Media Planning Calculations– Reach, Frequency, Impression, GRP, Share,Circulation

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Media planning is the process of identifying and selecting different media like newspapers, magazines, websites, TV and radio stations, and outdoor placement where we can place paid advertisements.

Following are the Media Objectives

REACH:

The total # of people or households(HH) exposed to an ad schedule during a given time period (usually 4 weeks); expressed as a % of the total potentially exposed

EG: A radio station has 60,000 potential listeners and 20,000 hear a commercial 20,000/60,000 = 33% or 33

FREQUENCY:

# of exposures to the same message each House Hold supposedly receives

AVG. FREQUENCY:

Total exposures for all HH/ # people reached

Ex: 100,000 people are potentially exposed to an advertising message. If 30,000 HH see an ad 5X and 20,000 HH see an ad 6X, then:

Avg FREQ = (30,000 x 5 ) + (20,000 x 6) /50,000=5.4

IMPRESSIONS:

Same as total exposures

GRPs:

Gross Rating Points (the weight of the media schedule)

GRP = REACH x FREQUENCY (reach is expressed as a %)

EG: 100,000 people are potentially exposed to 10 ads and 50,000 people see the ads on the avg. of 5.4 times 50,000/100,000 X 5.4 = 50 X 5.4 = 270 GRPs

Cost Considerations

GOAL:

Maximize exposure to the greatest number of the right people at the lowest possible cost

CPM:

(Magazines and Newspapers) -evaluation of cost relative to the audience reached.

EG: Unit cost X 1000 # of prospects reached

The cost of a full-page ad is $5,000 Circulation is 1,250,000 What is the CPM?
$5,000 X 1,000 1,250,000 = $4 CPM

TCPM:

The relative cost of reaching one’s target audience (eg. Cost of reaching only males rather than the whole audience)

CPRP –Cost per rating point

CPRP = Cost of ad unit Rating

EG: Cost of ad unit (30 sec. Ad) = $5,000 Program’s ratings: 20
CPRP = 5,000/20 = $250

Print Media

Circulation: The # of copies of an average issue that will be distributed

Readership: The # of people who actually see a copy (includes pass along readers)

Eg: 100,000 circulation 3 readers per copy Readership = 100,000 X 3 = 300,000

Broadcast Media:

Rating: % of TV homes delivered to an advertiser (based on the # of homes with TVs)

Eg: 100,000 homes with TVs 20,000 sets tuned to Friends Ratings = 20,000/100,000 = 20%

GRPs: # rating points for the program in which the ad appears X Frequency the ad runs (10 X 4 = 40 GRPs)

Share: How well, a program performs against other shows in the same time period on a certain day (based on the # of sets in use)

Eg: 20,000 sets are tuned to NBC at 8:00 on Thursday night, 50,000 sets are turned on at that time, and there are 100,000 homes with TVs in the market Share = 20,000/50,000 = 40 (NBC)

HUT:

Homes using television at a particular time (expressed as a % of all TV homes)

HUT differs from RATINGS because it combines all viewing rather than specific program viewing.

HUT X SHARE = RATINGS

 

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