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.
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
Divide advertising or media cost by the rating points delivered. Enter 10 for 10 points, not 0.10, and compare plans using the same audience, market, period, and cost scope.
What is Cost Per Point?
Definition:
Cost per rating point is advertising cost divided by rating points delivered for a defined audience, market, and period. One rating point represents 1% of that audience. Gross rating points (GRPs) sum exposures and can exceed 100; they equal reach percentage multiplied by average frequency. Target rating points (TRPs) use a defined target audience. GRPs and TRPs are not interchangeable without matching audience definitions.
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 rating points delivered. In this example, assume 10 rating points for the defined audience. If calculated from reach and frequency, 10% reach at an average frequency of one gives 10 gross rating points.
Finally, calculate the cost per point using the formula above:
CPP = TCP / #P
CPP = 10,000 /10
CPP = $1000/point
