A GRP is an essential measure that helps businesses assess the success of their advertising campaigns. Let’s understand its use, importance and how you can calculate it.
What is a GRP?
The GRP full form in media is gross rating point. It is a common metric used in the traditional buying process through which you can measure the impact of an ad campaign. Using GRPs, you can measure the number of campaign impressions, how well your ad is being received and its exposure.
Rating points are primarily used in media planning and media buying and are a key metric for TV advertising buys. Here advertisers usually pay publishers based on the rating points they receive for a particular advertising.
On the other hand, gross rating points are mostly used in traditional media campaigns which is important for digital and mobile marketers. It helps in comparing and coordinating linear TV and digital ad campaigns.
What is the Use of GRP?
The ultimate purpose of GRP in marketing is to measure impressions about the number of people in the audience for an ad campaign.
Significance of GRP
GRP in advertising helps in determining the strongest components of their media plans. Through this metric, you can understand the level of impact of your ad campaign and messages on people who perceive them.
Marketers use GRP in media to implement the correct approach to reach their target audience. Plus, it allows companies to allocate appropriate resources to develop the campaigns so that they can have the desired impact.
Some advertisers use GRP to compare the performance of their campaigns across different media formats. Apps such as YouTube and Facebook have partnered with Neilsen’s Digital Ad Ratings to compare their ad performance vs. traditional TV ads using GRPs. This gives larger advertisers more complete campaign performance capabilities.
How to Calculate GRP?
GRP is calculated in terms of the percentage of the audience reached by an advertisement multiplied by the frequency they see it in a given campaign.
GRP formula = Reach (% of population reached) x Average frequency (number of ad impressions)
Let’s take an example to understand this better. Suppose a campaign has an average of 5 impressions by 1,000,000 viewers, out of a total addressable population of 80,000,000 people. In this context,
GRP = (1,000,000 / 80,000,000) x 5
= 0.013 (representing 1.3% of the population reached) x 5
= 6.5
The base population is usually the largest measured population who have access to various media sources. To get an idea of the total population of a given audience, advertisers check the estimates of past performance of a chosen channel from the market and measurement groups.
What is a Good GRP?
Good GRP marketing can be determined by the market you want to reach and how often you need to reach your audience so that they act based on them. You should reach GRP advertising between 50-90% of your target market and assume it will require at least three exposures for a viewer to act on an offer.
What is the difference between TRP and GRP?
Target rating points (TRP) and gross rating points (GRP) measure the same thing but with different levels of specificity.
- TRP looks at a campaign’s performance for a specified target audience within the total population. Meanwhile, GRP shows how much of the total population your campaign can reach.
- TRP equals one percent of the exposure of a given target demographic while GRP equals one percent of the total audience exposed to an ad.
Thus, GRP plays a key role in conveying the effectiveness of an ad campaign. Use this metric to know the possible approaches that can work well with your audience so that you can choose the right channels and deliver messages that resonate with your target market.