One person can receive multiple exposures over time. Impressions are the total number of exposures to your advertisement.
Cost per impression definition how to#
For more, see How to Calculate Cost Per Point (CPP). CPP is calculated as Media Cost divided by Gross Rating Points (GRPs). Cost per Point (CPP)Ĭost per Point (CPP) is a measure of cost efficiency which enables you to compare the cost of this advertisement to other advertisements. For more, see How to Calculate GRPs – Gross Rating Points. GRP is calculated by multiplying the number of Spots by Rating. Gross Rating Point (GRP) is a measure of the size of an advertising campaign by a specific medium or schedule. Typically, an advertising placement includes multiple spots. SpotĪ Spot is a single broadcast of an advertisement.
Average Persons is calculated by multiplying Population by Rating then dividing by 100. More on Ratings… Average PersonsĪverage Persons is the number of people that, on average, will be exposed to each Spot. Rating is an estimate based on past performance often sourced from surveys. Rating is the percentage (0 to 100) of the Media Market that will likely be exposed to your advertisement. Population is the total number of people in your Media Market. However, Media Market can be any market you define. The media market is often described using Designated Market Areas or DMAs, which are trademarked by Nielsen. Media Market or Market describes the set of people that could potentially be exposed to your advertisement.
Media Cost excludes the cost to create the advertisement and other costs. However, it ultimately boils down to the amount you pay to present your advertisement, which is Media Cost. There are many different ways to price media including points, impressions, clicks, leads, actions, days, weeks, months, etc. Media Cost is the price you pay to present your advertisement. 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). 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.
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