The budget has been set at $3,750,000. The following information is provided about each of these options: about the potential effectiveness rating (Exposure Rating) per ad, their estimate of the number of millennials reached per ad, and the cost for each ad. MEDIA Exposure Rating per Ad # People Reached per Ad Cost per Ad Television 97.2 700K $100,000 Social Media 51.3 320K $40,000 Ads (Outdoors) 2.7 60K $10,000 The exposure rating is a measure of the value of the ad to the listeners/viewers. I

For Television, the exposure rating of 97.2 and the 700K millennials reached per ad were reliable for the first 17 Television ads. After 17 ads, the benefit is expected to decline. It is recommended to reduce the exposure rating to 59.4 and the estimate of the number of people reached 380K for any Television ads beyond 17. For Social Media, the preceding data are reliable up to a maximum of 33 ads. Beyond 33 ads, the exposure rating declines to 32.4 and the number of millennials reached declines to 200K per ad. Similarly, for Ads (Outdoors), the preceding data are reliable up to a maximum of 40; the exposure rating declines to 1.1 and the potential number of people reached declines to 25K for additional ads.

The objective of the marketing campaign would be to maximize total exposure rating, across all media. Because the importance of the messaging, the campaign must reach at least 25 million millennials. To balance the campaign and make use of all media, the following guidelines must be incorporated: Use at least twice as many Social Media advertisements as Television advertisements Use no more than 20 Television advertisements. The Television budget should be less than $1,600,000 The Social Media advertising budget is restricted to a maximum of $2,000,000 The Ads (Outdoors) budget is to be at least $300,000.

Recommend how the $3,750,000 advertising budget should be allocated among the choices. Develop a mathematical programming model that can be used to determine the advertising budget allocation. (HINT: you should define two variables for each media option (eg. T1 = number of Television advertisements with rating of 97.2 and the 700K millennials reached and T2 = number of Television advertisements with rating of 59.4 and 380K millennials reached, and so on). Enter the problem into Excel and use Solver to solve for the optimal solution.

How do I analyze this case to suggest budget allocations?