-12 Months Monthly Dollar Commitment Adult CPM Adult CPM Adult CPM Adult CPM $11.73 $9.66 $6.90 $13.80 $12.65 $10.75 $8.86 $6.33 $0-$500 $501-$1,000 $1,001-$1,500 $1,501-$2,500 $2,501-$4,000 $11.50 $9.78 $8.05 $5.75 $10.35 $8.80 $7.25 $5.18 $8.63 $7.33 $6.04 $4.31 Exhibit 7.14 DOR DO BASI Harvard Business Review PRINT EDITION RATE CARD Estimated Pass-along: 3.3 readers per copy CIRCULATION & READERSHIP Paid Circulation 210,300 Circulation Break-out by 51% C Suite title 45% Top Mgmt/VP 8% CFO 7% CMO 9% CIO STANDARD ADVERTISING UNITS Size Black & White Two-Color Four-Color $42,350 $48,000 $51,250 Full Page 1/2 Page Spread $50,600 $51,750 $55,300 2/3 Page $33,850 $41,000 1/2 Page 1/3 Page $27,500 $19,100 $38,150 $31,050 $21,500 $33,300 $23,100 Covers 2nd Spread $122,950 3rd $56,350 4th $66,600 FREQUENCY DISCOUNTS 3x 6x 9x 12x 3% 6% 9% 12% Agency Com 15% (continued) SPECIAL UNIT PRICING Bound-in card $30,600 premium Split run copy $1,500 premium Bleed 10% premium Inserts Call for quote 2018 ISSUE DATES & CLOSINGS Issue Month Fractional Orders On Sale Fractional Ad Due Page/Spread Page/Spread Orders Dues Ads Due Due Oct 26, 2017 Nov 14, 2017 Nov 9, 2017 Nov 20, 2017 Dec 26, 2017 Feb 27 Jan 2 Jan 16 Jan 11 Jan 22 Feb 22 Mar 13 Mar 8 Mar 19 Apr 24 Jan/Feb Mar/Apr May/Jun Jul/Aug Sep/Oct Nov/Dec Apr 26 May 15 May 10 May 21 Jun 26 Jun 28 Jul 17 Jul 12 Jul 23 Aug 28 Aug 30 Sep 18 Sep 13 Sep 24 Oct 30 Source: Harvard Business Review, 2018. Exhibit 7.22 LAMAR BILLBOARD RATES: PORTLAND, OR DMA OUTDOOR ADVERTISING CPM CPP Weekly Facings GRPS 4-Week Imp (000) 32,058 4-Week Rate 4-Week Reach % 4-Week Freq. 19 300 32 $190,400 65% $635 $5.94 $6.24 250 26 26,047 62% 16 $162,500 $138,180 200 21 57% 14 $6.57 $650 $691 $739 150 16 $110,800 51% 12 $6.91 21,038 16,029 11,020 5,009 100 11 $80,190 42% 10 $7.28 $8.08 $802 $808 50 5 $40,375 23% 8 Source: Lamar Outdoor, 2018. Exhibit 7.23 Ranker for radio stations in Portland, OR. Target Demo is Men 18-34 Station Estimates M-F 6a-10a (Ranking) M-F 10a-3p (Ranking) M-F 3p-7p (Ranking) (1 tie) 1.8 8,400 Sat-Sun 6a-12m (Ranking) (5) 0.6 3,600 KNRK-FM (1) 2.4 (1 tie) 2.4 Average Rating Average M 18-34 11,700 12,300 KYCH-FM (1 tie) 2.4 Average Rating Average M 18-34 (2) 1.5 7,500 (1 tie) 1.8 8,400 (1 tie) 0.9 4,200 12,000 KGON-FM (2) 1.5 Average Rating Average M 18-34 (3 tie) 0.9 5,100 (3 tie) 1.5 6,900 (1 tie) 0.9 4,800 7,500 KRSK-FM (3 tie) 0.9 (5) 0.6 (5) 1.2 (1 tie) 0.9 Average Rating Average M 18-34 4,800 3,000 6,300 4,800 KWJJ-FM (4) 0.9 (3 tie) 1.5 Average Rating Average M 18-34 (3 tie) 0.9 4,200 (1 tie) 0.9 4,500 5,100 6,600 Source: Nielsen, 2018. Exhibit 7.24 Spt Wk 1 $ Wk 1 Adults 18-34 GRP CPP Rch % $.00 Freq Total $$ AQH Rtg 13.3 Rch (00) KKRZ-FM 198 25 $4,950 66.5 74.44 26.6% 1193 2.5 M-F 5a-10a 280 M-F 10a-3p 260 M-F 3P-8pm 250 M-Su 6a-12m 50 Sa-Su 6a-8p* 150 KKCW-FM 207 lalalalala $1,400 $1,300 $1,250 $250 $750 $5,175 2.6 3.7 2.7 2.4 1.9 3.2 13.01 107.69 18.5 70.27 13.5 92.59 20.83 9.5 78.95 16.0 323.44 9.3% 11.6% 9.6% 10.0% 7.3% 6.4% 417 530 446 446 331 296 1.4 1.6 1.4 1.2 1.3 2.5 12.0 25 1.5 M-F 5a-10a 300 M-F 10a-3p 300 M-F 3P-8p* 280 M-Su 6a-12m 35 Sa-Su 6a-8pm 120 KEWS/KEX 140 5 5 5 5 5 25 $1,500 $1,500 $1,400 $175 $600 $3,500 0.6 1.2 0.7 0.5 0.2 2.3 3.0 500.00 6.0 250.00 3.5| 400.00 2.5 70.00 1.0 600.00 11.5) 304.35 2.0% 3.2% 2.5% 2.1% 0.8% 5.0% 98 147 114 105 36 232 1.9 1.4 1.2 1.3 2.3 M-F 5a-10a M-F 10a-3p M-F 3P-8p* M-Su 6a-12m Sa-Su 6a-8p* Total 250 250 150 25 25 182 5 $1,250 5 $1,250 5 $750 5 $125 $125 75 $13,625 ciolololo 0.4 1.0 0.4 0.4 0.1 18.8 2.0) 625.00 5.0 250.00 2.0) 375.00 2.0 62.50 0.5 250.00 94.0 1.5% 2.6% 1.4% 1.7% 0.4% 34.8% 64 117 70 83 16 1571 1.3 1.9 1.4 1.2 1.3 2.7 Exhibit 7.25 WCCO 4 Minneapolis-St Paul OCBS Daypart/ Program Week 1 - Week 2 Week Week 3 4 TI A25-54 Spots Rating A25-54 Imp(000) Dur Cost M-F 6a-9a :60 $575 5 5 5 5 20 1.5 15 WCCO/CBS News M-F 3p-4p Dr. Phil :30 $825 2 2 2 2 8 1.8 18 M-F 4p-7p Rotator :15 $1,050 3 3 3 3 12 3.0 30 M-F 7p-8p Extra/Ent. Tonight Tu 8p-9p :30 $1,050 3 3 3 3 12 3.3 33 NCIS :30 $9,000 1 1 2 5.4 54 Wed 8p-9p Survivor :30 $10,500 1 1 2 5.4 54 :30 $12,000 1 1 8.4 84 Thur 8p-9p Big Bang/Young Sheldon M-Su 11p-11:35p WCCO 4 News M-F 11:35-12:30 Late Show w/Colbert WCCO Totals :60 $1,125 3 3 3 3 12 1.8 18 :30 $950 2 2 2 2. 00 8 1.2 12 Total Cost $103,400 20 19 19 19 77 258.8 1,704 Source: WCCO TV, 2018. THE RIGHT COST 259 Exercise 7E: Finding Media Prices, Audiences, and Efficiencies Consult the rate card for the print edition of the Harvard Business Review, Exhibit 7.14. time rate equating 1. What frequency discount would be used for an eight-ad schedule? to a % discount on all ads 2. What is the cost of each 72 page, 2-color, bleed ad that is to run eight times in the Harvard Business Review (HBR)? $. 3. If one of the ads in HBR is scheduled to run in the May/June edition, what is the deadline for the ad material to be at the publication? 4. Assume 51% of HBR readers are CEOs. Not counting any pass-along readership, how many CEOs read HBR? 5. Based on the cost in question 2, what is HBR CPM for CEOs only? $ Consult the Outdoor (Billboard) advertising rate card, Exhibit 7.22. The GRP and impression fig- ures here are for Persons 18+. 6. Assume you are buying a 200 showing (200 GRPs per week) and your target audience is women 18-34, which is 22% of the 18+ population in Portland. How many target impressions are delivered by this buy over a four-week period? 7. What is the cost of this campaign? $_ 8. What is the CPM for the effective circulation among Women 18-34? $_ Consult the radio station ranker, Exhibit 7.23. 9. How many Men 18-34 does each ad reach on the second most popular radio station in the M-F Morning Drivetime daypart? 260 1 CHAPTER 7 10. How many rating points does each ad deliver on that radio station? 11. Knowing that one rating point represents 1% of the universe, what is the correct mathematical expression for your answer to question 10? 12. What is the radio universe of the 18-34 Male audience? (Q9 / Q11) Consult the typical radio schedule, Exhibit 7.24. 13. How many rating points (GRPs) does this schedule deliver? 14. What is cost of this schedule? $ What is the CPP for this schedule? $ 15. What is the total Cume Reach % from the table? 16. What is the cost for each percentage point of Reach? Consult the WCCO-TV proposal, Exhibit 7.25. 17. What is the total cost of the proposal? $ 18. What is the total number of impressions delivered among Adults 25-54? 19. What is the CPM for this proposal? $ Consult the rate card for OregonLive.com, Exhibit 7.12. 20. You are spending a total of $7,500 evenly over five months on Super Tile Ads that will ap- pear on OregonLive.com. What is the CPM price for all Adults? $ 21. Your target audience for this buy on OregonLive.com is actually Males 18+, which represents 48% of the adult population. What is the CPM for this target audience effective circulation? $ Show your work in the space below