Important Terms for TV Advertising

The number of people with cable and satellite has been steadily decreasing over the years. We are still watching television, but the way we are watching has significantly changed. Streaming has taken the driver’s seat and we do not see it slowing down any time soon. Most people still watch as much if not more than ever before. People are using multiple devices, across numerous networks and this means a lot of changes have been made for marketing strategies across these platforms. One thing that has not changed is the terminology that you will need to know to measure your advertising goals for television.

Gross Rating Points (GRPs)

You calculate it as a percent of the target market reached multiplied by the exposure frequency. Thus, if you get advertise to 40% of the target market and give them 3 exposures, you will have 120 GRP

Gross rating points are quantified by an equation that helps to measure an advertisement’s impact. GRPs approximate the amount of people in a target group that will see a specific ad. This metric helps to plan how effective an ad will be and plays part in how air space is bought.

Cost per Point (CPP)

Calculated as Cost / number of GRPs. Includes duplication because it is based on impressions

The Cost per point is a way of measuring the cost of your advertisement based on the size of an ad campaign (according to GRP).

Frequency

Reach x Frequency = Gross Rating Points

Frequency is the number of times your target audience has the opportunity to be exposed to your ad over a set period of time.

Impressions

Impressions are the number of times someone in your target audience is exposed to your ad. One person viewing your ad one time on one specific occasion. The same person who sees your same ad multiple times would count as an impression each time.

Cost per Thousand Impressions (CPM)

You can calculate your CPM by taking the media cost divided by the number of impressions divided by 1000

This is a common measurement used to compare the cost based on the amount of people it gets in front of.

Rating

A television rating is a percentage that measures the viewership of a tv program. This quantifies the total households who tune into a program or station during a set timeframe.

Television ads can be a beneficial addition to a company’s marketing efforts. If you want to communicate to your viewers when they have downtime tv can be an effective platform. The internet is a powerful place when it comes to marketing but blending in the advantages that traditional marketing offers reinforces your message without fighting with other ads for screen space.

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