Question

Total Population: 150,000,000

We have developed a 30-second TV spot to air this year, aimed at launching a new product to our target of young, affluent, male auto enthusiasts. We have a budget of $4,500,000 allocated for the product launch and want to run this commercial as many times as we can afford to run it. Our account planner has decided that a Big Bang approach is needed, and so all of the money needs to be spent within days of the product launch, but we can time the product launch when we want. Below are the options he has suggested. Because of the scheduling of these events, we can only choose one—do not mix and match television events.

Television Event	Cost of Ad	Expected Viewers	% of Targeted audience as viewers
Superbowl	$2,200,000	62,500,000	16%
Daytona 500	$1,200,000	32,000,000	25%
Academy Awards	$1,100,000	32,000,000	10%
Indy 500	$440,000	12,500,000	40%

  

1. For each TV event above, determine CPM, GIMP, TIMP, Reach, and Frequency. (10 total points)

(4 total points)	CPM	GIMP	TIMP	Reach	TCPM
Superbowl
Daytona 500
Academy Awards
Indy 500

b.) Which event should we advertise during, if our goal is to maximize GIMP? (1 point)

c.) Which event should we advertise during, if our goal is to maximize TARGET impressions? (1 point)

d.) Which event should we advertise during, if our goal is to maximize REACH? (1 point)

e.) Which event should we advertise during, if our goal is to cost efficient with TCPM? (1 point)

f.) Consider your calculations and what each of the figures tell you. Which event would you suggest advertising on? Be sure to explain in detail your rationale for your selection. (2 points)

Answer 1

GIMP or gross impression is the total impression (expected viewers) value.

TIMP or target impression is target audience value. The formula is %target audience * Expected viewers

Reach is the impression / total population

TCPM is the cost for reaching 1000 target audience. The formula is cost / (TIMP/1000)

CPM is the cost per 1000 impression. The formula is cost / (GIMP/1000)

The calculated values are shown below

b)

To maximize GIMP, choose Super Bowl

c)

To maximize TIMP, choose Super Bowl

d)

To maximize Reach, choose Super Bowl

e)

To efficiently use TCPM, choose Indy 500

f)

Since the object is to make a lot of noise in the market and most of the metrics seems to favor Super Bowl, we will choose Super Bowl advertisement.