Equations

Impressions

• 1, Universe? 2,472.320

• 2, Rating? 2

• 3, Rtg x UE = Gro Impression

• 4, .02 x 2,473.320  = 49.466

Calculating CPM

• 1, Building off of last problem, we calculated the average impressions were 49,466

• 2, Whenever you solve for CPM you need to divide by 1,000 since CPM is based on per 1,000 view

• 3, 49,466/1,000  = 49.466

• 4, Cost x 49.466

• 5, $21.11 x 49.66  = $1,048.32

Calculating Gro rating points for a proposed advertising buy

• 1, Average rates x number of ads = Gro Rating Points

• 2, 6 A.M.-10 A.M. daypart: .3 (average rating) x 12 (# of ads) = 3.6 (GRP)

• 3, 10 A.M.-3 P.M. daypart: .1 (average rating) x 6 (# of ads) = .6 (GRP)

• 4, 8 P.M.-11 P.M. daypart: 1.7 (average rating) x 10 (# of ads) = 17 (GRP)

• 5, Sum the GRP’s from each day part to derive your total weighted campaign gro impressions (3.6 + .6 + 17) = 21.2

% change

• % Change = Rating from this year - Rating from last year / Rating from last year

  • (Rating from this year minus rating from last year, which is all divided by rating from last year)

Rating %

• 1, total TV homes: 30

• 2, homes tuning in: 3

• 3, HHs tuning in = 3 = .10 or 10%

• 4, total television HHS = 30

• 5, 10.0 HH rating

Projections (000, impressions)

• % (rating) x universe estimate (000) = Projections

  • Example

    • 1, % Rating: 4.9%

    • 2, US TV households (000): 114,200

    • 3, (000) Calculation: .049 x 114,200 = 5,596 (or 5,596,000)

HUT

• 1, Total TV homes: 10

• 2, Homes using TV: 6

• 3, HHs using TV = 6 = .60 or 60%

• 4, Total TV HHs = 10

• 5, HUT = 60

PUT

• 1, Total = 12

• 2, Using TV = 3

• 3, PUT = 3/12 = .25 or 25%

• 4, Total PUT = 25

Frequency 

• 1, Number of exp: 18

• 2, HHs tuned to network Z: 6

• 3, Number of exp / total HHs tuned to XYZ

  • 18/6 = 3

Reach

• 1, Number of different HHs reached: 6

• 2, Reach: Number of different HHs reached / total HHs = 6/10  = .6 = 60%

  • (Number of different HHs reached divided by total HHs)

Gro Impressions (GI)

The average number of people (or TVHs) reached by an ad multiplied by the number of ads run. Calculated for each daypart where the average differed, then summed across the total schedule

Average watch time

Watch time / total impressions

Of voice (OV)

Number of ads for a product or brand/total number of ads for similar products or brands of interest to the advertiser

Conversion rate

Results divided by unique visitors / where the product was advertised

Cost per conversion

Cost of the ad campaign / the number of conversions attributed to the campaign

Return on advertising spend (ROAS)

Total revenue from sales/total campaign cost