Search This Blog

Saturday, February 8, 2014

GRPs, TRPs, CPM Problems

GRPs, TRPs, CPM Problems

Quiz #3

One of the quirks in the media world is the correct usage of GRPs (gross rating points) and TRPs (target rating points).  There is a technical difference between the two terms.  However, in my experience, GRPs is overwhelmingly the term used to describe all rating points, and I have followed that convention in these problems.

Practice problem 3A:

As a planner, I identify three cable programs that I’d like to buy to reach my target audience of W35+

Contemporary Family, W35+ rating of 1.2

Saw and Disorder, W35+ rating of 0.7

Acquaintances, W35+ rating of 0.4 

If I were to buy five ads in Contemporary Family, three ads in Saw and Disorder, and six ads in Acquaintances, how many total GRPs vs. W35+ would that represent?
 

Practice problem 3B:

In Olympics City, I decide that WXB-AM is the best radio station for my plan.  The station is offering me a package of 25 spots during their morning program every week for four weeks.  WXB-AM morning programming averages a 2.7 rating against Adults 2554. 
 
How many GRPs per week would this schedule generate, and how many GRPs would the four week schedule generate? 

Practice problem 3C:

In Steel City, I run a radio campaign on several stations, targeting M1824.  My total schedule delivers 250 GRPs.  The universe of M1824 in Steel City is 158,700. 
 
How many M1824 impressions did this schedule generate?

Practice problem 3D:


We decide to run a national campaign on the Zoo Animals network targeting W1849, and that campaign will generate 345,890,000 impressions against W1849. 
 
The national universe of W1849 is 60,590,000.  How many GRPs would the campaign deliver?

 
Practice problem 3E:

For the Steel City radio campaign above, the total cost of the campaign is $4,500, gross.  What is the M1824 CPM? 

Setup and Solutions

 

Note that the overall formula for CPM is Cost divided by Audience (in thousands).
In all the problems below, the audience has already been divided by 1,000. 
For instance, in Problem 1A, 43,895 divided by 1,000 = 43.895

 

 

Practice Problem 3A Solution:

Contemporary Family: 5 ads X 1.2 rating = 6.0 GRPs

Saw and Disorder: 3 ads x 0.7 rating = 2.1 GRPs

Acquaintances: 6 ads x 0.4 rating = 2.4 GRPs

6.0 + 2.1 + 2.4 = 10.5 W35+ GRPs
 

Practice Problem 3B Solution:

One week – 25 spots X 2.7 rating = 67.5 GRPs

Four weeks  67.5 GRPs x 4 weeks =  270.0 A2554 GRPS

Practice Problem 3C Solution:

The trick here is to remember that GRPs are a percentage.  When you multiply a number by a percentage you convert it to a decimal point.  75 GRPs = 75% which becomes .75 when you use it in an equation.

When you have a GRP/percentage that is 100 or greater, then it looks like this when you use it in an equation: 250 GRPs = 250% becomes 2.50 in the equation

So for this problem the answer is:

158,700 X 2.50 = 396,750 M1824 impressions 

Practice Problem 3D Solution:

When you have impressions and a universe, you divide impressions by universe x 100 to get the GRPs

In this case, you would divide 345,890,000 by 60,590,000 x 100 = 570.9 GRPs

REMEMBER, this is not a cost per thousand problem, so you don’t do anything to the bottom number.

Practice Problem E3 Solution:

$4,500 divided by 396.750 (note what I did with the decimal) = $11.34

Rating, Share, PUT, HUT and CPM Problems

Quiz #2

Rating, Share, PUT, HUT and CPM


Practice problem 2A:

In the MiddleTown DMA (television market), the total universe of M2554 is 756,345.   On Sunday afternoon, 432,145 of them are watching television, and 12,458 of them are watching the WFL Pregame Show on ROX. 
 
What is the M2554 PUT, rating and share for the ROX WFL Pregame Show?

Practice problem 2B:

In the Gotham City radio market, the total universe of Hispanic Women 18-34 is 1,237,900.  On Tuesday morning, 375,689 of them are listening to the radio, and 90,765 of them are listening to WOW-AM. 
 
What is the HW1834 PUR, and the rating and share for WOW-AM?

Practice problem 2C: (a little twist in this one):

The smallest TV market in the country, TinyTown, has 4,260 households and one TV station.  At 5P, there are 1,245 households watching TV.  The KTNY-TV local news comes on at 5P, and 875 households watched the KTNY-TV 5P news. 
 
What is the HUT, and the rating and share for the KTNY-TV 5P evening news? 

Practice problem 2D:

Nationally, the universe of Adults 65+ is 75,890,100.  On Saturday night, 46,123,400 of them are watching television.  335,789 of them are watching the Larry Waltz Show reruns on EBS. 
 
What is the PUT for A65+, and the rating and share for the Larry Waltz Show? 

Practice problem 2E

From Problem A above, if a spot in the ROX Pregame Show costs $1,000, what's the M2554 CPM?

From Problem C above, if a spot in the KTNY-TV costs $20, what's the HH CPM?

From Problem D above -- EBS doesn't sell ads, but you can get a sponsorship mention for $750.  What's the A65+ CPM for that? 

Setup and answers

 

As in all problems on this blog, when you see a calculation for CPM, remember that the audience size has already been divided by 1,000, to get the denominator in the CPM formula into the thousands format.


Formulas

PUT = percentage of persons watching television; persons watching any television divided by the universe X 100
HUT = same as above, but for households, not persons
Rating = percentage of a universe watching a specific show;  persons watching a specific show divided by the universe X 100
Share = percentage of those watching any television who are watching a specific show; persons watching a specific show divided by the number of persons watching any television x 100 

Problem 2A Solution:

M2554 PUT = 432,145 divided by 756,345 X 100 = 57.1%

M2554 Rating = 12,458 divided by 756,345 x 100 = 1.6 rating, M2554

M2554 Share = 12,458 divided by 432,145 x 100 = 2.9 share (could round to 3  and say 3 share)
 
Easier method for share if you have the rating and PUT;  1.6 divided by 57.1 x 100 = 2.8 share (would round to 3 and say 3 share)

Problem 2B Solution:

HW1834 PUR = 375,689 divided by 1,237,900 = 30.3%

HW1834 Rating = 90,765 divided by 1,237,900 = 7.3 rating

HW1834 Share = 90,765 divided by 375,680 = 24.2 (would round to 24 and say 24 share)
 
Easier method for share if you have the rating and PUT;  7.3 divided by 30.3 x 100 = 24.1 share (would round to 24 and say 24 share)

Problem 2C Solution:

HUT = 1,245 divided by 4,260 = 29.2%

Household Rating = 875 divided by 4,260 = 20.5 rating Household Share = 875 divided by 1,245 = 70.3 (would round to 70 and say 70 share)
 
Easier method for share if you have the rating and PUT;  20.5 divided by 29.2 x 100 = 70.2 share (would round to 70.2 and say 70 share)
 
You might ask, if they only have one TV station, why wouldn't the share be 100?  People could be watching programming from cable networks like ESPN or USA, etc. 

Problem 2D Solution:

A65+ PUT =  46,123,400 divided by 75,890,100 = 60.8%
 
Rating = 335,789 A65+ divided by 75,890,100 = 0.4 rating
 
Share = 335,789 divided by  A65+ 46,123,400 = 0.7 (I would round to 1 and say 1 share)

Easier method for share if you have the rating and PUT;  0.4 divided by 60.8 x 100 = 0.7 share (I would round to 1 and say 1 share) 

Problem 2E Solution:

MiddleTown M2554 CPM = $1,000 divided by 12.458 = $80.27
 
TinyTown HH CPM = $20 divided by .875 = $22.86

National A65+ CPM = $750 divided by 335.789 = $2.23

CPM and Composition Problems

Quiz #1

CPM and Composition

These problems help you practice calculating overall CPM, and also use composition numbers to quantify smaller audiences and how to calculate the CPM for those audiences.

The important thing to note, with these kinds of problems, even if you are measuring the CPM for a smaller subset of the overall audience, the cost of the ad remains the same.  Just because you only want to measure your CPM vs. a portion of a media audience, doesn't mean that they are going to change the price for you.

(Problem setups and answers are the end of the post)

 
Practice problem 1A:

A half page ad in the Everytown News is $11,890, gross.  The circulation of the Everytown News is 43,895, spread over six counties.  63% of Everytown News' circulation is in Washington County. 
 
What's the overall CPM for this ad, and then the CPM for just the Washington County portion of the buy? 

Practice problem 1B:

Breaking Badminton, the TV show, did well with adults with average incomes of over $100,000.  One :30 second ad in Breaking Badminton costs $21,500 gross, and an average of 425,000 adults saw an ad in the program -- with 32% of them having incomes of over $100,000.  How much is the overall CPM for an ad in the program, and the CPM for reaching Adults with $100,000 incomes and up? 

Practice problem 1C: (a little twist in this one)

An ad on the video board during a football game at Football U stadium costs $1,125, gross.  Usually, about 10% of those attending games are from the opposing school.  If there are a total of 102,381 fans at the game, what is the CPM for reaching just the home team fans at the game? 

Practice problem 1D (another little twist)

You can buy a sponsorship on the home page of weatherwatching.com for a month for $75,900, gross.  In a month, an average of 1,234,000 consumers visit the page.  However, about 37,500 of those visitors are classified as Weather Enthusiasts (people who really, really are into the weather).  
 
What is the CPM for reaching Weather Enthusiasts, as well as the overall CPM?

Practice problem 1E (this one is really, really tricky, with several calculations needed)

A full page ad in LookACelebrity! magazine costs $325,500, gross.   The circulation of LookACelebrity! magazine is 2,457,000, and it has 9.56 readers per copy.  15% of their total readers are Men 18-49 and about 18% of the total readers are Women 18-49. 
 
What is the CPM for Adults 18-49?  What the CPM for the TOTAL Audience of LookACelebrity! magazine?
 

Setup and answers

 

Note that the overall formula for CPM is Cost divided by Audience (in thousands).
In all the problems below, the audience has already been divided by 1,000. 
For instance, in Problem 1A, 43,895 divided by 1,000 = 43.895

Problem 1A Solution:

Overall CPM = $11,890 divided by 43.895 = $270.87

Washington County CPM  
First, 43,895 X 63% = 27,654; then $11,890 divided by 27.654 =$429.95

Problem 1B Solution:

Overall CPM = $21,500 divided by 425.000 = $50.59
 
$100K+ income CPM:  First, 425,000 X 32% = 136,000;  then $21,500 divided by 136.000 = $158.09

Problem 1C Solution:

Overall CPM = $1,125 divided by 102.381 = $10.99
Home Team Fan CPM:  First 102,381 X 90% = 92,143; then $1,125 divided by 92.143 = $12.21

(note the twist -- you had subtract the percentage of visiting fans (10%) from the total (100%) to get the percentage of Home Team fans at the game

 
Problem 1D Solution:

Overall CPM = $75,900 divided by 1234.000 = $61.51
Weather Enthusiast CPM  = $75,900 divided by 37.500 = $2,024 
(note the twist -- I just simply gave you the smaller audience, you didn't have to calculate it)

Problem 1E Solution:

Overall CPM = First, to get to Total Audience, multiple 2,457,000 (circulation) times 9.56 (readers per copy) = 23,488,920 total audience, then $325,000 divided by 23,488.920 =$13.83

A1849 CPM = The trick here is when you have M1849 and W1849 you can add those together to get A1849 (you only can do this when the age breakdown is the same, for instance, you can't add M1849 and W2554) 
 
So, in the long way, first, you take the total audience from above 23,488,920 and multiply it by 15% for the M1849 number = 3,523,338 and then by 18% for W1849 number = 4,228,005, then add those two numbers together = 7,751,343, then take $325,000 divided by 7,751.343 = $41.93 A1849 CPM 

The alternative way to calculate for the A1849 CPM is to add 15% (M1849 composition) and 18% (W1849 composition) to get 33% A1849 composition, then multiply 23,488,920 X 33% = 7,751,343, then $325,000 divided by 7,751.343 = $41.93 CPM