Gross Rating Point or GRP is a metric that measures the impact of an ad campaign. It analyzes the size of the campaign in a particular channel or across media channels and depicts the impression formed on the audience.
Gross Rating Point is often confused with the number of audiences reached, which is not true. In fact, GRP helps in quantifying impressions as a percentage of the target audience. The number obtained is then multiplied by the rate at which the audience sees the ad.
In this way, GRP could be more than 100 as well. Media buyers often use it in traditional ad formats to evaluate the strength and efficacy of different modules or components of a media plan.
GRP is an important metric in digital and mobile marketers. It helps compare digital advertising campaigns and television advertising campaigns and coordinate them.
In a nutshell, GRP is a standard measure in advertising that evaluates advertising impact.
What is the Importance of Gross Rating Point?
In order to understand the success of an advertising campaign, it is essential to know if it is able to excite and awe the viewers. It is when the usefulness of the Gross Rating Point comes into existence.
Since GRP helps measure the number of campaign impressions and recognize its delivery and exposure, it opens the scope of spotting the issues and working on its improvement. At the same time, it helps understand the strongest components as well as the shortcomings of the media plans.
A successful ad campaign is one that people perceive in a way that put a positive impact on them. It is the Gross Rating Point that tells how well the ad is performing; therefore, it holds an important place.
GRP metrics enable media owners to understand the methods and ways they should consider to make an impact on their audience. Likewise, it enables companies to plan and develop perfect ad campaigns to reach their audience effectively.
Thus the major advantages of GRP are:
- It indicates how to approach the target audience
- It gives an idea of how and where to spend the funds
What are the Drawbacks of Gross Rating Point?
Even though GRP gives the metric to evaluate the efficacy of an ad campaign, it doesn’t provide any sort of analysis. Some major drawbacks of GRP include the following:
- It does not provide the ad campaign’s profitability
- It may underestimate or overestimate a campaign to a particular target audience
How to Calculate Gross Rating Point?
When companies leverage different media, such as television, digital or mobile, and feel like uncovering how the ad campaigns are performing, they can calculate the number of impressions obtained by calculating GRP.
It is calculated as the percentage of the target audience reached by an advertisement multiplied by the number of times the audience has seen that advertisement in a given campaign.
GRP = Reach (% of population reached) × Average Frequency (number of ad impressions)
For instance, if an ad campaign obtains an average of 5 by 1, 000 000 viewers wherein the total addressable population is 50 000, 000 people, the GRP is 10
GRP = (1, 000, 000 / 50, 000, 000) X 5
(.02, representing 2% of the population reached) x 5 (frequency)
GRP = 10
Here, the base population (50,000,000) is the population that has reasonable access to the media source and 1, 000 000 is the population that has viewed the ad campaign.
What is a Good Gross Rating Point?
Gross Rating Point helps businesses to assess the success of their advertising campaigns. Efforts should be made to reach more than 50% of the target market. At the same time, it is expected that a viewer will act to an offer after at least three exposures to the particular ad campaign.
Launching ad campaigns for a new product or products with the high competition may require more frequency. Thereby, efforts should be made in this direction to get more impressions.
In order to build significant awareness, media planners suggest scheduling at least 150 GRPs for three consecutive months. It can give a good result.
Bottom Line
GRP helps evaluate the exposure an ad receives and its impression on the audience. This metric helps to spot the issues and critically analyze them to bring better for the target audience. With GRP metrics, companies can plan an effective ad campaign and execute it in the right way. One perfect ad campaign can make a significant difference in the business.
FAQs
Q1. How GRP differs from TRP?
Ans: The difference between GRP and TRP (target rating point) is the level of specificity. GRP gives an idea of the total population an ad campaign has reached, and TRP takes the campaign’s performance for a specified target.
Q2. Why is GRP important in advertising?
Ans: Since GRP helps track the exposure an ad has received, it is an essential criterion for analyzing the target audience. One GRP equals an ad being exposed to 1% of the total possible audience.
Q3. How to calculate Gross Rating Point?
Ans: It can be calculated by multiplying ratings by the number of spots for a single media placement. In advertising, it is the sum of the GRPs of all the placements in the media plan.
