Media formulas
CPM
Cost of 1 unit of time (commercial) x 1000
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Number of prospects reached by a given program or time period
CPP (cost per rating point) = Cost per spot / rating
Finding CPP from CPM
The relationship between CPM and CPP is expressed in the formula:
CPM = (CPP x 100) / Population 1000
GRPs = Reach X Frequency
Reach = GRPs / Frequency
Frequency = GRPs / Reach
Brand Development Index (BDI) relates the percent of a brand’s sales in a market to the percent of the U.S. population in that same market.
Category Development Index (CDI) relates the percent of a category’s sales in a market to the percent of the U.S. population in that same market.
Formula:
Universe
the total group of persons in a specific geographic area, that share a common characteristic.
Gross Impression
Total number of opportunities to see an advertisement, as provided by a campaign or plan.
Impression
One opportunity for one individual to see an advertisement. (AKA: Exposure)
Impression
One opportunity for one individual to see an advertisement. (AKA: Exposure)
Reach (Net Reach)
A count of persons with at least one impression.
Reach = (# persons reached / # persons in universe) x 100
GRPs = (gross impressions / universe) x 100
1 GRP = a number of impressions equal to 1% of the universe.
100 GRPs = a number of gross impressions equal to the size of the universe.
Calculate GRPs by adding up the rating points
(120/100) x 129.9 mil = 12.99 mil impressions
Universe x GRP/ 100 = impressions
Reach x Frequency = GRPs
Frequency = GRP/Reach
Reach = GRP/Frequency
Magazine plan costs $15,000 and generates an estimated 60,000 impressions.
$15,000 / 60,000 = 0.25 x 1,000 = $250 CPM
$15,000 / 60 = $250v