What is Gross Rating Point (GRP) & How to calculate it?

What is Gross Rating Point (GRP)?

Gross rating point (GRP) is a term used in advertising to measure audience size (or total exposure amount) over a specific period of time by a specific media vehicle or schedule.

Just go through the video below further explaining GRP.

It is expressed as the rating of a specific media vehicle (if used only) or the sum of all ratings of vehicles included in the media schedule. It can have any audience repetition and is equal to the reach of the media schedule multiplied by the average frequency of the schedule.

Purpose

The purpose of the GRP metric is to measure impressions of the number of people in the audience for advertising campaigns.

How to calculate Gross rating Point (GRP)?

GRP is the percentage of viewers who receive an ad with the frequency of viewing in a given campaign.

GRP (%) = Reach (%) × Average Frequency (#)

Alternatively, GRP can be calculated based on the number of impressions:

GRP (%) = 100 x Impressions (#) Defined population (#)

Target rating point

The target rating point expresses the same concept and is calculated in the same way but with a more narrowly defined target audience. For example, the shaving cream brand may be of interest to the adult male target audience. In this case, TRP is calculated using Reach, Frequency, Impressions, and a population of men aged eighteen and over. Also, learn about conversion rate.

How does GRP affect ad price?

Some advertisers negotiate based on “average cost,” says Nick Pappas, CEO of SwellShark’s advertising center. “You can come in and say, ‘In this market, I’m willing to pay x dollars for each point of interest against this population - it’s the same as CPM,” he said.

It is important to remember that GRPs are used to plan and measure objectives. The price of a TV inventory is determined by a variety of factors including how many viewers the program receives, the type of people the advertiser wants to access, and the type of programs - and, of course, GRPs play a role in this.

I’m not for sale. It still sounds like an error metric.
You are wrong. Just because an ad is broadcast on a TV network does not mean that people are actually watching it. Also, with the rise of DVRs, the value of GRP changes based on how people watch the program when it is first shown on TV or at a later time.

So, why is GRP important?

GRP is still the leading metric on how TV advertising is purchased. Similar to Nielsen’s role in measuring TV viewing, everyone agrees with GRP as the “highest cost” of planning and purchasing TV and other traditional media.

“It remains one of the few places you can buy an ad scale in a short period of time due to the number of people using content on television,” said Freddy Flaxman, COO of The Weather Channel. “It is no different; it is not ‘monthly activities’; we can say that using GRP, we can provide this amount of use for your ads per month or quarterly or year. ” Learn about AIDA.

If so, is it available online?

Today, metrics such as CTR (click-through rates), CPM (per thousand views), and CPV (per view cost) dominate online advertising. Many advertisers have asked digital media companies to provide GRPs, which they say would make it easier to make apples and apple comparisons between TV and digital advertising.

To some extent, social media has failed as it covets one of the R70 billion spent on TV advertising each year. Facebook offers a product called TRP (“absolute rating point”) Purchase, which uses Nielsen Digital Ad rating data to measure how well Facebook ads perform near TV locations. Snapchat, too, works with Nielsen.

Hulu and TV stations run by TV companies also offer GRPs. “It’s used if you have an advertiser who used to struggle with digital television to reach viewers who don’t watch TV,” said Pappas. “For customers who use digital-first, it doesn’t appear. Some of them don’t even know what it is. ”

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