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.
Impression
One opportunity for one individual to see an advertisement. (AKA: Exposure)
Gross Impression
Total number of opportunities to see an advertisement, as provided by a campaign or plan.
Reach (Net Reach)
A count of persons with at least one impression.
Reach = (# persons reached / # persons in universe) x 100
Rating
The portion of a demographic universe that is exposed to a specific media vehicle expressed as a percentage of that universe.
Rating = (# persons exposed to media / # persons in universe) x 100
HUT
households using television PUT‐ persons using television PUR‐ persons using radio
HUT = (# HHs using TV during time period / total HHs in universe) x 100
Share
Indicates the portion of the available TV/radio audience this is viewing a particular program
Gross Rating Point (GRP)
Sum of all ratings in a campaign. It is the “gross” counterpart of “net ratings”
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
Converting Back to Impressions
(GRPs/100) x universe = impressions
(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
Cost per Thousand (CPM)
(Cost of Schedule/ Total Impressions) x1000
Magazine plan costs $15,000 and generates an estimated 60,000 impressions. What is the CPM?
$15,000 / 60,000 = 0.25 x 1,000 = $250 CPM
$15,000 / 60 = $250
Cost per Point (CPP)
(Cost of Schedule/ Total GRPs) $15,000/ 200GRPs = $75 CPP
Print Terms

Circulation
Number of copies distributed by a bublication (compares costs & impressions)
Coverage
refers to the portion of households in a market that are in the publication’s delivery area
Internet Terms

Page View
The number of times a page is delivered to a browser
Impressions
The Delivery of an ad to a browser. An opportunity to see the ad
Unique Visitors
Estimated number of unique persons that visited a site. Same as Reach