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What are the GRPs, Ratings, Reach, Frequency, and Impressions in advertising?
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What are the GRPs, Ratings, Reach, Frequency, and Impressions in advertising?

GRPs create the media plan, and it’s essential to take a firm grasp of these often misunderstood advertising terms. And also even it built into our media plan software.

1. Media Cost

  • Firstly, media Cost is the price we pay to present our advertisement. The price media has many different ways, including points, impressions, clicks, leads, actions, days, weeks, months, etc.
  • Secondly, however, it eventually boils down to the amount we pay to present our advertisement, Media Cost.
  • Lastly, and also media Cost excludes the cost to create the ad and other expenses.

2. Media Market

  • Media Market and Market describes the set of people that can potentially be exposed to our advertisement.
  • And also the media market is often described using designated market Areas and DMAs.

3. Population

  • The population is the total number of people in our Media Market.

4. Rating

  • The rating is the percentage (0 to 100) of the Media Market that it likely expose to our advertisement.
  • And also the rating is the estimate based on past performance often sourced from surveys.

5. Average Persons

  • An Average individual is the number of people that, on average, is expose to each Spot. Also, average Persons are calculate by multiplying Population by Rating then dividing by 100.

6. Spot

  • The Spot is the single broadcast of the advertisement. And also its type, the advertising placement includes multiple spots.

7. Gross Rating Points (GRPs)

  • The Gross Rating Point (GRP) measures the advertising campaign’s size by the specific medium and schedule. And GRP calculate by multiply the number of the Spots by Rating.

8. Cost per Point (CPP)

  • The Cost per Point (CPP) is the measure of cost efficiency, enabling us to compare this advertisement’s price to other promotions. And also CPP is the calculate with the Media Cost divide the Gross Rating Points (GRPs).

9. Impressions

  • Firstly, the impressions are the total number of exposures to our advertisement. And one person can receive multiple exposures over time.
  • Secondly, and if one person exposes to the advertisement five times, this would count as five impressions.
  • Lastly, it impressions are calculated by multiply the number of Spots Average Persons.

10. Cost per Thousand Impressions (CPM)

  • The cost per Thousand Impressions (CPM) is another measure of cost efficiency, enabling us to compare this ad’s price to other advertisements.
  • And also CPM is calculate as the Media Cost divide by Impressions divide by 1,000.

Also Read: What is the Investment Center? – Definition, Mean, Example

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