1. Explain why circulation and ratings systems determine how much money different advertisements cost to run.
Circulation and ratings systems provide advertisers with important information about the reach and impact of particular advertising mediums. Circulation refers to the number of copies of a publication or viewership of a program, while ratings measure the viewership of television programs. Advertisers are willing to pay more for advertisements in publications or programs with higher circulation or ratings because they have the potential to reach a larger audience.
Higher circulation or ratings typically indicate that more people are likely to see the advertisement, increasing the chances of reaching the target audience and ultimately generating more sales or brand awareness. As a result, advertising space in mediums with high circulation or ratings is more competitive and therefore more expensive.
In addition, circulation and ratings systems provide advertisers with valuable data on consumer demographics, behavior, and preferences, allowing them to strategically place their advertisements in mediums that are most likely to resonate with their target audience. This targeted approach can further increase the effectiveness of advertising campaigns, making it worthwhile for advertisers to invest more money in these mediums.