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1.) [4 points] A magazine has newsstand sales of 20 million copies per issue and

ID: 3198985 • Letter: 1

Question

1.) [4 points] A magazine has newsstand sales of 20 million copies per issue and subscription sales of 5 million copies. This magazine is read by adults and our product also appeals to adults. Simmons Research estimates there are two (2) pass-along readers for every copy subscribed or purchased. Simmons also estimates that the number of "new/unique" readers for each issue is 10% of the total readership. Assume the adult population of the USA is 250 million. 0 a. What is the total number of adult impressions achieved by one ad b. What is the "CUME REACH", in impressions, of total adults delivered by c. What is the total number of estimated adult impressions delivered over d. What is the "average frequency" of this media buy? placement in the magazine? a six (6) ad schedule? the 6 ad schedule, assuming we place one ad in each issue? 3

Explanation / Answer

1) Adult population of the USA is 250 million
a) Total number of adult impressions achieved by one ad placement in the magazine
= (total purchases + total subscribers) * number of pass along readers for each copy subscribed or purchased
= (20 * 106 + 5 * 106) * 2 = 25 * 106 * 2 = 50 * 106 = 50 million
Thus, total number of addult impressions achieved by one placement in the magazine = 50 million

b) CUME reach :
Each issue has 90% old readers + 10% new readers
Thus, for first issue of 50 million viewership no body is old so total reach is 50 million
for second issues, 90% means 45 million are old and 5 million are new so added viewership = 5 million
similarly for 3rd, 4th 5th and 6th ad, new viewers added will be = 5 million each
Thus, CUME REACH = 50 + 5 + 5+ 5+ 5+ 5 = 75 million
Thus, CUME REACH of total adults by 6 ad schedule = 75 million

c) total number of estimated adul impressions in a 6 ad issue =
6 *  total number of estimated adult impressions in each ad issue
= 6 * 50 million = 300 million adult impressions