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Media Guru

Guru Search Results: 158 matches were found

Friday, March 14, 2008 #7514
I work for a small advertising agency, we are looking to buy SQAD books. We buy in the ten DMAs buy i can't buy them every month. We cater to Hispanic customers and right now i have no bench mark to place my buys as far as where to get my CPP in each DMA's.What would be the ideal month or Quarter to buy this year? Should we buy the one from June or 2nd Quarter last year?

The Media Guru Answers(Friday, March 14, 2008 ):
As long as you understand how the quarters index to each other, the best bet is probably to buy the latest available book.


Friday, February 08, 2008 #7496
Hi Media Guru, I need some broad costs for the US (across all media). Is there a website that I can access in order to get an overview? Ive tried searching and been on some websites but I am seriously struggling to get the information, so I would appreciate any help. Thanks and kind regards S. Miller

The Media Guru Answers(Friday, February 08, 2008 ):
Several companies are in the business of selling these data. Apparently, you can appreciate the value of the information. Some specialized sites offer some data, depending on what you want.

If you need general cpms of media types, ad trtade media like MediaWeek or Ad Age archive articles on this subject, but even these have only limited free access.

MRI+ has magazine page rates. For significant fees, Standard Rate and Data Service (SRDS) has rate cards of many media and SQAD has cpm/CPP type rates of many, predominantly broadcast, media.


Thursday, December 27, 2007 #7462
DearGuru: How to evaluate a radio media chance? Quantity analysis and quality analysis? How to? would you please give me a main structure for doing this work? thanks.

The Media Guru Answers(Saturday, December 29, 2007 ):
This question is somewhat unclear. If by "chance," you mean a specific buying opportunity, such as a given station's promotion or event, then there are both quantitative and qualitative elements to consider:
  • Quantitative:
    What are the CPP or CPM figures?
    How do these compare with other opportunities or standard buys you have made?
    Is the frequency and duration adequate to your promotional needs?
    Are reach needs met?

  • Qualitative:
    Does the event engage the right audience in the right way?
    Does it support the Brand?
    Does it fit the rest of the marketing effort?


Friday, December 14, 2007 #7459
Hello - how can I determine a blended CPP using radio demos that I have data for, i.e., A18-49, A25-54, A35-64, but I ultimately need to report A18-64? Is there a formula to use? Thanks.

The Media Guru Answers(Sunday, December 16, 2007 ):
In addition to the CPPs you have you will need the population universes for the demographics you will work with and the cost of the related spots or schedules.

We will need to find the impressions for A18-64.

You need to have data for other CPPs that can conceivably be manipulated to get to A18-64.

Obviously, if you had 18-34 and 35-64, you could get there. Or if you had 18+ and 65+, or if you had 25-49, 18-34, 25-34 and 50-64.

The first step is to get the "pieces" of the 18-64 audience together. For example, assume:

  • the cost of your entire schedule is $100,000, and
  • 18-34 CPP is $100, and
  • 25-34 CPP is $110, and
  • 25-49 CPP is $85, and
  • 50-64 CPP is $130

  • Assume 18-34 population = 80,000, and
  • 25-34 pop = 50,000, and
  • 25-49 pop= 150,000,and
  • 50-64 pop = 60,000, and
  • 18-64 pop is 240,000

    Divide your budget of $100,000 by each of the relevant costs per point to see how many GRP in each demo you have:

$100,000 $100 gives you 1000 A18-34 GRP
$100,000 $110 gives you 909 A25-34 GRP
$100,000 $85 gives you 1176 A25-49 GRP
$100,000 $130 gives you 769 A50-64 GRP

Multiply each population by the GRPs to determine the impressions in each relevant group:

1000 GRP X 80,000 population 18-34 gives you 800,000 A18-34 impressions
909 GRP X 50,000 gives you 454,500 A25-34 impressions
1176 GRP X 150,000 gives you 1,764,000 A25-49 impressions
769 GRP X 60,000 you 461,400 A50-64 impressions

Now add and subtract to get A18-64 impressions:
800,000 A18-34 minus 454,500 A25-34 yields 345,500 A18-24 impressions
345,500 A 18-24 impressions + 1,764,000 A25-49 impressions + 461,400 A 50-64 impressions = 2,570,900 impressions A18-64.

Divide 2,570,900 impressions by the 18-64 population of 240,000 to determine that you have 1071 GRP A18-64.

Your spending of $100,000 divided by the 1071 GRP yields an A18-64 CPP of $93.37.


Tuesday, July 03, 2007 #7382
Question: figuring CPP and GRPs on radio media buy From: narinj

The Media Guru Answers(Tuesday, July 03, 2007 ):
GRPs are the total of the ratings of the announcements in the schedule. Ratings coem from an audience measurement service, such as Arbitron, in the US, for example.

CPP is simply cost ÷ rating.


Thursday, June 14, 2007 #7367
Again Guru, I have been asking questions out of much curiosity as im studying and need to get such answers to increase my knowledge base, So to ask you again, I know the calculation of GRP's but I dont understand its relevance, A rating point is reaching one percent of the universe, GRP is sum of all the rating points. My query considering this formula is, what would a 100 GRP per week plan mean ? This obviously does not mean reaching 100% population as the duplication is not considered. But what does a certain level GRP plan mean? How is the efficiency of a medium being recognised on the basis of GRP ? Thanks again

The Media Guru Answers(Sunday, June 17, 2007 ):
Let us agree that the definiton of a rating point is "a number of impressions equal to 1% of the population" and never use the word "reach" in defining rating point or GRP, because this can carry misleading implications.

So a 100 GRP per week plan would have a weekly gross number of impressions equal to 100% of the population.

GRP only describes weight. The reach will vary depending on the media mix included.

"Efficiency" is defined as either cost of a GRP ("CPP") or the cost of 1000 impressions ("CPM").


Wednesday, June 06, 2007 #7359
I am trying to determine GRP levels for buying TV. I have a budget. Where do I go from there?

The Media Guru Answers(Sunday, June 10, 2007 ):
Find cost per GRP (CPP) from a source like SQAD


Wednesday, May 30, 2007 #7343
Can you give me an idea what the average radio CPP is in San Francisco these days?

The Media Guru Answers(Wednesday, May 30, 2007 ):
See SQAD


Monday, January 15, 2007 #7273
Dear Guru, Is there a minimum benchmark for GRP-Reach-and Freq when buying spot TV or Cable in one DMA? For example, I have been using a goal of 150 GRP with a 40% reach at least 3.0 times toward the target demo over a four week period when consulting clients on the miniumum amount they need to spend in a certain DMA. This means if the most recent avg CPP in that DMA is $35.00, I would recomend they spend a minimum of $5250 (150GRP X 35CPP per month. Is this calculation correct or should I be using a different formula when reccomending a budget per DMA?? Thanks!!

The Media Guru Answers(Tuesday, January 16, 2007 ):
The calculation is correct if you have validated your 150 GRP / 40 reach for 4 weeks. 150 seems much too low to generate 40 reach at 3+ frequency in four weeks. A level closer to 250 is probably needed.


Monday, January 15, 2007 #7271
When conducting a breakeven analysis between spot and network, is there a way to do it by using CPPs directly, since a point is a different number of bodies in each market. Or do you have to convert to a CPM to be mathematically correct, then convert it back if you want to express CPP?

The Media Guru Answers(Tuesday, January 16, 2007 ):
Refer to your precedeing Query #7270


Monday, January 15, 2007 #7270
spot versus network breakeven analysis

The Media Guru Answers(Tuesday, January 16, 2007 ):
  • Rank the spot markets in order of importance to your brand.
  • Add market costs per point until you reach the national CPP.
  • What is the sum of the US Coverage percentages of the markets?


Thursday, January 04, 2007 #7258
Hello Guru, I know I'm asking a very simple question that everyone understands, but me. When buying can an advertiser save money buying against a demo with a lower CPP vs. the one's real target demo, but the CPP is higher? In theory is it sometimes possible just to buy many more TRPs against the cheaper demo, knowing that when converted it gets to one's real goal against another demo? Is this a possible advantageous way to buy or does this cause harm? Thank you for your help.

The Media Guru Answers(Friday, January 05, 2007 ):
In reality a station is selling spots. If they decide a certain spot is worth $100 and only adjust that based on the total order size, then that spot's CPP varies according to the demo you analyze, but the spot cost what the spot costs.

In essence you are saying "if I buy a demo in less demand, will the station low-ball prices to get the order?"


Tuesday, June 20, 2006 #7151
is there a marketing/planning book available with all mediums for advertising including costs/CPP/CPM for each medium - local and national

The Media Guru Answers(Wednesday, June 21, 2006 ):
No one book. Try SQAD Media Msrket Guides for broadcast media and newspaper.


Wednesday, May 24, 2006 #7142
How do I do TV post buy analysis when actual spends data is missing (we just took over the account from other agency)? What I have only pre campaign GRPs, 1+ Reach and Frequency and Post GRPs and R&F

The Media Guru Answers(Thursday, May 25, 2006 ):
Obviously, the client won't be expecting you to analyze data you don't have, assuming you have requested the budget and been told it can't be provided. Still you can provide a comparison of all the pre / post data you do have and even compare achieved CPP to SQAD or other standard used by your agency.


Friday, May 12, 2006 #7135
When considering a TV advertising schedule, it seems logical to me that I should be looking at time slots with the lowest CPP for my target demographic. If this is true, why are advertisers willing to pay a much higher CPM for some spots than others? For example, the CPM during the local evening news is $2.98 but a local spot during the network evening news is $7.24. They both hit about 150K people, so would I choose the network news? Am I missing something? I am new to TV advertising, so any advice is appreciated. Thanks, Rich

The Media Guru Answers(Sunday, May 14, 2006 ):
There are more considerations than cost per point. If only CPP mattered, thn radio would be more desireable than TV and outdoor would be the "best" medium.

Higher rated spots have higher CPPs. Planners place value on ratings size, for example, for various good or bad reasons, including:

  • Reach
  • ratings stability
  • higher ratings theoretically equals popularity equals engagement
.

More realistically, we have to consider that mere impressions weight is not always the key goal, but that's all you get buying lowest CPPs. A mix of programs, dayparts or stations yields more reach which might be the true goal, in pursuit of awareness, for example. Finding program environments which are more supportive of the message also leads to selections for reasons other than simple CPP. A good understanding of plan goals is the first step in making the best buy.


Saturday, February 18, 2006 #7098
CPP

The Media Guru Answers(Sunday, February 19, 2006 ):
Go to the Guru Archives Search Engine. Use "CPP" as your search term.


Tuesday, November 22, 2005 #7055
dear media guru: give detail about cpm nd cprp

The Media Guru Answers(Wednesday, November 23, 2005 ):
Go to the Guru Archives Search Engine. Use "cpm or CPP " as your search terms.


Tuesday, July 12, 2005 #6969
I haven't seen any squad costs for about a year or so, so maybe this question has already been answered. Are there any planning CPP's out there for :30 radio? If the cost of a :30 is around 60-70% the cost of a :60, is it logical to deduct 30-40% off the :60 planning CPP's?

The Media Guru Answers(Tuesday, July 12, 2005 ):
There is a patchwork of patterns. Many stations, especiually FM rockers sell "units" with :30's and :60's at the same cost others use a percentage, probably more often 80% of a :60 for a :30. SQAD is still out there, but won't solve your problem.


Tuesday, May 24, 2005 #6932
Hi MG - Now that I've moved from a large agency to a smaller one, I've found that they do not subscribe to basic research materials such as SQAD & SRDS - we do not even have the capability to even pull RANKERS. Obviously, this makes it difficult to analyze media efficiencies. Aside from asking vendors to put together their own numbers (as I would have to pull this info across numberous DMAs), are there any free online resources you can direct me to which has CPP info for both TV/RD as well as somewhere where I can pull ranker info? ANY help would be appreciated! Thank You!

The Media Guru Answers(Wednesday, May 25, 2005 ):
Radio & Records offers very basic radio audience ranking data. Audience and CPP data are costly commerical products and not genrally to be found at no cost.

An agency buying media regulalry in "numerous" markets needs to invest in research resources or rely on the kindness of reps. They are lucky to have hired a media pro who, at least, knows how it should be done.


Tuesday, May 10, 2005 #6917
Hi. I'm working on a Q4 spot tv media plan for a client in Michigan City IN. What is the best way to get a sense of what CPPs and ratings should be for the Chicago and Sound Bend DMAs for this time period? (SQAD? - If so, which time periods should I request?) Thanks in advance for your help

The Media Guru Answers(Sunday, May 15, 2005 ):
SQAD for the time period you will be buying. SQAD offers projections.

For ratings, see Nielsen.


Saturday, April 02, 2005 #6877
Dear GURU, how can I calculate the CPM from CRP or CPP? Thank you!

The Media Guru Answers(Saturday, April 02, 2005 ):
At its simplest:

CPP is the cost of exposure to 1% of the target population, so

CPP 1% of target population expressed in thousands = CPM


Thursday, March 17, 2005 #6856
Hi Guru, when we talk about the media rates, why people always talk abut CPP or CPM, not just the price? Thanks.

The Media Guru Answers(Sunday, March 20, 2005 ):
If two stations offer an ad for $200 and one will have an audience of 1000 persons while the other has an audience of 1 million, then there is obviouly a reason to consider more than just price. CPP and CPM represent the cost / audience ratio. This is known as "efficiency."


Tuesday, February 22, 2005 #6808
My media department often compiles "media" market profiles for clients opening new locations/stores. Within this profile we include estimated TV CPP's by daypart pulled from SQAD and a daypart mix by percent (established by past market buys). This daypart mix percentage is then multiplied by the estimated daypart CPP, the result of each daypart is then added and the total is called the "weighted CPP" -- is this right / real? I've looked all over your archives, in glossaries, reviewed formulas and beyond to find out more about "weighted CPPs." Please enlighten. Thanks!

The Media Guru Answers(Wednesday, February 23, 2005 ):
This is right if your weight is percent of spending, wrong if your weight is percent of GRPs.

It would also be be preferable to incorporate the index of your CPP buying experience vs SQAD rather than using pure SQAD CPPs.


Thursday, December 30, 2004 #6729
When you begin to look at buying a new market, what is the best way to find out a reasonable CPP for that market?

The Media Guru Answers(Thursday, December 30, 2004 ):
1. SQAD

2. Ask all the vendors at what price "the other guy" is selling.


Thursday, December 02, 2004 #6709
Do you have planning CPP's for Chicago radio and TV for 2005?

The Media Guru Answers(Friday, December 03, 2004 ):
Try SQAD


Tuesday, November 02, 2004 #6660
Dear Guru, I will be very greatfull if you give me some more advices about the calculation of media inflation. Some of the TV stations in our market sell guaranteed TRPs. Sometimes these stations increase the cost of the spots and decrease the guaranteed TRPs and this leads to increasing of the CPP and the media inflation. So, when we calculate media inflation do we have in mind the guaranteed TRPs, the length of the program and the days in the week when the program is broadcast and on this base we calculate the media inflation? Or when we calculate media inflation we have in mind only the change in the cost. Pls. give me some guidelines for forecasting the media inflation. If you can recommend me some sites or other places where I can get more information about this topic it will be great. Many thanks!

The Media Guru Answers(Wednesday, November 03, 2004 ):
Discounts can be achieved by buying in volume, buying inventory perceived as less desirable, making the seller understand that the deal is in a competitive enviroment or other ways of giving the seller a rationale for lowering the price with dignity; they want to deal.

Most important is to convey that you are willing to walk away from an unsatisfactiry offer.


Tuesday, November 02, 2004 #6659
Dear Guru, I will be very greatfull if you give me some more advices about the calculation of media inflation. Some of the TV stations in our market sell guaranteed TRPs. Sometimes these stations increase the cost of the spots and decrease the guaranteed TRPs and this leads to increasing of the CPP and the media inflation. So, when we calculate media inflation do we have in mind the guaranteed TRPs, the length of the program and the days in the week when the program is broadcast and on this base we calculate the media inflation? Or when we calculate media inflation we have in mind only the change in the cost. Pls. give me some guidelines for forecasting the media inflation. If you can recommend me some sites or other places where I can get more information about this topic it will be great. Many thanks!

The Media Guru Answers(Wednesday, November 03, 2004 ):
Inflation is a matter of the rate of change in cost.

Forecasting involves examination of pricing trends, foreseeing economic factors that will put pressure on inventory, such as elections or Olympics (in the US, for example) or factors that will reduce or increase demand, such as economic upturns/downturns, holiday shopping seasons, war, etc.


Monday, October 25, 2004 #6648
What does it mean if HUTs in a market are continually increasing? How does the affect media buying and the mareketplace?

The Media Guru Answers(Friday, October 29, 2004 ):
If HUTs are rising, a greater portion of the populaiton is watching TV at any time. In marketplace terms it means the supply of GRPs is increasing, thus if demand does not increase, CPP inflation will at least slow down,


Sunday, October 17, 2004 #6643
Dear Guru, In the past we used to assess media plans based on CPM. More than ten years ago, planners started to use CPP as a base of comparison and not CPM anymore. I would highly appreciate if you could elaborate on this evolution from CPM to CPP. Thank you & regards,

The Media Guru Answers(Sunday, October 17, 2004 ):
This is not an evolution, this is apparently how your company has changed. Both of these measures have been in use for 40 of more years.

CPM is a more absolute measure, while CPP is in relation to a target population.

Network buyers may look more to CPM, since they don't deal with geographies of varying sizes, while planners look more to CPP, which relates directly to GRP, a planning metric, from which reach and frequency are most readily calculated.

The growth of internet as a medium brings more emphasis to cpm, as CPP is not typically used in online media.


Friday, October 08, 2004 #6626
In your opinion what effect does the increase or decrease of HUT levels from year to year have on a market?

The Media Guru Answers(Saturday, October 09, 2004 ):
The question is not entirely clear. But by way of example however, the constant decrease in national HUT lead to increase in CPP. A decrease in HUT is a decrease in supply of GRP.


Tuesday, October 05, 2004 #6623
I'm trying to find out if there's any comparison amongst different media's CPP. Specifically -- if TV'c CPP is 100, what should radio be? what should direct mail be? DO you know if theres any established market guideline?

The Media Guru Answers(Saturday, October 09, 2004 ):
No standard. For example, in a young demographic, radio is more competitive with tv. In an older demographic, print is more efficient relative to other media. In different markets, the picture changes.


Friday, October 01, 2004 #6622
I have a really stupid question, but I think that I have looked at these cost per points and cost per thousand analysis until I have confused myself. I have three markets. Two of the markets of very small and the other is a larger market. Why is the cpm more in the two small markets and in the large market the cpm is higher. Cost per points are much lower in the small market, but why the cpm out of line? I hope this is clear. Thanks for your help.

The Media Guru Answers(Friday, October 01, 2004 ):
To oversimplify:
  • CPMs are prices of exposure of1000 people and CPPs are prices of percentages for populations
  • CPP is much more likely therefore, to be proportional to market size; value of exposure to 1% of a market with 10,000,000 population is obviously greater than exposure to 1% of a market of 100,000 population
  • But why are 1000 people in the smaller market more valuable than 1000 people in the larger market? A couple of issues:
    -Fewer media competitors
    -Physical cost of operation represents a bigger portion of costs; i.e. if turning on the same lights, cameras and transmitters costs the same in both places, but a spot's price has to relate to population somewhat, there is a larger portion of spot cost paying for operations versus the portion that can reflect media value in small markets


Monday, September 20, 2004 #6612
tv CPP estimates

The Media Guru Answers(Monday, September 20, 2004 ):
SQAD


Thursday, July 15, 2004 #6538
How do you calculate a weighted CPP?

The Media Guru Answers(Friday, July 16, 2004 ):
Click here to see past Guru discussion of weighted averages .

In your case, the weights would be dollars. But, the the simplest way to calculate is to add up all the spending and divide that by the sum of all the rating points.


Thursday, June 17, 2004 #6514
Hi Guru. I have been given the task of planning and buying some spot TV in 5 DMAs to promote a live event in one of those DMAs. There will also be follow-up spots right after the event. On rare occasions in the past when we've bought TV spots, it was on a cost per spot basis. I've been told to do it on a CPP basis this time. I understand what a CPP is and how SQAD works, but how do I determine how many points I need to buy in order to effectively reach my target audience? I don't have my budget for this yet, and anticipate them asking me how much $ I would need to do this right. Can you help me?

The Media Guru Answers(Sunday, June 20, 2004 ):
The essence of your needs is in determining what portion of your target audience you need to reach, how often, and over how long a period of time. Reaching the majority of the target (at least 50%) at least three times is a starting point.

Then, you need reach calculation software to see what level of GRP gets you there. The Guru's favorite software, naturally, is our own eTelmar.


Wednesday, May 19, 2004 #6499
We are currently purchasing local broadcast television combined with local cable television in a large number of markets. We have been grappling with the question of how to report the ratings achieved by each medium. Our initial thought was to add the broadcast DMA ratings to the DMA equivalent ratings of the cable activity in order to keep the figures "apples to apples." How do other agencies report cable ratings back to their client? (Local cable reports their audience delivery a number of ways including: DMA ratings, cable universe ratings, cable zone ratings within cable universe, etc.). However, there are some cases where we may be purchasing select cable zones in a market, rather than the entire market's cable interconnect. In these cases, the cable television activity probably won't be efficient when compared to the broadcast TV DMA CPPs. On the other hand, purchasing the entire broadcast television DMA probably isn't an efficient way to reach just the geography surrounding a few stores. How do other agencies rationalize purchasing select cable zones (surrounding store locations) to their analytical clients? In these cases, the DMA CPP comparison probably isn't realistic. What this boils down to is a basic question--is local cable forced to compete on exactly the same playing field as broadcast television? Are both forms of media judged against the same CPP goals or is cable allowed to compete based on a different CPP (based on the cable universe or percentage of cable penetration)? Does this answer change if purchasing an entire market's interconnect versus a single zone or multiple zones? How is cable television posted when buying an interconnect? When buying a zone or zones? What other factors should be considered in this analysis (i.e. are we overlooking anything)? How is the budget (or TRP goals) allocated to between cable and broadcast television?

The Media Guru Answers(Thursday, May 20, 2004 ):
The Guru reports ratings on the basis that makes sense for the clients' marketing needs. If the client is a retailer, ratings localized to cable zones in store trading zones make sense and will reflect the efficiency of this localization, while also put the waste of DMA ratings into perspective. On the other hand a national consumer goods marketer with interest in entire DMA's should use DMA ratings as a comparison basis.


Tuesday, April 06, 2004 #6452
Dear Guru - We are pitching a new biz account. The past buying agency's demo was households in TV and radio instead of a specific demo. Reasoning was that it produced a lower CPP. We want to give rationale to the potential client that the media should be bought against a specific demo,not households. One answer is that "product is bought by people, not households". Can you help with other rationale why the client should be buying against a demo and not households? We need to support why the CPP will go up and that it will cost them more money for less.

The Media Guru Answers(Sunday, April 11, 2004 ):
The Guru responds, "oy!' That old clunker "product is bought by people not households" sounds so slick and is so silly. Household products are bought by the person -- of various descriptions -- who buys for the household, in many cases the "lady of the house."

The essential thought here is that if a primary purchaser/user with distinct demographic characteristics can be identified, then an effort should be made to assure that advertising concentrates on that person. Using a demographic target is one of these ways.

The idea that HH CPP is lower is illusory. HH appear cheaper to buy because they may or may not contain the right people.

By the way, housholds are not measured in radio ratings, anyway.


Tuesday, March 30, 2004 #6441
suggestion for a media buying brief document or form

The Media Guru Answers(Sunday, April 04, 2004 ):
Think about how you would post-analyze the buy and make sure you specify standards for all elements, e.g.:
Medium/vehicle
Audience bought
Cost estimate
Audience delivered
Final cost
Planned CPP
Planned vs achieved audience
Planned vs achieved efficiency Index

Communicating the details is more important than having a form

For each medium / vehicle lay out, to the degree possible:

Description

Measure

Tolerance

Narrative

Audience bought
w18-49
GRP
10%
Cost Estimate
$100
CPP
10%
Rating
>2
Rotation

Equitable Horizontal

max 2 / week in strips

Program types
Comedy, movie, game, NO REALITY


Monday, February 16, 2004 #6383
Hi, I've looked through the archives but couldn't find anything on developing Spot TV RFP's to the various stations. I've done spot radio RFP's, but want to know if I need to include anything more than: client & brand, target, market and market R/F goals,weekly GRP's, Target CPP goals, flight dates, days of the week within flights,daypart mix, any must buys shows, spot length, RFP due date, and the flight schedule deliveries. Is there something really embarressing that I've overlooked? Don't hold back. Thanks

The Media Guru Answers(Tuesday, February 17, 2004 ):
A good RFP has two key elements;
  • It specifies everything that will be considered in your decision making, so that proposals are complete and allow decision making immediately, and
  • It does not request any information that will not contribute to decison making so that you don't have vendors wasting time on unnecessary work that you have no need to waste time considering, rather than the important info that you do need.
. It strikes the Guru that you have included everything under the sun that might eventually be used to describe the eventual buy, but do not need as qualifiers of submissions.

Do you have a standard for days of the week to decide what to buy? In retail that's possible, otherwise, perhaps not.

Do stations need to deal with your daypart mix? One station may have different strenghths than another. It might be counterproductive to ask each to submit the same mix, when you might do best with one station's prime and another's news.

Do they need to think about your GRP total if you might buy 2 or 3 or 4 stations?

Can they respond to your reach goal, knowing they are providing only a portion of a schedule?

All these specs would be useful if each station is competing for an exclusive, but the Guru doubts that is the case.


Wednesday, January 21, 2004 #6351
Hello there. I have this list of dayparts. I am trying to come up with a CPP ranking order from cheapest to most expensive. Do you believe, that on a national level, I am close enough to use for directional analysis purposes? Or, would you switch something around? Thanks in advance for your point of view! 1. 10a-4:30p 2. 1a-6a 3. 4:30p-6p 4. 6p-7p 5. 6a-10a 6. 11p-1a 7. 7p-11p

The Media Guru Answers(Friday, January 23, 2004 ):
Generally this looks OK, but 1a-6a should probably be cheapest. Of course this all depends on the demographic and exactly what medium we are considering, is it broadcast network? It seems silly to generalize. . . you work at a large agency and specific data should be readily available to you.


Wednesday, December 03, 2003 #6297
I am working for a nonprofit that would like to purchase advertising. I am looking for A18-24 CPPs or CPMs for national and spot cable (looking at certain top 100 markets). I am not in an agency so I don't have access to SQAD or any of the other paid resources you mention on the site. I need something that's free, even they're just rough estimates. Thanks!!

The Media Guru Answers(Saturday, December 06, 2003 ):
Try SpotCable


Sunday, November 30, 2003 #6284
I am doing a paper and need to give approximate costs for advertising to a specfic target market in both magazines and TV. I can't find many prices, don't really know where to look, and the prices I have found I don't know if they are for a year or what. (They are for BHG magazine and they give different size ads, it does say "12 months average net paid, calendar year." Can you help me at all!? Please? Thanky you!

The Media Guru Answers(Friday, December 05, 2003 ):
"12 months average net paid, calendar year." refers to circulation audit. Magazine and other ad prices are quotes per ad (or for broadcast) sometimes per rating point (CPP)>


Thursday, November 20, 2003 #6265
CPP

The Media Guru Answers(Thursday, November 20, 2003 ):
"Cost Per (rating) Point


Tuesday, November 18, 2003 #6253
What is the best source for finding cable CPP in a given DMA?

The Media Guru Answers(Thursday, November 20, 2003 ):
Talk to 2 different reps. Start with SpotCable.


Tuesday, November 04, 2003 #6232
Guru, My client wants to plan a national radio buy and wants to know what the CPP would be. I know SQAD provides this data by market, but is there any resource for national radio CPP?

The Media Guru Answers(Sunday, November 09, 2003 ):
The Guru's method is to talk to reps. Ask each what is the CPP of the competitors


Wednesday, October 01, 2003 #6183
It is suggested that cable tv be bought the same as radio. With this in mind, should the cable CPP also be the same as radio?

The Media Guru Answers(Saturday, October 04, 2003 ):
Cable's ratings size and reach invite comparison to radio. But people may view quite differently. Since cable has more frequent ratings, other buying issues arise.

CPP will likely be higher.

Hey, it is TV.


Tuesday, September 30, 2003 #6182
Dear Media Guru, In our market we have two companies that offer radio traffic sponsorships. I have been asked by a client to compare the two in order to show which one offers the best exposure and the best "bang for the buck." One company offers live :10 reads on over 19 stations the other offers taped :15s on 9 stations. I know that I can use strata to combine all the stations for each group to get an overall rating average, but I am wondering if I should weight the ratings since these are not :60s. What do you advise? Also, besides, grps, CPP and cpm is there any other data that I should include in my comparision to show the strengths or weaknesses of each group? Thanks! KJG

The Media Guru Answers(Saturday, October 04, 2003 ):
Weighting is reasonable. Do the "live" versions allow last minute changes? If "live" means simple announcer script, but taped meand full production, you need to quantify the difference. It might be more significant than just the length difference.


Wednesday, August 20, 2003 #6134
Our company invested in SQAD data to make sure we weren't paying more than the average cost for our spot television buys and to have a negotiating tool. However, I've discovered that many of our actual CPP's paid are much lower than even the lowest projected cost within a particular daypart and quarter, and this is among many different markets, not just one or two. I now feel like SQAD data is somewhat inaccurate. What do you think about SQAD data and what is the best information to use when negotiating spot TV? Thanks.

The Media Guru Answers(Wednesday, August 20, 2003 ):
Your experience is not unique. There are many variables in spot costs. The Guru believes that the most valid use of SQAD data is to track trends (+/-%) once you have established your own benchmarks


Wednesday, August 13, 2003 #6125
What format should a Post Buy Analysis document be set in?

The Media Guru Answers(Sunday, August 17, 2003 ):
The Guru would use a spread sheet, showing columns of
  1. Medium/vehicle
  2. Audience bought
  3. Cost estimate
  4. Audience delivered
  5. Final cost
  6. Planned CPP
  7. Planned vs achieved audience
  8. Planned vs achieved efficiency Index

Depending upon how your plan and buying platform were structured, your "audience" units might be impressions or GRP, your "efficiency" might be CPM or CPP. You might evaluate program by program / magazine by magazine or summarize by dayparts / types or media totals. You might compare to average audience guarantees.

A text overview document should be included.


Monday, August 11, 2003 #6117
1. beside using more short TV duration, what's your techniques to make smallest cost per rating 2. how to build and run small media agency, and also keep established its health for long time thanks

The Media Guru Answers(Monday, August 11, 2003 ):
1. Lower rated programs have lower CPP, generally. Stations with lower average ratings have lower CPP. Some dayparts are inherently lower priced per point.

2. Balance price against actual goals. Service conscientiously. Know what you are doing, and why, at each step.


Wednesday, August 06, 2003 #6113
converting CPPs to CPMs? thank you!

The Media Guru Answers(Wednesday, August 06, 2003 ):
Click here to see the Guru on CPP / CPM conversion.


Tuesday, August 05, 2003 #6106
What would be the best way to convince advertisers try digital signage advertising: show them CPM, CPP or other parameters?

The Media Guru Answers(Wednesday, August 06, 2003 ):
Give sales results, such as change in sales of advertised products in the place where advertised. If the signs are in something like stores, this should be fairly easy.


Wednesday, June 11, 2003 #6007
Is there a report somewhere that outlines how much a market's CPP has increased over the last 5 or 10 years (other than looking through 5/10 years worth of SQAD) and is there a report showing any prediction of what that market will be doing in 5-10 years?

The Media Guru Answers(Sunday, June 15, 2003 ):
Generally, there are two kinds of CPP reports, predicted and actual after the fact. "Actual" depends on individual buyers. Does it matter that a marekt's overall actual W18-49 CPP has been $100 if all the buys made for the W18-49 target averaged $75 CPP?

So, many buyers track CPPs based on target buying experience or experience on behalf of specific clients, which may differe because of buying standards even with the same target. SQAD is useful in these cases, when you don't have the specific experience and can't tell if any published article reflects your needs. With any number of targets and 200+ markets, there is not likely to be another, free source of such comparisons. Your 5 year report would be 1000+ entries for each demographic and daypart, no small undertaking.


Thursday, May 22, 2003 #5981
What is your strategy for determining radio CPP by market?

The Media Guru Answers(Saturday, May 24, 2003 ):
The Guru generally talks to sales reps. The cost guides like SQAD are an option.


Wednesday, March 12, 2003 #5874
Hi! I just purchased SQAD Media Market Guide in order to establish CPP goals and determine budget needs for our TV markets. I was told by someone at SQAD that the book would give me information broken down by demo and daypart in each market. It turns out that our demo in not included and that only select demos ARE included! I'm very upset about this...they won't refund me. How can I set CPP goals for adults 35+ in our markets? HELP! :) Thank you.

The Media Guru Answers(Sunday, March 16, 2003 ):
Obviously SQAD can't give you every imaginable demo. The subscriber selects the demos to be included. Any demographic publisghed by NSI should be available. However, manipulating the available numbers will get you close enough. For example, 35+ should fall between, say, 18+ and 50+. Weighting by ratings averages should allow a good enough approximation.


Monday, February 24, 2003 #5852
i have a situation with a rather difficult client. they expect very low CPP, but with that they expect no preemptions, and a considerable amount of bonus spots and added value opportunities. in some markets i purchase for this client, the budget is such that i have some leverage with stations, but in others it is so low that even if a station is approaching 100% of the buy, their hands are tied as far as how low they can go on rates and how much bonus they can give, if any. i try to be as honest a buyer as possible and do an efficient job in the process. the stations in these markets think i am asking for the world and in some cases cannot come to the table with what i need. i cannot "shut out" these stations. do you have any advice for this situation?

The Media Guru Answers(Sunday, March 02, 2003 ):
Only when you are prepared to walk away from the bargaining table can you get more than what's been offered as "final".


Saturday, February 22, 2003 #5849
At what point should an advertiser consider national television vs. local?

The Media Guru Answers(Sunday, February 23, 2003 ):
Most simply, and assuming that the advertser is equally opern to customers from any geographic area, then when the cost per point of the media in the chosen markets adds to something in the range of the national CPP, it's time to consider national media.


Friday, February 07, 2003 #5816
Is there a benchmark for the number of GRPs per week that should be used for local radio? Thanks. Also, I have CPP's for local radio from 4Q '02, is it safe to use those costs for 2Q'03 or should I bump them up? Thanks!

The Media Guru Answers(Saturday, February 08, 2003 ):
The Q4 '02 CPPs should be safe as estimates for Q2 '03, as general numbers, but station specifics can change.

Many planners like 100 GRP a week, but frankly, it's just a round number. If there are other, primary media, 50 GRP might be enough, as long as it's 12 spots on a station (another arbitrary, but more logically defensible standard).

If it's a short term, readio only promotion, then 150 - 200 might be needed. There are no absolute rules.


Thursday, February 06, 2003 #5809
Hi Guru, The amic.com web site has 3Q 2000 local TV CPP information based on SQAD. Do you have a more recent rate card? Thanx Sincerely, jose.tocasuche@mtvstaff.com

The Media Guru Answers(Friday, February 07, 2003 ):
Go directly to SQAD.


Tuesday, January 14, 2003 #5732
I have heard comments from media agencies that emphasize quality over cost for TV spots. However I am a little skeptical, especially when their compensations are tied directly with the budget. So I would like to ask you a few questions to help me get a better understanding. 1) Does a good relationship between the director of a TV station vendor and the media buyer strongly affect the quality of TV ads (in terms of POD position, etc.)? 2) Does buying above the SQAD mean a bad buy in comparison to others who purchased below the SQAD? 3) Are there ways to measure (quantitatively) the performance of a media buyer? Your opinion would be highly valued. Thanks.

The Media Guru Answers(Saturday, January 18, 2003 ):
The Guru comments:
  1. In any buying / selling situation, a good relationship between the parties is likely to improve the deal as perceived by both sides. This will affect product "quality" for the buyer and quantity sold for the seller.
  2. Buying above SQAD is a pretty reliable indicator of having spent too much.
  3. SQAD is more of a benchmark than an absolute. Once some basics are set, you can tell the buyer has gone wrong if his/her costs go up when SQAD costs trend down, or go up much more than SQAD does. Likewise, a buyer whose costs go down more than SQAD's costs do has made good deals.

A media buyer needs to be given explicit goals against which to be measured. There are no absolute quality indicators of a buy, whether you look at cost, cpm, reach, rating, pod position, etc, unless these goals are set. Undirected, a buyer will probably go for lowest cpm/CPP or his own interpretation of best reach. If you wanted high ratings or heavy frequency instead and didn't make that clear up front, it is not the buyer's performance error when you don't get your secret desires. If you did give specifications and the buyer went a different way or didn't meet goals, then that's bad performance.


Saturday, December 14, 2002 #5681
I am planning for an entertainment account. We have sold our clients a plan that emphasizes quality buys versus tonnage. I have a buyer who is insisting on buying Prime Orbits or Rotations vs fixed position prime in order to save costs. However for the plan, we value quality and delivery over saving versus year ago CPPs. Can you help me explain why fixed position prime is better in this case than prime rotations and orbits?

The Media Guru Answers(Sunday, December 15, 2002 ):
First, it is the buyer's job to deliver the media according to plan and not according to the buyer's own personal goals. The Guru has often encountered buyers who bought something more expesive/less efficient to deliver better reach when the plan was focused on tonnage or GRP goals. A buyer's first goal is delivering planned media.

That being said, the Guru does not think there is anything better about fixed posiotns versus rotations inherently. If your prime schedule for a week on the NBC affiliate is 1 spot in "Friends", one spot in "ER" and 1 spot in Third Watch, why do you care if they were bought individually or delivered in a rotator of "3 prime spots."

It's a very good buyer who can deliver the programming you need at Orbit prices. Fixed positions are NOT "quality" because they cost more, but because your specification have mafde these programs more desirable

The issue may be that your targeting or program evironment needs make ER or Third Watch desirable and Friends less so.


Thursday, November 14, 2002 #5619
I have to get estimated TV CPP's for the top 5 markets in Texas. We don't have a buying company that provides us with costs. How do I go about finding the stations and obtaining costs? thanks for your help.

The Media Guru Answers(Thursday, November 14, 2002 ):
Cost could come from SQAD. Or You may contact the stations. Find one rep in the markets and ask about the competition. Katz is a good place to start.


Wednesday, November 13, 2002 #5617
How do you plan or determine the CPP for A35+ when SQAD does not include this demo in their book for TV or radio?

The Media Guru Answers(Sunday, November 17, 2002 ):
Simple algebra will do. For example, assume you do have CPP for A18+ as $100 and for A18-34 as $125.

Recognize that in the real world, different spots might be purchased for these two demos, but we must assume we are dealing with overall averages.

So, the average spot in the mix that produced the two given CPP has a specific cost, let's say it's $500 (you can make up any number here). The CPP for A18+ is $100, so this average spot's rating was 5.0
($500 $100 CPP = 5.0 Rating.)

The A18-34 rating must be 4.0
($500 $125CPP = 4.0 rating).

You would also have the market's populations for all three demographics. Let's assume A18+ is 1,000,0000, A18-34 is 700,000 and A35+ is the difference, or 300,000

The spot's A18+ rating of 5.0 means there were 50,000 A18+ viewers (5 rating X 1,000,000 persons 18+). The spot's A18-34 rating of 4.0 means there were 28,000 A18-34 viewers (4 rating x 700,000 universe = 28,000). Therefore, there are 22,000 A35+ viewers (50,000 A18+ viewers minus 28,000 A18-34 viewers leaves 22,000 A35+ viewers).

So A35+ rating = 22,000 viewers 300,000 universe or 7.3. Therefore A35+ CPP is $500 7.3 or $68.49.

If you're doing several dayparts or markets, plugging the basic facts and formulas into a spreadsheet will make it all easy.


Tuesday, November 12, 2002 #5606
Hi guru, could you please tell me how to calculate "media inflation" and what factors will affect "media inflation"?

The Media Guru Answers(Tuesday, November 12, 2002 ):
Media inflation is not a standard term. Generally it should mean the rate of increase in media costs, probably best expressed as the year-on-year change in efficiency, i.e. CPP or CPM.

Based on this, the factors are change in media unit cost and change in media unit average audience.


Wednesday, November 06, 2002 #5597
Can you please tell me approximately what the Adult 18-49 CPP for the market of Bellingham, Washington is?

The Media Guru Answers(Wednesday, November 06, 2002 ):
See SQAD


Monday, October 21, 2002 #5570
Dear guru, How is it that I would get a lower net reach in TV when targeting a specific CPP than if I target against affinity? I am trying to determine the best benchmark for buying against A18-49 in a country with a TV monopoly - no real channel selection, some programm choices for younger audiences. I am insisting on affinity, my agency maintains that when targeting CPP, the net reach is higher for this target. I understand that affinity targeting may increase my CPP but how is it that they feel by buying on CPP I will optimise net reach AND get the cheapest CPP (?) - with the warning that, yeah, you will get the Grandmas too, but hey, they watch everything, can't help that. Are they kidding me, or what?

The Media Guru Answers(Sunday, October 27, 2002 ):
The Guru is not sure what you mean by "affinity: in this case, but let us assume that you mean product users, such as ice cream eaters.

A given program has a given audience, no matter how you identify your buying target.

Suppose a program reaches 10,000 people among whom are 5,000 A18-49 and 4,000 ice cream eaters. And let us suppose that the universe od persons 18-49 is 100,000 persons, while the universe of ice cream eaters is also 100,000 persons.

A spot in this program costs $100.

The program has a rating of 5 against A 18-49 and a rating of 4 against ice cream eaters, right. So the same program has a CPP of $20 ($100 ÷ 5 rating) for A 18-49 and a CPP of $25 for ice cream eaters. So there is an apparent efficiency advantage when you look at it that way, even though you get the same people for the $100. And an apparently better net reach A18-49.

The Guru believes in the long run if the affinity group is the target, you are better off buying the group and not a statistical abstraction of the group.


Thursday, October 17, 2002 #5567
I have household ratings from tvb.org for primetime broadcast and cable. I also have cost per point for each of my markets for tv (and radio) from current SRDS books. What other information am I missing to calculate how much a spot will cost?

The Media Guru Answers(Saturday, October 19, 2002 ):
A spot's cost is its cost per point (CPP) multipied by its rating. If the average spot has a rating of 10 and the average cost per point is $50, the the average spot costs $500.


Monday, October 14, 2002 #5560
Dear Guru, may be in many countries the CPP deals are the norm, but in my country we do not have enough experience in the negotiation process of CPP deals with the TV channels. For first time in 2002 we have the real opportunity to negotiate CPP deals with some of the TV channels. So, I would appreciate very much if you can give us more detailed information about the steps of doing CPP deal. How we can negotiate a good deal with the channels? What kind of criterion should be followed?

The Media Guru Answers(Friday, October 18, 2002 ):
CPP = advertising cost rating

Set a goal CPP you want to achieve based on evaluation of pmarket ratings and your budget.
You control the deal if you are prepared to walk away from an offer that doesn't fit your needs.


Thursday, October 10, 2002 #5553
Dear Guru, do you have a case studies about the mechanism of doing CPP deals with TV channels?

The Media Guru Answers(Sunday, October 13, 2002 ):
CPP deals are the norm, what would a case study show?


Thursday, August 08, 2002 #5458
Dear Guru, I am the marketing director for an 80 unit restaurant chain with locations in 9 DMA's (2 being top 20.) For us to advertise promotions at point levels that increase sales and are within our budget, we have been forced to use a tiering strategy in our media purchases. By this I mean that we determine what type, weight and number of weeks of media each market will receive based on dividing the cost by market by the number of locations. Are there any other formulas or tools we should use to help us with this proces??

The Media Guru Answers(Saturday, August 10, 2002 ):
Your current method assumes that every restaurant is equal in generating sales or profits. You could allocate according to market sales. Or you could account for efficiency: If market A has half the population of market B and each has 10 restaurants, but the CPP is double in B, do you adjust for this, i.e. spend where the dollars give more action?


Thursday, August 01, 2002 #5445
Guru, thank you in advance for helping out. In our market, the TVC time is monopolized by a single government owned body and it doesn't sell spots on a GRPs(or TARPs) basis. I was wondering in markets where they DO, the CPP, once fixed for a certain T/A, is something guaranteed right? or is this also up for negos. Could please explain.

The Media Guru Answers(Thursday, August 01, 2002 ):
In the US, whether CPP is guaranteed varies by media type and buying circumstances, among other things.

For instance, small spot or scatter network TV buys are not typically subject to guarantee. Network upfront or syndication typically is guaranteed.


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,


Monday, July 22, 2002 #5427
At my agency, we set media goals for many clients in terms of EF/ER & CPP. The correlation between EF/ER for a specific category/demo we get from past similar campaigns for which we are able to extract the necessary data. But eventually most of our clients judge our performance only on CPP. Yes, cost efficiency is important but so is EF/ER. The fundamental problem arises when our analyzed tv schedule and our actual own do not match in the execution pattern (e.g. portion of primetime vs fring.). My point is as a media planner, the EF/ER be taken into account as well (even if we were off mark on the CPP), right? The problem how to do this quantitatively. Please help.

The Media Guru Answers(Saturday, July 27, 2002 ):
The Guru observes:
  • Effective Frequency / Effective Reach are planning goals
  • Cost Per Point is planning input and buying goal
  • Your problems seem to fall into two areas:
    - Educating the client to understand what you are doing, and
    - Educating your buyers in undertsanding your goals / their assignment.

If EF/ER are the communication goals for the plan, then achieving them at the planned budget becomes the primary standard. If this achievement is based on the media mix bought (as it should be) then the buyers must be made to understand that delivering that is what they must do.

Overall, the mistake is allowing CPP to become a goal instead of a tool.


Friday, June 21, 2002 #5370
Other than SQAD, are there any other ways to understand CPP or cable spot rates without a buying history in the market? I've heard two people tell me that SQAD is higher than market averages, but I don't klnow what they are comparing it to. Thanks

The Media Guru Answers(Saturday, June 22, 2002 ):
It has often been cited that SQAD runs "x%" higher than actual. It is important to understand that these statements are usually made in regard to regular, ongoing market buys, by experienced buyers with regular budgets. The SQAD database is an average including various oddities, such as last minute buys against low inventory, buys with no previous experience in the market by a given buyer, small budgets, etc.

SQAD is a very good indicator of cost patterns, i.e. ups and downs, so it is most useful when compared to your experience in a market.

If you believe what you hear, simply approach your buy with a goal 15 or 20 or 25% below SQAD and demand that of the vendors. Some will play ball and some won't.


Friday, June 21, 2002 #5369
We have a P12-34 marketing target. We are debating switching to an A18-34 (spot) radio buying target. The rankers appear to yield nearly the same station list, the CPP is lower, and buys on 18-34 appear to overdeliver teens. Does this make sense to you? Can you suggest any other factors we should evaluate?

The Media Guru Answers(Saturday, June 22, 2002 ):
If the CPP is lower for 18-34 than 12-34 for the same set of stations (with given costs per spot), then the 18-34 rating must be higher than the 12-34 rating. No mystery, just arithmetic.

The 12-34 rating is an average of the teen rating and the 18-34 rating, again just artithmetic. It's a weighted average, based on the sizes of the teen and 18-34 populations. Nevertheless, the 12-34 rating must fall between the teen and 18-34 numbers.

If the 18-34 rating is higher than the 12-34 rating, then the teen rating must be lower. If the teen rating is lower than the 18-34 rating then teens will not be overdelivered in relation to the 18-34 delivery, nor in relation to buying on the original target. If your standard is something else, then perhaps . . .


Thursday, May 02, 2002 #5265
What are the most scientific ways of measuring media inflation. How do we isolate impact of fragmentation and cost inflation in an exercise of this nature. Can u illustrate this with an example for a developing country with low levels of tv penetration

The Media Guru Answers(Sunday, May 05, 2002 ):
The Guru suspects that you mean something other than "scientific." Media inflation is simply the increase in cost per unit audience (cpm or CPP) over time. There are just the two, hard-number elements, audience (e.g. rating) and cost.

One may track the two elements separately, graphing change in average rating (largely due to fragmentation), and change in cost per unit. The difference in slope of these two lines isolates the factors. The Guru does not have readily at hand a multi year track of these two factors for any developing country. In a developing country, the growth in media usage might offset fragmentation for several early years.


Friday, March 22, 2002 #5168
I am trying to find radio CPM/CPP rates by radio station in the Los Angeles area. I have looked at the SQAD data, and it only aggregates the rates for all of LA, and not by station.

The Media Guru Answers(Sunday, March 24, 2002 ):
Market guides, like SQAD, are useful are practical because they follow predictable, broad trends and reflect surveys of recent, actual activity. However, individual stations experience much more variation in audience from quarter to quarter and are much more subject to marketplace forces, varying budgets and inventory pressures. In a market like LA, it is far more difficult than it's worth to track realistic, individual "cost per ___" prices for the many possible demographics.

The only practical solution is to contact and negotiate with the smaller group of stations with which you might actually do business and talk about the one or two demographics in question.

In most cases, you will find that Katz or Interep handle enough stations that one or two contacts cover your needs.


Friday, March 22, 2002 #5167
Do you know of a primer for understanding radio advertising and how it is purchased? I am trying to learn about terminology and the dynamics of the industry such as the different pricing methods (CPM/CPP, Direct Response, etc).

The Media Guru Answers(Sunday, March 24, 2002 ):
This is a fairly narrow topic. Most likley the major rep firms, like Katz or Interep can provide useful guides.


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, January 03, 2002 #4973
Can you please explain the difference between TV network and spot buying. What is the equivalize and non-equivalize concept. Why is it used in network buying and not in spot(units are not equivalized). Also can you please explain the reweight concept. How do you come up with reweight cpm. Why can you just do a straight year cpm comparison.

The Media Guru Answers(Friday, January 04, 2002 ):
Click here to see past Guru responses about equivalizing. "Why use it?" is a good question regardless of the network versus spot element. The use of equivalence is an artifact of mass buying by corporation wherein large numbers of :15's and :30s are bought but need to be readily comparable. In spot, this type of buying is less common. Also, network :15s are almost alwasy priced at 50% of :30's making equivalence simple. In spot the ratio is usually higher, and inconsistent.

In network, the geography for CPP / CPM is consistent, so that CPP and CPM can be converted back and forth based on simple multiplication or divsion by the relevant demographic universe. In spot however, while CPP is based on the defined DMA (or occasionally metro) geography, CPM is based on impressions generated anywhere, so there is no simple mathematical relationship.

For other network buying concepts use the Go to the Guru Archives Search Engine.


Monday, December 17, 2001 #4950
CPP

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


Monday, November 26, 2001 #4909
What is the Radio CPP's for Charleston, WV and Parkersburg-Marietta, WV-OH? Can you provide by quarter for 2001?? Thanks!

The Media Guru Answers(Monday, November 26, 2001 ):
See SQAD


Monday, November 05, 2001 #4861
My client is requesting a media cost idex in order to compare costs of advertising in one market vs. markets where our competition is. I was puling CPPs for each market. How do I create and index for them. For example: If New Orleans's CPP is $76 and Denvers is $282, and Baltimore is $214, the client wants me to use N.O. as 100 on the index and index the rest against it. How do I do this?

The Media Guru Answers(Monday, November 05, 2001 ):
The sensible way to do this is by comparing cpm, not CPP. To create an index divide each market's cpm by the cpm in New Orleans. Move the decimal 2 places to the right.


Tuesday, October 30, 2001 #4851
I am Manager of Product Marketing in a company that cares more about national ad volume trends than CPP. Particularly trends around number of Unique ISCIs being produced and trafficed. Do you have a recommendation for finding data around this? We usually look at ad spending forecasts. But, it is difficult to determine where increases or decreases are a result of volume changes as opposed to where they are a factor of changes in CPP. For example, in the current environment I've been predicting ad volume to hold flat or slightly increase (pre 9/11) due to the price decreases at the networks. Interpreting the decline in add dollars to be more a factor of price deflation than volume. Can you recommend some information resources to help?

The Media Guru Answers(Tuesday, October 30, 2001 ):
Assuming ISCI codes are indicative, try CMR (Competitive Media Reports) or VMS (Video Monitoring Services) for a count of different commericials in play.


Wednesday, October 24, 2001 #4824
When analysts predict +5% in increased ad spending for spot tv for 2002, can you equate this to +5% increase in CPP as a rule of thumb? Conversely, if it is predicted a 5% decrease in spending, can you plan for a 5% CPP deflation? Have you seen any updated ad spending forecasts after the Sep 11 tragedy? Thank you for your help!!

The Media Guru Answers(Wednesday, October 24, 2001 ):
Volume and CPP change do not correlate directly. For example, anticipated drops in CPP might be the driver in a prediction for increased volume. The trades have been full of lowered forecasts.


Wednesday, October 24, 2001 #4815
I just started free-lance media buying, Is their a software program I can buy to compute reach and frequency, CPP etc, without purchasing Arbitron or Nielsen? I would submit my own numbers for each program. Thank you.

The Media Guru Answers(Wednesday, October 24, 2001 ):
Try our own Telmar or eTelmar.


Saturday, October 13, 2001 #4790
Is there one clear, absolute way to go about projecting CPP (television) for an upcoming year? What methods do you find to be most accurate?

The Media Guru Answers(Monday, October 15, 2001 ):
No one clear method. If there were, certain people wouldn'rt be 'pulling down the big bucks.'

There are two unrelated processes here: predicting ratings and predicting costs per announcement. Both can dcepend on changes in the national state of mind as well as external economic factors and highly unpredictable viewing preference changes.

The core of ratings prediction is an assumption that overall viewing levels are stable, and allowing for seasonal changes. Predictign share is more of a crap-shoot, starting from the latest results and making increasingly complex judgnemts about the appeal of future programming.


Wednesday, October 10, 2001 #4772
I am going to the planning process for a new b2b client at our agency. The client has a very specific audience it is looking to reach, thus buying by the numbers is becoming less of an option than cherry picking programs and flight dates based on the small and very high brow target. Any suggestions on how to request rates without buying on GRP's or CPP? I don't want to get taken on the rates as a result of our obvious interest in very specific programming only. Additionally how do I then prove the buy later since it was bought on a qualitative basis?

The Media Guru Answers(Saturday, October 13, 2001 ):
  • At some point, you preumably are using some sort of numbers to evaluate the presence of your target in program audiences to support your cherry-picking
  • Rates are usually quoted as cost per spot for programs whne you are buying programs, so you can apply whatever numbers you have to compare these programs
  • If your audience is so small and rare in broadcast, perhaps you shouldn't be using broadcast in preference to more selective media
  • Or, if there are a specific network or two which focuses on your target, they may well be prepared to cater to someone buying this target


Tuesday, July 10, 2001 #4567
I'm trying to buy network radio advertising. What is the current range of CPM and CPP averages for network radio at this time? Also, where can I find information on current rates for network radio and syndicated radio programs so I can effectively comparison shop?

The Media Guru Answers(Tuesday, July 17, 2001 ):
There are few enough suppliers that a few calls will do the trick. You will need to be specific about your demographic target.

Start with ABC, Westwood One / CBS, Radio Unica, Premiere Network and Sheridan (212-883-2110).


Friday, June 29, 2001 #4537
I'm trying to figure out if it is better to give a TV network a very broad target like A18+ and leave it at that, or give out the actual planning target, like M35-54. I'm trying to find a simple explanation for how CPP works in buying television. Thanks

The Media Guru Answers(Friday, June 29, 2001 ):
If your target is M35-54, you will need to do extra work to determine how good a proposal based on A18+ really is and you might not be offered the most desirable programs for your target. Presumably, the network would compile a proposal targeted to m35-54 if you told them that's what you wanted. Is your presumption that by concealing your target they might accidentally price attractive programs lower than otherwise? Network pricing is more likely to be based on A18-49 anyway, and if you're buying sports they will probably figure out what you're up to.


Friday, June 15, 2001 #4491
Where can I go to find (national) CPPs and CPMs for Lifetime and Food cable networks? I'm looking for detailed info to estimate specific dayparts/programs/seasons.

The Media Guru Answers(Sunday, June 17, 2001 ):
You will have to contact each network for such specific information.


Monday, June 11, 2001 #4471
Where would I find overall, all dayparts, CPP and CPM for network stations in a specific DMA?

The Media Guru Answers(Saturday, June 16, 2001 ):
For that level of specifics contact station reps.


Wednesday, June 06, 2001 #4459
One of the client's the I buy media for has a limited budget in a market with a very high CPP. They are considering running :10 second spots in addition to :30s to increase frequency. Do you think that's a good idea?

The Media Guru Answers(Wednesday, June 06, 2001 ):
It's a way to increase frequency. Is there a frequency goal you're trying to meet?


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 .


Tuesday, May 29, 2001 #4434
Does cable TV have market CPP the way that network does. Or, is there a percentage of SQAD's estimates that can be used for planning cable budgets? Have no clue, hope you can help. Thanks!

The Media Guru Answers(Wednesday, May 30, 2001 ):
Spot cable is a spot TV medium. Depending on the reason it's being used SQAD spot TV CPP may be appropriate.

Are you using cable because of the general characterisitics of cable's audience? If son then use the index of value which led you to cable as an adjustment on SQAD rates.

For example, if cable viewers are 20% more likely to purchase your product, than cbale is worth a 20% greater CPP.There is usually an efficiency penalty in spot cable.


Thursday, May 10, 2001 #4384
is there a resource for finding average media rates CPP,CPM for electronic media in the charlotte market that does not charge a fee

The Media Guru Answers(Thursday, May 10, 2001 ):
Only the SQAD data posted on AMIC


Monday, May 07, 2001 #4375
Is there a formula or program for calculating optimum daypart mix? I am working on a client that has used the same daypart mix for years. I wanted to really put some thought into this plan and not rehash every previous years plan and thought there must be some way to take the MRI information in comparison to the CPP's for each daypart.Please advise. Thank you!

The Media Guru Answers(Saturday, May 12, 2001 ):
This is the task of programs called "optimizers" of which so much has been written. AMIC's sister company, Telmar, offers one called "Transmit".

Also see writings about optimizers in AMICs Ephron on Media area.


Wednesday, May 02, 2001 #4357
How do I convert CPM's from SPARC to CPPs by market?For example, NY radio Average CPM for 3Q 01'=8.40 for A18-49. Its population is 8097000.

The Media Guru Answers(Saturday, May 05, 2001 ):
Think of the CPP as the cost of 1% of the specified population. So, the general rule for CPM vs CPP is
CPP = cpm X 0.01 X population in thousands.

This requires the cpm and CPP to be based on the same geography, so be careful. If you're working with DMA CPM and DMA CPP, that's fine, but typically cpm is based on total survey area (TSA) and you are looking for metro CPP.


Monday, March 19, 2001 #4266
What is the best way to do a spot cable vs.spot radio analysis?

The Media Guru Answers(Tuesday, March 20, 2001 ):
Compare the facts you want to compare: geographic coverage, rating, cpm, CPP, reach, impact, etc.


Thursday, March 15, 2001 #4258
What are the CPP for radio and tv in Atlanta?

The Media Guru Answers(Thursday, March 15, 2001 ):
See SQAD.


Thursday, March 15, 2001 #4256
Need Radio & TV CPP's for Toronto, Canada. Can you help.

The Media Guru Answers(Thursday, March 15, 2001 ):
CARD (Canadian Advertising Rates and Data)


Wednesday, January 24, 2001 #4123
Hello. Hoping you are able to answer this sooner than later. . . I am trying to generate a ratio that compared the CPP (across Dayparts in Tampa and Orlando) among total people compared to a CPP among the just the Hispanic population. I do not work for an agency or have the $ or consistent need for a service like SQAD. Hoping that you are aware of some "rule of thumb" that gets at an average difference between the two populations in terms of what it costs to reach them at different intervals of the day (ON TELEVISION). Thank you very much!

The Media Guru Answers(Friday, January 26, 2001 ):
There is no rule of thumb here. The markets you're looking at do not have Hispanic audience measurement, so GRP can't be calculatd hence CPP won't exist. If you are thinking about the Hispanic audience of the General Market TV stations, than a rule of thumb could exist if there were measurement. But if you are thinking of comparing CPP of Hispanic TV to General Market TV, these are two independent media and no specific, predictive relationship would exist, even if there were measurement. If there were then buying experience or SQAD could offer ratios from past buys.


Thursday, January 11, 2001 #4091
Dear Guru, The info on Ad Data is great. Do you know where I can get similar data (radio CPP) on Canadian markets?

The Media Guru Answers(Thursday, January 11, 2001 ):
The closest is CARD (Canadian Advertising Rates and Data)


Friday, December 01, 2000 #4007
I am doing a national buy on an unwired radio network. There are 85 markets in the top 100. What is an average or acceptable CPP

The Media Guru Answers(Saturday, December 02, 2000 ):
Be guided by the radio rates in our Ad Data area. Unwired network may be as little as half the sum of the spot rates.


Thursday, November 30, 2000 #4006
Guru--Can you please provide a suggested percentage of bonus spots for radio stations to include in annual negotiations to meet CPP goals? Also, do you have any suggested resources for more information on annual radio negotiations? Thanks!

The Media Guru Answers(Saturday, December 02, 2000 ):
The Guru would anwser differently to a buyer or a seller. If you want to make na assumption of how far below the estimated rating things might get, that answers your question. Since it's an annual negotiation, you need to determine at what points goals are evaluated, against what ratigns reports, and probably shouldn't see these as "bonus" if they are part of a goal.

In syndicated TV, these are called "recaps" which are spots reserved for the advertiser in case audience efficiency is not meeting the guarantee, but are recaptured by the syndicator if delivery meets projections.

If the marketplace is not unusually volatile, and the estimates are sensible, a very small percentage should be safe The Radio Advertising Bureau (RAB) may have further advice.


Thursday, November 09, 2000 #3959
Dear Guru - I have two questions - #1 - I have a client who wants a shifting reach pattern in place for a media test - No problem - however, there corporate department wants to run the test 2 on 2 off - I think it needs to be every week so that the hiatus time doesn't screw up the added frequency and reach you would receive by being on consistently - any thoughts? #2 - I have a new client that I am working up a media plan for in general terms of spots, reach and frequency. We are using 4 different medias in each market - Radio, TV, Internet and Outdoor - How do I estimate a total reach and frequency, GI and Persons Reached for each market to give to the client when I am using general CPP's to estimate numbers of spots, etc.?

The Media Guru Answers(Sunday, November 12, 2000 ):
The Guru doesn't understand your first question. What do you mean by "shifting reach pattern" and how do you ssuppose this is affected by the flighting? Where do you have a problem with reach and frequency in #2 other than the impossibilty of an accurate local market internet impressions count? Do you have reach and frequency tools for these media but face a local problem or something else?


Wednesday, September 20, 2000 #3818
A client has asked us for the agency's recommendation on changing their demo and/or keeping it the same for Y2001 planning. They operate in 4 DMA's. How would you go about deciding what to change it to or whether to stay with the same demo? I've looked at CPP differences in sqad and there isn't much difference in tv but quite a bit in radio. MRI isn't much help because they don't delve into this category much. Any other ideas? Thanks for your help!

The Media Guru Answers(Saturday, September 23, 2000 ):
CPP is not relevant to answering this question. It just changes in relation to composition. If you buy a lower CPP demo, you may just buy fewer spots for the same money.

Target basis should be who is the best customer, in terms of sales potential (high user/usage/purchase index) for the advertiser. A large enough group of customers should be targetd so that the target accounts for the majority of sales. There are other resources like MRI which may go into more depth on certain categories. Try Scarborough or The Mendelsohn Media Research Affluent Study.


Wednesday, September 20, 2000 #3811
According to Ephron, reach is most important for a brand. If this is true, should a major packaged goods company target A18+ rather than women? In their case, 70% of purchases are still made by women. However, we know men are a very strong influencer for this particular category. It seems to make sense, since we could achieve higher overall reach with an A18+ target, especially since tv CPP's for A18+ are lower. Thanks

The Media Guru Answers(Saturday, September 23, 2000 ):
You are confusing three different concepts.

The point about reach is that it is discussed with some target being implied. Theoretically, some demographic groups are much better prospects than others for sales, and it is more valuable to reach these.

Imagine a population of 1,000,000 A18+, including 400,000 women 35+ who have a 150 index of usage for a product and the remainder of A18+ average a 67 index. So, W35+ are more than 2x as likely to use the product.

Now, you might be able to buy a W35+ GRP at $100 CPP and reach 4000 W35+. If A18+ CPP is $80, you can buy 25% more of those GRP for your money, but each untargeted A18+ GRP only produces 30 W35+ GRP.

The key is this, when you "targeted" W35+, every GRP you bought also came with cosniderable audience among the remainder of A18+. The idea of targeting is to focus on the best prospect. Thinking you get more reach by buying a cheaper GRP target is merely an illusory of improvement. Keep buying W35+ but count A18+, if you want to feel you've reached more people.

There is a simple technique for comparing two such buys. Add all the impressions (or net impression) of each and weight the segemnts acccording to their index of usage. The buy with the most weighted impressions, no matter how you bought it, has the advantage. (That is, an 80 GRP W35+ buy might have more value weighted impressions or net people reached than a 100 GRP A18+ buy).


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, August 21, 2000 #3726
Guru...I am a media buyer in a very dynamic local radio market...book to book stations are having 100% plus AQH ratings increases and decreases. Since there is no consistency in ratings (several new stations have recently entered the market) how do you suggest handling annual negotiations? In the past, annual rates have been set, but this no longer seems applicable with the dramatic shifts in ratings. Is establishing a CPP goal and adjustings rates according to ratings appropriate? Thanks for any help you can offer in handling annual local radio negotiations.

The Media Guru Answers(Monday, August 21, 2000 ):
Establishing a CPP and adjusting when ratings are posted is a good solution, and is analogous to network TV dealings. But, the station will probably only want to make-good by giving free air time, and an advertiser is not likely to agree to pay more money if ratings go up.

Consider the syndicated TV approach, where there are "recaps" or recapturable spots. They are scheduled for the advertiser as potential makegoods, but if ratings performance stands up to the deal, they are recaptured by the station for sellable inventory.


Friday, July 28, 2000 #3660
Does the guru have any cost projections for national spot TV for 2001 compared to 2000? We are primarily looking at HH CPP - all daparts.

The Media Guru Answers(Friday, July 28, 2000 ):
The Guru's standard reference is SQAD


Tuesday, June 20, 2000 #3563
Follow on question about SQAD CPP table columns-- particularly interested in understanding the times when one daypart transitions to another. Could you provide the time ranges for each designation?

The Media Guru Answers(Tuesday, June 20, 2000 ):
  • In the Eastern and Pacific Time Zones, Early Morning means the Monday-Friday 6am to 10am period around programs like the Today, Show, Good Morning America etc before
  • Daytime network, with its games, talk and soaps, from 10a to 4p Mon-Fri
  • Early News is usually 6-7
  • Prime Access is 7 to 7:30 Monday-Saturday
  • Prime is 8-11 Monday to Saturday plus 7-11pm Sunday
  • Late Night is 11pm to sign-off.
  • Combined fringe is Late Night plus Early Fringe, which is the period between Daytime and Early News, plus the otherwise undefined weekend hours.


Monday, June 05, 2000 #3532
At what market penetration level does buying TV on a national level become more efficient than spot buying on a local level? Is it the same for Radio? How about Newspaper? And secondly, is there a way to calculate this in general?

The Media Guru Answers(Sunday, June 11, 2000 ):
In TV the variables are demographic and daypart. Some demographics have a greater differential in spot vs network CPP. One daypart / demographic scenario may become more efficient in network after 25 markets, another one at 75.

For example, in one recent cost guide which the Guru has on hand, the daytime HH CPP for network was equivalent to daytime spot CPP for the the top 68 markets. In Prime, the Network HH CPP was equal to top 22 markets' spot.

For other demographics and other media the breakeven will be different still. There is no rule of thumb beyond experience. You need to compile spot costs and determine where they break even versus national.


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.


Thursday, May 11, 2000 #3461
Is it possible to derive a demo rating from a given household rating, assuming I have populations for both? I'm trying to convert a household CPP to a specific demo CPP. thanks.

The Media Guru Answers(Thursday, May 11, 2000 ):
No, you need vpvh, because the rating among people will not necessarily be the same as among HH. Without that linking data the popualtions are no help.


Monday, April 17, 2000 #3401
Dear Guru, I need to develop a cost estimate and approx. reach/freq. for a US television buy in the top 40 markets. Here's what I have and what I still need to know: I have the markets and approx. CPP per daypart from SQAD. I need to know how to calculate a rough estimate of reach & freq for 1 week to 1 year based on 200 points per week in each market. Can a network (CBS etc)place the entire buy, or do I have to do this per market. I'm one person and can't spend too much time executing this (if it happens). Any advice would be great. Thanks

The Media Guru Answers(Monday, April 17, 2000 ):
No, networks don't place spot buys. You can use spot reps or media buying services. Find these in Standard Rate and Data Service (SRDS) or The Standard Directories of Advertising Agencies and Advertisers ('The Redbook')

Either one can help you with reach and frequency, or eTelmar.com offers an inexpensive, online reach calculator.

If you are buying 200 points per week for a year in the top 40 markets, you are spending in the 10's of millions, at least. This is ample to hire a buying service or at least some experienced free-lance help. Either one would save you far, far more in media costs than the expense of their fees.


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.


Thursday, March 16, 2000 #3324
Can you explain what "SQAD" and "SPARC" are and how they work? What are the benefits to the advertiser to use these? Does it require professional advertising knowledge to use and understand? Thanks.

The Media Guru Answers(Friday, March 17, 2000 ):
SQAD and SPARC (aka SQAD Radio) are standardized cost references, from which recent sample data is found in our ad rates area at the links given above. They represent the average buying achievement of actual buys made by a representative panel of cooperating agencies and media buyers.

If you know enough to place a buy based on ratings and demographic Cost Per Point (CPP), you can benefit from using these tools.


Friday, February 25, 2000 #3247
What are the average CPP for Chicago radio dayparts?

The Media Guru Answers(Friday, February 25, 2000 ):
See SQAD


Thursday, February 24, 2000 #3242
Dear Media Guru: Is there a syndicated or published source for network radio CPP's or cpm's? Thanks.

The Media Guru Answers(Thursday, February 24, 2000 ):
The Guru thinks there is not. Spot radio is offered by SQAD


Thursday, January 27, 2000 #3165
What is the average CPP in network radio and/or how do I go about finding out?

The Media Guru Answers(Saturday, January 29, 2000 ):
First, you will need to focus on a specific demographic group. Averages are only meaningful for specific targets and only when compared or averaged across schedules appropriate to that target.

With that in mind a couple of calls to the appropriate networks, such as ABC Radio Networks or WestwoodOne should get you ballpark numbers.


Thursday, January 13, 2000 #3119
Media Guru, I'm an advertising student and will be going out into the working world of advertising on a media buying internship in two weeks. I have one question which i would much like your input on. The question is as follows; Junior media buyers are routinely asked to book millions of dollars worth of advertising. But do they know enough about the vast complexities of media to do the job right? sincerly, intern student

The Media Guru Answers(Wednesday, January 19, 2000 ):
No, they don't. But then again they aren't actually asked to do this. You have a somewhat oversimplified view of the roles, the Guru believes.

Junior buys operate within tighly defined limits on their authority to make spending decisions.

Over the course of a year a "junior buyer" at a large agency might book millions of dollars, a few tens of thousands at a time. Each time, in a properly run agency, there should be a set of buying parameters from a olanner which specifies the target group, amount of media weight, (GRP or impressions) type of programming or environment, minimum audience size of an ad unit, cpm/CPP range, and perhasp even reach of the schedule.

With all these parameters properly set, there is little room fro a junior buyer to make a significant error. The job is to find the right media according to clearly set, mostly numerical, standards and then to negotiate the best possible price.

Additionally, there should be review of a junior buyers proposed buy by a supervisor.

If you find yourself in a situation without these controls, then you are not observing a professional media operation.


Wednesday, January 12, 2000 #3116
I have CPM/CPP for traditional media (newspapers, magazines, tv, radio) for the US, but need it for other countries. Do you know where I can get up to date information for this please?

The Media Guru Answers(Wednesday, January 19, 2000 ):
Data like these are compiled and published by some of the international agencies such as Y&R and Saatchi&Saatchi.


Tuesday, January 11, 2000 #3111
I am putting a planning proposal together for a national radio and cable tv buy. What average CPM and CPP should I be looking at to target women 25-54 for each of these mediums?

The Media Guru Answers(Monday, January 17, 2000 ):
Get an indication of rates in AMIC's Ad Data area.

Get current data from SQAD.


Tuesday, December 14, 1999 #3050
Dear guru, where can I find information about terms like clutter, GRP, CPR, benefit? Do you recommend any web site?

The Media Guru Answers(Tuesday, December 14, 1999 ):
The Guru is quite certain that no other web site offers as much discussion of media terms and concepts as the AMIC Media Guru. You can go to the Guru Archives Search Engine to look up Guru responses about virtually any media term.

Click here to see past Guru responses about clutter, or here for GRP, or here for CPR (or CPP) or here for references to media benefits. "Benefit" is a very general term of course, and you may find you need to narrow the search to get the information you want.


Wednesday, September 29, 1999 #2836
How often are the SQAD CPP's "Refreshed"? What does the designation "CF" stand for? It appears to signify late fringe or late night. Thanks

The Media Guru Answers(Wednesday, September 29, 1999 ):
SQAD TV CPPs are updated monthly. "CF" is combined fringe, the early fringe/late fringe average.


Wednesday, September 22, 1999 #2817
looking for a source on planning CPPs for network tv

The Media Guru Answers(Thursday, September 23, 1999 ):
SQAD can supply network planning costs.


Thursday, August 19, 1999 #2729
Dear Guru, 1- Please let me know SQARE model that SQAD use to calculate CPP for TV and Radio. Please let me know the detail or any link I can find more information or books... 2- Do you know any model for reach vs GRPs? Our client ask us to show the data like that. The problem that we try to find the suitable daypart mix, station mix, medium mix that is good for our advertising strategy but we don't have any optimiser programs. We have only ratings data like Telescope and Prinscope of ACNielsen. Do you know any example to solve this kind of problem? 3- Our client also want to have a model to set advertising budget to get for example 80+ reach but we can not know until it happen. How to solve this issue? warmest regards, Thai Vang

The Media Guru Answers(Thursday, August 19, 1999 ):
A general explanation of SQAD's model is available from SQAD. They will give you the same information they would give the Guru. But the essence is manipulating actual buying data in real situations, provided confidentially by actual media buyers.

GRP's and reach do not have any standard realtionship, except within given media and population parameters. You are writing from Viet Nam, where Televison audience cume patterns are likely to be quite different than in the U.S. Even within the U.S., Hispanic TV reach curves are very, very differerent than the General Market TV reach curves.

The way to build a model, to oversimplify, is to collect a great number of actual reaches of real schedules, and then plot their frequency against reach in a regresssion analysis, which gives you the formula for the "curve." Frequency is plotted, rather than reach, because frequency is a straight line while reach is a curve. The curve formula then allows you to create a model with a reach solution for any GRP input. The more variables you use to build different curves, the more sophisticated your model can be.


Thursday, July 29, 1999 #2671
1.Can I get 2nd Q SQAD CPP by narket rank? 2. Where can I find Supermarket information, such as end isle values, value of displays by foot traffic, etc.?

The Media Guru Answers(Saturday, July 31, 1999 ):
1) AMIC's Ad Data area

2) In store, POP sellers will have this information. Try The Point of Purchase Advertising Institute


Wednesday, July 21, 1999 #2651
At what point in spot market TV buying does it become more efficient to buy network?

The Media Guru Answers(Friday, July 23, 1999 ):
It varies depending on demographic, daypart and whether you are buying simply based on market size or based on something particular to your advertiser like market sales rank. But, assuming a Primetime Houshold :30 CPP is about $14,000, you could add up market CPPs at our SQAD page until you hit that number.

In Prime the answer might be the top 20 markets; in Day, the top 65.


Friday, July 16, 1999 #2641
Here's a basic math question for you: I recently bought a media (TV) schedule that gave me a total A18-49 delivery (in 000's) of 45000, 89 spots, total cost = $1,300,000. Knowing that the total A18-49 universe is 61350 (000), how do I find the following?: 1) total GRPs delivered 2) total CPP

The Media Guru Answers(Friday, July 16, 1999 ):
The GRP equation is 45,000,000 impressions divided by 61,350,000 universe, expressed as a percent, or 73 GRPs.

The CPP equation is $1,300,000 cost divided by 73 GRPs or $17,808 CPP

Guessing this is national cable, it seems high. to the Guru.


Thursday, July 01, 1999 #2600
I'm coming from a traditional general market media background and am moving to a sophisticated direct response company. What are the primary criteria I should address in negotiating DR rates (on net cable or synd radio) vs. a fixed position schedule? CPP has become irrelevant. We just want the lowest unit rate that will clear. Any tips? (by the way, the DMA is no help here).

The Media Guru Answers(Friday, July 02, 1999 ):
In DR, response is what matters, and it has little to do with CPP, or rating. You need to track response by station, daypart, program type, etc. and buy based on what delivers.


Friday, May 28, 1999 #2540
What is the average CPP for local radio?

The Media Guru Answers(Friday, May 28, 1999 ):
See AMIC's Ad Data area


Friday, May 21, 1999 #2522
I have a 13 year old son that wants to learn about the marketing business and the vocabulary used. Example: Definitions of CPP, Quintile etc... Where or what is the best resource for marketing/advertising terminology?

The Media Guru Answers(Friday, May 21, 1999 ):
You can buy text books- see AMIC Bookstore (in association with Amazon.com)

You can look up many terms in the Media Guru's Media Guru's Encyclopedia of Media Terms.

Finally, most common media and marketing terms have been discussed here, by the Guru, in a context of practical application. Go to the Guru Archives Search Engine. Use whatever word you want explained as your search term.


Thursday, May 20, 1999 #2518
Years ago, a broadcast buyer gave me a rule of thumb on comparing quarterly CPPs. I know there are changes by market and by media (radio/TV) but it seemed that the following indices were applied to a avg. year CPP: Q1: 85, Q2: 106, Q3: 97, Q4: 112. Do you know if these are accurate?

The Media Guru Answers(Thursday, May 20, 1999 ):
These are roughly -- directionally -- correct, with the exceptions you note.


Wednesday, February 17, 1999 #2344
How do you calculate the average radio or TV CPP for a specific market?

The Media Guru Answers(Wednesday, February 17, 1999 ):
It depends on what data you have to work with and how you want to describe your result.

The general rule is to add up all the GRPS delivered and all the costs. Then divide total cost by total GRP.

But this assumes you are working with some real numbers, either a past buy or proposed schedules. Averaging CPPs directly is usually wrong. If you have only CPP's to work with, you will need to get either their associated costs or associated ratings to work back into the numbers you need for accurate averaging.


Thursday, February 04, 1999 #2309
Dear Guru, I was wondering if you could tell the average CPP for women 18+ for 100 GRP's in the top 20 markets.

The Media Guru Answers(Friday, February 05, 1999 ):
AMIC provides recent SQAD HH spot costs per point for all markets in the Rates, Dates and Data area


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.


Tuesday, December 22, 1998 #2232
We use a buying service for our media. I'm just learning and was asked what seems a simple question, but do I have all the elements and could you help me to formulate the equation to learn. We are running 125 TRP's weekly in radio flighted thoughout the year. 3,000 total TRP's for the year. $550,000 total budget. CPP ranges from $32 to $200, average is $90. Q. With 125 TRP's a week, approximately how many spots a week will this schedule produce?

The Media Guru Answers(Wednesday, December 23, 1998 ):
The Guru assumes you are running 125 GRP in each market.

Depending on market and demographic, average ratings run from about 1.0 - 2.0 on top stations. Divide GRP by the average rating you will buy to estimate number of spots. At an average rating of 1.0, 125 GRPs represents 125 spots.

And you didn't need any of that cost or CPP data.


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.


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.


Monday, September 14, 1998 #2042
I have been asked by a potential client about CPP's for demos in Netherlands, Belgium, and Austria. I own an ad agency in Atlanta, GA USA. Can you tell me where to find this information? Sincerely, Robert Davis Adman4@ix.netcom.com

The Media Guru Answers(Tuesday, September 15, 1998 ):
The biggest international agencies, like Cordiant or Y&R, publish country-by-country media fact books which can be purchased. Otherwise, International Media Guide will provide rates, but probably not audience figures.


Monday, August 24, 1998 #2010
Thanks for this great service. I represent a radio syndication operation that has a unique opportunity to provide a media buying service for an advertising rep firm. This firm would like us to create a network of stations that provides a 1.4 AQH Rating for A18-49 at $1,425.00 CPP. We can easily create this network of stations and get $570.00 CPP. How do we charge this rep firm for our service?

The Media Guru Answers(Monday, August 24, 1998 ):
Somewhere between $671 ($570 "grossed-up") which is what a rep might get with commission, and $1425, which is the price your client offered to pay. From there the decision will be based on your relationship and what you hope to do in the future


Friday, August 21, 1998 #2009
I'm having a difficult time trying to find any material that will teach me how to use CPP when buying network and spot radio. My contacts in the advertsing field tell me that they learned how to use this formula through experience. I know the formula for CPP. However, is there any resource that will show me how to implement CPP when buying network and spot radio? Something that will show me some shortcuts or maybe some examples? Thanks again for your help.

The Media Guru Answers(Friday, August 21, 1998 ):
Once you know how to calculate CPP, its uses are pretty straightforward.
  • CPP is an efficiency indicator. Media proposals you are considering can be ranked from lowest CPP to highest if efficency is a goal
  • CPP can be a goal you give to sales people, e.g. "I'm buying a $100 Women 18-49 CPP, what avails do you have at that pricing?"
  • CPP can be weighted with other factors like rating size or cume
  • CPP can be used to caluculate cpm when the universe is known: CPP divided by 1% of the universe expressed in thousands yields cpm
    (this is only valid when rating and audience in thousands come from the same geography as they do in Network. In spot, where you may use a metro rating but TSA thousands , the formula is imprecise at best)
  • CPP can be used as a bottom line number to compare possible schedules you are putting together

Remember - never average CPPs themselves; total the costs and total the ratings of schedules and calculate the bottom line CPP from the totals.


Friday, July 24, 1998 #1972
As an agency, we believe that we have made a smart and cost-effective media buy for 1998. We would like to show our client how smart the buy is in what really matters to them: dollars. Our media buy was not made to copy another so we have no base of comparison. As "an account guy" I don't have the total media knowledge of how to show savings. I have suggested building a model that shows a client that would make a buy within the market paying "average CPPs." With these average CPPs we could turn around and compare the CPPs we paid per daypart and show a savings. Is there a better way, in your mind, to show dollar or percentage savings?

The Media Guru Answers(Friday, July 24, 1998 ):
SQAD is the leading purveyor of market average CPPs for General market TV and Radio, Hispanic and other broadcast elements. Recent, sample SQAD costs are available in AMIC's Rates, Dates and Data area.


Tuesday, July 21, 1998 #1966
Sports radio networks rarely, if ever, give CPMs and TRPs for the proposals presented. When asked to provide this info, they cop-out saying "well, other agencies (i.e., JWT, Bozell, BBDO) buy our network." I understand there is a premium to associate yourself with a high profile sports team, but at what cost? Without having resources to evaluate each and every radio station in the network, how can I accurately present these proposals to my clients? Currently, I figure: total market CPP x average rating x number of spots x number of games scheduled + added value = total package value. Am I accurate?

The Media Guru Answers(Wednesday, July 22, 1998 ):
When the Guru buys sports neworks, he gets audience and efficiency data. If you are saying that the networks give national data but not individual market rating, that's a somewhat different issue.If you are buying a team, its value is probably in its home market. If a network is only sold in total, what will you gain by identifying a weak station? If you have all the data to execute your formula, you should do fine.


Friday, May 29, 1998 #1616
I really appreciate this section of your web site. It is a great idea! I deal with network radio. We produce 2-minute radio vignettes for advertisers. Each vignette includes sixty- seconds of entertaining new content that relates to the advertiser's product and sixty-seconds for their commercial. The content of each feature is designed to help to sell the product. When trying to determine the CPP for a 2-minute vignette like ours, would you consider the vignette to be a 2-minute commercial (two :60s) or would you consider each vignette to only contain one sixty-second commercial?

The Media Guru Answers(Tuesday, June 02, 1998 ):
CPP is a simple calculation. Divide cost by rating. Length is not a factor. Sometimes buyers will create a special cpm adjustment based on length to compare different units.

If your content is a message about the specific product, you could count the whole 120 seconds. This makes no difference, except in the buyer's special case, mentioned above. Or, you can treat it as two :60's, which does make a difference, because the cost is then divided between the two commercials.

If, on the other hand, it is just related content, such as the history of shoe shines, to accompany a shoe polish commercial, then it is just a supportive environment, and not typically counted as a commercial message.


Wednesday, May 20, 1998 #1599
Dear Media Guru, I am developing and producing a short radio feature for barter syndication. On what basis do syndicators typically set their ad rates? I realize that the rates may be highly negotiable but are there any common formulas (based on CPM, CPP or some other data) used by syndicators to arrive at an "asking price"? Also, can you recommend any resources helpful in developing and marketing syndicated radio programming? Thanks for your help.

The Media Guru Answers(Wednesday, May 20, 1998 ):
Some of the issues in syndicated programming pricing are:
  • CPM or CPP better than spot radio pricing for similar audience size
  • Possible premium for an attractive program environment.
  • %U.S. coverage

There are numerous radio syndication companies, handling everything from Rush Limbaugh to obscure musical formats. One good way to solicit response from -- or tips about -- the right resource would be to post a message about your program to the "Radio Media" discussion list. Send your request to join the discussion to RADIO-MEDIA@adsong.com


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

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.


Tuesday, December 09, 1997 #1472
Do you know who puts out the "SQUAD" report? Also, where can I find out more information on where and how the results of this report are collected. This is a report on Broadcast CPP analysis by daypart/market.

The Media Guru Answers(Tuesday, December 09, 1997 ):
SQAD (no "u") is published by Spot Quotations and Data Service of Tarrytown, NY. They are happy to provide methodological information. See selected SQAD data in AMIC's "Rates, Dates and Data area.


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.


Friday, March 21, 1997 #1009
What should be the minimum demo rating for a prime television spot on any schedule?

The Media Guru Answers(Friday, March 21, 1997 ):
The Guru doesn't judge "prime" strictly by rating. Is the Prime daypart in your plan because of how prime builds reach, because of the program types available, or just because larger ratings "feel good."

Prime cumes well, not just because of larger ratings but also because of the larger pool of potential viewers available during prime hours and because the once a week programs tend to have better audience turn-over. This is one reason why the prime hours on independent stations are often categorized as fringe, rather than prime

If however, you need to focus on ratings for ratings' sake a sensible rule of thumb would be to use the average of the next best daypart as the minimum rating for prime.

If rating size is your only standard, why pay premium, prime CPP for programs rated lower than more efficient ones in other dayparts?


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.


Tuesday, February 25, 1997 #1036
We are planning a radio schedule with a demo of Adults55+. We have no research that gives us a CPP for thatdemo. If we took a Sparc CPP for Adults 25-54 and increased it, what would you recommend the increaseshould be? Thanks.

The Media Guru Answers(Wednesday, February 26, 1997 ):
Determine the rating for 55+ and its index to the 25-54 rating.

Divide the 25-54 CPP by this index

(remember to treat the index as a decimal equivalent)

E.G. if 25-54 CPP = $100
and 25-54 rating = 2.0
and 55+ rating = 2.2
the index = 2.2 / 2.0 = 110 (or 1.10 in decimal form)

55+ CPP = $100 / 110 = $90.91

Since SPARC is market average, stations bought will effect accuracy. The stations making up a typical 25-54 buy maybe quite different than the ones you would buy for 55+.

Targeting should allow you to do better.


Tuesday, October 08, 1996 #1133
I wonder if you could enlighten me on your thoughts onthe following: currently, within our market, we lookat cost per point (CPP) for TV. This has been the casefor a number of years now. Recently, however, certainTV stations have been trying to encourage the use ofcost per thousand (CPT). Is there any right or wrongway of looking at a cost measurement for TV?My thinking is that CPT does not prove to be stablewhen measured across a time period, simply becauseuniverse sizes change over time (thousands do increasebut not necessariily the penetration into a market).Therefore CPT could be used when measuring off the sameuniverse size, but is not feasible in showing trendsover different years using different universe sizes.CPT works to the advantage of the media owners as it isseen as much less of an amount than a CPP is (at themoment)???Please help.

The Media Guru Answers(Wednesday, October 09, 1996 ):
The issues you raise with the use of CPT as against CPP are real, particularly in that when you have people meter data and the universes are changing they will affect the 'thousands' calculated conceivably more than the change in the audience itself.

In people meter panels the universe can vary if it does not form part of the weighting cells.

In addition as a rating using people meter data is a time weighted average it is not strictly speaking possible to convert them into whole 'people'.

Selling or buying TV based on CPT derived from respondent level people meter data would be fraught with hidden difficulties for both the users and the TV stations.

Note that this question was posed about the South African market.


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.


Thursday, January 11, 1996 #1789
What is the average CPP in the Atlanta Metro and ADI for radio and TV? Please break this out by quarter.

The Media Guru Answers(Friday, February 02, 1996 ):
Your ultimate source will request a demographic specification for the CPP. Spot Quotations and Data, Inc. (SQAD) provides this sort of information. Contact SQAD at (914) 524-7600 or SQAD@ix.netcom.com


Friday, August 25, 1995 #1846
How can I obtain historic, actual radio costs for A 18-49, over the last ten years? Top twenty ADI's?

The Media Guru Answers(Friday, August 25, 1995 ):
There are a few approaches. Ad trade publications publish CPP/cpm trends annually. Libraries would have back copies. General media cost guides like AdWeek's Marketers Guide to Media which predict costs can be used retrospectively to examine cost trends.

Specific cost guide sources such as SQAD (Spot Quotations and Data) which closely follow marketplace costs (but don't post analyze) can look back at cost history for a probably nominal charge.



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