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If 100,000 ad impressions are displayed on multiple episodes or TV stations for a defined population of 100,000 people, the total is 100 GRPs. However, total reach is not always 100%. If an average of 12% of the people view each episode of a television program, and an ad is placed on 5 episodes, then the campaign has 12 × 5 = 60 GRPs.
A target rating point (abbreviated as TRP; also television rating point for televisions) is a metric used in marketing and advertising to compare target audience impressions of a campaign or advertisement through a communication medium relative to the target audience population size.
To calculate CPM, marketers first state the results of a media campaign (gross impressions). Second, they divide that result into the relevant media cost: Advertising Cost ($) / Impressions Generated. For example: Total cost for running the ad is $15,000. The total amount of impressions generated is 2,400,000. ($15,000/2,400,000)=$0.00625
The following formula is used to calculate the reach of a marketing campaign, = / where is the total number of unique users (i.e., reach) is the total number of impressions
is the gross impressions; is the Average Quarter-Hour persons, the "average number of persons listening to a particular station for at least five minutes during a 15-minute period" [7] is the total number of spots or commercials; is the total number of unique users (or reach)
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Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
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