The GRP index reflects the intensity of an advertising campaign and is considered to be the most synthetic measure. Monitoring marketing activities should be an important element of the operation of any company. There are many reasons. One of them should be the willingness to analyze the costs incurred against the financial results achieved.
The GRP indicator will tell you the truth. Ultimately, what every business is about is growing and thus increasing its profits. In marketing, this means that return on investment your ad needs to generate positive results month after month. However, without an established performance monitoring plan advertising campaigns the advertising cannot be proven to be effective. You must have a list of advertising metrics - a kind of checklist - that are checked regularly so that you can adjust your campaigns if necessary. The GRP indicator should be one of the important items on this list.
What is GRP Index?
Engaging advertising campaign this one. Only the GRP indicator, i.e. gross rating points, allows for its intensity to be determined. GRP, also known as advertising penetration, measures the total number of contacts with an ad per one percent of the audience reached by your message. The definitions of GRP, however, vary. The simplest of them says that GRP consists of the sum of individual ranges or the product of range and frequency. There is a word in the name of the indicator ratingwhich determines, for example, the level of viewership of the program. Without going into the terminological complexities, the GRP indicator is the most important factor in planning an advertising campaign. It is also the most commonly used indicator when comparing the intensity of different campaigns.
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How to calculate the GRP index?
Generally, the GRP index can be calculated in two ways, but we always specify it in points, not percentages. Summarized, the measurement is as follows. Let us assume that the target group 32% saw the first TV broadcast. The GRP is then 32 points. If the second broadcast sees another 32% of the target, the GRP will be equal to the sum of both scopes - that is, 32% + 32% = 64 GRP.
GRP
However, it's important to remember that the GRP indicator doesn't tell you how many people actually watched your ad. Indeed, when calculating the GRP index, it is assumed that the first broadcast was watched by people X and Y, and the second by A and B. In fact, only people X and Y could have contact with the advertisement in both cases. good to watch a total of 2, 3 or 4 people.
The GRP index as the product of range and frequency is calculated differently. If an average of 12% people watch each episode of a TV program and the ad is placed in 5 episodes, then the campaign has 12 × 5 = 60 GRP points. If 50% people watch three episodes, the GRP is 150 points, according to the 50 × 3 formula.
What does the optimal GRP index mean?
The GRP level will not always be the same. When establishing it, you must take into account the purpose of the campaign. And this one may be different. Your business may be interested in maximizing your reach. This means that he wants as many people from his target group as possible to come across the advertisement at least once. The goal may also be to maximize the frequency. This the media parameter determines the average number of contacts with the ad that the recipients have in a given period of time. In this case, the company's activities focus on maximizing the frequency of broadcasting the advertisement, which is at the expense of the number of people to whom it reaches. Thus, the advertisement gains a smaller range. How to logically explain this?
GRP
It is about the effective frequency, i.e. a parameter that determines the number of contacts with the advertising message necessary to remember the advertisement. According to research highest effective range is obtained in the cinema. There, one contact with the ad allows the 70% to remember it by the target audience. Television (15%) came second, followed by printed magazines (10%). The third place is taken by the radio (5%). Outdoor (3%) was off the podium
For the right one There are additional factors to consider when determining the level of GRP for a given campaign. The company needs to comment on, e.g. down Share of Voice. It is an indicator used to estimate the value or quantity share of advertisements of a given brand compared to advertisements of all brands from the same product or service category, broadcast over a certain period of time. Another important indicator to know is Share of Market (SOM), i.e. the percentage share of the product in the market. Having this data, we determine the optimal GRP level depending on the position of the product and the purpose of the campaign.
GRP indicator in the digital age
Those who say that GRP will only come in handy with traditional media may be wrong. You need to understand two basic principles of how digital advertising works. Some argue that since digital advertising can be targeted to specific audiences, a target group is precisely defined, the actual range relative to the target's facility is exactly 100%. This would mean that the GRP indicator becomes unnecessary at this point.
In fact, while digital targeting is more precise than traditional media, it relies heavily on cookies. Thus, it is far from perfect. Due to the deletion of cookies, the ad servers often over-reach and under-frequency. In addition, the data in the cookies may also be out of date or incorrect, leading to further inaccuracies. As a result, the actual reach and frequency of digital campaigns often differs significantly from what was originally planned and should be measured in ways other than ad server metrics.
There are other compelling arguments for continuing to use GRP. Although we live in a digital world where online marketing plays first fiddle. Measuring your marketing activities is a must. Unless someone wants to act for the sake of action, regardless of the results. However, the GRP indicator alone is not enough. It is also a mistake to focus on ad hoc data or not take into account the wider context of the organization's functioning. For cross-platform campaigns, GRP is an extremely important guideline. It allows you to understand, among other things, what messages were delivered to recipients using on different platforms.