17.7 Television Advertising Costs Objective: Students will be able to understand how to compute the cost of advertising on television. Cost of 10-­‐Second Ad = .5 ∗ Cost of 30-­‐Second Ad ∗ No. of Ads Cost of 60-­‐Second Ad = 2 ∗ Cost of 30-­‐Second Ad ∗ No. of Ads Ex: A 30-­‐second commercial costs $1400. What is the cost for two 60-­‐second commercials? The Cost of the 60-­‐second commercial = 2 ∗ 1400 ∗ 2 = $5,600 Ex: A 30-­‐second commercial costs $15,000. What is the cost for four 30-­‐second commercials? The Cost of the 30-­‐second commercial = 4 ∗ 15000 = $60,000 Ex: A 30-­‐second commercial costs $10,800. What is the cost for four 10-­‐second commercials, three 60-­‐second commercials, and four 30-­‐second commercials? The Total Cost of the commercials = (.5 ∗10800 ∗ 4 )+ (2 ∗10800 ∗ 3) + (10800 ∗ 4) = $129,600 Ex: Century Fitness plans to advertise with five 10-­‐second prime-­‐time commercials and seven 60-­‐second daytime commercials. The rates are $8,000 for a 30-­‐second daytime commercial and $13,500 for a 30-­‐second prime-­‐time commercial What is the cost of the advertising? The Cost of the advertising = (.5 ∗13500 ∗ 5 )+ (2 ∗8000 ∗ 7) = $145,750 Hw #7 Pg 566 #1-­‐11