Enter the total number of points and the total cost into the calculator to determine the cost per point.
Related Calculators
Cost Per Point Formula
The following equation is used to calculate the Cost Per Point.
CPP = TCP / P
Formula source: Measuring Marketing, Chapter 52: Cost Per Gross Rating Point (De Gruyter/O’Reilly, 2017)
- Where CPP is the cost per point ($/point)
- TCP is the total cost of the advertising campaign
- P is the number of points achieved by the campaign
To calculate the cost per point, divide the advertising/media cost by the number of point.
What is Cost Per Point?
Definition:
Cost per point is a metric used in marketing that describes the cost to reach one point of audience with an advertising. Points can have several meanings, but typically a point describes 1% (or another percentage) or a given audience, i.e. 1 point = 1% of audience.
How to Calculate Cost Per Point?
Example Problem:
The following example outlines the steps and information needed to calculate the Cost Per Point.
First, determine the total marketing cost. In this example, the marketing cost is $10,000.00.
Next, determine the number of points achieved. In this case, the campaign was able to reach 10% of a desired population, so it received 10 points.
Finally, calculate the cost per point using the formula above:
CPP = TCP / #P
CPP = 10,000 /10
CPP = $1000/point
