The cost per GRP is "the coverage for average frequency", a unit of measure that uses mass media as a vehicle to evaluate advertising campaigns. The GRP measures the strength of an advertising campaign in relation to a specific target group (i.e., the set of individuals to whom the advertising is directed), both absolutely and in relation to competitors' campaigns, and it is expressed as the percentage between the number of gross contacts made by an advertising medium in reference to a target and the entity itself of the target.
GRP = Gross Contacts / Target Entity.
The GRP proves useful when comparing the performance of different mediums or vehicles with respect to a certain target group.
How to calculate GRP?
To calculate GRP, there are several formulas:
- Net Reach = (Net Contacts / Target Entity) x 100
That is, we're talking about net coverage which indicates the number of individuals belonging to the target group who have been exposed to the advertising communication within a given time frame.
- OTS = gross contacts / net contacts
That is, we're discussing the average frequency that expresses the average number of times that the audience has come into contact with the advertisement.
GRP can also be determined using coverage and frequency formulas, thus obtaining a simplified formula; the steps of the transformation start from the classic formula:
- GRP = Net Reach x OTS (average frequency);
- GRP = (Net Contacts / Target Entity) x 100 x (Gross Contacts / Net Contacts);
- GRP = (Gross Contacts / Target Entity) x 100;
Furthermore, GRP is also adopted for measuring online campaigns, it measures the amount of communication produced by an advertising campaign in relation to a specific target group over a certain period of time, the formulas are:
- Net Reach = (Unique Viewers / Target Audience) x 100;
- OTS = Impressions / Unique Viewers;
- Digital GRP = (Impressions / Target Audience) x 100.
In conclusion, the digital GRP is expressed as the percentage between the total number of impressions generated by the campaign with reference to a given target and the target entity itself.
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