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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

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