### Impressions - Management By The Numbers

```Advertising Metrics
This module covers the concepts of impressions, gross
rating points, CPM, reach, frequency, and share of
voice.
Author: Paul Farris
Marketing Metrics Reference: Chapter 9
Impressions are the basic unit
Each time a person has an opportunity
to see an ad, an exposure, or
impression is counted
More accurately, these are Opportunities to See
as we don’t know if the person actually paid attention
Definition
Impressions = Exposures = Opportunities to See (OTS)
IMPRESSIONS
Impressions
Rating Points are impressions as a percent of a population. Therefore, if an
advertisement is shown on TV 4 times and that show is watched by 10,000
people out of a population of 100,000, that advertisement would generate 40
rating points (4 x 10,000 / 100,000). Because people can be exposed to an
Definition
Gross Rating Points (GRPs) represent the sum of Rating Points over
several media vehicles
Gross Rating Points (%) = Impressions (#) / Total Population (#)
Definition
Target Rating Points (TRPs)
replace the total population with a specific group
GROSS RATING POINTS (GRPS)
Gross Rating Points (GRPs)
To measure the cost efficiency of campaigns, advertisers monitor the
cost per impression. Given this is likely to be an impractically small
number (fraction of a cent) CPM is more often quoted.
Definition
CPM is just the Cost per Thousand Impressions
CPM (\$) = Cost of Advertising / Impressions Generated (in 000s)
Example:
20,000 impressions generated for \$400 have a CPM of \$20.
COST PER IMPRESSION AND CPM
Cost Per Impression and CPM
If impressions are the basic unit of measurement in advertising, a company
might also be interested in how those impressions are distributed across a
target population. The company might want to know how many different
They also might be interested in knowing how often (on average) someone
By definition then, Impressions are the product of
the number of people (Reach) & how many times
they see it (Frequency)
Definition
Total Impressions (#) = Frequency (#) * Reach (#)
REACH AND FREQUENCY
Reach and Frequency
REACH
Reach
Definition
Reach: number of people who have been exposed
Reach of
AKA Net Reach: The qualifier “net” is often
used to emphasize that individuals are not
double counted when calculating reach.
Caution:
Only count
once
A Venn Diagram is often the best way to
illustrate Reach
Reach of
Definition
Effective reach is registered only after a threshold
(effective frequency -- often 3) has been achieved
Effective Reach (#) =
People exposed at or above a given Effective
Frequency (#) level
Reach of an
Definition
Average Frequency is the average number of times each person who has
Frequency (#) = Total Impressions (#) / Reached Individuals (#)
Definition
Effective Frequency is the number of times a person
needs to be exposed to an ad for it to be counted as
“effective”.
FREQUENCY
Frequency
FREQUENCY RESPONSE FUNCTIONS
Frequency Response Functions
1) Linear:
1.2
Linear Response
1
0.8
0.6
Cumulative
Effectiveness
0.4
0.2
0
1
2
3
4
5
Frequency of Exposure
1.2
2) Threshold:
complete effect at certain point
Threshold Response
1
0.8
0.6
Cumulative
Effectiveness
0.4
0.2
0
1
3) Learning - S – Curve:
accelerating followed by decelerating
marginal effectiveness
2
3
4
5
Frequency of Exposure
1.2
Learning (S) Curve
1
0.8
0.6
Cumulative
Effectiveness
0.4
0.2
0
1
2
3
4
5
Frequency of Exposure
6
7
A company might want to compare the impact of their advertising with
their competition. Share of voice is one measurement used to
measure this relative difference. It does not, however, capture the
overall effectiveness of the advertising campaign.
Definition
Share of Voice =