Question

1. Fakeout, a fake vomit manufacturer is considering buying advertisements in two magazines to try and sell more fake vomit.  Jokes ‘R Us has a readership of approximately 72,000 people per monthly issue, while Magicians Monthly has a readership of 58,000 per issue.  They estimate that about 21% of the people who read Jokes ‘R Us also read Magicians Monthly.

1. If Magicians Monthly charges $1250 per advertisement, what is the CPM for their magazine? 65% of Magicians Monthly readers are actual magicians.  What is the CPM for magicians only?
2. What is the net reach if Fakeout runs a single ad in each magazine?
3. Fakeout negotiates a deal where if they buy ads for 6 consecutive months they will get a 20% discount for Magicians Monthly (use the price from the first question. If they get a net reach of 215,000 what is the average expected frequency for the entire campaign?
4. If 15% of Jokes R’ Us readers are magicians, and 45% of those magicians also read Magicians Monthly, what is the net reach for magicians by placing a single ad in both magazines?

Answer 1

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