J3040 in Class Exercise

J3040 In Class Exercise

Spring 2008

1)Direct Mail

You are going to purchase 10 DM drops of 2500 each. What is the total cost of these drops? You want to do 5 drops each to Absentee Owners and Owner Occupied.

2500 x .62 =$2492.40 per drop x 10 drops =$24,924.00

Space / Paper
30-sheets
Hybrid Rotary / $1,000 / $28 / Each-change every 28 days
Pre-emptable / $500 / $28 / Each-change every 28 days
8 Sheets / $350 / $15 / Each-change every 28 days
Transit Shelters / $150 / $22 / Each-change every 28 days
14 x 48 Bulletins
Perms / $2,500 / $1.50 / Per square foot
Preemptable / $850 / $1.50 / Per square foot
Showings / 30-sheets & Bulletins / 8-sheets & Bus Shelters
#25 / 40 / 50 / Panels
#50 / 80 / 100 / Panels
#100 / 160 / 200 / Panels

2)Outdoor

Use the information above to cost out the schedules and determine how many GRP’s the schedule will receive per month and over the life of the schedule.

40 Pre-emptable 30-sheets Jan-Sept $21120 100 GRP’s

50 8-sheets Jan –Sept $18250 100 GRP’s

20 Pre-emptable Bulletins Jan-Sept. 672 sq. feet x 1.50=$1008 +$850 x 20 $18008 50 GRP’s

25 transit shelters Jan-Dec$172 x 25= $ 1800 50 GRP’s

Total =$59178 month for 300 GRP’s x 9 months =$710136 2700 GRP’s $263.01 cpp

3)Radio

You are going to purchase 2 3-week flights of radio in 2nd quarter and 2 3-week flights of radio in 3rd quarter. Each flight will be at 100 GRP’s per week and be 60% AM Drive and 40% PM Drive

205 X 60 =$12300

257 x 40 =$10280

2nd Qtr ttl=$22580 x 6 weeks =$135,480

202 x 60 =$12120

240 x 40 =$ 9600

3rd Qtr ttl =21720 x 6 weeks =$130,320

2nd and 3rd Qtr TTL =$265,800

But, you have great media negotiators that can negotiate this for 80% of rate card, so 265,800 x .80 =$212,640

4)Television

You are going to purchase 1 3-consecutive week flight per quarter of Television. The GRP levels will start at 125 grp’s for week 1, 100 GRP’s for week 2 and 75 GRP’s for week 3. Your daypart mix is going to be 50% Early Morning, 30% Day and 20% Early News.

300 TRP’s per quarter

Qtr 1 150 GRP’s of EM at 237

90 GRP’s of Day at 267

60 GRP’s of E News at 250 =$74,580

Qtr 2 150 GRP’s of EM at 273

90 GRP’s of Day at 308

60 GRP’s of E News at 305 =$86,970

Qtr 3 150 GRP’s of EM at 249

90 GRP’s of Day at 257

60 GRP’s of E News at 283 = $77,460

Qtr 4 150 GRP’s of EM at 307

90 GRP’s of Day at 330

60 GRP’s of E News at 319 = $94,890

Total 1200 GRP’s/ $333,900

Your media buyers can negotiate this at 80% of rate card, so .80 x $333,900 =$267,120

5)Newspaper

You are going to purchase a classified Real Estate ad in the Phoenix paper on Thursday, Friday, Saturday and Sunday. Each ad is going to be 4 column inches. The ads will run every other week for a total of 25 weeks

Classified-Real Estate Wanted / Per line
Daily / $35
Saturday / $42
Sunday / $56
This is per line Per column Inch
Each Column inch =14 lines

Thurs 14 lines x 4 inches =56 lines @ $35 each = $1960

Friday 14 lines x 4 inches =56 lines @ $35 each = $1960

Saturday 14 lines x 4 inches =56 lines @ 42 each =$2352

Sunday 14 linex x 4 inches =56 lines @ 56 each =$ 3136

Total of $9408/week x 25 weeks =$235,200