In the previous exercise, you learned how to compare different prices of ads in magazines by...

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In the previous exercise, you learned how to compare different prices of ads in magazines by calculating the cost per thousand. The same principle can be applied in broadcast media through the metric of cost per point (CPP). COST PER POINT: the price you pay for each rating point Unlike CPM where we divide the impressions by 1000, we count every rating point CPP = cost of the ad/total rating points Example: An ad on costs $420,000 on a show that did 4.2 rating. The CPP = 420,000/4.2 = $100,000 You can see that the CPP will be much higher than the CPM, but the basic foundation of the metric is the same. Below is a sample schedule for a television campaign. Calcuate the total GRPs for the schedule. PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals HH RATING 4.7 6.4 3.7 3.8 3.5 3.0 # OF ADS 5 3 1 2 2 3 16 Total GRPS Now calculate the CPP for each show. Which show is the least efficient? PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Least efficient program: :30 COST HH RATING $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 4.7 6.4 3.7 3.8 3.5 3.0 CPP Now calculate the CPP for the entire schedule PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals :30 COST HH RATING $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 4.7 6.4 3.7 3.8 3.5 3.0 CPP $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 # OF ADS TOTAL COST 5 3 1 NA 2 2 3 16 GRPS 0 0 0 0 0 Television can also be calculated based on CPM. Calculate the total CPM for the schedule. PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals Total Universe: :30 COST HH RATING CPP $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 108,600,000 4.7 6.4 3.7 3.8 3.5 3.0 $0 $0 $0 $0 $0 $0 $0 # OF ADS TOTAL COST Total GRPS Total Impressions 5 3 1 2 23 3 16 $0 $0 $0 $0 $0 $0 $0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CPM In the previous exercise, you learned how to compare different prices of ads in magazines by calculating the cost per thousand. The same principle can be applied in broadcast media through the metric of cost per point (CPP). COST PER POINT: the price you pay for each rating point Unlike CPM where we divide the impressions by 1000, we count every rating point CPP = cost of the ad/total rating points Example: An ad on costs $420,000 on a show that did 4.2 rating. The CPP = 420,000/4.2 = $100,000 You can see that the CPP will be much higher than the CPM, but the basic foundation of the metric is the same. Below is a sample schedule for a television campaign. Calcuate the total GRPs for the schedule. PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals HH RATING 4.7 6.4 3.7 3.8 3.5 3.0 # OF ADS 5 3 1 2 2 3 16 Total GRPS Now calculate the CPP for each show. Which show is the least efficient? PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Least efficient program: :30 COST HH RATING $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 4.7 6.4 3.7 3.8 3.5 3.0 CPP Now calculate the CPP for the entire schedule PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals :30 COST HH RATING $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 4.7 6.4 3.7 3.8 3.5 3.0 CPP $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 # OF ADS TOTAL COST 5 3 1 NA 2 2 3 16 GRPS 0 0 0 0 0 Television can also be calculated based on CPM. Calculate the total CPM for the schedule. PROGRAM This is Us The Voice The Masked Singer Grey's Anatomy The Bachelorette Young Sheldon Schedule Totals Total Universe: :30 COST HH RATING CPP $476,352 $254,224 $225,764 $213,829 $170,278 $157,213 108,600,000 4.7 6.4 3.7 3.8 3.5 3.0 $0 $0 $0 $0 $0 $0 $0 # OF ADS TOTAL COST Total GRPS Total Impressions 5 3 1 2 23 3 16 $0 $0 $0 $0 $0 $0 $0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CPM

Answer rating: 100% (QA)

To calculate the Total GRPs for the schedule we sum the Gross Rating Points GRPs for each program To... View the full answer