An advertiser wants to reach $60\%$ of a target market of $2$ million people with an average frequency of $3$ exposures during a 4‑week campaign. He can use TV spots costing $£15$ per thousand impressions (CPM) and online banner ads costing $£5$ per thousand impressions. TV can deliver a maximum of $800\,000$ unique viewers per week and online can deliver up to $1.2$ million unique viewers per week.

Determine (a) the minimum weekly budget required to meet the overall GRP target, assuming the weekly reach is allocated proportionally between TV and online according to their maximum capacities, and (b) the overall cost per exposure (cost per impression) for the whole campaign.

Question

An advertiser wants to reach $60\%$ of a target market of $2$ million people with an average frequency of $3$ exposures during a 4‑week campaign. He can use TV spots costing $£15$ per thousand impressions (CPM) and online banner ads costing $£5$ per thousand impressions. TV can deliver a maximum of $800\,000$ unique viewers per week and online can deliver up to $1.2$ million unique viewers per week.

Determine (a) the minimum weekly budget required to meet the overall GRP target, assuming the weekly reach is allocated proportionally between TV and online according to their maximum capacities, and (b) the overall cost per exposure (cost per impression) for the whole campaign.

Accepted Answer

Weekly budget = £8 100; total campaign cost = £32 400; cost per impression = £0.009.

Gce Model Questions Vol1 2022 Commerce Question 50

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