Media Planning & Buying Formula Sheet

Flashcards covering essential media planning and buying formulas, including GRP, Reach, Frequency, CPRP, AEC, CPM/CPT, and print advertising cost calculations.

Gross Rating Point (GRP)

A standard measure of total advertising exposure or campaign weight, calculated as $\text{GRP} = \text{Reach} \times \text{Frequency}$, or from budget as $\text{GRP} = \frac{\text{Budget}}{\text{CPRP}}$.

Reach (R)

The percentage of the target audience exposed at least once to an advertisement, calculated as $\text{Reach} = \frac{\text{GRP}}{\text{Frequency}}$.

Frequency (F)

The average number of times the target audience sees the advertisement, calculated as $\text{Frequency} = \frac{\text{GRP}}{\text{Reach}}$.

Frequency from People and Number of Times

The numerical calculation of average exposure, given by $\text{Frequency} = \frac{\text{No. of People} \times \text{No. of Times}}{\text{Total No. of People}}$, or across distinct audience groups as $\text{Frequency} = \frac{(P_1 \times T_1) + (P_2 \times T_2) + (P_3 \times T_3)}{P_1 + P_2 + P_3}$.

Cost Per Rating Point (CPRP)

A cost-efficiency metric determining the cost per gross rating point, calculated as $\text{CPRP} = \frac{\text{Budget}}{\text{GRP}}$ or $\text{CPRP} = \frac{\text{Average Exposure Cost (AEC)}}{\% \text{ of Target Audience (TA)}}$.

Average Exposure Cost (AEC)

The average monetary expenditure required for an exposure, calculated as $\text{AEC} = \text{CPRP} \times \% \text{ Target Audience}$ or $\text{AEC} = \frac{\text{No. of Spots} \times \text{Cost per Spot}}{\text{Total No. of Spot}}$.

AEC from Multiple Spots

The weighted average exposure cost across various spot types or placements, calculated as $\text{AEC} = \frac{(S_1 \times C_1) + (S_2 \times C_2) + (S_3 \times C_3)}{S_1 + S_2 + S_3}$.

Budget / Total Plan Cost (TPC)

The total planned advertising expenditure, calculated as $\text{Budget (TPC)} = \text{GRP} \times \text{CPRP}$.

% of Total Audience

The proportion of the audience exposed to the campaign relative to unit costs, calculated as $\text{\% of Total Audience} = \frac{\text{AEC}}{\text{CPRP}}$.

Cost Per Thousand (CPM / CPT)

The cost required to reach one thousand individuals within an audience, calculated as $\text{CPT} = \frac{\text{Cost of Advertising Unit}}{\text{Audience}} \times 1000$.

Newspaper Half-Page Advertisement Cost

The cost of placing a half-page print ad in a newspaper, calculated as $\text{Cost} = \text{Rate} \times \text{Size} \times \text{Insertions} \times \frac{1}{2}$ (adjusted using $\frac{1}{4}$ for a quarter page or $1$ for a full page).

Magazine Single Full-Page Advertisement Cost

The cost of placing a single full-page ad in a magazine, calculated as $\text{Cost} = \text{Rate} \times \text{Insertions}$.

Magazine Double Page Advertisement Cost

The cost of placing a two-page spread advertisement in a magazine, calculated as $\text{Cost} = \text{Rate} \times \text{Insertions} \times 2$.