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Guru Search Results: 55 matches were found

Tuesday, July 23, 2002 #5430
Is there any research information available that explores a break-even analysis for local vs. national media (i.e. television). Evaluating how many local markets you could purchase before reaching a national CPP. Please explain why this type of analysis would be completed.

The Media Guru Answers(Saturday, July 27, 2002 ):
This is not so much "research" as a market place analysis. The answer changes over time, depending on economy, demographic, daypart and market rankings. It's a matter of comparing the specific costs you face. See past Guru responses.

Why do the analysis? If you are planning to buy advertising in a ranked list of markets for a national brand, and the do not need to vary levels by market, or need a given base level across markets, cost per rating point will eventually mount to a point where a network rating point is less expensive than the rating point purchased through the local media. At that point, you get the rest of the country "free" if you switch to network,

Friday, July 12, 2002 #5409
Guru - you're always so helpful and it is much appreciated. Can you please advise as to whether the national cable scatter markets guarantees rating points?

The Media Guru Answers(Friday, July 12, 2002 ):
Today, the Guru would expect to get a guarantee.

Wednesday, June 19, 2002 #5365
Dear Guru: Thanks to you, our media plans have become even the more focused and precise. For one particular client, we have utilized Syndicated Television and remnant print within the United States. Our planning has brought a 600% increase in sales over an 8 month period. Being an international client, they now want us to take over the International Advertising. How do we buy in International markets? We've been mixing the TV with :10 Syndicated programming to increase frequency. Does this "wealth" of an inexpensive advertising method exist outside of the US? How are rating points calculated in Europe, Mexico, Canada? Who do I contact in Europe, Mexico, Canada to air my spots? Do they air "Everybody Loves Raymond", "Friends" and "Drew Carey"? How would I monitor delivery? Any unique advertising advice for the creative spots? Thank you Guru.

The Media Guru Answers(Saturday, June 22, 2002 ):
Thank you for the acknowledgement.

For Mexico, start with Televisa. For Canada, start with CBC. Europe is a mass of separate national markets, without consistency in programs available or sales practices.

Consider using a multinational media service like Carat.

Wednesday, May 22, 2002 #5300
what are the best metrics for measuring: effectiveness efficiency

The Media Guru Answers(Thursday, May 23, 2002 ):
1. When available, the best metric for effectiveness is sales or some direct measure of the ultimate goal. Sometimes the ultimate goal is a change in image or increse in awareness. These goals are almost never purely a result of media, except in controlled test scenarios.

2. Media efficiency is simply a matter of definition:
Audience achieved per dollar spent.
"Audience" may be expressed as thousands of impressions or rating points or sometimes, net reach

Thursday, March 21, 2002 #5163
In developed media markets, media buying moves from FCT at flat rates (Free Commercial Time- secondages available for airing commercials) to cost per rating points to ? - cost per million?

The Media Guru Answers(Thursday, March 21, 2002 ):
The Guru doesn't quite follow your premises

Let us assume that the US is the epitome of "developed media markets."

There is no process moving from free to CPP to cost per million (or cost per thousand). And how would the term "flat rate" even relate to "free?"

Or did the Guru not understand your question?

Thursday, February 28, 2002 #5125
I need the GRP (gross rating points) for a national ad. Im talking about advertising a commercial nation wide. I need the national rate at which the cost would be

The Media Guru Answers(Monday, March 04, 2002 ):
A national ad must be defined further for a specific answer.

The Guru will assume you are talking about television. But the specific demographic is important. Whether your ad runs on cable or network and in what daypart is also crucial.

A national ad could have a rating of less than 0.1 or over 20.0. The cost could range from a few hundred dollars to a few hundred thousand dollars.

Friday, February 15, 2002 #5087
I am planning a magazine campaign which is over a period of 6 months with a reach emphasis. Can you please explain how the frequency builds along with reach.

The Media Guru Answers(Friday, February 15, 2002 ):
Each magazine has a rating. The rating is equal to target readers ÷ target universe. GRP = sum of the ratings of all the insertions.

The first insertion will have reach equal to its rating points and a frequency of 1.0.

When GRPs accumulate, Reach increases at a decreasing rate, as in the curve below.

A print reach "curve" builds more quickly at first; especially when there are more different titles and less so when there is repetition in fewer titles.

GRP ÷ Reach = Frequency. Frequency, if graphed, would be a straight line.

Friday, February 08, 2002 #5072
what is GRP

The Media Guru Answers(Sunday, February 10, 2002 ):
"Gross rating points" is a comarison of the impressions delivery of a schedule to the target universe size. One million gross impressions equates to 100 GRP if the target population is one million.

Tuesday, February 05, 2002 #5059
Dear Guru (by the way, thanks for your earlier answers, they are really helpful !) : If I reach 3 differents profiles of people with 1 outdoor campaign, is it correct to say that reachxfrequency for each target equals the TRP (target rate points), and that the GRP is reachxfrequency over the entire population. So the GRP would be composed out of several TRPs?

The Media Guru Answers(Sunday, February 10, 2002 ):
First, GRP and TRP are equivalent terms. Some people reserve use of TRP (Target rating points) for cases where a speciific demographic is targeted, such as Women 18-49, College educated men, or Employed teenagers, and then only use "GRP" (Gross Ratings Points) for a Household target. Others use GRP for any target. In either case, the term means gross percentage of the specified target universe.

Arithmetically, Reach x Frequency = GRP or TRP. GRP or TRP for different targets may not be added.

Sunday, December 16, 2001 #4948
What is the Cost Per TV rating point for New York?

The Media Guru Answers(Monday, December 17, 2001 ):

Monday, July 23, 2001 #4598
Dear Guru, I need to compare the W25-54 gross rating points of national consumer magazines to the W25-54 gross rating points of a network television schedule. I am concerned about keeping “apples to apples,” when making this comparison. In doing so, it seems that it would be necessary to calculate GRPs based on the same universe (for both magazines and television). The television universe that I am using is provided by Nielsen and is based on W25-54 who live in a household with a television, which I think is roughly 98% of the population. My question is: Is it appropriate for my print universe to be based on W25-54 living in a TV HH (98%), OR should my print universe be based on 100% of the W25-54 population? Also, can I calculate the rating points of magazines individually and then add up my schedule to determine GRPs OR must I calculate magazine rating points based on a schedule in order to prevent duplication of W25-54? I am doing these calculations by hand and do not have access to MRI – outside of requesting information, such as a magazine’s W25-54 audience, from a magazine sales rep. Any help would be greatly appreciated! Thank you.

The Media Guru Answers(Tuesday, July 24, 2001 ):
It would be simpler to compare impressions and not worry about the slight universe differences. If you must use GRP, adjust TV grp downward according to the TV penetration factor.

GRPs disregard duplication, so simple addition is fine.

Wednesday, June 20, 2001 #4506
I am reading your SQAD Report on "Costs per TV Household rating point". I am a novice at this. What does this mean and how do I read this report? Thank you, Michael Jordan

The Media Guru Answers(Saturday, June 23, 2001 ):
A "rating point" is equivalent to one percent of the population in the specifed universe. So, if a commerical has an audience of 1000 in a market with 100,000 housesehold, it has a rating of 1. If the audeince is five times as large it has a rating of 5. If you have a schedule consisting of five commericals like this, you would have 25 Gross rating points (GRPs).

If you divide the cost of the schedule by the GRPs, the resulkt is the Cost per TV Household rating point. SQAD collects the actual buying records of several agencies and other media buyers to calculate the marketplace averages.

Wednesday, June 06, 2001 #4458
I'm working on a plan that includes cable and network television. I have been asked to present a rational for different schedules on three levels of spending. If i know the programs rating point, the average CPP and the cost per spot, how can I use this information to put together the total reach/frequency of sample schedules. I'm trying to get general information at this point without contacting reps to run several schedules. I need to know how to do the math by hand without a program if it's possible. Thanks

The Media Guru Answers(Wednesday, June 06, 2001 ):
It's no longer really reasonable to do the math by hand. The Guru has described calculating reach by "Random probability" in the past. But the unique duplication patterns within tv schedules need to be accounted for either with tables reflecting many schedules' reaches or computer models.

Our own eTelmar offers low cost, single use, online reach calcuation.

You might try the R&F generator at U. Texas .

Monday, December 25, 2000 #4065
I'm hoping to find a publication that deals with the needs of small, or medium sized businesses that may do a substantial amount of advertising in a particular area -- for example a funiture chain with locations in two counties. These businesses may have marketing people dedicated to advertising and may or may not have an agency -- but Advertising Age and Adweek don't provide them with useful help. I think a trade magazine for local advertiers makes sense -- covering many of the issues you deal with on your website, but packaged for the person who is more concerned with pizzas than rating points. Before I go out and invent something, I want to find out if it already exists, and I figured you might know. Thank you for your help!!!

The Media Guru Answers(Monday, December 25, 2000 ):
This is a tough one: an ad publication for people who do advertising, but aren't really interested in it, just in their own businesses. There are local business newspapers, such as the Long Island (NY) Business News, and publications of local ad clubs, but the Guru doesn't know of any national publication with similar content.

It seems like your intended audience would have inherently local interests.

Friday, November 17, 2000 #3973
What is cost per miller? What is rating point? What is efective frecuency?

The Media Guru Answers(Friday, November 17, 2000 ):
  • The Guru has never encountered "cost per miller." Perhaps you mean "cost per mille" which is how some people interpret "CPM," which actually means cost per thousand, based on the Roman numeral "M."

    This in turn means cost per thousand impressions delivered by the medium. An impression is one exposure of advertising to one single member of the target audience.

  • rating point is audience expressed as a ratio. Target impressions divided by target universe or "base". Thus, if the medium delivers 1,000 impressions and the population universe is 5,000, there are 20 rating points.
  • Effective frequency is a number of exposures judhged sufficient to effectively communicate a message. Therefore a plan may be judged according to the reach at this level of frequency or above. 3 is a commonly set level. The concept is going out of favor.

Friday, August 25, 2000 #3747
can you please explain various tools through which one can determine the efficieny of a TV plan

The Media Guru Answers(Monday, August 28, 2000 ):
"Efficiency" has a standard definition, so it is subject to arithmetic formulas rather than tools. Efficiency is defined as cost per unit of audience. "Audience" might be expressed as impressions or rating points.

So "efficiency" usually means, CPM (Cost per Thousand), which is the cost of a schedule or advertising unit ÷ the sum audiences of the ad units (in thousands) and CPP (Cost per Point) is the cost of a schedule or advertising units ÷ the sum of the ratingss of the ad units.

Thursday, August 17, 2000 #3715
Explain cost per point in television advertising sales

The Media Guru Answers(Saturday, August 19, 2000 ):
A radio or tv advertising slot has a rating: the percent of the target group which is in the audience.

When the slot's cost is divided by its rating (rating points) the result is Cost per point. This ratio is a handy way to compare the "efficiency" of spots being sold.

Monday, June 19, 2000 #3560
I can't find information in your glossary on the column abbreviations for the Costs Per TV Household rating point data from SQAD. Are they elsewehere on the site and if not, could your provide a brief tutorial?

The Media Guru Answers(Monday, June 19, 2000 ):
The columns headings are:

  • Rank, which is based on the
  • Household population shown under "Pop" in the next column
  • EM is Early Morning
  • DAY is Daytime
  • EN is Early News
  • PA is Prime Access
  • PR is Primetime
  • LN is Late Night and
  • CF is Combined Fringe

Monday, June 05, 2000 #3529
Hi, I would like you to expain the terms, TG, TRP, CRP, GRP, ROS, RODP and the basic difference between the trems. Thanks a ton!. Anjali

The Media Guru Answers(Thursday, June 08, 2000 ):
  • TG= Target group, the selected demographic or psychographic group against which a media plan or buy will be constricted
  • TRP=Target rating points; the sum of the audiences of the all media insetions in a plan or schedule, expressed as a percentage of the target group population, such that 100 TRP indicates a summed audience equal to 100% of the group's population.
  • GRP= Gross rating points; this si essentially identical to TRP, except that some planners use GRP only in reference to Household audiences and TRP for any other dempgraphic. Others use "GRP" in all cases
  • CRP= Cost per rating point ( some say CPP for "Cost Per Point"); Simply a division of the media's cost by the rating points (TRPs or GRPs) delivered
  • RODP=Run of Daypart, also referred to as "daypart rotator," wherein a broadcast spot is purchased to air at anytime within a defined dayaprt, such as 6am to 10am, Monday thru Friday
  • ROS=Run of Schedule or Run of Station, wheriein a broadcast spot is purchased to air at anytime from station sign-on to sign-off. Sometimes the term "Daypart ROS" is encountered. This is another version of Run of Daypart.

Wednesday, May 31, 2000 #3507
Dear MG, For years I've been buying radio on a cost-per-spot basis. Now that I have an agency doing the buying for me, the planner tells me that I should be buying on a cost-per-point basis. Why? Thank you.

The Media Guru Answers(Thursday, June 01, 2000 ):
The value of a radio spot is in its audience. On a given station one spot, in AM Drive time, for example, might have 5.0 rating points (5% of the target listens to the spot) among the target audience while a weekend evening spot has a 1.5 rating. If you buy the station on an average cost per spot basis you lose track of value. But the AM Drive spot's cost might be is $100, or $20 cost-per-point. If the weekend evening spot cost $45 the cost per point is $30. So the value of spots is represented by cost-per-point. Audiences vary and cost per spot ignores that key fact.

The above also applies to comparing spots on different stations.

Wednesday, April 12, 2000 #3393
What is the radio industry standard for a denominator such as CPM in print media. The C/RP is fine for comparisons in the same DMA, but what about cross-DMA comparisons?

The Media Guru Answers(Wednesday, April 12, 2000 ):
CPM works in radio, too, and it's the right metric to use across markets. Arbitron reports thousands as well as rating, so it's always available. To get a rough estimate of CPM, divide CPP by 1% of the target universe expressed in thousands; Cost Per Point is the cost of reaching one percent (one rating points' worth) of the universe.

Tuesday, February 29, 2000 #3261
How much time is assumed per SPOT under the SQAD Costs Per TV Household rating point; Fourth Quarter 1999 chart? I.e., if it costs you $464 for a rating point in NYC -- how much time do you get with that point?

The Media Guru Answers(Tuesday, February 29, 2000 ):
These costs are :30's

Monday, October 11, 1999 #2865
What is the difference between a TRP and a GRP?

The Media Guru Answers(Monday, October 11, 1999 ):
1. None

2. Some people use TRP when referring to GRPs of a specific demographic and say GRP only in reference to Household rating points.

Friday, October 01, 1999 #2840
What is the difference between achieving a 10.0 rtg. on one spot of Seinfeld, vs. a combined 10.0 rtg. on Oprah, The Today Show and Just Shoot Me? Are we reaching a larger audience? Is there a way to measure duplication of the three programs? Thanks.

The Media Guru Answers(Friday, October 01, 1999 ):
A combined 10 rating points accumulated across three programs will also represent 10 GRP, or an equal gross audience, but because of duplication the reach will be somewhat less than 10 and frequency somewhat more than 1.0. The reach will be at least equal to the rating of the highest rated program of the three.

The syndicated ratings reports, i.e. Nielsen, measure the duplication; the planner's standard reach & frequency tools estimated the net audience, accounting fo this duplication.

Wednesday, September 29, 1999 #2833
What is the number of adults reached if the rating is 8.7 on a national level? What does one rating point represent in numbers of people reached?

The Media Guru Answers(Wednesday, September 29, 1999 ):
One rating point equals one percent of the specified population. The U.S. adult population is roughly 203 million so an 8.7 Adult rating equals 17.7 million persons.

Monday, August 02, 1999 #2681
what is grp

The Media Guru Answers(Friday, August 06, 1999 ):
GRP stands for "Gross rating points:"

Every ad has a number of people or homes in its audience (impressions). This number, divided by the population base for the relevant demographic, is the advertisement's "rating." The sum of all the ratings in the schedule is the GRPs. Or, the sum of the schedule's impressions divided by the population base = GRPs.

Wednesday, July 14, 1999 #2632
What are GRP's and what do they stand for in a media buy? I am an Account Manager and don't have the Media background but need to explain the GRP levels to my Product Managers. Please help.

The Media Guru Answers(Thursday, July 15, 1999 ):
GRPs are gross rating points, the pounds and ounces of media buying and selling. The target audience of an advertisement divided by the population of the target group is the ad's rating. The sum of the ratings of the ads is the Gross rating points. Plans specify how many GRPs of each medium to buy. For print, specifications are more often numbers of insertions in specific titles, but the GRPs can be calculated the same way and one plan compared to another.

Allowance must be made for :15 versus :30 GRP or half page versus full page. A given program or magazine has the same rating (GRP) whatever the ad size/length, but obviously there is more benefit from 100 GRP of :30s or pages than from 100 GRPs of :15s or half pages.

Tuesday, April 27, 1999 #2476
Dear Guru- Our client has requested that we run Network TV R/F/Eff 3+ against two targets; African Americans 18-49; and African Americans 18-49, 35K+ income and grad college. Network TV was purchased against A18-49 only. Do you know of a conversion factor used to translate the A18-49 rating points to the new targets? We need to compare the delivery. Thanks.

The Media Guru Answers(Wednesday, April 28, 1999 ):
The Nielsen network audience data includes Household Income and Head of HH education as well as race. Therefore you can get the actual ratings of your schedule for African Americans 18-49, $35K income, college educated HOH. Or get daypart average numbers with which to develop conversion factors.

Wednesday, April 14, 1999 #2445
i read an article about the optimizer program and they use there on the phrase REACH PER POINT (RPP) what does it mean and how can i use it . (and i am not mean to cost per reach point) thanks a lot

The Media Guru Answers(Wednesday, April 14, 1999 ):
Without seeing the article, the Guru is only speculating, but he believes this refers to the varying reach accumulation rates of different media elements, programs and dayparts.

For example, a given demographic may generate 30 reach for a typical schedule of 100 Gross rating points in daytime and 50 reach for 100 GRP of Prime. They have a different reach per point (GRP). When coupled with the cost, it's the essence of optimizers.

Thursday, April 01, 1999 #2426
What are the appropriate rating point levels for introducing a new grocery product into the New York Metro?

The Media Guru Answers(Thursday, April 01, 1999 ):
The Guru has discussed this kind of question frequently.
Click here to see past Guru responses about advertising levels

Friday, March 19, 1999 #2400
I need to know the calculation to work out margin of error for TV reach and frequency results. E.g. what is the margin of error of 40% @ 2+ depending on the size of the sample, penetration etc.

The Media Guru Answers(Saturday, March 20, 1999 ):
Assuming you are using a model to calculate reach and frequency, your error is no longer an aspect of sample size but of the reliability of the model.

For instance, suppose your schedule consisted of 20 advertisements with an average rating of 10. And, based on sample size, the 10 rating was +/- 2 rating points (or 20% relative error). But your total schedule of 200 GRP is not going to be +/- 40 points. Because error is plus or minus, there is an equal chance that one 10 rating is really PLUS 2 and the next 10 rating is really MINUS 2. So, in a schedule, most of the error cancels out. This is one reason why ratings minima for buying are often short-sighted.

When it comes to reach analysis, someone might have built a model by compiling several actual schedules measured by the original research and finding a formula for the straight line formed by the average frequency of each. Since the actual schedules came from the orignal research, the sampling error of each (minimized by the plus or minus aspect of the schedule elements, as above) could have been calculated. But now the "curve" coming out of the model is only judged by its ability to match back to actual schedules.

Thursday, March 11, 1999 #2384
Dear Media Guru Suddenly without my Strata software...what was the formula I learned so long ago for calculating Gross rating points?

The Media Guru Answers(Friday, March 12, 1999 ):
The Guru has discussed this frequently.
Click here to see past Guru responses on GRP and calculations.

Tuesday, January 19, 1999 #2276
What you can tell me about GRP and CPT? How to explain the formulas of them?

The Media Guru Answers(Tuesday, January 19, 1999 ):
The Guru assumes that by CPT, you mean "Cost per Thousand," which is abbreviated "CPM" in the U.S., (using the Roman numeral "M" for one thousand)>

GRP stands for "Gross rating points." It is the sum of all the ratings of all the advertisements of a schedule. Or it is the sum of all the impressions of a schedule divided by the population of the geographic market under consideration. "Impressions" and "Population" must be in the same demographic category within the same geography when applying this formula.

CPT, or cost per thousand, is simple a matter of dividing the cost of media by the number of impressions delivered expressed in thousands.

Thursday, January 07, 1999 #2253
How can I use Spot Quotations and Data (SQAD) quarterly TV Cost Per rating point Report (HH Ratings)to calculate CPM? Whether SQAD has info. of CPM for each DMA?

The Media Guru Answers(Friday, January 08, 1999 ):
There is a small difficulty in that the total audience usually used to calculate cpm extends beyond the DMA. But for your purposes this can probably be ignored.

"Cost per rating point" means the cost of buying audience impressions equal to one percent of the population. Therefore, dividing DMA CPP by 1 percent of the DMA population yields DMA cpm.

Monday, December 21, 1998 #2230
I am currently analyzing a media schedule that includes consumer print, trade print and national cable. I have been asked to pull a reach and frequency for the entire schedule. I realize that I am working with several differenct universes. I have added the circulations and pulled the gross impressions for cable. I have added those together. Is there any formular to determan a reach and frequency? Help?

The Media Guru Answers(Thursday, December 24, 1998 ):
In general, different media have different audience accumulation patterns when thinking about net unduplicated audience vs gross audience.

Calculating reach from a total multimedia impressions number is not practical unless the gross rating points (impressions divided by GRPs) is so many thousands that a 95+ reach can be assumed.

Some media, in particular broadcast media, allow general estimation of reach from a table of GRP levels. Print media are more complicated.

What you really need is standardized media software for reach and frequency calculation like that which is offered by AMIC 's sister company, Telmar.

Wednesday, December 02, 1998 #2194
Dear Guru, can you name any media analysis tools and media predictive tools that media planners use on a regular basis without being too technical, of course. Many thanks

The Media Guru Answers(Thursday, December 03, 1998 ):
Here are several:

  • Reach: the number of different target households or persons exposed to a campaign (most often expressed as a percentage of the target universe, and most often calculated over a 4-week period).
  • Frequency: The average number of exposures of the campaign to those reached.
  • Gross rating points (GRP) / Target rating points(TRP): Essentially interchangeable terms for the sum of the audiences of all the ad units in the campaign, expressed as a percentage of the target universe.
  • Gross Impressions: Same audience count as GRP/TRP but expressed in whole numbers rather than percents.
  • CPP / Cost per GRP and CPM / Cost per thousand impressions: should be self evident from the previous. These are referred to as the "efficiency."
  • Effective reach: Those in the "Reach" who experienced a specified minimum number of exposures (effective frequency)

All the above stem from the audience research tools and investment figures. So called "reach and frequency" systems typically generate all these figures.

Other tools, especially in print media are also occasionally used. These may include "time spent with" media vehicles, "page openings", attentiveness, etc.

Wednesday, December 02, 1998 #2192
Dear Guru. It is not still clear to me how to measure or calculate Reach of the ad campaign using media mix. For example, my ads on TV provided 90% reach, and ads in print reached 25% of the target audience. What is the total reach, frequency of the campaign? What other indexes can we find for such campaign? And my second question is about outdoor advertising. It is essential to measure the effectiveness of the ad campaign comparing awereness and sales before and after the ads placing. But that is somehow the post- campaign analisys and my client would like to see some feagures before the campaign starts (pre-campaign). What indexes (like reach, frequency, GRPs, OTS) can we provide to the discription of the outdoor ad. campaign? Thank You very much.

The Media Guru Answers(Wednesday, December 02, 1998 ):
Reach of a medium in a plan is simply a statistical probability. Further, it is generally thought that each medium overlaps each other medium randomly.

So, in your example, if you consider the reach of each medium as a decimal, the probability of not being exposed to TV is 0.10 and of not being exposed to print is 0.75.

The probability of not being exposed to either one, is therefore 0.10 times 0.75 = 0.075.

Therefore, total reach of the mix is 92.5 (if 0.075 or 7.5% don't see it then 92.5% do see it).

Other basic "counts" for a campaign are impressions (OTS), cost per rating point and cost per thousand impressions.

All of these counts; reach, frequency, GRP, OTS, etc are possible for outdoor, if the research has been done, in your country, to count the audience of the locations used.

Tuesday, December 01, 1998 #2190
Guru- Can you please explain Gross Weekly Reach Points (also refered to as levels)? How are they determined? Thanks.

The Media Guru Answers(Wednesday, December 02, 1998 ):
The Guru believes you mean "Gross Weekly rating points," a term often used to mean "levels." "Reach" is a term referring to the net, or unduplicated, audience.

Gross rating points are the sum of all the ratings of all the announcements or insertions of the campaign, or the sum of all the impressions of the announcements, divided by the population for the relevant target demographic.

An "impression" is created every time an audience member is exposed to one advertisement.

Tuesday, December 01, 1998 #2189
Dear Guru. I've got several questions. 1. What is the difference between the following three types of compensation for the ad agency services: commission, fee and percentage? Are there any other compensation systems used by the ad agencies? 2. What is the right way to evaluate the efficiency of the advertising campaign: a) held in several cities at the same time (each city has its' own media vehicles and their ratings are measured for the target audiences based in those cities); b)using several medium at once (i. e. TV and print). 3. How can we measure the effectiveness of the outdoor ad campaign? Thank you in advance.

The Media Guru Answers(Tuesday, December 01, 1998 ):
  1. Commission is based on a percentage of the agency's spending on the advertiser's behalf. The spending will primarily be media purchase and (in the U.S.) traditional commission, usually included in media rate cards, is 15% of the gross spending. Other expenditures, such as production, are marked up 17.65% of the net spending; this is exactly equivalent to 15% of the gross.

    Fees are flat amounts of compensation for performing agency tasks. On very small accounts, 15% commission may not cover the work required to create and place advertising. On very large accounts, 15% far exceeds what would compensate the effort.

    By Percentage the Guru imagines you mean an agreed commission other than the 15 / 17.65% structure.

  2. Efficiency is typically expressed in one of two ways: CPP - Cost Per gross rating point or CPM - Cost Per thousand audience impressions (Roman numeral "M")

    In comparing markets, CPP is problematic because the universe number for calculating the Points - or percentage of universe - changes. However, CPM just uses impressions, which can be added and compared across markets. Other issues, about units and print versus broadcast can merit separate consideration, but these would be beyond efficiency.

  3. Effectiveness measures depend on a definition of the effect desired; is it awareness or sales or share? To best measure outdoor specifically, you need to set up your standard of effect and measure it with and without outdoor.

Wednesday, October 07, 1998 #2081
Are Television rating points really effective in measuring viewership? If not, is/arre there any other method/s of measuring the same?

The Media Guru Answers(Wednesday, October 07, 1998 ):
Combining "rating points," "measuring" and "effective" in the question confuses the issue.

Let us define viewership simply as the number of people watching programs. "rating points" isn't the measurement, it's merely the system of quantities used to describe the results of measurement, as "pounds" describes the result of the measurement made by the butcher's scale.

The various ratings measurement systems; i.e. meters and diaries, have their pluses and minuses in accuracy and reliability, but rating points is a simple and well understood way to describe the audience measured: The number of viewers expressed as a percentage of the possible viewers, or population.

Tuesday, September 22, 1998 #2052
I am working on a national cable buy. First question, please explain VPH. I have been asked to provide the following information: -How many households will my schedule reach and how many times. Of course, I have to have all this information by tomorrow at noon. I have selected my networks and have asked for proposals from each network. The networks inform me that it will take several days to pull a reach and frequency. So my question to you is, can I take the HH's thousands and add them? It this the right way to approach this project. How will I calulate for a frequency. I can give the client the total number of spots, but is there a way to calculate frequency? Please Help? Thanks.

The Media Guru Answers(Tuesday, September 22, 1998 ):
VPH is "viewers per Household" and is used as a simple way to express persons audience in relation to housholds. In other words, if a network has a measured average quarter hour (aqh) audience of 1000 Households and a measured aqh among women 18-49 of 550, then its VPH for women 18-49 would be .55

Estimates of reach are based on modeling from actual past schedules and are typically calculated with computers. These calculations take only minutes, but you are probably facing a backlog in your vendors' research departments or, typically, a turnaround time policy which can be overriden if you apply the right charm or pressure to your sales reps.

Because these models reflect varying audience duplication between one spot and the next and between one network and another, adding household impression would be wrong. Such a calculation would produce "gross impressions" which is much greater than reach.

Frequency is calculated by dividing reach into gross impressions (or percent reach into gross rating points), so you need reach to calculate frequency.

If you have any media planning software at all, such as Telmar's AdPlus or Maestro, you would find that these system usually have a general calculator of cable reach built in.

Thursday, September 17, 1998 #2047
what is crr?

The Media Guru Answers(Thursday, September 17, 1998 ):
The Guru is not familiar with this term. At a guess, it refers to cost per _____ rating. It may be a non-U.S. term the Guru has not encountered or it may be one companies own invented term from a system or formula of their own invention, similar to "persuasion rating point," which is discussed below.

Wednesday, September 16, 1998 #2045
what is persuasion rating points?

The Media Guru Answers(Wednesday, September 16, 1998 ):
Persuasion rating point is not a standard term. It would seem to imply an adjusted rating point based on testing of the effectiveness of specific media in specific situations. For example, the Roslow Study, for Univision, summarized in the Abbott Wool's Market Segment Resource Locator area of AMIC, measured effectiveness of English language advertising among Hispanics, using persuasion as one of three metrics.

Based on theis study and other data, many advertisers use an effectiveness adjustment when planning Spanish language media.

E.g: If I (the advertiser) want to have 100 GRP per week among my Hispanic target, before buying Spanish media, I wish to account for the fact that Hispanics watch some of the English language media in which I advertise. From Nielsen's NHTI I can see that for every 100 general market media rating points I buy in English language media, I get (for example) 60 Hispanic rating points.

But I know from the aforementioned studies that the GRPs Hispanics receive in English are less persuasive that GRPs of Spanish media. So I apply an effectiveness adjustment to calculate effective Hispanic rating points to which I might refers as "persuasion rating points".

Now the 60 GRPs among Hispanics might become only 33 persuasion rating points. So instead of buying only 40 Spanish language media rating points (100 Goal minus 60 delivered), I should buy 67 (100 Goal minus 33 delivered), to have an effective (persuasive) media plan.

Monday, July 06, 1998 #1937
Dear Guru, I'm trying to find info on the relationship between reach and frequency known as the prime axiom in media planning. Such as, what it is, why is it useful and how is it directly or indirectly measured? Also, I need research on the volatility of broadcast media. For instance, how can broadcast media avoid law suits if they fail to run a commercial. I'm frantically completing a take home exam for a graduate class and can't find research on these topics. Any help you can give would be greatly appreciated. I'll let you know if we get an "A."

The Media Guru Answers(Tuesday, July 07, 1998 ):
One wonders at the sort of course where these terms matter but are not thoroughly taught. Reach and Frequency are the weights and measures of a media plan.
  • "Reach" tells you how many different people are exposed to an advertising schedule. It is commonly expressed as a percentage of a target group's population. E.g. 75 percent reach among women 18-49.
  • "Frequency" tells you the average number of exposure to the schedule experienced by the people reached.
The usefulness should be obvious: no matter how great or impactful an ad may be, it will not sell product unless it reaches enough people and reaches them frequently enough to have an effect on their behavior.

The various research tools media planners use which measure the audience of TV shows, radio stations, magazines, etc can also tell us how many people are reached by schedules of several uses of theses programs and books. From these direct measurements, statistical models are built which can estimate the reach and frequency of schedules being planned. Media Planners can therefore compare alternate schedules to determine which ones will best meet reach/frequency goals.

Thinking of pure arithmetic relationships, reach and frequency are linked with GRPs -- Gross rating points. When the ratings (audience as percent of target group) of all the individual ads in a schedule are added up, the resulting total is GRP. GRP divided by reach = frequency and reach X frequency = GRP. 2. Mistakes happen. Fine print in contracts protects broadcasters against liability if they inadvertently miss airing a commercial, or deliberately do so because a higher paying advertiser comes along, or because the decide to air a news special. etc. Their only obligation is typically to give a "makegood," another commercial location with equal or better quality.

Wednesday, June 10, 1998 #1890
Dear Guru, Is there any way to compare between the quantity of a campaign GRPs to the purchase intentions? For example: if we did a campaign of 1000 GRPs, and the post test results show that 50% intend to buy the product (a new product that was just penetrated).Is there any criteria that I can use to evaluate the "value" of each rating point according to its influence on the purchase intentions or on the aided / unaided awareness? I know that the purchase intentions and all other post-test results are a results of lots of other factors as the message itself, the frequency, the product itself etc. Still, I wonder if you can help me to focus on the connection / correlation between the GRPs quantity and the slots mix to the purchase intentions (The competitor's campaign had the same sum of GRPs but most of it in off prime, unlike ours that was about 50% in prime time, and this difference had a meaningful effect on the purchase intentions. Can I "prove" the correlation between slots mix and purchase intentions? Thak you very much!

The Media Guru Answers(Saturday, June 20, 1998 ):
The Guru could rule the world if GRP's had a simple direct relationship to purchase intent, or sales, etc. If advertising copy quality or unit length or programming made no difference, as your theory would require, there would be no creative "stars" in agencies and The biggest agency might have a one-person media department.

To approximate what you are looking for, if purchase intent is measured at enough different points of enough different schedules, then a graph relating GRP to intent can be created. It will only be approximately predictive because it ignores all those other variables the Guru mentioned.

Thursday, April 30, 1998 #1578
what is the mathematical relationship between the cpp and cpm, is there any formula linking this two concepts?

The Media Guru Answers(Thursday, April 30, 1998 ):
CPP (Cost Per rating Point) is the cost of a number of media impressions equalling one per cent of a given population group (the specified "target"), as in Women 18-49 CPP.

CPM is the cost of 1000 target media impressions.

Therefore, the mathematical relationship depends on the number of thousands of people who equal one percent the target group.

For example, suppose there are one million women 18-49 in a market, and a radio spot has an audience of 20,000 women 18-49 at a price of $50.

The rating points generated by the spot are 2.0

(20,000 divided by 1,000,000).

The CPP is $25

($50 divided by 2.0)

The CPM is $2.50

($50 divided by 20[thousands])

Since CPP is the cost of impressions equal to 1% of the population, the CPM to CPP relationship is:

CPP divided by 1% of the population in thousands = CPM

In this case, $25 CPP divided by 10 [thousand]= $2.50 CPM


CPM times 1% of the population in thousands = CPP

While this works perfectly for national media, it can be tricky in local media unless geography is tightly defined. I.e. a broadcast CPM is usually defined as being on a Metro Area or DMA basis. CPM though, is often based on all impressions generated, even if outside the basic geography. Common geographic population definitions are essential to the accuracy of the formulas.

Sunday, March 15, 1998 #1530
Two Questions: 1) I've been asked to prepare a presentation covering "Alternative Lifestyles Marketing". When I was given the assignment I asked for a definition of "Alternative Lifestyles", but didn't get a good answer. How might you interpret this "target"?

2) I'm seeking information on the "Optimizer" programs that have become newsworthy (in media circles) as a result of the recent mega-million P&G AOR assignment. I've heard there are two. Who are they, and can you describe briefly what they do (strengths & limitations)? thanks!

The Media Guru Answers(Monday, March 16, 1998 ):
1) "Alternative Lifestyles" generally refers to non-traditional social orientations which may become the major influence on a person's relationships, extending to product choices, entertainment choices, clothing styles, etc. Most often, "alternative" seems to be used to refer to socio-sexual distinction.

The Gay market is probably probably most familiar of the "Alternative Lifestyles" markets. Others might arguably be the singles market, the mature market, punk, rapper, etc.

2) Optimizer programs are designed to build media schedules based on detailed analysis of each possible "insertion" (print or broadcast).

Usually the programs optimize reach within budget. Therefore they will first select the most efficient (cost per rating point) single insertion. Next they consider every other single insertion, including a second use of the first selection. The pair of insertions with the greatest net reach per dollar becomes the next selection.

In some systems, each "best" choice is frozen as the base upon which to build additional schedule until the budget is exhausted. In more sophisticated systems, entire schedules are reevaluated for best mix at each incremental budget level.

In either, it is up to the planner to set constraints on which vehicles are to be considered, any weights or restrictions such as using each vehicle a minimum number of times, if used, or a maximum number of times.

Several agencies have proprietary systems. In Europe, there are commercial systems including "Supermaximizer" and "Expert."

In the U.S., the Guru believes the Telmar Optimizer is the only commercial system available allowing TV optimization with any available audience database (e.g. NTI, NSI, Cume studies, etc.)

Monday, March 09, 1998 #1522
How do you delicately tell the client that newspaper doesn't deliver Gross rating points?

The Media Guru Answers(Monday, March 09, 1998 ):
The Guru doesn't understand. Do you mean

*Newspaper isn't measured in Gross Rating Points?


*Newpaper isn't a good way to deliver Gross rating points?

In either of these cases you'd be wrong to tell it to the client.


*Any medium with a measured audience can be reported in Gross rating points. Divide the audience (households, people, etc) by the population in the same category for the geography in question: Metro Area, DMA, City, etc. This calculation will give the "rating" of a single issue or the Gross rating points of a campaign.

In Newspaper measurement, "Coverage" is the term usually used in place of Household rating


In some market/demographic situations, the leading newspaper might have a little as a 10 rating. But it is not uncommon to find major market newspapers with a 50 or 60 Metro coverage (or household rating).

Thursday, October 23, 1997 #1440
Hi Guru- 1) Briefly, what does CPP stand for? 2) Have you seen any good sources that compare the costs (CPM) of various media (billboard, banners, radio, newspaper etc)?

The Media Guru Answers(Thursday, October 23, 1997 ):
CPP is Cost Per Point. "Point" refers to rating points, the sum of the ratings of the ads in a schedule. So cost per point is schedule cost divided by number of rating points.

CPP is also used in describing the average cost of media or programs.

MediaWeek publishes a handy guide to media costs. SQAD publishes guides to various broadcast media.

Monday, July 21, 1997 #1376
GURU: I've been out of school, working for a large agency for about a year. I would like for you to help me with just one question: What is the difference between a GRP and a TRP? I don't think there is a difference, but co-workers use TRP and I've learned it as a GRP (Gross rating point). Please help with any word origin or history you may have. Thanks for your help,

The Media Guru Answers(Monday, July 21, 1997 ):
Until the late 70's, most TV advertising, especially for major package goods brands, was bought on a Household GRP basis. As demographic targeting became more common, "Target rating points" (TRP) became a term distinguished from Household Gross rating points, which was especially useful when a plan discussed both. Some people still use phrases like Women 18-49 GRP when others would say TRP. Except that HH points are never TRP, there is really no difference.

What is important is consistency within any document and advertiser.

Sunday, March 02, 1997 #1028
List the top 20 TV ADI's by population

The Media Guru Answers(Monday, March 03, 1997 ):
Take a look in the "Cost per TV rating point area of AMIC's "Rates, Datesand Data" section.

CPP is listed by DMA rank order. By the way, "ADI" is dead as amedia term. Since ARBitron ceased measuring local TV, DMA is theonly viewership based, TV market definition in current use.

Sunday, May 05, 1996 #1227
I'm trying to figure out how Gross rating points are used to figure out gross impressions when it comes to using billboards to advertise?

The Media Guru Answers(Monday, May 06, 1996 ):
As you may know, generally. . .

Gross rating points as a decimal fraction (i.e. 50 GRP = 0.50)multiplied by population (for the relevant demographic) =impressions.

The "trick" with billboards is that GRP in outdoor are expressed in daily quantities. So a #50 -- or 50 GRP -- showing means a total daily "circulation" equal to 50% of the population, or 1500 GRP per month.

Wednesday, March 20, 1996 #1259
I am buying a radio schedule (100 GRPs/wk for A25-54) in a market that is approximately 28% black. The urban station in this market is relatively efficient, but is by no means a "must buy". In fact, there are about 10 stations with 9/10 of a rating point of each other (AQH rtg, M-F 6a-7p). This urban station claims that I must have at least one urban station on every buy or I will miss 28% of the market. I disagree. When buying so few points a week, I do not have the budget to buy as many stations as I like. A better use of the money would be to cover the various age cells in this broad demo and try to balance the male/female reach. My question is, What is your opinion on this subject? Is an urban station a "must buy" in this market any more than a country, rock, or news/talk station?

The Media Guru Answers(Friday, March 22, 1996 ):
There are several levels at which this question can be considered:

The essence is determining the true value of that station: "should you buy it", not "must you buy it"

- If you ignored the fact that this is an urban station would you buy it, based on the general parameters of the buy? Rating/efficiency/rank, etc?

Are you having a negative reaction to being told you must do it?

Do you really miss 28% of the market just by not buying that station? To what reach level are you buying? At 100 GRP / week you're not likely to reach more than 72% of the target in a typical 4 weeks, anyway. So if the station is the onlyone reaching its market segment, how much does it matter if that segementis the 28% you miss rather than any ther 28% of the market.

Is that station is the only one reaching its segment? It is likely that several other stations in a market with that high penetration of Black population also reach that audience, but perhaps with a lower audience composition. Check the schedule you will buy to see how its African-American audience reach compares to its general market reach. Perhaps it's comparable even without that station.

On the other hand, if that segemnt is important, reaching it in a culturally relevant program environment can substantially enhance selling opportunity.

Examine the product usage data about your client according to Simmons/MRI/Scarborough/MMR, etc. Perhaps the African-American consumer is far more valuable to your client as a prospective customer than is the general market, and that Urban station, with its good efficiency, is the first one you should buy, even if it does sell aggressively.

Wednesday, February 21, 1996 #1755
Dear Media Guru- I have a two part question , both dealing with the same subject, tv sampling error. Suppose ER gets a 20% rating and Seinfeld gets an 18%, both off a sample of 1000 resondents. What are the odds of there being absolutely no difference between these two ratings? This is not as simple as looking up the standard error of each rating. I remember that it has something to do with the standard error of the difference, but I just can't recall the calculating process.Could you please explain? Then to complicate matters, I'm looking at the same phenonena on a grander scale. Suppose the estimated delivery in rating points for a tv schedule is 1000 grps and it underdelivers by 10%- ie. 900 grps. What is the likelihood that the difference had to do with pure chance ( sampling error) and how do I calculate that? I know this is more difficult since you have to account for buying many programs in the estimate and the actual. Naturally, we are assuming that the error differences are all due to sampling, and not the idiosyncrasies of the marketplace or the impurity of the sample. In this case I know the answer is going to be technical, but that is what I need. Thanks

The Media Guru Answers(Friday, February 23, 1996 ):
The Guru loves this kind of stuff. The answer is technical but hopefully, in simple terms.

First, if ER has a 20 rating and Seinfeld has 18, with a sample of 1000 (for that demographic), then the ER 20 rating's standard error is +/- 1.265 while Seinfeld's 18's is 1.215 (See formulas in the Jan 25 18:23 Guru Q&A below).

Note that the absolute size of the error on the 20 is larger but it is relatively smaller. Also note that the range of these errors is such that they can make the two programs' ratings equal: 20 - 1.265 = 18.735 which overlaps 18 + 1.215 or 19.215.

There is a 68% probablity that these two ratings fall within this range. But the swing could go either way on either number. And could fall anywhere within the +/- range specified

There is a 90% probabilty that these two ratings fall within +/- 1.999 on the 18 and +/- 2.081 on the 20. The odds are 95% that they fall within +/- 2.381 for 18 and 2.479 for the 20.

These odds actually relate to reliabilty. That is, if you repeat the same rating study 100 times with the same actual facts existing, 68% of those studies will give ER a rating between 18.735 and 21.265.

Now the 1000 GRP underdelivered by 10% is different As the beginning of the explanation showed, while there is a swing around any rating (a 5 would be +/- 0.689 in the same study), the odds equally favor underestimates and overestimates. This is the same as the reason why small samples don't necessarily underestimate ratings. So in 1000 GRPs made up of 500 spots with an average 2 rating, the sampling error on the individual ratings somewhat cancels out.

To calculate this in an Arbitron measured radio buy using a single survey and one station, for example, the formula is

GRP x ((100 x #spots) - GRP) / sample x Factor)))

"Factor" is from a table provided, specific to demographic and #quarter hours in the daypart of the buy.

So, if your 1000 GRP were based on Adults 18-49 ( with a 1000 A18-49 sample), and a Mon-Fri, 6a-7p schedule, the calculation would be:

(1000 x ((100 x 500) -1000) / (1000 x 2.42)))

or +/- 143 GRP at the 68% confidence interval. Obviously, if the average rating were higher, hence fewer spots or if the sample was larger the variance would be smaller. With an average 20 rating, the swing is about +/- 40 GRP.

So, depending on average ratings and sample sizes, the 10% underdelivery could be within the range of standard error.

Monday, February 19, 1996 #1757
Television's (network, spot are cable) and radio's (network and spot) advertising costs are typically measured in CPP's (cost per rating points). On the other hand, Newspapers' and magazine's advertising costs are measured in CPM's (cost per thousand). It seems the Internet is moving towards the CPM model and I have no idea how "out of home" or Direct Mail are measured. Apples to apples, based on CPM, how do these mediums compare on cost? -- how about ROI?

The Media Guru Answers(Thursday, February 22, 1996 ):
First, understand that CPP and CPM are just cost indices rather than "measures." CPM (cost per thousand audience impressions) may be converted easily to CPP (cost per percentage point of population universe):

CPP = CPM x universe in thousands x .01


CPM = CPP / (.01 x universe in thousands)

CPM is simpler to deal with because we only need to know the audience exposed, a figure just beginning to be reported on the internet. CPP requires us to know a "universe," the number of people in the whole category under discussion. For the internet, or more specifically the WWW, where ads are usually found, universe is a hotly debated question. Is it the number of people with computers and modems or the number of people with the theoretical possibility to browse the web (an ISP and browser software) or the number of people who actually ever do use the Web? Even if we pick one of these, there are radically varying research estimates of the size of these possible universes.

If we decide to just use the total population as a universe for internet measurement, the ratings are agonizingly small, and we are still working toward how to define the rating. In print, no matter how often a reader picks up the same issue of a magazine, he or she only counts once in that issues impressions or rating. But website accesses are usually counting multiple weekly visits without the ability to distinguish repeats of the same viewer. There is not yet any common ground in pricing to talk of averages. There may be over 100,000 commercial sites, more than all the tv, radio and print vehicles put together.

The comparison you suggest between all media cpms also changes as we define which demographic to consider. TV has established averages to consider and companies like Spot Quotations and Data publish these cpm/cpp.

Print may vary from $5 to over $200 cpm depending on selectivity of audience and total circulation.

ROI can't be discussed without knowing the goals and depends on ad content, other marketing efforts and how revenue is measured. Web site development and web ads may be meant to sell product, build image or just bring viewers to sites. Web advertising needs to be evaluated against very goal specific potential and possibility.