GRP is calculated as the percentage of a target demographic that is reached by an ad (known as reach), multiplied by the number of times they’ve seen the ad in a given campaign (known as frequency). Show GRP = Reach (% of population reached) × Average frequency (number of ad impressions) Let’s take an example of a campaign that has an average of 4 impressions by 1,000,000 viewers, out of a total addressable population of 50,000,000 people. In this case: GRP = (1,000,000 / 50,000,000) x 4 (.02, representing 2% of the population reached) x 4 (frequency) GRP = 8 The base population is typically the largest measured population with reasonable access to the media source. To get an idea of the total population of a given audience, advertisers look at estimates of past performance of a chosen channel from market research and measurement groups (for linear TV, most commonly Nielsen). TRP and GRP measure the same thing, but with different levels of specificity. While GRPs show how much of the total population your campaign can reach, TRPs look at the campaign’s performance for a specified target audience within the total population. While GRPs equal one percent of the total audience exposed to an ad, TRPs equal one percent of a given target demographic’s exposure. Subscribe today...it's free! MarketingProfs provides thousands of marketing resources, entirely free! Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the house...delivered right to your inbox! MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer. Sign in with your preferred account, below.
In advertising, a gross rating point (GRP) measures impact.[1] GRPs help answer how often "must someone see it before they can readily recall it" and "how many times" does it take before the desired outcome occurs.[2] OverviewGross rating points are a measure of the impact by a campaign using a specific medium or schedule. It quantifies impressions as a percentage of the target population, multiplied by frequency. This percentage may be greater, or in fact much greater, than 100. Target rating points express the same concept, but with regard to a more narrowly defined target audience.[3][4] GRPs are used predominantly as a measure of media with high potential exposures or impressions. Nielsen Media Research is an example of a company which uses GRPs.[5] PurposeWith "today's fragmented media world" the value of GRP is, according to the Advertising Research Foundation's Journal of Advertising Research, even greater than in the pre-Internet era.[6] Since "the required frequency changes with the product and the competitive climate it is in",[2] the purpose of the GRP metric is to measure impressions compared to the number of people in the target for an advertising campaign.[3] GRP values are commonly used by media buyers to compare the advertising strength of components of a media plan. For conventional media such as radio and TV, multi-tasking has reduced the value per GRP, and a measure named Persuasion Rating Point (PRP) was proposed in mid 2020.[7] Construction"One GRP is one percent of all potential adult television viewers (or in radio, listeners) in a market." If they are exposed to the ad three times, then that is 3 GRPs.[2] GRPs are simply total impressions related to the size of the target population: They are most directly calculated by summing the ratings of individual ads in a campaign. Mathematically: GRPs (%) = 100 * Impressions (#) ÷ Defined population (#)[3] GRPs (%) = 100 * Reach (%) × Average frequency (#)Two examples:
References
What are GRPs, Ratings, Reach, Frequency, and Impressions in advertising? How are they calculated? And how do they relate to each other? When creating a media plan, it’s important to have a firm grasp of these often misunderstood advertising terms, even if they are built into your media planning software. This article aims to give you clear, concise definitions and examples of important advertising terminology: Media Market, Population, Rating, Reach, Frequency, Gross Rating Points (GRPs), Impressions, Cost per Point (CPP), and Cost per Thousand Impressions (CPM). Media CostMedia Cost is the price you pay to present your advertisement. There are many different ways to price media including points, impressions, clicks, leads, actions, days, weeks, months, etc. However, it ultimately boils down to the amount you pay to present your advertisement, which is Media Cost. Media Cost excludes the cost to create the advertisement and other costs. Media MarketMedia Market or Market describes the set of people that could potentially be exposed to your advertisement. The media market is often described using Designated Market Areas or DMAs, which are trademarked by Nielsen. However, Media Market can be any market you define. More on Media Markets… PopulationPopulation is the total number of people in your Media Market. RatingRating is the percentage (0 to 100) of the Media Market that will likely be exposed to your advertisement. Rating is an estimate based on past performance often sourced from surveys. More on Ratings… Average PersonsAverage Persons is the number of people that, on average, will be exposed to each Spot. Average Persons is calculated by multiplying Population by Rating then dividing by 100. SpotA Spot is a single broadcast of an advertisement. Typically, an advertising placement includes multiple spots. Gross Rating Points (GRPs)Gross Rating Point (GRP) is a measure of the size of an advertising campaign by a specific medium or schedule. GRP is calculated by multiplying the number of Spots by Rating. For more, see How to Calculate GRPs – Gross Rating Points. Cost per Point (CPP)Cost per Point (CPP) is a measure of cost efficiency which enables you to compare the cost of this advertisement to other advertisements. CPP is calculated as Media Cost divided by Gross Rating Points (GRPs). For more, see How to Calculate Cost Per Point (CPP). ImpressionsImpressions are the total number of exposures to your advertisement. One person can receive multiple exposures over time. If one person was exposed to an advertisement five times, this would count as five impressions. Impressions are calculated by multiplying the number of Spots by Average Persons. Cost per Thousand Impressions (CPM)Cost per Thousand Impressions (CPM) is another measure of cost efficiency which enables you to compare the cost of this ad to other advertisements. CPM is calculated as the Media Cost divided by Impressions divided by 1,000. ReachReach is the number of people in the Media Market that will likely be exposed to one Spot. Estimating reach is tricky because when you run an ad multiple times, the same person may see the ad more than once but you only want to count them once in Reach. There are many different methods to estimate reach. Most rely on software, such as Bionic’s Media Planning Software, to calculate reach. More on Reach… Reach PercentageReach can also be expressed as a percentage, which indicates the percentage of the Population that is exposed to at least one Spot. FrequencyFrequency is the average number of times the advertisement will be presented to the Reached Population. One way to calculate frequency is to divide the number of Impressions by the Reach. Another way is to divide GRPs by Reach Percentage. Example – Broadcasting 5 Radio Spots in ChattanoogaHere’s an example of all of the above advertising terms in action. In this example, we’re broadcasting 5 radio spots at a cost of $500 each to the Chattanooga market.
|