CPG (Cost per GRP)
>>>>>>>>>>>>>>>>>>>>>>>>>>What does Cost per GRP mean ?
CPG is a measure of cost effectiveness that allows companies to compare the cost of an ad or campaign plan to other ads. CPG (Cost per GRP) represents the gross reach of an ad or marketing campaign as a percentage within a target audience.
What considerations are important when calculating CPG (Cost per GRP)?
- How many people use the media?
- How many of those people are men?
- How many are women?
- Which of the target groups is best suited for an advertising campaign?
Purpose of the CPG calculation
The main purpose of this assessment is to determine if the numbers are telling a company the truth. Is a company spending more than it needs to achieve the desired reach? Or does it need to spend more?
This includes the amount of money spent on ad placement. It should also determine if the company can or has already achieved the goal set for a particular campaign.
GRP = Reach (% of audience reached) x Frequency (number of ad impressions).
The actual calculation of CPG involves dividing the cost of the entire advertising campaign by gross rating points or GRP. The GRP is a calculation used to determine the number of people within a target audience that the ad may have reached.
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