Communications 2001

Monday, January 29, 2007 - Assignment #2
Using Factoids

Communications 2007 Home Page January 29 Main Page Communications is .... Wrap-up

Open a copy of this sheet (an Acrobat PDF file without answers, suitable for printing) in a standalone browser window.

The Factoids

  1. The average young person views more than 3000 ads per day on television (TV), on the Internet, on billboards, and in magazines. (Children, Adolescents and Advertising, The American Academy of Pediatrics, 2006)
  2. This coming Sunday, CBS will charge an average of $2.6 million dollars for each thirty seconds of ad time on the Super Bowl broadcast. (CNN, Are Super Bowl Ads Worth the Money?, January 24, 2007)
  3. I estimate that CBS will sell 50 minutes of ad time during the approximately three hour broadcast. Local stations will sell an additional 10 minutes or so during the same time period. Last year ABC ran 47.2 minutes of advertising, up 4 minutes from what Fox ran in 2004. (On the Matter of Super Bowl Ad Clutter, Media Life Magazine, January 23, 2007)
  4. The average yearly income (median) for a full time American worker in 2005 was $33,852. (United States Department of Labor, Bureau of Labor Statistics)
  5. To date, the leading purchasers of ad time on Sunday’s broadcast are: (1) Anheuser-Busch (5 minutes); (2) PepsiCo (Half Time sponsor (three 30 second spots), and three 30 second spots during the first half of the game for a total of 3 minutes); and (3) General Motors (2 and ˝ minutes).
  6. Expenditures on Super Bowl ads equal approximately one thousandth of the total yearly ad expenditures in the United States.
  7. In December 2006, 6,849,000 Americans were officially listed as unemployed.

Putting them to work

  1. Assuming that CBS sells 50 minutes of ad time during Sunday’s Super Bowl broadcast for the average rate, how much money will they collect?

                          50 * 2 = 100 (the number of 30 second spots available)
                          2,600,000 * 100 = 260,000,000
    ($260 million collected)

     
  2. If businesses used the money they’ll spend advertising on the Super Bowl to hire unemployed workers to full time jobs at the average yearly income instead, how many people would be put to work?

                          260,000,000 / 33,852 = 7,680.49155 (since we don't have fractional people, the answer is 7,680)
     
  3. How might we determine if Anheuser-Busch’s and PepsiCo’s ad spending is paying off?

                          See the Beverage Consumption table
                          It shows that since 1960, soda and beer consumption have replaced milk and coffee as the most consumed beverages in the U.S.

     
  4. If the Super Bowl broadcaster takes in one thousandth of one percent of annual U.S. ad expenditures, how many unemployed workers could be hired at the average yearly salary if one year’s worth of U.S. ad money was spent to hire them?

                          260,000,000 * 1,000 = 260,000,000,000 ($260 billion was spent on ads in the U.S. in 2006)
                          260,000,000,000 / 33,852 = 7,680,491.551 (since we don't have fractional people, the answer is 7,680,491)
                          7,680,491 - 6,849,000 = 831,491 (This means that we could put every unemployed person in the U.S. to work,
                                 as well as an additional 831,491 who are not currently looking for work.)
Communications 2007 Home Page January 29 Main Page Communications is .... Wrap-up