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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.
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.
The cost per thousand impressions (CPM) metric enables marketers to make cost comparisons between these media, both at the planning stage and during reviews of past campaigns. [4] Marketers calculate CPM by dividing advertising campaign costs by the number of impressions (or opportunities-to-see) that are delivered by each part of the campaign.
An impression (in the context of online advertising) is when an ad is fetched from its source, and is countable. Whether the ad is clicked is not taken into account. [ 1 ] Each time an ad is fetched, it is counted as one impression.
Click-through rate (CTR) is the ratio of clicks on a specific link to the number of times a page, email, or advertisement is shown. It is commonly used to measure the success of an online advertising campaign for a particular website, as well as the effectiveness of email campaigns.
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.
A view-through rate (VTR), measures the number of post-impression response or viewthrough from display media impressions viewed during and following an online advertising campaign. Such post-exposure behavior can be expressed in site visits, on-site events, conversions occurring at one or more Websites or potentially offline:
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