Calculate cost per point from campaign cost and advertising points, GRPs, or TRPs, and compare two plans to find the more cost-efficient option.
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
