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 Monday, February 09, 2004 #6378

describe a rating point
 The Media Guru Answers(Monday, February 09, 2004 ):

One percent of the specified demographic universe. Click here to see past Guru responses about "rating point"
 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, 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.
 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 signon to signoff. Sometimes the term "Daypart ROS" is encountered. This is another version of Run of Daypart.
 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.
 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 1849 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 1849 in a market, and a radio spot has an audience of 20,000 women 1849 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
or
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.
 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 or 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 SQAD@ix.netcom.com 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.
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