Talk to enough ad buyers, and you’ll eventually hear a pretty common phrase: “No one loses their job buying GRPs.” Show It’s true. The GRP, which stands for “gross ratings point,” is a metric that plays a central role in the $70 billion U.S. TV advertising market. It’s what advertisers use to determine how and where to place commercials and what TV networks use to prove they’re worth all that money. But what exactly is a GRP and why is it so important? What
is a GRP, exactly? For instance, say you wanted your ad to be seen by women between the ages of 18 and 49, and you knew that 40 percent of TV viewers in that demographic watched ABC’s prime-time programming every Wednesday night. Since you’re advertising a new product, you decide to run three commercials between 8 and 10 p.m. The GRP would then be 120: 40 percent of the target audience reached, multiplied by the number of times the ad aired, multiplied by 100 (for a nice round number). This is just one specific example as GRPs can be calculated for total reach as well as exposure by different demographics, times of day and media markets, among other criteria. How do advertisers know that 40 percent of anybody watched anything? Wait a second, this is all done based on .03 percent of all American TV households? Who invented this racket? “It was a way during the pre-internet TV era to get a sense of how many people you actually reached, because that was what advertisers were concerned with,” said Alan Wolk, TV analyst and consultant at Toad Stool Consultants. “If the Chrysler brand was in front of them enough, when they decide to buy a new car, they might go with Chrysler because they saw the ads.” This sounds very simplified. Does the GRP measure whether ads worked? “Do you go for more frequency with a smaller audience or less frequency with a bigger segment? It depends on what you wanted to do,” said Wolk. “The media planner decides that the agency wants to buy 500 GRPs during daytime programming, for example, and then it’s up to the buyer to determine which networks will help achieve that.” How does GRP affect ad
pricing? What’s important to remember is that GRPs are used for planning and measuring purposes. Pricing for TV inventory is determined by a variety of factors including how many viewers a program gets, the demographic the advertiser wants to reach and type of programming — and, of course, GRPs play a role in this. I’m not sold. It still feels like a flawed metric. So, then, why does the GRP matter? “It remains one of the few places you can buy ad scale in a short amount of time because of the sheer number of people consuming content on TV,” said Freddy Flaxman, COO of The Weather Channel. “It’s not uniques; it’s not ‘monthly actives’; we can say, using a GRP, we can serve this quantity of consumption of your ads in a given month or quarter or year.” If it’s so important, is it available online? To some extent, digital media has caved in as they crave some of the $70 billion spent on TV advertising every year. Facebook offers a product called TRP (“total rating point”) Buying, which uses Nielsen’s Digital Ad Ratings data to measure how well Facebook’s ads perform alongside TV spots. Snapchat, too, works with Nielsen. Hulu and streaming platforms owned by TV companies also offer GRPs. “It’s used when you have a traditionally television-heavy advertiser that’s moving money to digital to reach viewers that aren’t watching TV,” said Pappas. “For clients that are digital-first, it doesn’t come up. Some of them don’t even know what it is.” So what you’re telling me is I should ignore all those stories about how the GRP is dead? For more insight into the acronyms, people and companies defining the future of video, subscribe to our weekly video briefing email. https://digiday.com/?p=210152 What is the meaning of Gross Rating Point?Definition. The Gross Rating Point is a common and standard measure of media delivery in advertising. One Gross Rating Point, or GRP, is the equivalent of reaching 1% of the total potential audience with one advertising message.
What are GRPs and target GRPs?GRP stands for Gross Rating Point. A standard measure in advertising, it measures advertising impact. You calculate it as a percent of the target market reached multiplied by the exposure frequency. Thus, if you get advertise to 30% of the target market and give them 4 exposures, you would have 120 GRP.
How are gross impressions and gross rating points calculated?GRPs are simply total impressions related to the size of the target population: They are most directly calculated by summing the ratings of individual ads in a campaign. Mathematically: GRPs (%) = 100 * Impressions (#) ÷ Defined population (#)
What are gross rating points quizlet?Gross rating points (GRP) measure how often the audience is exposed to a communication within a specified period of time.
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